Tag Archives: roi of social media

And another thought on social media ROI

12 Aug

Social media is about connecting with people on a more intimate and individual level than mass media. In the past, companies spoke at their audiences through advertisements and other marketing forms. Now, companies can INTERACT with their audiences, in fact making communications more of a two-way phenomenon.

With that in mind, the closest comparison to social media is in-person networking. I wonder how many companies calculate the ROI of sending a company representative to a networking event. If the person makes ten connections but no sales is that considered bad ROI?

Networking, and social media, is about building connections. There may or may not be a dollar value that can be attached to those connections.

Thoughts?

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Some thoughts on the ROI/ROE of social media

11 Aug

Increasingly, I am seeing articles out there about measuring the Return on Investment (ROI)/Return on Engagement (ROE) in social media.  This morning, I read an article that went so far as to show you how to calculate the dollar figures of investment and the projected value of any customers you may get from your blog.

The thing is this: what are you using social media to accomplish? Without knowing the answer to that, there is no measurement available. If you are indeed using your blog simply to generate sales, it is easy to calculate if you are getting a decent ROI.

However (you knew this was coming), using social media can help you/your business accomplish many goals, such as:

  • Thought leadership
  • Image/branding
  • Name recognition
  • Networking (as in actually meeting other people)

These are not so easily measured in numbers and certainly not in dollars, and yet they all have value.

My conclusion is that you should not waste your time trying to measure your ROI/ROE but instead ask yourself if your social media use is generating value for you. If you are spending hours and hours a day on social networks and haven’t made one solitary connection, it is clear that there is no value for you. If you have made connections, improved your image, heightened your name recognition, perhaps that is the value you seek.

What are your thoughts? What makes you use social media for business purposes?