Question

A company has a goal of increasing revenue from social media site by 15% in the next quarter. They know the costs of their paid advertising and internal resources to promote the social media platform. They also have a readily available metric (sales orders) and are collecting data on conversions from follower to lead to site. What is the company trying to calculate?

Answer 1

The company aims to calculate a 15% increase in revenue from social media platforms by factoring in advertising costs, internal promotion resources, and analyzing conversion rates from followers to leads and sales.

Step-by-step explanation:

The company is trying to calculate the increase in revenue from social media sites by 15% in the next quarter. They are considering all the factors that contribute to this goal, including the cost of paid advertising, internal resources spent on promoting the platform, and data on the conversion rates from followers to leads and to sales on the site. A prime factor in determining the desired outcome is understanding the price elasticity of demand, which describes how the quantity demanded varies with a change in price. The company's efforts highlight the significance of conversion rates as a measure of how successfully the company turns social media interactions into actual sales, ultimately impacting revenue.