Most of companies or startup companies are investing in Facebook although many of them don’t know whether their efforts are fruitful or not. ROI(return on investment) is the deciding factor for any companies, in whether companies will execute a very specific marketing technique.

What is ROI(return on investment)

Short for return on investment, ROI is a financial metric used to evaluate the efficiency of an investment. To calculate ROI, the net profit of an investment is divided by the total assets; the result is expressed as a ratio or a percentage. For example, if your net profit is $200000 and total assets are $700000 then your ROI would be .28 or 28 percent.

Facebook ROI

There’s no doubt that social media is the great weapon for businesses to be familiar across the web world. Facebook is the top social site than others so that most companies are investing in Facebook to get success.

Problems of Facebook ROI For Businesses

The first problem of Facebook Roi is you cannot confidently speak to your return. Another problem with Facebook is, it’s ROI is a different beast than Google Adwords. The ROI from Google Adwords is easy to determine because it returns the direct revenue generated from each click. But Facebook ads platform provide returns through leads, traffic, and customer testimonials.

The Positive Impact of Facebook ROI For Businesses

Although Facebook ads has few problems but it provides immense advantages to business. These advantages are stated below:

1. First You Need to Understand Your Customer

Facebook is such an unprecedented repository where you can find any kind of information about people. As a result this gives you the opportunity to understand your customers that who are your actual customer, who are want to buy your product and services.

Suppose, you have a western cloth store and people will visit to your store who are like those type of clothes. Besides this when they see your products ads on Facebook, they must be think that your products are really popular. They will share your product ads with their friends or family if they find interesting.

In your Facebook page insights, you can see people’s age, gender, language and location information by going to the People tab in your page. That insights help you to know about your customer, who are engaged by your page activities.

2. Your Friends Share With Their Friends

This occurs when your friends or fans likes, comment and share your Facebook posts. These interactions helps your business growth widely. And this will be happen when you will able to attract your customer by your page activities. To attract people you can write posts to tell in details about your products or tell them how can use your products. You can also write content about your product or service, or can give some advice on how to improve their life or how to solve a problem then you will be able to attract your customer.

Facebook ads is more powerful than simple ads because people cares about what their friends posts or do, not what other businessman’s posts. According to research report 70% of US consumers buy products recommendations from friends and family.

3. Sales and Leads sales

Facebook ads helps to drive people to your website through paid clicks and leads sales. But like Google Adwords Facebook don’t target ads to people at the right time they are looking for it. So for the sake of increasing sales you can provide an incentive to get people to click. Coupon or limited-time-promotion is the best incentive for people to drive a direct sale. You need to create a great landing page with in details that how can they use the coupon.

You can also provide a small prize(such as a $10 gift card) through a contest, which generate new sales leads. The contest prize entices people to enter and they will definitely buy something if they find what they looking for. So make the prize relevant to your business.

By offering contest you can get lots of new email and contact details that who are enters your Facebook contest and you can send different type of products offer to their email inbox.

4. Facebook ROI Referral traffic to Your Website

The best way you can create useful posts with pictures that tell a story about your products or you can give instructions to people that how can they use your products. You can also upload different types of your product pictures and can write a short note about pictures to attract people. As a result, people will visit your website to see in details.

For service business you can write posts that about how can they get benefited to take your service. If people find something relevant to their needs they will visit your website to know details.

Conclusion

Facebook is one of the most popular social site for people to connect each other at all time. Like any business tool businessmen can use or take advantages from Facebook ads to spread their businesses over worldwide. If used properly, Facebook ads can be a “key of success” for your business.

Photo Credit: KuboG

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