How Do You Measure Your Social Media ROI?

The Marketing FunnelStill feeling lost in the whole ROI of your online marketing?  Still believe you can’t measure it?  Actually, measurement is one of the fundamentals of online marketing strategy, once you understand “how to”, you can instantly and continuously improve your efforts.  Read on…

You must understand the ROI equation of your online strategy, or face dire consequences.

Don’t hire a social media expert, hire an online measurement expert. Understand how to measure your efforts first.  Understand thoroughly ‘why’ you are online. Create your ROI equation, understand how you will create and measure value within your strategy and then look toward tactics, tools and platforms.  A little education can go a long way.

Don’t be a Business, be a Human

Next you need to make your company social (friendly), as it says in the Now Revolution, you must “answer the new telephone”.  People will talk about you and it’s your choice to listen.  You even have the opportunity to address problems before they escalate into detrimental word-of-mouth. But even more important, you have the opportunity to say thank you.

It’s a potluck on the internet, what are you bringing?

Now you must create something, do something, share something. You now know how to measure success (because you understand your ROI equation, right?) so experiment until you find something that works no, experiment continuously, find what works and keep improving it based on what the data tells you.  You don’t have to guess at what people like to see on your website, you can test that out.  You don’t even have to name your products yourself anymore, you can test and see what vast amounts of people like better for relatively low cost.  No experimentation has a very large opportunity cost regarding the long-term growth strategy of your company.  If you’re not constantly looking towards the next opportunity to build trust, the next innovation, or another way to make your customers happier, you may be surpassed by someone who is.

Never forget about ROI

Stop counting your follower and start keeping track of how much traffic Twitter generates your website. Stop counting “Likes” and start keeping track of how many customers are asking questions and buying your product on your Facebook page.  Don’t blog for SEO purposes, blog to show your customers how insanely passionate your staff is about your company.  Get my drift?

Don’t focus on the tools, focus on the goal, the ROI equation, and ask the difficult questions.

Why are you online?

Why is the goal of your website?

What is the purpose of your Facebook page?

Answer honestly.

If you have further questions about your ROI equation please don’t hesitate to contact me or Tweet me.

JephMaystruck.com

6 replies
  1. Kendal Harazny
    Kendal Harazny says:

    Maybe this is just a crazy kid coming from a finance background, but as nice as all of this marketing stuff is to measure, at the end of the day, what matters is if your marketing affects your sales. Whether it is a short term or long term strategy, at the end of the day you market to bring people to your business to increase sales. You can tell me the ROI, or any other acronym to justify your marketing, but all I give a shit about is if my sales increased due to your marketing efforts. The rest is just fluff to justify your marketing fee, which I would rather have justified by an increase in the bottom line.

  2. Jeph Maystruck
    Jeph Maystruck says:

    Love it Kendal, I agree completely. You’re right we do need to make increased sales the main focus of our metrics, but it shouldn’t be the only one. What if increased sales isn’t the ultimate goal? Some organizations need to dig deeper to determine what they’re online for. It is the finance in you! Ha! But I think more marketers need to be held accountable for what they are implementing and recommending. Thanks for reading my friend, I like the way you think.

    Cheers,
    @jephmaystruck

  3. Kendal Harazny
    Kendal Harazny says:

    Great point. Agree that it shouldn’t be the only measurement, I just think it should be the bottom line measurement. Sure you want to measure customer satisfaction, engagement, or other stuff (that’s your gig, not mine), but at the end of the day, you do all of that to increase awareness and hopefully sales.

  4. Marc Kelly
    Marc Kelly says:

    I think Kendal’s point is fair in a situation where you can see a clear link between increased marketing efforts and their effect of sales. If I spend a boat load of cash in a new market on advertising my product, I want to see that it has a corresponding effect on sales in that area.

    The problem is that it is not fair to hold a consultant in a specific area (lets say social media) as responsible for sales growth when his function is just a small part of the overall marketing function. If you have a crummy product, or crummy aftersales support, or bad financing terms, the fact that your company can engage with your customer in an effective manner won’t do a heck of a lot for sales.

    Or as Jeph indicates, in a situation where sales growth isn’t the purpose of the engagement of a specific consultant or department. If a project group is responsible for “customer engagement” and they do their job well, but it doesn’t result in sales, you should not hold them accountable. You should hold the strategic decision makers accountable for implementing the wrong strategy to achieve their goals.

    I think what he is proposing is if you plan to go into this area – make sure you have a clear idea of what you are trying to accomplish, and make sure that you have a way to measure it, so that you can determine that you were successful in implementing an online marketing strategy.

  5. Tennesse
    Tennesse says:

    Thank you for sharing your views… I agree about being a human and not a business quote. Be focus and truthful to your aims and everything will fall in to places.

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