If you’re going to sell Social Media services, you’re going to get asked about ROI. It’s only natural that a business would want to know about their Return On Investment when engaging in marketing activities.
An advertising campaign can provide numbers based on how many (estimated) people will see your billboard, postcards or ads, but the conversion into sales still relies on the product or desired experience. Social media works in much the same way. It drives traffic and can be measured by engagement, however, the purpose of ‘social’ media is to create an open dialogue between the business and the consumer with an aim to build trust and loyalty.
With that in mind, measuring an ROI in social media should focus on the specific goals of a campaign and less on the over all use of social media. After all, you’ve probably never looked at your phone and wondered what the ROI of it was.
Check out this great slide show from YongFook that shares a few great examples:
There are endless amounts of data that details increased sales due to social media activity. As a small business owner I suggest starting with specific campaign meant to share a call to action. A great example of this is a campaign we recently ran for my husband. As some of you know, Jefferson is a singer/songwriter and 10 weeks ago we released his latest album to radio. We hired the amazing Lisa Grey to manage the promotion and as always I’m on duty to manage what I call the “backstage” part of his social media.
During a reputation check I discovered that one of his songs was listed on a listener poll. Through social media we were able to engage with his followers in that area and beyond to vote for his song. Because of this interaction, we won the poll, beating out a much respected band whom we adore. We also added followers to both his facebook accounts, twitter accounts and to his email list, and he was listed in the top 10 of folk artists for that station. I didn’t measure CD sales, but we had those too. The goal was to encourage his f0llowers to act on his behalf. We could measure those ‘acts’ and be proud of a well executed social media campaign that as a bonus also created revenue.
Need help with your Social Media Marketing?
Email me your questions at Tami (at) TamiRoss (dot) com