Social media has become one of the most popular platforms these days. People from different age groups seem to use social media networks like Facebook, Twitter, Instagram, Pinterest, Google Plus, LinkedIn, YouTube and more as major modes of communication. Studies have shown that 90% people read consumer reviews on social media before proceeding to make a purchase. Social media platforms have become the most favored places for the advertisers to market their products or services. But how an ecommerce business ensures a higher ROI (Return on Investment) from the investments on the social media?
What is ROI? ROI is “a performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. ROI measures the amount of return on an investment relative to the investment’s cost.”
It is calculated by using the formula:
ROI = Gain from investment – Cost of investment/Cost of Investment
Let us illustrate it with the help of an example. Suppose an entrepreneur invested $1000 to start a business in 2013. She sold the shares of the business to another party for an amount of $1200 in 2014. In order to find out the return on investment, she would find out her profits ($1200-$1000 = $200) and divide it with her cost of investment ($200/$1000) and get the ROI as 20%.
Its simplicity and versatility have made ROI a popular metric worldwide. It is used to calculate the profitability of any investment. Return on investment can be calculated and interpreted easily, as shown in the above example. ROI can be used for different kinds of investments. An investor can use the ROI calculations to compare the profitability of two or more of his/her businesses and depending on the profit levels, he/she can decide on which business to invest.
Most of the ecommerce businesses do not know the strategies to advertise their products on social media platforms. And those who know, they are not being able to get a better return on investment. Ecommerce advertising is difficult but not impossible. Here are simple tips and tricks which you can use to better your ROI from social media investments.
Content is considered effective only if it adequately focusses on the needs of consumers. Web developers can create dynamic websites for you but if your content is not engaging enough, it will not be possible to get attention of the consumers. An ecommerce site has different forms of content like customer reviews, product descriptions and queries that often lead to participative discussions. Also, equal importance should be given to developing visual content because of their highest rate of user engagement.
Know Customer Needs
Collecting information about the requirements of your target audience is very important. Unless you know their requirements, you will not be able to engage them with your content. So how do you do that? You can check profiles of the customers on the social media sites to get an insight on their interests and their needs. You can also conduct a survey through these social media platforms or mail the survey forms to their mail ids.
After acquainting yourself with their needs, you can develop the content accordingly. Keep monitoring these posts to see their response rate within your target audience. If they are received well, you can continue developing more such content; otherwise, you have to think on different lines.
Value the Social Media Influencers
Social media influencers are those individuals whose recommendations can actually influence the purchasing decisions of other consumers. These individuals have earned respect and trust from the users and so can have an impact on the users. Ecommerce retailers try to persuade these influencers to put in a word for their products. This way they can attract a whole set of new customers for their products. It takes advertising to a completely different level.
Include Quotes in Your Articles
Try incorporating quotes or statistics in your blog to catch the attention of the consumers. Also, make sure that these phrases and quotes are always highlighted so that the readers can easily share them on Facebook and Twitter.
Social Media Tips for Better ROI in Ecommerce – Infographics
Infographic Source: toptensocialmedia.com
Make it Mobile Friendly
A report by Quicksprout suggests that around 1.2 billion people use mobile phones for accessing the internet. This is indeed a huge number. Also, according to an estimate, nearly 63% people will be shopping using their cell phones in next few years. So to optimize these whopping number of customers, a mobile friendly app is a must. Always remember, if your customers face difficulty in accessing your app, they will switch to your rival’s app in no time.
Wise Selection of Promotional Channel
You must have heard the phrase, “Too many cooks, spoil the broth”. Yes, same applies while marketing. If you try to advertise on each and every social site, then it will hamper proper implementation of your action plans. Focus on 2-3 major social sites which have proven to increase the ROIs. Target the dominant social sites like YouTube, Instagram, and Facebook to reap greater benefits.
Focus on Customer Reviews
Customer reviews are one of the most powerful tools when it comes to increasing sales. Before buying any product, a majority of the consumers prefer to read the reviews of other customers. If you get good reviews from customers, your sales for a particular product will automatically increase because these reviews are seen as trustworthy.
Email Marketing is Important
A study by the Blue Kangaroo Survey on “Marketing Emails” showed that 70% consumers use the discounts and coupons that they get through emails. This tool really helps in convincing people to purchase more.
Don’t Sell Your Information
People use social media for communication not for getting information about any product or for buying it. So first try to build a relationship with them by providing information from which they can benefit. Once the trust is built, you can advertise your products.
It is very important to measure the response rate of the customers for your implemented strategies. Make a monthly report of your performance and find out whether you are moving in the right direction. If not, then you need to revisit your plans.
Zahoor Bhat has over 10+ years of experience as an online editor and media manager. He has worked with major online news and content sites as a media manager. He is well versed with major content management systems and web platforms such as WordPress and social media networks including Facebook, Twitter, Youtube, Google Business, Yelp, Instagram & Linkedin. He is an expert in content creation, proofreading and finally making it live. Being a social media expert, he is able to make relations with social media influencers and make sure to generate leads and grow business via different social media platforms.