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Calculate the ROI of Your Social Media Activity Part 2

Posted by Natasha Aidinyantz, under , on July 30, 2015, No Comments
Calculate the ROI of Your Social Media Activity Part 3

In the last post of this series we talked about what social media ROI is all about and I showed you an example of a campaign we sent out at Live And Social. I explained that at each stage of a campaign you must have key performance indicators and a way to measure the journey a prospect goes on each stage of the campaign you’re creating. In this post we delve deeper into the understanding of the mechanics behind making each stage work.

In this post we will start by talking about the importance of landing pages (for which your campaigns should always have one) and then we will start to look out calculating the conversions at each stage of your campaign until we can calculate social media ROI. I will then explain buyer persona’s and how your campaign will be made individually for your personas. This way you can personalise the experience for your customers and get higher conversions at each stage – leading to a increase in ROI.

Landing Pages and CTA’s

Landing pages are essential to any social media marketer. The reason they work so well is because they are website pages with only one focus.

Your current product pages will have home page links, social links, sidebar links and maybe even more – but this is very distracting for a website user. A landing page will be created so that there are no distractions, and the pages get much better results because of this.

blogging landing page

The above image is an example of a webinar landing page we created for our last campaign. We will adjusting the campaign soon: instead of looking at mistakes we will be looking at the same topic in a more positive light. And we will also be testing day and time of the webinar to see what performs better.

The beauty of landing pages is that they only have one goal. Our landing page is trying to capture webinar registrations. Examples of other goals would be getting people to fill in a contact form, sign up to an email, enter a prize, purchase a product/service or sign up for an offer coupon.

Create a Landing Page That Converts

Here’s a few tips on landing pages that convert.

  • No Distractions – if your landing page only has one goal it shouldn’t aim to do anything but that one goal. IE you should remove your top menu so that people are unable to do anything apart from convert or leave the page.
  • Images / video – images and videos on the landing page work better at converting people so if you can use them you should!
  • Colours / design – you want something that will match the branding of your company but you also need to ensure that the design works in mobile devices and tablets. Think about usability!
  • Copywriting – Your landing page is all about giving someone enough information so that they can make an informed decision. But also you don’t want to blab too much or people will get lost and leave. Find the right balance.
  • The form – in a study by ImageScape, they were able to increase number of form submissions by 160% and conversions by 120% by reducing the number of form fields from 11 to 4. The lesson – people don’t like having too much choice. Make things simple and you will get better results.
  • Thank you page – create a thank you page with some nice wording on it for after someone converts.
  • CTA’s – write CTA’s with your user in mind. It’s not enough sometimes to say ‘download now’ or ‘buy now’, be more specific and say things like ‘Get my copy now’ or ‘Sign up to be a member’. Telling people what they are going to do helps them make a faster decision.
  • A/B testing – with all of your campaigns you should be A/B split testing. An A/B test is when you create 2 different versions of your landing page which go out to two sets of your contacts. You can then measure which landing page performs better and delete the one that doesn’t work as well. Examples of areas you can A/B test are the headlines, the copy, the images, the design and the branding.
  • Goal set up – if your landing page is leading to a sales conversion then you should set up a goal in Google Analytics. You will then be able to measure how many people complete an action on your landing page and where they came from on the web. I describe this more later.

How to Calculate Social Media ROI?

Now that you know how to get people from your social media channels to a purchase we should look at how to measure your ROI.

Your social media return on investment is the amount of money you make on your social media activity minus the amount of money you spend.

Think back to our example social media campaign using a webinar. We take data from each stage of the campaign and can create a diagram like below:

buyer cycle

At this stage the data doesn’t mean much. We now have to analyse it.

Click through rate (CTR)

The first piece of data we should look at is click through rate. If for example, 10,000 were reached with a social media advert about a blog post and 250 people actually read the blog from social media, we can calculate the click through rate or (CTR) as (250/10,000) X 100 = 0.25%.

If I go back to the post on social media that got this conversion I could analyse the language in the post, the targeting, the imagery and more. A good understanding of my audience on social media would help me improve this percentage.

Conversion rate

Calculating conversion rate and click through rate is the same. We call these conversion rates because we were able to convert a prospect to complete an action.

Looking at our funnel data above, we could calculate webinar registrations and masterclass sign ups as conversion rates. So the webinar registration conversion rate from blog post reads would be (100/200) X 100 = 20% for sign ups and (30/200) X 100=15% for attendees. For the masterclass from webinar conversions the calculation would be (1/20) X 100 = 5%. And lastly you might want to measure the conversion of your whole campaign. In this case you would start with the 10,000 people you reached to the 1 person who bought your product (1/10,000) X 100 = 0.01.

Conversions and click through are important to the success of your campaign and you should always be looking to see how you can make these numbers more efficient.

Now we need to look at how your activity is affecting your revenue.


You will be familiar with your yearly revenue figures and your expenditure. You may even be familiar with Customer Lifetime Value (CLV) but if not here is a quick rundown.

CLV is a calculation of the average value of a customer for your business. This is an important figure in deciding how much advertising budget to spend on a customer. If a customer spends £20 a month in their time with your company (£240 a year), you might not be convinced that a £5,000 advertising budget is a good idea.

So if your typical customer is willing to spend £20 a month for an average of 1 years then:

£20 per month      x      12 months      x      1 years      =      £240     =      CLV

This means that a new customer is worth approximately £240 to your business over 1 years.

Now that you have a CLV you need to find out how much you should spend to acquire a new customer. This is called cost-per-acquisition or CPA. You usually want to spend around 10% of your customer lifetime value to acquire a new customer.

In other words. If your customer will spend £240 in their average lifetime, you want to spend £24 to acquire a new customer.

If your social media budget for the year is £3,000 then you should acquire around 125 (3000/24) customers from this investment.

If you lead your social media followers to a landing page that is converting at 1% then you need 2,400 visitors to get 24 customers. See how the maths can help you formulate a better strategy?

In the Live And Social campaign example, we know that people who subscribe to our masterclass spend on average £2000 for the full 12 weeks. This is £167 a week and after 12 weeks they are asked to join a community at £50 a month. This makes the average lifetime value for a masterclass customer £4000 a year. I know that I need to spend £400 to acquire a new customer.

Cost per acquisition (CPA)

Your cost per acquisition will vary depending on your product and the buyer persona you are targeting. But the important thing here is that cost per acquisition is an ‘average’. So the more you measure it, the more accurate your data will become.

Our whole campaign cost us £200 in adverts and 5-10 hours in time writing blogs and setting up pages. An hour for our organisation is £60, so we spent £600 to acquire a new customer.

If you don’t know what an hour is to your company you should find some time to work it out as this will help make your data more accurate.

I know that I need to go back and adjust the campaign so I am spending less on acquiring a new customer because £600 is 15% of £4,000 and I am looking for my CPA to be 10% of my CLV.

A good way to organise your social media activity is to create an ongoing monthly schedule for activity and plan out quarterly campaigns with individual objectives. The ongoing activity will build your community and your quarterly campaigns will push your community towards your website to buy your product or service.

Buyer Persona’s

When I ask the question: who are you selling your product/service to? What kind of person comes to mind? The majority of you are going to picture your typical customer. But how much do you know about your typical customer. How much have you listened to them?

Buyer personas help you develop the characteristics of your typical customer so that you’re able to market to them as best as possible.

Take a look at the examples of a typical buyer persona for the company Hubspot.

buyer persona section 1

buyer persona section 2

buyer persona section 3

buyer persona section 4

Now it’s time to develop your own buyer persona. You might not have all the information you need to get a full picture right now. But try your best to fill as much in as possible and whatever you need to find out, you can by asking your customers; either by sending out a survey or asking them face to face.

I will publish the next blog post next week and by then you should have now the campaign you want to create and have it tailored to a specific buyer persona. Now start jotting down each stage and create a plan for what you will develop and when you will publish it. In the next post I talk all about analytics and how to use the tools at your disposal to help you make your calculations.

If you have any questions about this article or would like to find out more about how Live And Social can help you contact us on @liveandsocial or www.liveandsocial.com/contact.

Social Media Manager Survival: Your July Growth Pack

Posted by Ollie Whitfield, under , on July 28, 2015, No Comments
Social Media Manager Survival Your July Growth Pack

Once again it’s the end of the month and time to review your social media activity. How has your month been? If you saw follower, engagement and all kinds of growth then great, that’s why you’re here. If you didn’t get the growth you wanted, every month we will help you growth hack your social media presence. Here’s this month’s edition…

Knowing where your prospects are

If you know where your prospects are active on social media you need to find them and interact with them. That in truth is half of the battle. It’s very easy to post and share your content but share it to nobody. Getting into the right conversations is the part that reaps the benefits but also the thought, strategy and relationship-building before hand. Who said marketing was easy?

For example, if your brand is active on Instagram you could:

  • find content that is similar to what you post,
  • find out who likes the content,
  • make sure you visit the user profile of the people who like the post- some could be SPAM or random people.

You want to get highly accurate and refined followers. If you spend time getting them your audience will grow slower but it will be full of more relevant people that are higher quality to you. You won’t find yourself with 100 thousand followers but no likes on your posts like some companies . Hopefully you get to one thousand and have lots of likes on your posts consistently.

If you find an update that is similar to the content you post, leave a comment. Read the comments and see if people are tagging people they know. It’s likely these people will be interested in your content too.

Forced sharing tactics

Live And Social use Oktopost to share content on both our brand and staff social media accounts. When we share the blog posts and other content from the team accounts I like to put a Twitter mention of the brand account in the team updates. This may not sound like genius, but it connects the content being shared back to the brand and is a mention for the brand account. The brand account can retweet the post, it’s almost a way of the staff accounts sharing our content as if it is curated content.

This will also come back to your brand if the staff update is retweeted or the person who has read it wants to tweet you and show their appreciation. They may not even take the time to check that the staff member is connected to the company, so they need to know it is your brand content. That’s why having your brand username on the update is one of my most important tips for this month.

I share our blog content on the staff Twitter accounts but recently I’ve been considering a separate image to share on these staff updates with each blog post. Perhaps a templated “new blog post alert” image with the title or a random image that is relevant created in Canva.


Whether engaging in guest blogging exchanges or blog sharing partnerships I would strongly encourage you to reach out to people this month and create partnerships.

If you follow us on Instagram you may be seeing posts from Lidyr Creative on our profile and vice versa. We have just started to share each others posts twice per week. This is great exposure to each others’ audiences and almost free content. All I have to do is share two social media tip posts from Lidyr Creative and most posts will be shared too.

We will be rolling out a guest posting  schedule soon too. The aim is to get some more variety in our blog calendar. We want to form strong relationships and partnerships with bloggers and other marketers to help bring you and our audience even better content. Sometimes all people want is a fresh perspective or view. Only a small change of tune could set your blog on fire and gather a huge crowd. If you’d like a ton of traffic and to save the time of writing a blog post you can think about guest blogging. It will take some time and effort to set up the partnership and arrange the content, read through it and publish it.

Don’t forget to share this blog post to our friends and connections. We’d love to hear your thoughts on this months growth pack… get in touch with us on social media!

If you would like more advice or assistance with your social media and content marketing get in touch with us. Call 08452871181 or email alive@liveandsocial.com

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