How Do You Measure ROI?
Tuesday, July 20th, 2010Every presentation on social media or every panel, in every conference around the country and every city this question comes up. How do you measure ROI on social media?
There are quite a few ways to measure this. First, sales. Have you noticed an increase in your sales after your have started your social media strategy? That’s usually the first concern of all businesses small or large – the bottom dollar. For example, recently, Old Spice ran a video campaign with the “Old Spice Guy” on YouTube where they answered questions from fans, and the newest stats show that the sales increased 106% since the start of the video campaign.
Second option is to monitor how many hits your sites receives. This may be the best option for tracking ROI because what this means is that you are achieving brand awareness. And good advertising and marketing always lead to strong brand awareness and then sales. You can do this easily by putting Google Analytics on your website or blog. It creates a comprehensive report of all unique visitors, return visitors, hits, and other variables like best times of day, days of the week, etc.
Another way to check your ROI is if you are creating content via a blog or twitter, are people retweeting your messages and are they commenting on your posts? If they are doing this then you’re brand is being circulated around and it can be counted. Numbers are not always the most important when it comes to how to evaluate a social media strategy.
All in all, your ROI should start to pick up some speed after a few months and each campaign is different. Give it time to grow, and snowball. Small businesses may take more time than national brands.


