Stop guessing and start measuring. This guide explains key metrics like engagement rate, leads, clicks, and conversion to prove the value of your social efforts.
Is your social media making money? If you can't answer that with a 'Yes' and a number, you have a problem. Vanity metrics (likes) feel good, but sanity metrics (dollars) keep the business alive. Here is how to track the real return on your common social media mistakes corrections.
The 4 Metrics That Matter
1. Conversion Rate
Of the people who clicked your link, how many bought or signed up? High traffic with low conversion means your website is the problem.
2. CTR (Click-Through Rate)
How many people who saw the ad clicked it? A low CTR means your content/creative is boring or irrelevant.
3. CPA (Cost Per Acquisition)
How much did you spend to get one customer? If you spend $50 to sell a $40 product, stop immediately.
4. Customer Lifetime Value (LTV)
If a customer stays for 12 months, you can afford to spend more to acquire them. Know this number.
The Simple ROI Formula
ROI = (Revenue - Cost) / Cost * 100. If you spent $1,000 on ads and made $3,000 in revenue, your profit is $2,000. ($2,000 / $1,000) * 100 = 200% ROI.
Data Drives Decisions
Stop posting based on feelings. Post based on data. If 'Educational Reels' have a 200% ROI and 'Memes' have a 0% ROI, stop making memes.
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