I provided a short answer to what drives Social Media ROI on Quora earlier today which generated an immediate response. Iâ€™m going to flesh out my answer, as I think many brands and businesses are struggling with identifying social media ROI. Before you even think about social media marketing ROI you have to create and launch a campaign and should be aware of these barriers to entry.
- Remember the old saw: “time takes time” - well this is true of social media marketing. It requires an investment of time, which is increasing every day, as more and more jump into the market. Itâ€™s a marathon with the characteristics of a 100 yard dash!
- Effective high impact social media marketing campaigns require a knowledge of specialized marketing processes and platforms (YouTube, Twitter, LinkedIn, Facebook, Yelp, Flickr).
- You should have a good understanding of content development and curation, coupled with a good web site structure that inculcates good SEO fundamentals.
- Social media marketing is starting to draw a crowd - the low barriers to entry are disappearing. Meaning, your brand messaging has to stand out above the digital hubbub.
Now that Iâ€™ve hopefully give you a sanity check about the big picture challenges lets dive deeper into social media marketing ROI metrics. Big picture capabilities:
- Creates Buzz and Brand Awareness if outbound marketing is done creatively.
- Gets Targeted Customers talking about your Product and Services via Social Communities.
- Enables you to Build a Social Presence within these Communities, driving competitive barriers to entry.
- Track brand engagement (note my recommendations for platforms and services below).
- Monitor Competitors - remember they are doing the same on their end.
- Use Social Communities as a product feedback loop thatâ€™s second to none.
- Will push your organization to embrace new and challenging Marketing Methodologies, which in turn improves the DNA of your brand/organization.
- Give you the ability to measure positive Social Sentiment (or negative).
Tangible ROI Measurements for Social Media Marketing:
- Customer Acquisition
- Generate Keyword Rankings and Related Search Traffic
- Drive “real time search” traffic via Keywords in Social Streams
- Cross Promote and Curate Content to Drive Search Rankings & Visibility
- Utilize Social CRM to Engage with and Solve Customer Problems (Support)
- Identify Customer Influencers & Market Directly to them
- Move Ecommerce Initiatives into Social Stream to Minimize COG
- Utilize Social Stream/Communities to Measure KPI
- Drives Blog & Newsletter Subscribers
- Leverages Content Development Costs
Market LeadersÂ involved in Social Media Marketing ROI
- Radian6: http://www.radian6.com/
- SproutSocial: http://sproutsocial.com/
- Awarness Networks: http://www.awarenessnetworks.com/
- People Browser (Research.Ly): http://www.peoplebrowsr.com/
- PeerIndex: http://www.peerindex.net/
- Klout: http://www.klout.com
- Lithium: http://www.lithium.com
- Lexalytics: http://www.lexalytics.com/