Social Media ROI: the Holy Grail for Bean Counters
No matter how great your social media campaign is, at the end of the day it comes down to the ROI. Many people today still think social media has to be a sexy viral campaign or a tweet that garners national attention. While most brands would love to achieve that kind of high-profile status, very few campaigns are successfully designed that way and, instead, happen upon success by accident.
When looking at ROI for a social campaign, brands must step back and first define their goals, also known as “key performance indicators” or KPI, as well as what a conversion is equal to. Is 100 percent of the value assigned to the conversion? What are the tangible and intangible values that must be factored in? Some of the benefits of social media can be difficult to quantify objectively but others, such as increased website traffic and blog views, are relatively easy to measure. During the past three years, the proportion of marketers using a revenue-per-customer metric on social media fell from 17 percent to just 9 percent.
Ultimately, social media should not be used as a medium for hard selling. Rather, it should be used as a platform to build your community and connect with your audience. This is the key to obtaining a measurable ROI. Here’s my advice: speak to your audience in a way that makes them want to go to your website to consume and trigger your definable goals. Measuring ROI is possible if you limit the parameters and keep in mind your pre-defined goals.