One of trickiest parts of social media marketing has traditionally been measuring return on investment. It has made many business owners, especially those who didn’t grow us using internet, wary of spending too much time or money on these nontraditional methods. Facebook recognizes this problem, and they’re going out of their way to fix it. They want your money, and they’re willing to prove they deserve it.
The social network is soon releasing a new tool which will enable online retailers to know who came to them through Facebook and purchased items, easily and effectively outlining ROI. The most valuable part of this tool is that marketers can take the information on which ads converted into sales and hone their ads. Narrowing down which ads sold to which people will help businesses lower costs while raising return.
“Measuring ad effectiveness and outcomes is absolutely crucial to all types of businesses and marketers,” said David Baser, from Facebook‘s ads business. According to David, the tool is already seeing heavy demand.
Customers should rest easy knowing that Facebook isn’t broadcasting too much about them though. A business will know when someone makes a purchase or performs another action businesses desire, like singing up for the mailing list. Businesses WON’T be able to see the Facebook profiles of their customers and track each person individually down the sales funnel.
The tracking tool only works for direct online sales. The ROI of brand building will continue to be nebulous, at least in the way of hard numbers. Savvy social media users will tell you that the return on investment of good customer interaction will always be high though. This is especially true on sites like Facebook and Twitter where the cash investment is relatively low.
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