Comments on: Basics of Establishing An ROI of Social Media. Yes or No?

By: Twitter: The Primer | Sarah Morgan

Twitter: The Primer | Sarah Morgan — Tue, 23 Dec 2008 14:33:42 +0000

[...] Here’a a useful article on how to, and whether to, measure the success of any social-media out… [...]

By: hhotelconsult

hhotelconsult — Fri, 12 Dec 2008 23:32:14 +0000

Well put, and well said. The problem here is that the people spending the money want solid, quantified ROI. Albeit archaic, and stuck in a previous model…. the ones with the money are the ones that will drive this, and they currently want hard ROI. I completely agree with the article… but VC, marketing dollars… won’t fund people to just goof around on the internet for long. If they want measurement we need to figure out how to give it to them as accurately and measured as possible. But darn it I agree with that article.

By: Alasdair

Alasdair — Mon, 01 Dec 2008 15:46:50 +0000

@jeff Right, well put. Any social media strategy has to be formulated in relation to an organizations integrated marketing plan. This is well articulated by Clare in her previous post http://claremunn.com/2008/11/the-roi-of-social-media-get-the-biggest-bang-for-your-buck/ . A social media strategy cannot be formulated in isolation, it cannot be regarded as a quick fix, and it needs to be monitored for the sake of providing information and trends.

By: Alasdair

Alasdair — Mon, 01 Dec 2008 15:39:12 +0000

@Stephen. Well articulated. Yes this all part of the strategy. Understanding that this is a long term commitment is indeed key. There are no quick fixes. Those against measurement and analytics see the old ROI values of control and justification getting in the way in the short term before the long term investment is realised. As I have heard you say before, there is much education needed. Perceptions need to be altered.

By: Jeff Weinberger

Jeff Weinberger — Mon, 01 Dec 2008 04:56:09 +0000

Alasdair:

As you note: “Here ROI is measured in relation to goals and objectives rather than in terms of money.” – this is the point on which I could not agree more.

Social media isn’t about getting your message out, it’s about presence, conversation and community. And it’s still an invaluable marketing tool.

If we as marketers keep in mind that social media is one component (that does not stand alone) of a marketing strategy, and we know what goals and objectives we need it to fulfill, we’ll do a much better job of setting realistic expectations, creating something useful for both us and our constituents and making it a success all around.

I know that sounds a bit preachy, but in the spirit of keeping the goal in mind, knowing what you want and knowing when you’ve got it are still the critical foundation.

Thanks to you and Beth for engaging this conversation.

By: Stephen

Stephen — Mon, 01 Dec 2008 01:27:59 +0000

As Beth outlines in regard to how one can measure social media ROI effectively, she speaks of thinking of ROI in terms of conversations, loyalty, trust, investment, etc. I would submit that, while thinking of ROI in this way is both instructive and compelling, it’s important to begin the process of really thinking through how to tell that story persuasively (particularly to larger companies) in a business climate that has for some years now focused more acutely on short-term gain (the auto industry is a prime example). Overcoming this mindset is a long-term prospect that requires consistent and aggressive thought leadership, as well as clearly documented successes that are highly visible.

By: Alasdair

Alasdair — Sun, 30 Nov 2008 17:41:00 +0000

@BethHarte Nicely summed up. Thanks for your input. And thanks to your original post http://www.mpdailyfix.com/2008/11/want_to_figure_out_your_social.html that helped articulate it.

By: Beth Harte

Beth Harte — Sun, 30 Nov 2008 17:12:40 +0000

Alasdair, thank you for taking this conversation a step further. I think you have built the bridge between planning and measurement that finally makes sense (at least for me).

“You cannot measure the effectiveness of every social conversation. Yes it is difficult to quantify the good that comes from real customer engagement. But this does not mean you should not use analytics and measurement.”

Exactly. It takes multiple interactions to move the needle from prospect to customer/client, I think we should, as marketers, PR or social media professionals, have some understanding about what worked in that particular situation. But I think part of the misunderstanding comes from planning/ROI is the notion that if it worked for some, it will work for all. That is simply not the case and social media just puts more of a spotlight on that misnomer.

“Measurement is not to be approached as justification and measurement should never inhibit the flow of social conversations and connections. But in order to be effective for business, a social media campaign has to be built on a strategy….There is little point in having these conversations if they are not going to inform you. Here ROI is measured in relation to goals and objectives rather than in terms of money.”

Agreed. There should be a plan to measure against, but it doesn’t always need to equate to Return = revenues and Investment = marketing budget. Simply, it could be, Return = conversations, loyalty, trust and Investment = time and understanding but you need to first have goal(s)/objectives planned to understand which you are looking for.

Thanks for stretching my brain a bit more! I believe you have just answered some additional thoughts that were rattling around my head.

By: Tom Pick

Tom Pick — Sat, 29 Nov 2008 14:08:21 +0000

I think a big part of the “ROI” comes in the form of learning where to have these conversations. MySpace is big for bands, but not much else, and certainly not a place for b2b marketers.

It takes some experimentation, but depending on the nature of your business, you may find the greatest concentration of interest in the community on Facebook, LinkedIn, Digg, Searchles, Twitter, or somewhere else. Each network attracts a unique audience, so there is no one-size-fits-all answer, and only some method of effective measurement will help you determine that.