You’re on Facebook and Twitter! Now What? Part II: Determining ROI

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“Not everything that counts can be counted, and not everything that can be counted counts.” Albert Einstein

Many companies find it challenging to determine the ROI of their social media campaign. This is partly due to the fact that social media interactions revolve mostly around conversations and brand awareness, which are not as easy to measure as click-through’s and CPM’s. There are many different metrics that can be evaluated in social media (followers, likes, comments, shares, impressions, etc.) so the best way to determine ROI is to first establish what your goals are. Is your goal to grow your social following?  Increase brand awareness? Engage customers? Every business has different needs for social media, but asking yourself what you hope to achieve from your social campaign is the first step.

I often tell my clients that social media measurement is about quality not quantity. There are many agencies out there that promise to deliver thousands of new fans or followers. While getting 10,000 followers on your Twitter overnight may seem attractive, there is no guarantee that those followers are in your market or even real people for that matter. It is better to have a small community of highly engaged fans than a large community that is disengaged.

Engagement rate is one of the best metrics for evaluating the ROI of your social media marketing.  As pictured below, Engagement Rate takes the total number of interactions on a social network and divides that by the number of community members. Try calculating your Engagement Rate!

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Social media is a tool or rather a series of tools for your business.  There is no one-size fits all to measuring “social media” ROI. Each project brings its own objectives and, as a result, its own definition of success with the metrics that you can use to measure it.  That is what it is important to define what your objectives are up front, set goals based on those objectives and then determine how you are going to measure success.

Read more: You’re on Facebook and Twitter! Now what?

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Comments

  1. Thanks for pointing out, “Social media is a tool or rather a series of tools for your business. There is no one-size fits all to measuring “social media” ROI.”

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