Question

A company has a goal of increasing revenue from social media share 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 is calculating the return on investment for their social media efforts by assessing the effectiveness of their marketing strategies in relation to their goal of increasing revenue by 15% in the next quarter.

Step-by-step explanation:

The company is trying to calculate the return on investment (ROI) for their social media marketing efforts. They want to determine if the costs associated with paid advertising and internal resources to promote on social media platforms will be justified by a 15% increase in revenue from social media share in the next quarter.

To do this, they are tracking key metrics that include not only the total costs but also the journey from follower to lead to site conversions, which should provide data on the effectiveness of their social media strategies in generating sales orders.

Key concepts involved include conversions, revenue growth, and social media marketing. The company's approach entails a precise analysis of performance indicators that can show them whether their investments are paying off, both in the immediate sense and in terms of meeting their strategic business objectives for the quarter.