When we are talking business, there are two things that are sure going to be discussed; profit margin and ROI. It’s simpler when it comes to tangible product. But what if you are in social media business? It is a common question among people who works in, or uses social media as marketing tool. The fact is, measuring social ROI is much easier compared to measuring the effectiveness of TV ads.
Social ROI isn’t just measured in Ringgit, although it can be done by simply creating and sharing a unique URL that tracks purchases – and this only applies to businesses that sell goods. Social ROI goes far beyond Ringgit and purchase conversions. ROI can be both quantitative and qualitative.
Here are some samples of obtaining such metrics:
- Comments on blog entry/Facebook post/Tweet – Positive, negative or neutral
- Google – Search Engine Optimization (SEO) ranking
- Website traffic – The easiest way is to track this using Google Analytics, which gives the user a holistic view of where his/her digital brand stands online.
- Interaction and conversations – How people talk about your campaign, product, or service – whether they recommend it or advise against, how do you avert a crisis, solve a customer complaint etc
- Support response time – This is for the companies who use social media as a means for assisting users with support, where a sentiment analysis can be conducted to measure your company’s social ROI.
- User-to-fan conversion – The best way to measure this in a campaign is to compare your before and after page Like count.
While we are glad that we are able to measure both qualitative and quantitative social ROI and accurately demonstrate the complete value of social media, we must also know how to (more or less) accurately record and analyze the qualitative data and translate it well in the reports. This is important if we are to have these data as a basis to set a new KPI.