30 Jul The ROI of Social Media
Measuring the ROI of social media is like measuring the ROI of a telephone. How can one receive a return on the investment of a telephone, that links you to people in your life? The telephone is a direct pipeline to just about anyone you want to talk to. The more you talk, the more “return” you’ll have. Social media operates in a similar fashion.
Even stll, investors in social media need to know they are getting their money’s worth. A recent article from Mashable defines the cycle of ROI in social media as three stages: The Launch, Management, and Optimization.
The Launch is the initial set-up of soical media networks, with particular focus on Facebook, Twitter, LinkedIN, and YouTube. The key here is to establish an online presence in social media. The approach is executional- very straightforward.
Management is the second stage, where admins can use quantitative metrics such as traffic, inbound links, Facebook “Likes,” etc, to measure the success of the newly implemented networks. The key here is engaging customers with the brand by testing creative ideas (giveaways, contests, q and a’s, discussion forums, etc).
The final stage of ROI is Optimization. This is when brands can begin to convert readers and participants into buyers and brand advocates. This takes trial and error of campaign ideas, and measuring success. Which posts generate the most clicks? Which contests are people eager to promote? What goes viral? If you can answer these questions, then you have your return on investment.