The ROI of social media is a concept that is gaining more focus today as the willy-nilly days of the “just do it” mentality around social media has begun reaching more and more board rooms of Corporate America. Their answer? “Just do it just won’t cut it. Tell me ‘why’ and what to expect.”A week or two ago I attended a presentation hosted by the Social Media Breakfast Club Charlotte that invited the founders of Argyle Social (@argylesocial), Eric Boggs (@ericboggs) and Adam Covati (@covati), to address the questions around ROI and social media. I went in to this meeting a bit cynical since the most common answer the past few years to this question has been, “How do you measure the ROI of conversations? Just do it [social media] or your competitors will!” However, that day I was pleasantly surprised by what I heard and learned.
Show Me the Data Stupid
Good marketers know the importance of putting emphasis on tracking performance. We’re data-driven people who need to show results for the programs we’ve made our leaders believe in (and spend money on!) Business owners are the same way in that they need to see what is working and what is just dragging down cash flows.
In the economy we’re dealing with today, if you cannot show a simple path to discovering what the ROI of social media activities could be, then it is almost a sure guarantee that businesses just won’t try it.
Five Simple Steps to Social Media ROI
That’s exactly what Eric and Adam provided in their presentation: a list of five simple steps to measure the ROI of social media activities. And guess what, it should look very familiar!
Here’s the quick list with my quick interpretation from the presentation:
- Define desired outcomes – Just like any marketing program, what are your highest-level objectives for the business? And remember business objectives and marketing goals are two different items.
- Understand your inputs – Identify what you are putting into the program in terms of people, tools, spending, etc. This is essentially your full investment in the initiative(s).
- Find the tools and manage data flow – The importance here is on tracking and filtering everything. This is the the actual program in action with data being fed into your analytical tools.
- Manage the team – Drive the program, manage the program, and support the program.
- Do the math – What were your results? Measure, analyze, tweak, and repeat.
Fantastic job by these two and I am totally psyched about the future beta release of Argyle Social’s software. It’s core focus? You guessed it, tracking the performance and displaying the ROI of social media activities. Rock on guys!
Do you want to see their presentation for yourself? View the PowerPoint below or watch the video from the actual event.
PowerPoint Presentation on Slideshare
Video of Presentation on Vimeo
What Questions or Answers do You Have About Social Media ROI?
I’m a constant student and am always hearing about other individuals perspectives bout social media ROI. Do you have an answer to the question? Share it with us below in the comments?
Do you have more questions about social media ROI? Ask it below in the comments and maybe we can all come up with an answer!