Measuring the ROI of Social Media

September 21st, 2009 by Robb Lewis Leave a reply »

The last post got me thinking more about social media and how to take those benefits and apply them to a measurable ROI. Depending on your business model this can be either simple or complex to measure, but there is a way to place a reasonable estimate on the contribution value of social media.

The simplest model is web based media that basically has 1-3 revenue streams – ads, leads and info (data for market research). Measuring the number of mentions on twitter, facebook, shared links, word of mouth, RT’s, widget installs, etc. and plotting a time line that maps these against the business metrics (clicked ad, provided some demo data, etc.) that contribute to your revenue. Also don’t forget to include the users off your website if you have widgets or distribute your content to other sites.

A more complex type of business to measure the ROI of social media would be a retail chain with physical stores as well as a website. Since I’ve not been in the physical retail industry for a very long time (pre-internet :-) ) I decided to see what others have been doing. I found this great presentation given by a marketing consultant named Olivier Blanchard. This was given at a small conference in South Carolina called Social Fresh. It is not only very helpful but its also quite entertaining as well. I would have loved to have been in the presentation. Thanks Oliver, this is great! :-)

Check it out here:Olivier Blanchard Basics Of Social Media Roi

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