Social media ROI is one of the main & most important types of measuring the benefits returned from Social Media.
What if you have one million Facebook fans or one million Twitter followers? How will that add to your business? That’s the question.
The answer will be by measuring our return on investment (ROI)
How to measure the social media ROI ?
ROI is the value returned to our business from creating our social media channels. Actually there are lots of types, classifications, methods & ways for measuring the ROI from social media.
Some marketers classified it into financial & non-financial, that’s right because the ROI shouldn’t be in terms of money only, there are a lot of values can be added to the business other than money.
We can classify the ROI from social media into four types:
It depends on your revenue proposal strategy, as your social media channels can generate revenue or minimize cost.
Generating revenue can be from direct sales, like having sales people online or a Facebook online shop.
Minimizing cost can be by many ways, as mentioned above each industry has its own revenue proposal & cost management way, but most of the online entities has their own websites & the traffic of these websites is one of their important KPIs, either for sales, views, offers…etc., so we can pay ads for Google & other searching engines to increase the views. The organic traffic created from social media can be considered as money saved.
The non-financial value which we get from social media has the same importance of the financial one & may be much more.
Website’s visitors, positive word of mouth, video views, brand awareness, number of fans & followers, etc., impacts the brand’s value.
That’s why it’s important to measure all of these factors & evaluate it.
Crisis & Risk management:
Once we realized the importance of social media & how it can build or destroy an industry, we can now estimate & analyze the risk from customers’ feedbacks & take the proper action with our strategy, products, services….etc., so we don’t face attacking campaign which may drop our brand image & value.
ROI is a very big topic which should be measured by any company & it needs lots of studies & researches to be done properly.