Quick Summary
Is social media worth the effort for your business? The answer depends on clear goals and data. This article breaks down how to measure social media ROI by comparing costs—like time, ads, and content creation—against tangible results, such as leads, referrals, and brand awareness. Real-world examples highlight how businesses use social media for sponsorships, customer acquisition, and even hiring. With the right metrics, companies can stop guessing and start making strategic, data-driven decisions that maximize social media’s value.
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Hi my friend,
Do you remember your first apartment? I do. It was in Puente de Vallecas, a rough Madrid neighbourhood. The kitchen was falling apart, and I’m pretty sure my neighbour was a con artist. But damn it, it was mine. I made the most out of it—until the headaches outweighed the cheap rent.
Social media is similar. As platforms evolve, so does the way businesses value them. So, do you adjust to make it work or move on? Let’s get into it.
Question of the Week
“It feels like we put too much time and energy into our social media content. Is it worth it?”
The key to answering this question lies in the data. If you “feel like” it’s not working, it’s a sign that you’re out of touch with the numbers.
Don’t get me wrong. I’m a big believer in following your gut. But not here. Lean into data, not feelings, for this one.
The Role of Social Media in Your Business
Your website must be fast, mobile-friendly, and easy to navigate. This is a non-negotiable. Simple I spend 2 hours a week on LinkedIn. The result? In 2024, 4% of our sales inquiries came from social media, compared to 39% from referrals. You could conclude that LinkedIn was a waste of time.
But here’s the caveat: many of our referrals found or keep in touch with me on LinkedIn.
I know this because I ask every inquiry, “How did you hear about us?” and document their responses.
Measuring the data helps me know social media’s role in the business. And from there, I can discern “how much effort” is enough effort.
Other Scenarios
For me, social media helps me nurture referral relationships. For you, it could provide value in an entirely different way.
Here are a few scenarios:
- Privacy: A study revealed that ultra-high-net-worth individuals (UHNWIs) often follow luxury brands anonymously. Your next client could be watching you, but you’d never know.esign at this stage. Sometimes, small tweaks like updating photos or a few pages can make a big impact. But if you’re updating over half the site, you might be better off investing in a full redesign so everything feels cohesive.
- Brand Sponsorships: Clients like Sansa Interiors (60k followers) partner with brands and monetize their large followings.
- Press: A friend and former magazine editor once told me over coffee she used to vet submissions by checking a firm’s social media for red flags.
- HR: My childhood friend, an HR Manager at a construction company, uses social media to attract talent. They rely on RFPs to land new projects, but she knows job candidates check a company’s social media to gauge workplace culture.
Start Measuring
Start by measuring your input: labour costs and expenses. Then compare it with the output. Add a “How did you find us?” field to your contact form, ask prospects at the start of sales calls, and track responses for 3 to 6 months.
I can’t judge if social media is worth it for you. But your data can.
Until next Thursday,
Daniela
CEO at Findable Digital Marketing
