By Kent Huffman, Author of 8 Mandates for Social Media Marketing Success
“What’s the ROI from all that social media stuff you’ve been doing?” your boss asks. One of his favorite questions, right? Or if you’re a small business owner, you’ve probably heard that same question from your partner or CPA.
Generating reliable performance metrics for your social media activities—gathered and reported in an efficient, easily interpreted manner—has become a major priority for practitioners of social media marketing to help them demonstrate the value from participating in social media and validate their investments in it.
Your boss, partner, or CPA wants to compare the investment of personnel, time, money, and other resources to the return. But without supplying verifiable ROI data and analysis, any long-term relationships that marketers hope to develop and maintain with their social media communities are most likely in jeopardy.
So how do you go about ensuring that you’re deriving value from your social media marketing efforts—and that you can accurately measure that value? Obviously, tracking online “chatter” can help expose the bad as well as the good. For example, your fans and followers may publicly laud your products or suggest improvements to them, giving you the opportunity to respond quickly and address their comments or concerns. Also, there are now a myriad of technology tools available that can help measure the financial impact of social media on your organization, including lead generation, e-commerce revenue, etc.
The social media monitoring and measuring process is still in its infancy. However, in today’s hyper-competitive environment and relatively weak economy, generating measurable, repeatable value from social media is no longer an option for most marketers.
(This is an excerpt from Kent’s new book, 8 Mandates for Social Media Marketing Success.)
Next: 8 Mandates for Social Media Marketing Success—#8: Continue Listening