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ROI of Social Media

Reach Out

Some businesses struggle with spending money and time on Social Media because they are not sure they see the ROI. Now if you love social media as much as we do then you know there are other benefits like customer service, business intelligence, and SEO, but the real question is ROI. The other reasons are still relevant, but where is the money. Show me the money!


So here is the ROI. Social Media converts 3 times as much as any other traffic source. Let me say that again… 3 times as much any other traffic source. That is huge. How do you take advantage of this? Social Media content creation and engagement.

What does it mean? Let’s say your site averages 1,000 hits a month, and you get another 100 hits from your social media platforms. If you are converting at 3% (meaning 3% of your traffic is purchasing something) then you would be getting about 30 paying customers a month form your website. This means you should be getting 9 paying customers from your social media (9% of the 100). This is great, but what does it tell you? It tells you, you need to funnel more customers through social media because it will increase your conversion. If you could have gotten that same 1,000 people to your website through social media instead of other channels you would have received closer to 90 paying customers.

But why? Social media means you made some sort of personal connection. Maybe they got to your page because a friend of their’s liked it, or you posted an article that reached them a special way. It wasn’t just a sales pitch. That personal connection means higher conversion and wah-lah… more money… ROI (mic drop).