Many people nowadays see social media as a necessity for their businesses, especially younger professionals. But I don’t think they know why it’s so important.
Likewise, perhaps some older executives don’t believe in the power of social media and won’t give it a chance, also because they don’t know why it’s so important.
This is the primary reason I took COMM464: I want to learn how to quantify the effects of social media and eMarketing. As a Marketing and Finance student who loves branding/promotions but also values hard figures, I care about the tangibility of marketing activities.
So, I came across some articles explaining how to calculate Social Media ROI (Return On Investment). The frameworks seem fairly consistent, but I will highlight two I found useful:
How to Measure ROI in Social Media by Nick Patel (Quick Sprout):
- Set conversion goals
- Track conversions
- Assign monetary value to each conversion
- Measure total benefits by channel
- Determine total costs
- Analyze results and improve
How to Measure Social Media ROI For Your Business by Hootsuite:
- Connect Your Social Media ROI Back to Your Business Goals
- Select Social Media Analytics Tools To Measure Your ROI
- Calculate Your Social Media ROI
- Adjust to Improve
A common theme between the sources I referenced is the importance of goals in calculating social media ROI. I think this is a vital step in social media’s development, and will serve to justify the validity of social media as a primary marketing activity. I am excited to learn more about analytics and the quantifiability of social media in the coming weeks!
Sources:
- Patel, N. (2014, June 27). How to Calculate the ROI of Your Social Media Campaigns. Retrieved September 13, 2015, from http://www.quicksprout.com/2014/06/27/how-to-calculate-the-roi-of-your-social-media-campaigns/
- Lepage, E. (2014, April 24). How To Measure Social Media ROI For Your Business. Retrieved September 13, 2015, from http://blog.hootsuite.com/measure-social-media-roi-business/
- Jackson, D. (2015, July 6). Ultimate Guide to Measuring Social Media ROI | Sprout Social. Retrieved September 13, 2015, from http://sproutsocial.com/insights/social-media-roi-guide/
- Vermerin, I. (2013, November 21). 10 Ways to Prove the Value & ROI of Social Media Monitoring. Retrieved September 13, 2015, from https://www.brandwatch.com/2013/11/10-ways-to-prove-the-value-roi-of-social-media-monitoring/