Would you like to be able to measure your ROI on any Social Media or Marketing investment project you do for your business?
Two opposing views:
- It is possible (although difficult) to calculate the impact of Social Media on ROI, with detailed analysis, data mining, and hard work!
- It is impossible to calculate the impact of Social Media on ROI, as there are certain components that you simply cannot track! Especially with the amount of data that is being exchanged (Shares, Likes, Retweets, Wall posts, Direct Messages, etc.)
What do you think???
- Different factors contribute to formulating ROI, the majority of these could be transformed into quantifiable variables.
- Currently there are plenty of tools that help to track how many followers, tweets/retweets, likes, shares, tags, geo-tagging …But how to convert these raw data into analytical information, and how to quantify the derived info into ROI variables? And what are the key factors?
ROI Key Factors
- Risk Management
- Reduction in Customer Churn
- Customer Service
- Lead Monitoring
Suggested Example Method to Derive ROI:
- Assign values to your benefits (“Benefits”)
- Costs saved by not using a recruiter
- Cost of posting a job on LinkedIn
- Number of lost customers
- Average spend per customer
- Shipping costs in proportion to customer base
- Product return rates
- Sales increase due to specific loyalty programs
- Add up costs of social media marketing campaigns (“Investment”)
- Salaries of specific social media marketing staff and time spent by “other” employees on social outreach
- Cost of social media management applications (e .g ., monitoring, listening, compliance, marketing, etc .)
- Any third-party costs (e .g ., marketing agencies, graphics designers)
- Divide Benefits by Investment to arrive at ROI (“The ROI”)
Although very complex and error prone, however if you can do this for every activity then you may already be using resources and/or some tools and techniques to do so, but what if you don’t ?
Then you may wish to procure our Services to Automate that for you, and start understanding the impact of your Social Media on your ROI!