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Loyalty Programs: What is the Return on Investment (ROI)?

Here's how to calculate the return on investment of your loyalty program. Calculate the expected ROI of your loyalty program, or your past ROI.

Francesca Nicasio

Content Strategy Manager

Every business owner understands it’s easier to retain an existing customer than to acquire a new one. That’s why many merchants use loyalty programs to incentivize customers to come back and spend more with them. When done right, loyalty rewards, discounts, special early access, etc. can help to drive incremental revenue and maximize your customer lifetime value (CLV).

All that being said, it’s important to remember that loyalty or reward programs are long-term undertakings. Yes, they’re super beneficial to your company, but to reap those advantages, you need to periodically evaluate your loyalty program performance. Some consider loyalty programs to be money pits — and they can be if you don’t keep track of your loyalty program ROI.

So, let’s back up a bit: return on investment (ROI) is a financial metric that evaluates how profitable an investment is. To calculate the ROI, you need to divide the net profit by the cost of the investment, and express it as a percentage. The greater the ROI, the more profitable the investment.

To get a handle on your loyalty program’s success, you need to measure its ROI. The results will help you decide if your loyalty strategy is working or not. If it’s working, you can continue what you’re doing and double-down on your initiatives. On the flip side, you can rejuvenate poorly performing loyalty programs by optimizing offers, running referral programs, or getting customer feedback.

Listen to this post instead:



How do I calculate ROI for my loyalty program?

As with any business initiative, the success of a loyalty program can be measured by its ROI. The formula to calculate it is pretty straightforward.

Return on Investment = (Total Revenue - Total Cost of Running the Loyalty Program) / Total Cost

download free loyalty program roi calculator

Loyalty program ROI calculation: A real-life example

Here's an example from a merchant we have been working closely with. I'm not going to share their name, but I can share their anonymized results so you can see how we assess the impact of their loyalty program.

Real life example (1)

Challenges in measuring loyalty program ROI

The formula for calculating your loyalty program ROI is simple enough to understand. However, there are a few challenges that can make it more difficult to accurately measure your ROI.

Attributing revenue to the right sources

One of the biggest challenges lies in capturing key metrics and pulling the necessary data from various sources — such as your marketing, sales, finance, tech teams, etc. You need to make sure that you’re attributing your revenue gains to the right sources.

For example, your regular customers are your most valuable ones, with or without a rewards program. How can you be sure their value is attributed to your loyalty program?

It can also be tricky to figure out if a purchase was triggered by loyalty program benefits or if it’s just a customer’s normal buying behavior. You need to have the right tracking mechanisms in place to be able to accurately calculate a loyalty program’s ROI. 

Some of the ways to do this include using robust loyalty apps (like Marsello), discount codes, coupons, etc. to track customer behavior that can only be attributed to loyalty programs.

With Marsello, you can track the metrics like change in repeat purchase rate and increase in turnover from loyalty members, as we've done above. This will get you a much more accurate picture of your return.

It takes time to see results

Not only will you need considerable time to gather the data required to calculate the ROI, but it may also take time for your points programs to show results. Customers must first be aware of such programs, engage with them, and rack up enough points on their loyalty cards. It may take months (or more) for your loyalty program to start paying off, so you won’t know your true ROI right away. 

💡 Pro tip: Rather than committing to a 3 month trial across all your sites, commit to one site for at least 1 year (expanding to other sites if you see results earlier). Starting with fewer sites but allowing for a longer time period will give you a much better indication of the impact of the program for your business.

Metrics to consider when measuring the impact of your loyalty programs

Beyond the ROI calculation above, there are many ways you can measure the impact of loyalty programs. You can look at how they affect your revenue, customer base growth, and engagement, among other things.  

You could choose to measure success purely based on financial returns or through KPIs such as engagement rate, brand awareness, etc. Here are some of the data points you may need to track.

  • Transaction volume
  • Average order value
  • Total revenue
  • Cost of loyalty program memberships
  • Marketing cost
  • Purchase frequency of members and non-members

The key is to track these over time. Remember, it takes time to build loyalty, so running a successful rewards program is a marathon, not a sprint. 

And before you calculate the ROI of your loyalty program, make sure you’re clear about your business objectives. What are your specific goals? Do you want to increase revenue by a certain percentage? Reduce your marketing expenditure while boosting sales? Grow your repeat customer base?

This will be essential for setting targets for your loyalty program and understanding its impact on your bottom line.

download free loyalty program roi calculator

Direct ROI of loyalty programs

Direct loyalty program ROI can come in several forms, including:

Increased sales and revenue from repeat purchases

A loyalty program can significantly contribute to a business' goal of increasing revenue and profit. According to a 2023 report by Gitnux, the likelihood of selling to a new customer is less than 20%. Conversely, this probability rises to nearly 70% for an existing customer.

By enhancing customer satisfaction, fostering brand loyalty, attracting new customers, and gathering important customer data, your loyalty program can lead to tangible financial gains. You can also make informed decisions about product development and marketing strategies, further amplifying revenue.

Ultimately, loyalty programs serve as strategic tools for driving sales, revenue growth, and long-term profitability in any business endeavor.

Just ask Scotty’s Makeup & Beauty, which was looking for an email marketing solutions provider when it came across Marsello. Very quickly, the business realized the full potential of Marsello’s tools and decided to also set up loyalty programs. This resulted in Scotty’s Makeup & Beauty unlocking new audiences, increasing its customer engagement, and doubling its revenue.


Reduced marketing costs through targeted promotions

Acquiring new customers through marketing efforts and sales outreach can be resource-intensive, consuming both time and funds. Customer acquisition costs pile up especially when leads opt for competitors.

Since loyalty programs help drive sales from existing customers, they enable your brand to mitigate the expenses linked with customer acquisition.You spend less to drive sales, which leads to a higher bottom line.

Indirect ROI of loyalty programs

Now that we’ve covered the direct ways to measure ROI, here’s a look at the indirect metrics that you may want to track.

Improved customer retention

When customers feel valued and content, they are more inclined to remain loyal and make repeat purchases. Implementing a loyalty program can significantly contribute to this effect.

For instance, imagine being a long-term participant in a supermarket’s loyalty program, accumulating rewards for discounts or free items. Such incentives foster loyalty, encouraging folks to continue supporting your brand despite alternative options.

Enhanced brand loyalty and customer satisfaction

Loyalty programs enhance customer appreciation by rewarding purchases with discounts or complimentary items, fostering a sense of value. Tailoring rewards based on individual preferences demonstrates care and enhances the shopping experience.

This helps to elevate customer satisfaction levels. Satisfied customers are more likely to return, which just goes to show the role of customer loyalty programs in enhancing overall satisfaction and fostering repeat business.

Positive word-of-mouth and referrals

Referral marketing, aka word-of-mouth marketing is a highly effective and sought-after strategy for customer acquisition. Recommendations from friends and family, along with good reviews on social media carry more weight than brand messages.

This is one of the most significant gains from loyalty programs — devoted customers become brand advocates, sharing their positive experiences and benefits received from your business. Through their advocacy, your company can gain new customers organically, without incurring any additional costs.

Data collection and insights for better business decisions

Understanding customers is crucial for business success. Rewards programs offer valuable insights into loyal customers, including their personal details and preferences. This enables businesses to enhance customer experiences and satisfaction by tailoring their services to meet individual preferences.

Bonus points if your loyalty program works across multiple channels. Going omnichannel with your loyalty efforts means you can collect data from all customer touchpoints, while providing a seamless experience no matter where or how they’re shopping.

Fashion label ALPHA60 was looking to improve its customer-first marketing efforts by providing all its customers with the same great experience. ALPHA60 brought in in-store and online sales data into Klaviyo, allowing the brand to display points balances, segment customers, and send personalized emails, no matter how customers shop.

Alpha60 earn options

By using Marsello for loyalty and marketing, ALPHA60 was able to attain a repeat purchase rate of 70%, wildly surpassing what is considered to be a good repeat purchase rate in the industry (between 20% and 40%).

Tools to track your metrics

Loyalty program solutions like Marsello give you a whole host of tools required to track metrics related to loyalty programs. 

The platform's built in marketing analytics capabilities can shed light on which channels and strategies yield the best results. Plus, you can track your loyalty program performance overtime, so you can improve both in the short- and long-term. 

Final words

Loyalty programs can offer substantial returns on investment for your business. The right program can enhance customer satisfaction, drive repeat purchases, and boost retention rates. It also provides valuable data and insights for informed decision-making and optimized marketing strategies. 

That’s why it’s so important to invest in the right solution AND track your return on that investment. Measuring your loyalty program ROI helps you improve, so you can continue to delight customers and keep them coming back.

Need help doing just that? Check out our ROI Calculator to see how your loyalty programs are performing or talk to an expert to discuss opportunities for revenue growth.

Frame 6 (4)download free loyalty program roi calculator


Get advice from a loyalty expert and start driving repeat sales.

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Read more: 7 Steps To Building A Profitable Loyalty & Rewards Program

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    5 Tips for Tracking Social Media Sales

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    In this post, we’ll shed light on the key steps and best practices you must take to effectively track and measure sales you’ve generated via social media.

    Fact: social media is a major part of the lives of today’s consumers. No matter what type of business you run or who your target market is, chances are you have customers using various social apps and platforms.

    Social networks are so embedded in our daily lives that people are increasingly using apps like Instagram, Facebook, and TikTok to discover — and ultimately purchase — products. This is particularly true among younger consumers. Industry data shows that 55% of social media users ages 18 to 24 have purchased something through a social channel. 

    Social media is clearly a solid vehicle for sales, and if you’re active on platforms like Instagram, TikTok, and Facebook, then you’re likely attracting customers and sales through these channels.

    The question is, how many of your sales are actually coming from social media?

    If you find yourself shrugging your shoulders to that question, keep reading. In this post, we’ll shed light on the key steps and best practices you must take to effectively track and measure sales you’ve generated via social media

    By the end of this post, you’ll have a better understanding of the different ways to track sales on social, and you’ll walk away with tips and tools to do it right. 

    Let’s dive in.



    Quick Links:


    Why should you implement sales tracking on social media?

    As the saying goes, you can’t improve what you don’t measure. Actively implementing sales tracking on social media enables you to improve in the following ways.

    You can allocate resources more effectively

    Running social media accounts can take a significant amount of resources. Even if you aren’t actively spending money on ads, you and your team likely devote quite a bit of time and energy planning your posts, creating content, and publishing said content on social platforms. 

    Tracking your sales enables you to hone in on activities that are driving a positive ROI, so you can focus on doing more of what works. 

    That way, you can ensure you’re spending more time (and money) on sales-generating activities.

    It helps you refine your strategy

    In addition to enabling you budget resources more effectively, tracking your sales on social media helps improve your overall marketing strategy. 

    Let’s say you post a mix of Reels, Stories, and static photos on Instagram and notice that certain types of posts are better than others at generating sales. You can use that insight to create more content that resonates with your audience. 

    Measuring your social media sales can also tell you which channels are effective at generating revenue. If you find that you’re getting better results on Instagram versus TikTok, for example, then you can start prioritizing Instagram in your sales campaigns.

    You’ll grow your social media presence

    All of the above benefits lead to a stronger social media presence overall. When you’re able to focus your efforts on the platforms and tactics that matter, you’ll naturally connect better with your audience and gain more fans and followers.


    5 tips for tracking sales on social media

    Now that we’ve covered the why behind social media sales tracking, let’s look at how you can go about it. Here are a handful of tips to ensure your sales tracking efforts are successful.

    1. Start with a plan

    It can be tempting to just start posting straight away and seeing if any sales come through, but a haphazard approach to social media tracking could lead to missed opportunities, inaccurate data, and wasted time. 

    If you want to get the most out of your efforts, you need to lay the groundwork and plan accordingly. 

    Here are some of the details you need to iron out before launching your social media campaigns. 

    Time period. Map out the dates and times you’ll be running your campaign. This will make it easier to attribute sales that come through via social media. 

    Products and assets involved in the sale. What items will you be promoting? Do you have photos and videos of those products? Make sure you have the necessary assets ready beforehand so you can launch you campaign without a hitch. 

    Type of activities. Identify the specific activities or campaigns you’ll be running. Will you be working with influencers? Are you running an exclusive sale? Is it a “new arrival” type of campaign? The right method for tracking your sales will depend on the type of initiative that you’re running. 

    Social networks involved. Get clear on the social network (or networks) that you’ll be using. If you’re leveraging multiple platforms, you’ll need to tailor your efforts accordingly. 

    Resources spent. It also helps to track the time and money you’ve spent on your campaigns. Doing so will enable you to measure your social media ROI and determine whether or not the campaign is worth the effort and resources spent.

    All your marketing, in one place.
    Manage all your marketing campaigns in Marsello. Drive repeat sales with loyalty, send email & SMS campaigns, schedule social posts, set up automations, and more. Then track the impact of your marketing on sales.

    Start free trial


    2.Track social media sales using a special promo code

    A good way to measure social media sales is to use a dedicated promo code. This tactic is best used when you’re running a sale or partnering with an influencer to promote your products. 

    To implement this tactic, come up with a promo code that’s unique to a particular campaign or influencer and make sure the code isn’t used on other channels. These codes should be fairly easy to generate and track if you have the right ecommerce platform or marketing solution. 

    Once you launch your campaign, start looking out for transactions that contain the promo codes you created and use that data to track your sales. 

    We can see this in action in Lakanto Monkfruit Sweetener, a company that makes sugar-free sweets. Lakanto teams up with influencers like Nicole Cogan (@nobread on Instagram) to promote its products. 

    To attribute sales generated through this partnership, a specific promo code (i.e., “NOBREAD”) is used, and Nicole’s followers will get a discount when they enter the code at checkout. Meanwhile, Lakanto can track sales that resulted from the campaign by taking note of how many people entered the promo code on its website.

    no bread instagram post

    Promo codes are simple and easy to use (both for customers and the merchant). Just bear in mind that these codes also have some shortcomings. 

    For starters, promo codes may not always paint an accurate picture of sales. 

    If someone sees your product on social media but doesn’t use the code at checkout, then your system won’t be able to properly attribute that transaction. 

    In addition, if one of your brand partners decides to share their promo code outside of social media (e.g., their blog or during an in-person interaction) then this may distort the data around social media attribution. 

    Also, you can only use promo codes as a tracking tool if you’re running a sales or promotion. Customers typically expect discounts when entering a code at checkout, so if you aren’t running a sale, then you can’t really use promo codes as a tracking tool.

    💡 Pro-tip: Add promo codes to your social media posts in Marsello as one way to track sales and measure the dollar impact of your posts.


    3.Use special links and UTMs

    If you’re using Google Analytics to measure your web traffic, then UTMs (Urchin Traffic Monitor) can help you see which sources or campaigns are driving traffic to your site. 

    UTMs make use of parameters like website source, medium, and campaign to pinpoint where your visitors are coming from. These UTMs come in the form of special tracking codes that you attach at the end of a URL.

    They look something like this:


    In the example above, the source of traffic is social media, the medium is Instagram, and the campaign is holiday products. 

    When you log into Google Analytics, you’ll be able to drill down on how many visitors are attributed to these parameters. 

    You can generate a UTM by heading to Google’s Campaign URL Builder. Just fill out the required fields and the tool will generate the link for you. You can then use that special URL in your corresponding campaigns and then start tracking.


    utms for sales tracking in social media

    If you aren’t using Google Analytics, you can opt for personalized social links instead. 

    Marsello enables you to create a custom “link in bio” page that you can include in your social media profiles. You can then track the number of people who clicked on the link to determine how many followers visited your site.

    link in bio marsello

    Links and UTMs allow you to measure page visits without the use of a promo code, so they can be helpful tracking tools when you’re not running a promotion. 

    However, one limitation of UTMs and links is they only track page visits, not sales or conversions. They can tell you how many people landed on a page and where they came from, but they won’t show you how many users completed a purchase — unless you’re using a tool like Marsello to track the entire buying journey.


    4. Ask your customers

    You can glean social media sales intel simply by asking your customers. At the checkout page, add a form field asking shoppers where they heard about you, and then have them select from a range of options. 

    From there, tally up the number of people who selected social media (or a specific social network — i.e., Instagram, TikTok, Facebook, etc.) and use that information to track your sales.

    This tactic is easy to implement, but it also has some downsides. For one thing, having an extra form field on the checkout page adds friction to the buying experience and may turn off some customers. 

    Additionally, some shoppers may opt to skip the question, so won’t be able to capture all the data you need.

    All your marketing, in one place.
    Manage all your marketing campaigns in Marsello. Drive repeat sales with loyalty, send email & SMS campaigns, schedule social posts, set up automations, and more. Then track the impact of your marketing on sales.

    Start free trial


    5. Use sales tracking tools

    While you can certainly track sales manually — i.e., by counting promo codes or tallying survey results by hand — these processes are cumbersome and can lead to human error and inaccurate data. 

    You’re far better off measuring social media sales with tools that can automate the process. Marsello, for example, streamlines social media sales tracking by connecting your POS and ecommerce sales data with your social media accounts. 

    From there, Marsello attributes a percentage of your revenue to a social media post containing a tagged product, UTM, or promo code.

    sales tracking marsello

    Here’s how it works:

    • Connect your social media accounts to your POS or ecommerce platform.
    • Create posts across Instagram, Facebook and TikTok then tag your products.
    • Use Marsello track and measure sales for a given time period.


    💡 Pro-tip: Measure revenue, orders, and average spend in Marsello to give you a clear picture of what social activities are actually contributing to your bottom line. This, in turn, helps you make smarter decisions that lead to more sales, profit, and followers.


    Bringing it all together

    You and your team likely spend a great deal of time and energy on social media, so you must ensure your efforts are put to good use. The best way to do that is to actively track your social media sales, so you can refine your efforts accordingly. 

    Need help doing just that? Marsello Social provides you with tools to easily publish social media content and track sales.



    Marsello: All your marketing, in one place.

    • Send email and SMS campaigns to customers
    • Create set-and-forget marketing automations
    • Schedule social posts 
    • Track the impact of your marketing on revenue
    • Build a customer database

    Start free trial


    How To Turn Social Media Engagement Into Sales

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    Here are three strategies you can use to take that engagement and convert followers into paying customers.

    Does your engagement convert? Learn how to find out 👇

    Social media engagement is a great metric for measuring the buzz around your brand. The average Instagram engagement rate across all businesses is around 1-2% per post (depending on where you look).

    So, if you’ve got 5,000 followers, the average business could expect around 50-100 likes on any given post. Video content generally sees a much higher engagement rate—that same business could be seeing around 300 likes on a video post. Carousels also receive higher engagement, as Instagram’s algorithm will show the same post more than once to the same follower.

    But engagement is not revenue, and it doesn’t necessarily even convert to revenue in the long run. If your posts don’t drive action, generate exclusivity, or create urgency, your audience may engage with you without ever making a purchase.

    So your next question should be: how do I turn engagement into dollars and cents?



    Quick Links:


    How do I turn engagement into revenue?

    When I talk to merchants, there's one thing I hear a lot: "My posts get lots of comments, good reach, and heaps of likes, but I just don't know if I'm seeing sales from them." It's a common concern—you're putting all this time and effort into creating content, but it's really hard to make that content sell.

    Here are three strategies you can use to take that engagement and convert followers into paying customers.

    1. Use Product Tagging to drive social sales

    To convert followers into customers, you want to take away every possible barrier to purchase. Don’t make your followers Google your website, then manually type a product into the search bar. Every time there’s an extra step, a percentage of followers will drop off the buying journey.

    Product Tagging is perfect for this. It doesn’t have to be on a “product launch” type post either, you can tag products on lifestyle imagery, competition posts, and more. You can even use “product” stickers to tag products in your Instagram stories too.

    Take advantage of every opportunity to tag a product.



    💡 Pro-tip: Using Product Tagging means you can measure the direct impact of your social posts on sales. To see it in action, connect your social accounts, POS and/or eCommerce platforms to Marsello and instantly see how your last 100 posts have contributed to sales.

    Learn more


    2. Create a custom link in bio landing page

    When you only get one link, make it count. Drive followers to your store with a branded link and customizable landing page for Instagram and TikTok.

    Having a centralized landing page means you can drive all your traffic to one page with multiple products, promotions and calls-to-action. There are lots of tools out there, from free, basic products to tools with advanced features and customization. The most sophisticated tools have the ability for merchants to add forms, buttons, media and more to a fully branded page.

    link in bio marsello

    Premium link in bio features.
    Marsello’s very own link in bio feature brings all the advanced customization you’re looking for to keep brand experience seamless.

    Learn more


    3. Plan campaigns and posts ahead of time

    Sometimes, even the best post with the most amazing offer and relevant call-to-action just won’t work. 

    Imagine this. You’re a retailer selling mountain bikes. You’ve also got a workshop and you sell replacement parts and accessories. It’s the middle of winter and things are quiet, but you know come spring all your customers will be wanting to replace their knackered bearings to hit the trails as soon as possible.

    You make a post offering half price bearings in-store hoping to see some service bookings off the back of it (thinking that you’ll be able to upsell when people are in the right frame of mind). But you don’t see any uptake so you assume you were wrong, and that the idea was a flop.

    Here’s how you could do it differently:

    You want to target existing customers, but also other riders in your local community. You know the large portion of your social followers are local mountain bike riders. So plan and schedule a series of posts each with different creative, and do a candid video post on your stories too. 

    You could build the hype by sending out an email or two as well to your local database. 

    Create a discount code people need to use in-store so you can track the impact of the campaign (I’ll get to that shortly). It might even make sense to send an SMS out as well, driving people to one of your social media posts for more info.


    All this planning can be on the back of an envelope:

    • Insight: There’s always a spring rush for parts and servicing because people leave it til the last minute, and the workshop is really busy
    • Objective: Sell bearings, drive foot traffic, and get people thinking about booking in a service early
    • Offer: 50% off all bearings (put a time limit on this for urgency-for example, “This month only”)
    • Target audience: Customers and other local riders
    • Channels: Social media, email and SMS
    • Success measure(s): In-store bearing sales, foot traffic increase, service bookings

    Once you’ve got your basic campaign plan, spend a couple of hours getting everything set up.

    • Create a discount code and/or UTM to track bookings from your campaign.
    • Use a social media scheduling tool to schedule campaign posts over your campaign time period.
    • Schedule an email blast to customers, and maybe a reminder email or two.
    • Schedule an SMS to reach people directly to their mobile (around 98% of SMS messages are opened, so it’s a great channel for a short, snappy and time-sensitive campaign).

    Taking a step back to plan means you can get your channels working together to increase the impact of your social media posts, and drive more sales.

    How do I know what posts generate sales?

    To understand how your engagement converts, you need a way to track sales that come from your social posts. This can be a bit tricky, so I've pulled together a handy list of ways to measure your results.

    Get a social media analytics tool to track sales

    The easiest and most effective way to track sales made from organic social media is to use analytics software that connects your POS, eCommerce, and social media data (you can do this all in Marsello).

    This doesn’t just track when someone clicks on a tagged product, it also tracks if someone likes, comments on or shares a post with a product tagged in it, and buys it later. This is called organic social media sales tracking.

    sales tracking marsello

    Using a tool like this, you can see:

    • What posts have generated the most revenue
    • Which creative type (images, videos, etc) leads to more sales
    • How many orders you get from social media over a certain period of time
    • Which social media platform works best for your business
    • What percentage of revenue comes from organic social media

    By tracking sales and revenue, and seeing what kinds of social posts and which channels work best, you can improve the performance of your accounts over time.

    Convert social followers into customers.
    Schedule, tag, post, sell. Start a free trial today and see it in action—Marsello automatically syncs your last 100 posts. Simply tag products in your posts, and see how many sales came directly from social.

    Learn more

    Include discount codes in social posts

    Discount codes are one of the simplest ways to see where traffic and sales are coming from. These have become popular for tracking sales from organic social media posts and campaigns, as merchants struggled to see the impact of their efforts in Facebook, Instagram, TikTok etc.

    Simply create a unique discount or offer code for each channel, and you’ll be able to track how many sales you generated from those posts.


    Use UTMs to track links back to your online store


    What is a UTM? UTMs (Urchin Tracking Modules) are short bits of code you can use to track how effective a campaign is. UTMs can track up to five parameters (aspects): campaign, source, medium, content and term.

    That might sound complex, but UTMs are actually incredibly easy to use. And unless you’re drilling into deep testing and measuring, you really only the first three parameters.

    The easiest way to show you how to build a UTM is by using an example.

    Say we are running a campaign that goes to http://marsello.com. We are using Facebook ads, and the campaign is to get sign ups for our social media scheduler.

    Let’s put that in simple terms:

    Campaign: Social Media
    Source: Facebook
    Medium: Paid Ads

    When you build your link, make sure you don’t use spaces. Instead, replace your space with a dash symbol (-). Aside from that, use only plain text for labeling (avoid hashtags, ampersands, percentage symbols or anything else that could break the link).

    Campaign: Social-Media-Sign-Ups
    Source: Facebook
    Medium: Paid-Ads

    Now, we want to add these to the link in UTM format.

    1. First, add a question mark (?). This indicates that the body of the link is complete, and Google Analytics, or your tracking tool, should read the following part as tracking information.
    2. Add “utm_campaign=” then your campaign name.
    3. Add an ampersand symbol (&). This tells your tracking tool that your campaign name is complete.
    4. Add “utm_source=” then your source. 
    5. Add another ampersand symbol (&).
    6. Finally, add “utm_medium=” then your medium. 

    It’s that easy! Here’s how ours would look:


    For each different source or medium you want to differentiate, change the UTM parameters. For example, you might differentiate visitors coming from a Facebook source by medium. You could state “utm_medium=organic-post” or “utm_medium=story-video” to separate traffic coming from different parts of the platform.

    The more specific you go, the more you know what particular channel, content and post type works best. But it’s always good to have broader parameters too, for example, you will still want to be able to compare all Facebook traffic from all Instagram traffic.

    Final words

    If you're putting a lot of resource into social media, but aren't sure if all the likes and comments are actually growing your business, you're not alone.

    Start making your social media work harder by taking away barriers to purchase (product tagging, using a link in bio, etc) and track the results directly using UTMs, promo codes and sales tracking.

    It's also important to have a clear plan, while leaving some wiggle room in your calendar for jumping on trends as they come up.

    Looking for an all-in-one social planning, scheduling and sales tracking tool? Marsello provides you with tools to easily create, schedule and publish social media content.



    Marsello: All your marketing, in one place.

    • Send email and SMS campaigns to customers
    • Create set-and-forget marketing automations
    • Schedule social posts and track the impact on sales
    • Track the direct impact of all your marketing on revenue
    • Build a customer database

    Start free trial


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