I’m sure you have never pondered how to measure your Return on Investment when it comes to Social Media, I mean, who cares about ROI right?
Yes, we are kidding…
We fully acknowledge that ROI is king of the castle when it comes to marketing budget allocation and that the difficulty of measuring the ROI in social media is a major contributing factor that causes many businesses to shy away from developing a social media sales strategy. There are a myriad of opinions regarding the proper measuring of Social ROI, many say it is impossible and many say it isn’t. So which is it? Well to put it simply, Social ROI isn’t completely measurable… at least not in the traditional sense. Social is just as much a part of your Communications strategy as it is your Marketing strategy, and it is this duality that makes it so difficult to completely measure using traditional methodology. Some of the aspects of the Return can be measured numerically, like lead generation and conversion, but if that is all you measure you are missing a huge piece of the overall ROI pie.
The following infographic quite effectively shows how businesses should be measuring their Social Media ROI
What we find troubling is that some individuals, often those who have been afraid of social media marketing from the start, try to use the difficulty of measuring its TRUE ROI as a reason to avoid Social completely. In actuality the methods shown in the above infographic to measure ROI can be an incredibly handy tool to identify specific shortcomings in your current social strategy, and therefore allow you to improve your marketing, not invalidate it.
So what do you think? Can Social Media ROI be measured solely numerically and still provide you, as a decision maker, an adequate basis upon which to determine the successes and failures of your Social Media strategy?