Just Go Slightly Nuts Measuring Social Media ROI
By Leslie Martel Baer
Every part of your communications plan should include even a casual measurement of return on investment (ROI)—which requires three things:
- What types of returns you expect.
- What variables or metrics you are going to use to evaluate those returns.
- The before and after values of those metrics relative to the given effort.
What types of returns can you expect from social media? Exposure, obviously. LinkedIn, FaceBook, Twitter, and quality niche social media can broadcast your message and increase hits to your site, queries about products, sales, and calls. But don’t stop there.
Social media can increase your stature as a subject matter expert. Respond constructively to the queries and discussions of others. Guide peers, contacts, and prospects to useful posts, white papers, articles, and other resources—on your own pages and website, and elsewhere. Expect to receive referrals, queries that tap your expertise, and more traffic on your site and phone line in return.
At the same time, cultivate social media for their learning and resource opportunities. As George Gay of First Affirmative Financial Network recently pointed out, “It can be more important whom you follow than who follows you.” Why? Because learning from a crowd of exceptional minds adds tremendous value to your business practice. Comb these media for resources that resolve the challenges that you—and your customers—face every day.
Further, asking questions makes for great introductions and opens doors. Bonus: it will make your network colleagues feel good. Learning returns are more qualitative: more connections, improved productivity, better knowledge of hot topics for your industry, and other variables that affect your competitiveness.
Of course, share special offers, close sales, and offer support to your prospects, customers, vendors, and community for a return of increased traffic to your business. But, be respectful. Generally, social networkers do not appreciate a “hard sell” unless the site is designed for it. Aim for 80% information, 20% sales.
Once you’ve identified your expected returns—increasing your LinkedIn network within your prospect base, for example—determine how you will measure success. If necessary, start informally. How many emails do you average from prospects each week? How many did you get after the campaign? Or, count how many contacts you have within your target audience before you begin posting useful articles and count again, one month later.
Tie your metrics to specific goals. Do you simply wish to expand your network? Or do you want to measure the communications effort in closed sales? Detail about the goal to be met, the return used to meet it, and the metric will clarify if your time has been well spent.
Sound like a lot of work? It is more work than jumping on to Twitter or your favorite LinkedIn group. But, how much time do you spend on social media each week? Three hours? 5? 10? That much time, energy, and money in a communications tool had better be worth the investment.
It boils down to determining if the time you spend on a given network has improved your bottom line. If you spend any time thinking about it, you probably already know the answer.
