Sneha Jasrasaria Quick answer
To measure social media ROI, link your social activity to business results. Track reach and engagement to see if content works, then track enquiries, leads and sales from social using UTM links, tracking codes, WhatsApp keywords and the Meta Pixel. ROI is the value you earned minus what you spent, divided by what you spent.
Key takeaways
- Likes are signals, not results
- Track every enquiry back to its source
- Use UTM links, codes and the Meta Pixel
- Review a short report every month and act on it
“Is social media working for us?” is a fair question. The answer needs numbers that connect posts and ads to real business.
The three levels of social media metrics
| Level | Metrics | What it tells you |
|---|---|---|
| Attention | Reach, views, follower growth | Are people seeing you? |
| Interest | Engagement, saves, shares, profile visits, link clicks | Do they care? |
| Action | Enquiries, leads, bookings, sales | Is it making money? |
Most reports stop at level one or two. ROI lives at level three.
How to track actions from social media
- UTM links: add tags to links in your bio, stories and ads so Google Analytics shows social traffic and conversions.
- Meta Pixel: tracks form fills, WhatsApp clicks and purchases from Meta ads.
- Codes: a unique discount code for Instagram or for each creator.
- WhatsApp keywords: a pre-filled message per campaign.
- Ask: “How did you hear about us?” at the counter, on calls and in forms.
The ROI formula
ROI = (Value earned − Total cost) ÷ Total cost × 100
Total cost includes agency fees, ad spend, shoots and creator fees. Value earned is the revenue (or profit) from customers you can trace to social media.
Example: if you spent ₹50,000 in a month and traced ₹1,50,000 in sales to social, ROI = (1,50,000 − 50,000) ÷ 50,000 × 100 = 200%.
Look beyond one month
Some customers take weeks to buy. Others become regulars. Track repeat customers and lifetime value where you can.
A simple monthly report
- What we posted (count and best three posts).
- Reach and engagement compared with last month.
- Ad results: spend, leads, cost per lead, sales.
- What worked and why.
- What we will change next month.
Keep it to one or two pages. A report you read is better than a long one you skip.
Common mistakes
- Judging success on likes alone.
- No tracking on links and ads.
- Changing strategy every week.
- Ignoring lead quality.
Want clear reporting?
Our social media and ads plans come with regular reports that tie content and ads to enquiries. See our social media marketing plans and performance marketing.