Nichole Kelly from Social Media Explorer writes that as social media budgets increase, marketers are finding they must measure social media's impact. Unfortunately, measuring social media's return on investment isn't always easy or straightforward. Here are some recommendations for measuring ROI on social media.
"Measuring Social Media ROI is Rocket Surgery"
Measuring social media is complicated. Typically, it involves trying to interject the social equation into complex technical systems. Having a talented software engineer handy is a big help.
"What You Need to Measure Social Media ROI is NOT Social Media Software"
You probably already have most of the pieces in place, already measuring other online marketing activities. Know where to look and what to look for.
"It IS Possible"
Depending on your systems, this can all be done with low effort. Make sure you also measure the following:
- Conversion Rates
- The Control Group
- Growth Rate
- Marketing Campaign History
- Customer Acquisition Costs
- Retention Rates
- Customer Saves
"Your Social Media ROI is Negative"
Few companies have been at social media long enough to see a positive ROI. The return on social media is still valuable. Set the audience's expectations that this is a long term branding strategy.
"Social Media ROI is Only ONE Piece of its Return"
While the ROI may currently be negative, but other factors can show the benefit of social media. "Social media delivers more cost-effective impressions, clicks, and site visits than any commercial, pay-per-click ad, or news article."
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