February 23, 2025

How to Use Analytics to Improve Social Media ROI

Learn how to leverage analytics to enhance social media ROI through effective tracking, meaningful metrics, and strategic adjustments.

Social media ROI isn't just about money - it includes engagement, brand awareness, and customer satisfaction. The problem? Nearly half of CMOs can't measure its impact. Here's how analytics can help:

Track Costs: Understand where your budget goes (e.g., content creation, ad spend).
Use Attribution Models: Identify which platforms and tactics drive results.
Focus on Metrics That Matter: Shift from vanity metrics (likes) to conversion metrics (sales, leads).
Choose the Right Tools: Platforms like PostRocket.ai and Windsor.ai make tracking and optimizing easier.

Key Steps:

Link all social accounts to an analytics tool.
Track metrics like reach, engagement, and conversions.
Use data to adjust campaigns and allocate budgets effectively.

Analytics tools help you connect social efforts to real business outcomes. Ready to see what’s working and what’s not? Let’s dive in.

Choosing the Right Analytics Tools

Tracking social media ROI starts with the right tools. According to GM Insight's 2024 report, 90% of enterprises plan to use social media analytics for strategic decisions . When selecting a tool, prioritize features like:

Unified Dashboard: Monitor performance across all platforms in one spot.
Real-time Tracking: Get instant data to make quick campaign adjustments.
Sentiment Analysis: Understand public opinion and track brand perception.
Competitive Analysis: Compare your performance with competitors.

Take PostRocket.ai, for example. It provides analytics for platforms like Twitter/X, Instagram, and Facebook. Their Enterprise plan includes unlimited tracking and growth consulting services. Once you've chosen a tool, focus on metrics that directly influence ROI.

Your metrics should align with your campaign goals. For awareness-focused campaigns, track engagement rates, unique reach, click-through rates (CTR), and website traffic. Here's a quick breakdown of essential metrics:

Awareness Metrics
These include follower growth, reach, and impressions - great for assessing brand visibility.
Engagement Metrics
Track likes, comments, shares, and CTR to see how well your content connects with your audience.
Conversion Metrics
Keep an eye on lead generation, sales, and conversion rates to measure ROI impact.

Steps to Set Up Your Analytics Tools

A smooth setup process is crucial for improving ROI. For instance, a Forrester study found that Sprinklr Social users achieved a 327% ROI when effectively using analytics . Here's how to get started:

Connect Your Platforms
- Link all your social media accounts to the analytics tool.
- Ensure data flows correctly and permissions are set up properly.
- Add custom tracking parameters for specific campaigns.
Customize Your Dashboard
- Create tailored reports for stakeholders.
- Set up automated alerts for key thresholds.
- Configure benchmarks to track competitors.
Align With Your Goals
- Define KPIs that match your objectives.
- Enable conversion tracking to capture important actions.
- Establish baseline metrics to track improvements over time.

Improving Campaigns with Analytics Data

Identifying Top Content and Trends

Once your analytics setup is in place, use the data to fine-tune your campaigns. Study performance metrics to spot trends. For example, Facebook videos show 59% higher engagement compared to other formats . Tools like PostRocket.ai's dashboard can help you quickly pinpoint your best-performing content across platforms. By analyzing patterns - such as LOVE and HAHA reactions making up 81% of Facebook video responses - you can see what resonates most with your audience.

Updating Campaigns Using Data Insights

Data analysis can guide updates to your campaigns:

Content Adjustments: Monitor metrics like engagement type, click-through rates (CTR), retention, and conversions to decide what works best .
Cost Efficiency: Note changes in costs, such as CPM dropping from $6.52 in Q4 2022 to $6.06 in Q4 2023 . On Meta, Reels currently offer the lowest CPM .

Also, compare demographic data across platforms to ensure your resources are allocated where they’ll have the most impact.

Comparing Performance Across Platforms

Each platform attracts different age groups, which can influence your campaign strategy. Here’s a breakdown of age distribution:

Platform	Ages 18-29	Ages 30-49	Ages 50-64
YouTube	93%	92%	83%
Instagram	78%	59%	35%
Facebook	67%	75%	69%
TikTok	62%	39%	24%

If your target audience is primarily aged 30-49, platforms like Facebook and YouTube might deserve a larger share of your budget. Use ROI data to adjust your spending per platform for maximum impact.

Advanced Analytics for Better ROI

Refining your social media ROI starts with building on solid analytics strategies and adopting advanced techniques.

Building Goal-Focused Reports

To showcase social media ROI, your reports should focus on KPIs that align with business goals - not vanity metrics .

Here’s what to include in your reports:

Report Component	Purpose	Key Metrics to Include
Executive Summary	Quick performance overview	Top KPIs and goal progress
Campaign Analysis	Evaluate specific initiatives	Cost per acquisition, conversion rates
Audience Insights	Monitor demographic trends	Age, location, engagement patterns
Platform Performance	Compare channel success	ROI per platform, engagement rates
Action Items	Plan for future improvements	Specific steps with deadlines

For example, BT, a British telecommunications company, used goal-focused reporting to track their social media customer service efforts. By analyzing specific metrics, they saved £2 million ($2.5 million) in operational costs and boosted customer satisfaction scores .

These detailed reports also set the stage for automation and precise attribution.

Analytics Automation Tools

Automation tools simplify tracking and analyzing social media performance. Tools like PostRocket.ai streamline cross-platform performance tracking, while companies like PayPal have used analytics automation to drive revenue growth and cut losses .

To integrate analytics automation effectively:

Pinpoint repetitive tasks that can be automated .
Choose tools that work seamlessly with your existing tech stack .
Regularly check the accuracy of automated data .

Using Attribution Models

Once automation is in place, attribution models help you assign credit to various touchpoints in the customer journey, improving your ROI strategy. Different models suit different needs:

Attribution Model	Credit Distribution	Best For
Last Interaction	All credit to the final touchpoint	Quick purchase decisions
Linear	Equal credit across all touchpoints	Complex buyer journeys
Time Decay	More credit to recent touchpoints	Time-sensitive campaigns
Position Based	40% to first and last, 20% to middle	Balancing awareness and conversions

Interestingly, 41% of marketers in Asia Pacific say custom modeling is their most effective attribution approach, yet two-thirds of marketers don’t use any model at all .

"There are few things more complicated in analytics (all analytics, big data and huge data!) than multi-channel attribution modeling." - Avinash Kaushik

If you’re just starting, the Time Decay model is a good option since it emphasizes recent touchpoints . Tools like Google Analytics’ Model Comparison Tool can help you see how different models impact your ROI calculations .

To achieve better ROI from your social campaigns, focus on refining your strategy and using precise analytics.

Analytics Setup Checklist

Use this streamlined checklist to make the most of your analytics efforts:

Phase	Key Actions	Expected Outcome
Foundation	Set SMART goals, define KPIs, and select analytics tools	A clear framework for measuring success
Implementation	Configure tracking, set up attribution models, and create custom reports	Reliable and accurate data collection
Optimization	Monitor metrics, run A/B tests, and adjust targeting	Better performance and insights
Scaling	Automate reporting, expand winning strategies, and update goals	Consistent growth in ROI

Sprout Social highlights that social media analytics are crucial for demonstrating ROI and guiding decision-making .

Action Items

Here are three actionable steps to see immediate improvements:

Establish Your Baseline Metrics
Start by identifying your current reach and engagement levels to create a starting point for growth .
Implement Advanced Tracking
Use advanced tracking methods to measure both organic and paid campaign performance, with an emphasis on key conversion metrics .
Optimize Based on Data
Focus on audiences that deliver results by tailoring your content and refining your targeting strategies .

Tools like PostRocket.ai can help by automating cross-platform tracking and consolidating performance data. However, there’s a gap to address: while 80% of businesses believe they provide excellent social media service, only 8% of customers share that view .