As mentioned in my earlier blog, ROI on social media comes from energizing your consumers. However, it is not as easy as it sounds. How do you know that you are being successful as a marketer? How can you measure your ROI on social media? “Effective social media measurement should start by turning the traditional ROI approach on its head. That is, instead of emphasizing their own marketing investments and calculating the returns in terms of customer response, managers should begin by considering consumer motivations to use social media and then measure the social media investments customers make as they engage with the marketers’ brands” (Fodor, 2010, para.3). It’s a way of not only looking into the short term and long term on marketing and your consumers, but it’s being able to do both.
You first must understand why consumers are looking at your blog, or social media site. This way you can figure out what they are expecting from you as a company. That way you can deliever that. ROI is not only ued as a financial term, but it is a way of measuring your consumers. “At the end of the day, if you can compare social media to what you spend on pay-per-click advertising and start measuring it with something simple like cost per click on all of the web traffic you are sending to your site, you have something that justifies a budget.” (Stelzner, 2013, para.19).
But first, before really getting into analyzing and trying to measure your ROI, the business must figure out what their ojective is. Do they really want to tap into the groundswell, and if so they must have a plan on how they are going to do that. This will only be successful if you find ways to engage your consumers in areas that they are interested in. This you get them to talk about your company, and spread the word. You can then start to measure your success by seing how sales have changed, and how many more followers or bloggers you receive.
Fodor, M., & Hoffman, D. (2010). Can you measure ROI of your social media marketing? Retrieved from http://sloanreview.mit.edu/article/can-you-measure-the-roi-of-your-social-media-marketing/
Stelzner, M. (2013). Measuring social media, how to determine your ROI. Retrieved from http://www.socialmediaexaminer.com/measuring-social-media-how-to-determine-your-roi/