Every time I get asked that ROI of social, I just want to walk away. Its one of the few questions in the world that I am starting to get annoyed at. I understand that when most people ask me this, they don’t really know how to calculate the impact of social. They just think we need to be broadcasting on all of the social platforms, all the time and track all the clicks to the sales. I wish it was that easy.
I wish I can just say what Gary Vaynerchuk says, when he replies to that question, with “What’s the ROI of your mother?” I would love to say that. To me that is a great answer. Can you really answer that in a quantitative, concise way? Here’s the video:
Let’s really answer the question, What is the ROI of social? My answer: A Long Term Customer Relationship. Social can help you engage in real time, be transparent, be authentic, and build a personal relationship with someone. Today customers expect personal targeting mixed with a customer experience that caters to them 24/7. Why shouldn’t they? You have all the tools and they expect you to deliver an amazing customer experience.
The Best Marketing in the world is “Word of Mouth.” Social helps you spread that word faster than you have ever imagined.
When sales teams ask me, why should I be on social, I increased my sales 10% from last year? My answer to that always is, “that’s great, but wouldn’t it better if you increased it 12% or 15%” Social helps you enhance your value which in turn can enhance your customer acquisition.
This is how most companies measure Social ROI:
- Filled-out contact forms
- Online purchases
- Time on site
- Engagement with content
- New visitors vs. returning visitors
- Pages per visit
- Link clicks
- Newsletter signups
- Asset downloads
- Social interactions
- Video views
Now this list above is very important, don’t get me wrong but we should also look beyond this. Our approach to social should be different, instead of me talking about it, I will let David Meerman Scott enlighten us.
Originally posted on LinkedIn