How To Calculate The ROI From Social Media Marketing

Comments: 5


  • I think there is some good guidance here to address a topic that so many have trouble grasping. The one thing that I think is erred here is your statement on benefits: “Generating incremental revenue with new prospects and existing customers.” It is difficult, if not impossible to accurately link social initiatives to sales … lead generation, yes, but sales, no. My emphasis is to measure social media with KPIs (awareness, lead gen, advocates) and keep away from linkage to actual sales. It makes the arguement stronger and DEFENDABLE. I take the same position with most “marketing” efforts.

    Thanks,
    Social Steve

  • Henry says:

    Good article, as this is a challenge we all face in regards to justifying social media and community implementations. Your ROI calculator hits many of the right areas.

    Although, I differ with Steve somewhat in regards to linking social initiatives to sales. A review of Google Analytics or Omniture referrals at your site’s entry points, and then funnelling to the checkout step can provide some direct and useful data in regards to sales results from social initiatives. It’s not perfect or complete, but it is measurable.

    Thanks,

    Henry

  • kenny says:

    Check out Paul Gilln’s book on social marketing to the business customer.

    very good indeed.

  • Kenny,

    I do highly recommend Paul Gillin’s book on B2B social marketing.

  • Alessandra says:

    ROI for social media could not be more important, but there are so many ways that people suggest to go about it. There are both qualitative and quantitative tools you can use to measure your return on investment. Check out this blog post as well for another take on ROI for SM. http://www.mysmn.com/social-media-roi-rocket-science/

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