Are you trying to measure your social media return on investment (ROI)?
Do you need to measure the social performance of your business?
To learn how to determine the ROI for social media marketing, I interview Nichole Kelly for this episode of the Social Media Marketing podcast.
More About This Show
The Social Media Marketing podcast is a show from Social Media Examiner.
It’s designed to help busy marketers and business owners discover what works with social media marketing.
The show format is on-demand talk radio (also known as podcasting).
Nichole shares why so many businesses struggle to determine the ROI of their social media activities and what’s really important in your social media measurement.
You’ll learn the most important steps that all marketers should take when thinking about social ROI.
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Are you wondering if measuring social media return on investment (ROI) is important?
Do you cringe when you think about putting together another report?
You aren’t alone. But times are changing for social media and these reasons will show you why it’s time to get serious about measuring your results.
Do I Really Need to Measure ROI?
Let’s start by addressing the elephant in the room. Is ROI the right measure of success for social media?
There are many who would argue that a financial return doesn’t show the true value of social media for the organization. I would agree that ROI doesn’t paint the full picture.
However, the bottom line is that executives and business owners sleep, eat, and breathe ROI. It has been the measure of success since the beginning of their careers and while we can jump up and down and tell them it isn’t a complete picture, they aren’t going to believe it until they see it.
Do you struggle to accurately measure the return on investment (ROI) of your social media marketing?
You’re not alone. Several new research studies reveal that marketing managers are under increased pressure to show measurable results from their social media efforts.
But these same managers indicate that measuring the returns is one of their top two challenges for 2012.
Social media success sometimes appears arbitrary.
Perhaps you’ve wondered, “Why does company X generate leads and business from their social activity while my company wastes resources on blogs that don’t get read and tweets that go unanswered?”
Social media is so new, sometimes the path to success is unclear and it’s easy to lose your way.
In my prior Social Media Examiner article about Social Media return on investment (ROI), I discussed the financial definition of social media ROI.
This article goes a step deeper by working through a few examples of estimating the social media ROI.
Why Estimate a Return?
Before we go any further, let’s review why we need the social media return and ROI again.
You use the return and the ROI to compare the efficiency of marketing campaigns; for an in-house team, you can use these numbers to negotiate budgets with your management; for agencies, you can use estimated numbers to land prospective clients and to retain current clients. The numbers are used in conjunction with social and web metrics to analyze and optimize current and future campaigns.