Considering Responsive Web Design for your new site? Better update your design process first.
Some people seem to think that calculating the return on investment (ROI) of social media efforts is impossible, but for many B2B companies, calculating ROI is dead simple (notice that I didn’t say easy). This is something that I’ve written about on my personal blog in the past, but I wanted to share it with a larger audience here too. I’ll admit that this is a bare-bones simplification of the process and, in some cases, finding ROI can be very difficult, if not impossible. Also, for some businesses, fan interaction and engagement may even be as far as you really want to go with measurement. But if you have a B2B business, lead generation is probably one of your primary goals for social media and as long as you understand social media analytics and have access to the right data, you can obtain true ROI. Remember, before you begin, define your goals, develop measurement processes and stay focused to be sure you have the data you need. Once you have the data, the rest is a piece of cake. Without further ado, here’s how to measure ROI:
That’s it. That’s all it is. You’re done. Congratulations! Oh, and if you’re the “extra credit” type, you can go for bonus points and add in the cost to retain your customer to your “investment” number for a more accurate picture of ROI, but those costs are not necessarily associated with the social media marketing investment, so they can be misleading if you’re not careful.
Make sure you’re familiar with social media analytics just to be sure you’re tracking the right information upfront. A moderate investment in a good marketing automation solution is almost a must-have, too. Once you have everything set up properly and are regularly monitoring your efforts, you’ll be able produce your ROI for your CFO at a moment’s notice.
If you have any questions, feel free to leave them in the comments section.