16 MIN READ

No doubt, Instagram is one of the hottest social media platforms, with over 1 billion monthly active users. It’s a must-have for any business, big or small. But, as with any social media platform, there is a right way and a wrong way to use it. If you’re not careful, you can easily throw money down the drain with little to show. Usually, businesses’ biggest issue with Instagram is not generating leads or sales. Sometimes small businesses with hardly any followers can see significant results, while other times, businesses with millions of followers don’t see any.

It all depends on how you’re using the platform and what your goals are. Instagram has high buying intent. In other words, when users see relevant product posts on Instagram, they’re more likely to make a purchase. Compared to other social media platforms, Instagram has the highest conversion rate to sales. Despite this, many businesses still find that they’re not seeing a return on investment (ROI) from their Instagram marketing efforts. There could be any number of reasons for this, from not having a clear strategy to not using the right tools and everything in between.

But first, let’s discuss how you can measure ROI from Instagram: 

Measuring ROI from Instagram

Measuring ROI on Instagram isn’t easy. There are many intangible factors and no surefire way to do it. Audience growth, page reach, impressions, and engagement rate are some of the more popular metrics used to measure ROI on Instagram.

There are several key metrics you can look at to measure ROI from Instagram. They are:

Reach:

This is the number of people who have seen your post. When you look at your Instagram insights, you’ll see two types of reach – organic and paid. Organic reach is the number of people who have seen your post organically without you having to pay for it. Paid reach is the number of people who have seen your post because you’ve paid to promote it.

Impressions:

This is the number of times your post has been seen. It’s similar to reach, but it includes organic and paid reach. Impressions are a good metric to look at if you’re paying to promote your posts, as it will give you an idea of how many people are seeing your post because of your paid promotion.

Engagement rate:

This is the most important metric to look at when measuring ROI on Instagram. Engagement rate is the number of people who have engaged with your post, divided by the number of people who have seen it. Engagement can include anything from liking, commenting, and sharing your post, to clicking on a link in your bio.

Clicks:

This is the number of people who have clicked on a link in your bio. If you’re using Instagram to drive traffic to your website, then clicks are an important metric to look at. Clicks also depend on so many different factors like how the post was written, how attractive the CTR is, is the link easy to find, etc.

Sales:

This is the number of sales you’ve made as a result of your Instagram marketing efforts. If you’re selling products on your website, this is the most important metric. Sales can also be influenced by factors like pricing, shipping, customer service, etc.

Increase in followers:

Are you gaining followers with your Instagram marketing efforts? If so, then that’s a good sign. More followers usually mean more reach and engagement. If not, your ROI will suffer.

But the question is: how will you measure your ROI?

Instagram insights!

Instagram Insights is a powerful tool that can help you measure your ROI. If you have a business account on Instagram, you have access to insights. Insights are Instagram’s analytics tool. It provides data on your posts, Stories, and promoted posts. It also shows you information on your followers, such as their age, gender, and location.

1. Go to your profile
2. Tap on the 3 lines in the top right-hand corner to access your insights.
3. Then, select Insights from the menu.
4. Once you’re in insights, you’ll see a dashboard with all of your data.
5. You can select specific posts to see more information on them.

You can also see information on your followers, such as their age, gender, and location. This data is important because it can help you understand your target audience and what type of content they engage with. It can also help you measure your ROI by looking at your posts’ engagement rate and reach. Now you know how to measure ROI from Instagram, let’s look at some of the reasons you might not be seeing any ROI.

Are you using Instagram to its full potential? Do you want to start seeing ROI from your Instagram marketing efforts? In the further part of the article, we will go through 6 of the most common reasons businesses don’t see ROI from their Instagram marketing and what you can do to change that.

But the very first thing is: According to Similar Web, people spend 53 minutes a day on Instagram. This is significantly higher than any other social media platform. This is clearly evident when engaged people are with this platform.

Not only that, but engagement on Instagram is also higher than on any other social media platform. In fact, engagement on Instagram is ten times higher than on Facebook. A study found that Instagram gets 1.60% median engagement, better than Facebook’s 0.09% median engagement. So, clearly, Instagram is a great platform to be on if you want to engage with your audience.

But, just because people are spending a lot of time on Instagram doesn’t mean they’re going to buy from you. You still need to have a strategy in place and know how to use the platform to its full potential. With that said, let’s dive in and look at some of the common reasons businesses don’t see ROI on Instagram.

1) You aren’t using video content to your advantage

One of the most important – yet often overlooked – aspects of Instagram is video content. Cisco predicted in 2020 that by 2021, 82% of all internet traffic would be video. Think about that for a second, which became absolutely true seeing the rising trend of TikTok, Facebook reel, YouTube shorts, and IGTV. Instagram is no different. In fact, Instagram is specifically a visual platform. This means that not using video content is one of the biggest mistakes you can make.

Instagram Stories – which are short videos – has quickly become one of the most popular features on the platform. Only in 2020, 500 million people were using Instagram Stories every day. And that number is only going to continue to rise. Video content is so important because it’s one of the most engaging types of content you can post on Instagram. People are far more likely to watch a video than they are to read a long caption or scroll through a gallery of photos. If you want to start seeing ROI on Instagram, you need to start using video content to your advantage. In fact, video content generates 150 comments on average found mentioned in their study. This is more than combining photos, carousels, or just plain text.

For instance, look at these two posts by the Shoe Republic:

Photo vs. Video Engagement:

 

Do you see?

The video has more than 165,000 views which means 165,000+ people have watched the video. On the other hand, the photo only has 3,88 likes and 11 comments. This is a great example of how video content can be far more engaging than other types of content on Instagram. When more than 165,000 people have watched your video and only 3,88 have liked your photo, it’s clear which one is going to be more effective in terms of ROI.

Now imagine only 20% of the customers who viewed the video went on to purchase the shoes. That’s still 33,000 sales which is a significant increase from the 11 comments on the photo. So, if you’re not using video content on Instagram, you’re missing out on a huge opportunity to engage with your audience and increase ROI.

2) Your hashtags and geotagging are not strategic

Hashtags and geotagging are two of the most important features on Instagram. They’re both great ways to reach new people and increase engagement. These features result in both; better reach and improved engagement. This means more sales and ROI. But, in order for hashtags and geotagging to be effective, you need to use them strategically.

For instance, let’s say you run a gym and use the hashtag #gym. Now, there are over 231 million posts with the hashtag #gym. So, how are you going to stand out? The answer is that you need to use more specific and targeted hashtags. For example, you could use hashtags like #gymlife, #gymaddict, or #gymrat. But the question is: how would you know which hashtags to use? You can’t randomly pick hashtags and expect to see results.

Here’s a Pro tip:

Use a tool like Best Hashtags to find the best hashtags for your business. Best Hashtags is a great tool because it lets you see how popular a hashtag is and what other related hashtags you could use.

The latest study found businesses that use hashtags can improve engagement on their posts by 12%, which is super awesome. Moreover, if you think how many hashtags are too much, Hubspot found an average post on Instagram that has around 12 hashtags. So, using this many hashtags will surely improve your ROI in the long run.

Also, make sure you don’t use too many hashtags. Because the Instagram algorithm never fails to show posts with too many hashtags as spam. So, try to use around 5-10 hashtags per post. For instance, if you see this screenshot, they have used so many hashtags that the caption looks really spammy.

And the results? It’s been a year since they posted and only gained 58 likes, which is really low for an account with over 4,000 followers. By using more specific hashtags, you’ll reach a more targeted audience of people who are interested in what you have to offer. And, when you’re able to reach a more targeted audience, you’re more likely to see ROI because the people who see your content are more likely to be interested in your product or service. The same goes for geotagging. Geotagging is a great way to reach people in your local area.

For example, if you own a restaurant in Los Angeles, you could geotag your location. Then, when people search for restaurants in Los Angeles, your restaurant will come up. This is a great way to reach new people interested in what you have to offer. And, when you’re able to reach new people, you’re more likely to see ROI.

3) You don’t engage with customers

That’s right. If you’re not engaging with customers, you’re not seeing ROI. Engaging with customers is one of the most important aspects of social media marketing. When you engage with customers, you build relationships. And, when you build relationships, you create brand loyalty. And, when you create brand loyalty, you see ROI. The best way to engage with customers on Instagram is to respond to comments. When someone leaves a comment on your post, respond to them. They might have buying intent, and you could be the one to convert them into a customer. But many brands don’t even bother to respond to comments. They just let the comments sit there. And as a result, they’re not able to build relationships with their customers.

For instance, check this screenshot:

This is a growing brand with only 18k followers, but instead of engaging in comments with their followers, they’re just ignoring them, or maybe they don’t get sufficient time. Engaging with customers is really important because it shows that you care about them. And, when you show that you care about them, they’re more likely to buy from you. This is where Instagram chatbots come in. Instagram chatbots are a great way to engage with customers because they allow you to automate the process. With an Instagram chatbot, you can set up automated responses to comments. So, even if you’re not available to respond to comments, your chatbot will be there to engage with your customers.

Clepher makes it easy for businesses to engage with customers on Instagram. With our chatbot platform, you can set up automated responses to comments. So, even if you’re not available to respond to comments, your chatbot will be there to engage with your customers.

We don’t rely on traditional strategies to respond that seem more robotic. We use AI to give every customer a personalized experience in the comment section, which builds rapport and helps in ROI.

What we plan for businesses is different engaging strategies like:

• Thank you replies
• Sending emojis
• Helping to get customer support
• General compliments

For instance, in the screenshot above, most of the followers have asked about the price of the product, so chatbots could help them by giving personalized automated responses about the price. This way, you can engage with your customers even when you’re not available. And, when you’re able to engage with your customers, you’re more likely to see ROI. The time you save when you let Instagram chatbots engage with your customers can be used to create more content, run ads, or do anything else that will help you see ROI. The point is, if you’re not engaging with customers, you’re not going to see ROI. So, make sure you’re using Instagram chatbots or taking the time to engage with customers yourself.

Now comes the next strategy to engage with customers. Run different contests on Instagram. Contests are a great way to increase engagement and reach new people. For instance, you could run a contest where people have to like your post and follow you to be entered to win a prize. This is a great way to increase engagement because it gets people to take action. And, when people take action, you’re more likely to see ROI. Not only that, but contests are also a great way to reach new people. When people enter your contest, they’re exposed to your brand. And, when they’re exposed to your brand, they’re more likely to buy from you.

4) You aren’t utilizing the Instagram Takeovers strategy

The Instagram takeover is what it seems like. You let someone else take over your Instagram account for a day, and they post on your behalf. Instagram Takeovers are a great way to increase engagement and reach new people. An Instagram Takeover is when someone else takes over your account for a day. For instance, you could have an influencer or a brand take over the account and post on your behalf for a certain period of time.

This is a great way to increase engagement because it gets people talking about your brand. And, when people are talking about your brand, you’re more likely to see ROI. Not only that, but an Instagram Takeover is also a great way to reach new people. When an influencer or a brand takes over your account, their followers are exposed to your brand. And, when their followers are exposed to your brand, they’re more likely to buy from you.

5) You aren’t leveraging automation

Now this one is a given. If you want to increase your ROI, you need to start leveraging automation. 2022 has become the year of automation, and if you’re not using it, you’re falling behind. Clepher’s Instagram automation tools can help you with a variety of tasks such as You can respond to DMs with personalized messages that never seem to fail or feel robotic. Flow-chart-based DMs help you get the conversation going without any effort from your side. You can customize the message and send it to a list of recipients in just one go. This is a great way to send out mass messages without feeling like you’re spamming people.

How does automation help businesses in getting ROI?

Increase sales:

That’s for sure. By leveraging automation, you can take care of the menial tasks that take up your time to focus on making sales and generating revenue. And, when you’re able to focus on making sales, you’re more likely to see ROI. The DMs that you reply to will become your potential customers quickly.

Better customer service:

Automation helps in customer service in two ways. First, it helps you resolve customer queries faster. Second, it helps you keep track of all your customers in one place to provide them with better service. When you resolve customer queries faster, they’re more likely to be satisfied with your brand. And, when they’re satisfied with your brand, they’re more likely to buy from you.

Get more leads:

When you’re using automation, you’re able to generate more leads. How? By sending out personalized automated messages, you can reach more people and get them interested in your brand. And, when you’re able to get more people interested in your brand, you’re more likely to generate leads.

Improved efficiency:

With automation, you’re able to work more efficiently. Automation enables you to get more done in less time. And, when you’re able to get more done in less time, you can focus on the more important tasks that will help you see ROI.

6) You aren’t consistent

This is another major factor behind your poor performance on Instagram. You need to be consistent if you want to see results. When it comes to Instagram, consistency is key. You need to post regularly if you want to grow your account. And, when you’re able to grow your account, you’re more likely to see ROI. For instance, Nike is such a huge brand that their account will still grow even if they do not post for weeks. But still, they are consistent with their posting. On the other hand, if you’re a small business or a solopreneur, you can’t afford to be inconsistent with your posting.

If you notice, they make one post almost daily just because if you aren’t consistent with your posting, you will see a sudden decrease in engagement which no business would want. Instagram never promotes an account that is not consistent with their posting.

Moreover, being consistent doesn’t just mean posting regularly. It also means maintaining the quality of your posts. If you want to see ROI, you need to ensure that your posts are of high quality.

Check another example:

They have more than 100k followers, and they publish content every few hours on Instagram. Their content is high quality, and they are very consistent with their posting. As a result, they have been able to grow their brand and get more leads. The bottom line is that you need to be consistent if you want to see results. And, when you’re able to be consistent, you’re more likely to see ROI.

7) You are just selling

This is one of the reasons why a lot of businesses fail to see ROI on Instagram. They just post about their products and services and do not engage with their audience. You need to remember that Instagram is a social platform. And, like all social platforms, it’s all about engagement. If you’re not engaging with your audience, you’re not seeing ROI. Imagine a brand that makes posts daily, but all of them want followers to buy their products. Such posts will not get much engagement because people do not want to be bombarded with sales pitches all the time.

People have a choice these days, and they will unfollow a brand that is just selling and not engaging. What you need to do is focus on making interesting and engaging posts. And, when you’re able to make interesting and engaging posts, you’re more likely to see ROI. For instance, Slack is one of the finest communication apps, and businesses need that very often, but if you visit their Instagram page, you will find that their posts are not just about the app. They post emojis, answer questions, talk about their followers, ask questions, and do more.

You need to do this if you want to see ROI on Instagram. You need to engage with your audience.

Check this screenshot:

Tell me, what do you think you are looking at? It’s Slack’s Instagram page, and as you can see, they are not just selling their app. The timeline looks more like a conversation than anything else. And that’s what you need to do if you want to generate leads and sales from Instagram.

8) You’re not using Instagram ads

This is more of an issue with small businesses. They tend to shy away from using Instagram ads because they think it’s too expensive, and since they are just starting out, they believe they first need organic marketing to grow their brand. But that’s not true. If you’re not using Instagram ads, you’re missing out on a lot of potential leads and sales. Organic marketing is great, and you should focus on it, but that doesn’t mean you should avoid using Instagram ads. Organic marketing will help you grow your brand, but it will take time. And, if you’re not using Instagram ads, you’re not going to see any ROI in the short term.

This is why it’s important to use both organic and paid marketing. When you’re able to use both, you’re more likely to see ROI. Hundreds of brands don’t have thousands of followers, but they are doing great with Instagram ads. Ad spend on Instagram is even higher than on Facebook by 23% which means businesses are utilizing ads to connect with audiences. And, if you’re thinking that Instagram ads are too expensive, you need to know that they are not. If you calculate the cost per lead, you will find that Instagram ads are very cost-effective.

9) Your content isn’t interesting

I kept this point for the last because it’s the most important one. If you’re not creating interesting content, how will you keep your audience engaged? It doesn’t matter how often you’re posting or what time you’re posting. Your content needs to be interesting, valuable, and engaging. For instance, if you just upload images of your products with prices mentioned and use hashtags, you’re not going to get much engagement. It’s important to remember that Instagram is a visual platform, and people are more likely to engage with posts that are visually appealing.

This is why you need to create interesting images and videos. And, when you do that, you’re more likely to see ROI. Remember, we talked about Slack? How do they engage the audience with their posts? In fact, their target audience is entrepreneurs who hardly have time to engage on Instagram but still Slack has been doing a great job. They are not just posting images and videos, but they are also using creative methods like Instagram stories to engage with their followers. They are more focused on providing value than anything else.

Let me ask you one thing: when was the last time you saw an Instagram post that was truly interesting and engaging? If you can’t remember, it means you need to work on your content strategy. And, if you’re not sure how to make your content interesting, here are a few ideas:

Use infographics: 

People love infographics because they are easy to understand and consume. And, when you use them, you’re more likely to get engagement.

Contests and giveaways: 

Everyone loves free stuff. And, if you’re giving away something for free, chances are people will connect with your brand.

Interactive content: 

This is one of the best ways to engage with your audience. Ask them questions, start a conversation, and get them involved.

Final Thoughts

It’s important to remember that you need to experiment with your content to see what works best for your audience. There is no one-size-fits-all solution. You need to find what works for your business and stick to that. These are some of the reasons why you’re not seeing ROI on Instagram. If you’re making any of these mistakes, it’s time to change your strategy.

So, now that you know all the reasons you do not see ROI on Instagram, what are you doing about it? It’s time to take action and start seeing results. Remember, if you’re not consistent with your posting, you do not see any ROI. And, if you’re just selling and not engaging with your audience, you’re also not going to see any ROI. This is 2022, Instagram has become a game-changer for business, and if you’re not using it to its full potential, you’re missing out on a lot of leads and sales.

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