Rather than spending thousands for page four-color ads in vertical trade publications or TV and radio commercials, B2B and B2C marketers are now diverting or saving their marketing dollars by investing more time on social media for the purpose of developing a relationship and a dialogue with prospects and customers.
In the January/February edition of Communications World, “Measuring the Real ROI of Social Media,” we learn Sodexo decided to try Twitter to recruit. They invested $50,000 in time and salaries. At the end of six months, they filled enough jobs to cancel a $350,000 Monster.com ad budget. An ROI of 6000%.
However, with social media ROI goes beyond money. How do you measure the value of relationships and reputation?
Here’s a suggested checklist for social media measurement:
1. Define your measures of success, KPIs (key performance indicators) and dashboard. Based on the KPIs, make a list of the data you’ll need to report on those KPIs. Number of relationships and feedback on reputation should be two of those measures.
2. Select a listening/monitoring tool. List all of the channels you need to monitor. Estimate volume of mentions using Google News. Track positive and negative mentions.
3. Select a web analytics tool. I highly recommend Google Analytics to track unique and repeat visitors, length of time spent on site and click-throughs to other pages or downloads.
4. Have a CRM system that will enable you to track lead and sales data — number of registrations, leads, qualified leads, appointments, proposals and sales.
5. Analyze and report results. Put all relevant data into a KPI table. Look for exceptional successes and identify areas for improvement.
What is the ROI of your social media efforts?