Measuring “likes” and “followers” = Social Media ROI.
Mindset – Marketers count consumer “activities based on convenience, creating a “quantitative fiction”.
Truth = Focus on business goals, shift from “activity” metrics to “value” metrics.
1. Increase revenue
2. Deflect cost
3. Move brand perceptions
The way you determine ROI for social media is the same as traditional media like TV and digital.
Mindset – Marketers are used to thinking only about direct effects from media.
Truth = People share and amplify the impact of media so the Social ROI calculation must account for the increased network amplification effects.
Social Media should be measured independently of other channels.
Mindset – Difficult in measuring both generic and targeted initiatives holistically.
Truth – Measurement must be holistic or else you will miss the effects of Social combined with traditional channels.
Three Take-away of Social Media ROI
- Focus on business goals and metrics that drive bottom-line value for your business.
- ROI is ROI is ROI. Apply same standards for social media as your other media and marketing initiatives.
- Measure social media’s value in context of your full marketing and media mix.