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Two Great Ways To Determine The ROI of Social Media

ROI of social mediaFinding the right metrics for determining ROI of social media is different depending on what type of business your run and what your goals are. In my recent interview with Nate Kievman, he shared his perspective on how the ROI of social media should be calculated for different organizations and I’m certain that it will be very enlightening for many entrepreneurs and business people that struggle to represent the real-time benefits of it.

Determine Your Metrics For Success

Kievman asserts that most organizations come from two strands of thought:

  1. ROI focused but also very results-driven (Favored by Direct Marketers)
  2. Branding organizations that are focused on building a brand

As we continued to discuss the big divide that exists between these two ways of thinking in the social marketing world, it was determined that both of these strategies are very applicable and very powerful in their own ways but you can’t measure them both in the same way.

“You will see things like Radiant6 (popular social marketing tool) and other tools like that that have come about because they are measuring influence by mentions which is a branding metric of success.

“When most people think of ROI, they’re thinking return on investment when social media oftentimes is return on energy, return on efforts (ROE), and that’s the branding side of the word but it’s not to be taken lightly because that’s extremely powerful.”

Related: Advanced LinkedIn Training: The LinkedIn Profit Formula [NEW]

ROI of social mediaKievman’s words resonated with me, especially as an entrepreneur working exclusively in the social media marketing domain. When it gets down to the nitty gritty of the almighty dollar, Kievman suggests LinkedIn, especially in the B2B space when putting very specific programs and campaigns that aim for a very specific result.

He compares using LinkedIn to a direct mail program because of their equal tendency to be extremely powerful when executed properly or a colossal waste of time and money when done it wrong. Those of us who remember the prime days of direct mail know this all too well.  A failed national direct mail campaign is a tougher pill to swallow than determining the ROI of social media!

“If you go about it with the approach that you’re going to just go pitch everybody and send a traditional sales copy through LinkedIn, then you’re not going to have the success that you’re hoping to get.” Kievman leaves little room for rebuttal here and suggests that ROI is primarily valuable through that method or by taking an editorial approach with a long-term strategy for “creating influence and of your own brand through the content that you contribute.”

Related: The 5 Major Business Benefits of Blogging

What metrics are most important to you and your business when determining the ROI of social media? Leave a message in the comments below!

Comments

  1. Juan Felix says:

    Hey Melonie, great thoughts here! I mainly focus on traffic to my blog site. I monitor number of unique visitors and page views to see which content is most popular. I use these page views to focus on the type of content that’s valued the most by my readers. Another metric is the number of subscribers to my newsletter and Facebook tips. I use social media like Twitter, Google+, Pinterest, Facebook and Linkedin to share my blog posts, invite people to come over to my blog and hope they value my tips high enough to sign up for my updates via email. So, unique visitors and subscribers are my main metrics, for sure! ~ Juan

  2. Negotiating the maze of Metrics that are available for a web site and then paying attention to the ones that matter are some of the issues I’m going to be working on over the next weeks. I have always kept records of my numbers but I think that I’m finally getting to a place where they matter. I think that if I got really crazy about it, I would feel like I was in a Mission Control room with monitors blinking everywhere. This might work for some larger businesses, but would be a little overkill for me right now.

  3. Rafael says:

    Negotiating the metrics and mazes of a web site is not any fun Denise but you are right it is something that needs to be done. Keeping record of your numbers is a very good idea and I think you should go back to doing that in an Excel spreadsheet so that you can chart it later and see the growth you have made over the years.

  4. Norman says:

    I agree with Juan Felix my main traffic is my blog to and the visitors and subscribers are the ones that keep my blog running and they pay for consulting when they have a question that is in the field of my expertise. Anyone with a question about their fireplace on how to clean it and do minor repairs and service themselves can ask the question and receive an answer for a small fee.

  5. Norman says:

    I agree with Juan Felix my main traffic is my blog to and the visitors and subscribers are the ones that keep my blog running and they pay for consulting when they have a question that is in the field of my expertise. Anyone with a question about their fireplace on how to clean it and do minor repairs and service themselves can ask the question and receive an answer for a small fee.