Social Media ROI - It Can Be Measured

CALCULATING ROI IN SOCIAL

MEDIA

What is ROI and how the are you going to measure it?

return on investment –nounthe amount of profit, before tax and after depreciation, from an investment made, usually expressed as a percentage of the original total cost invested.

Abbreviation:  ROI

ROI

(gain from investment – cost of investment)

cost of investmentROI=

Sounds simple, right?

Actually, it’s a little more difficult…

You cannot succeed in anything if success is never defined.

Success is definable and attainable

What’s the return you seek?

Drive Sales

….then return is the number of sales that you can attribute to your social media campaign

Drive customer insights

….then return is the quantity and quality of the consumer insights you get from your fans and followers.

Drive brand awareness

….then return is brand awareness

Social media return is the value that you derive from social media based on the goals of your campaign.

Quantifying Your Return

Counting What Counts

…

Developing a method for dollar quantification can be hard..

but not impossible…….

Measuring Sales

I’m going to assume you know how to measure sales already

Quantifying consumer insights

compare the quantity and quality of consumer insights from offline focus groups to consumer insights from your social

media campaign

Quantifying brand awareness

Conduct surveys, polls, reach out to your customers and place values on the responses.

You can’t quantify your return…..

… until you’ve defined what you’re measuring

… and how you’re measuring it

Social Media Is Free!

NOT EXACTLY……

Just create a Facebook page…….

and people will follow

right??

WRONG!

additional cost factors to consider…..

staff costscampaign manager

support teamdesign team

advertising costs

Ad words, Follow Buttons, Facebook Ads, Email campaigns…..

content creation, external costsoutsourcing costs

analytics tools, additional tools …technical & creative costs

Now that you have your values…..

Plug them into your ROI formula

Now compare your campaign returns

Against your print, radio and other campaigns

ROI is the most powerful tool in your toolbox

USE IT WISELY

THANK YOU FOR YOUR TIME

kevin@yoursocialmediacompany.com facebook.com/yoursocialmediacompany twitter.com/ursocialmediaco youtube.com/yoursocialmediacom Kgorsline 843.732.0234 781.357.7697