- Posted February 23, 2013 by
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- 6/19: Presenting at The Automotive Social Media Summit 2013
- Keynote Speech at the AMA Presentation = Using Big Data to Drive Marketing ROI
- 8/19 – 8/21: I’m Speaking at Customer Service Experience 2013
- Facebook Commerce Pop-Up Store- Social Commerce For Small Business: Rachel Roy Jewelry
An Intro: The ROI of Social Media:
Would you calculate the ROI of a phone?
Would you calculate the ROI of your mom?
Would you calculate ROI of your pants?
And you might have also heard that social media ROI can’t be calculated, but you can track things.
Or that the ROI of social media is that you will be in business in 5 years, or that social media ROI is
that your customer satisfaction score went up 5 points because of your online community.
And while some of these statements might make you chuckle and others might seem like they are
true, they don’t really help you in a business meeting with peers and executives who want real
If you are a skeptic about social media, it may seem like an unstructured stream of consciousness.
Why would you dive into something that seems immeasurable? And without a way to obtain
benchmarks, how could you tell when something works? How could you track the progress and
gather the right metrics or do more of the right things? And how do you know when to stop doing the
wrong things? How could you articulate the business case for social media?
If you are on the front lines doing social media, you may be witnessing your customers making
purchase decisions based on what other customers write in reviews or clicking on your deal links in
Twitter. You may be seeing that the sentiment towards your brand went from being pretty negative, to
now more favorable because you are reaching out to unhappy customers and making things right.
You might be gaining share of voice online over your competitors or seeing that customer advocacy
for the brand is building online with key influencers and brand advocates.
Whether you fall into the first or second group, the issue of justifying the business case for social
media is the B-I-G question. How would you justify what you want to try or are currently doing? How
do you ask for a budget for people, process and technology? How do you speak intelligently about a
field where people are comparing the ROI of wearing your pants to the ROI of social media?
Marketers are unsure how to calculate Social Media ROI!
The fact is there is an ROI of your mom, a phone and wearing your pants. There is an ROI of
anything that provides value. However, how one would calculate social media ROI is not always
A study by Lenskold Group assessed social media ROI measurement best practices compared to traditional marketing ROI measurement. This study found less than 20% of marketers feel they can measure social media ROI!
Stay tuned for more info on this topic!