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  • July 22

Is Social Media ROI Unmeasurable?

social media

Social media. The world is flipping out over it. It’s easy to see why. Social media represents an easy and instant way for companies to interact with a customer base on the fly. Social media doesn’t only connect companies with current customers, however. It also connects companies with potential customers. This is perhaps even more important.

Not all comes up roses in Tweetland though. There are several unsettling problems arising with social media that questions it’s validity as an enhancer of business-related profit.

So what’s the deal?

The enthusiasm for social media (and especially Twitter) is stronger than ever. However, that enthusiasm is dampened a bit by one uncomfortable fact: It’s become nearly impossible to measure the success of social media. Sure, each platform features it’s own set of metrics. Twitter has followers. Facebook has fans etc. But without something external to tie it to, those are jus high scores in the social media video game. What does it mean for you and your business? Being popular is certainly great for companies, but it doesn’t always translate into profit. So what is the benefit?

The B-word

Of course, the default answer always comes down to “branding.” Branding. That most ephemeral of concepts that, along with “engagement,” is always listed as the main benefit of the Internet age. However, branding is often just a distraction. No real results to report? Let’s just talk about how your brand is “improving.” Pretty soon your company’s logo will be like the Rolling Stones lips, right? No matter what you think branding is, you have to find a way to measure it. Here are just a few possibilities:

- Direct brand mentions

- Links with brand-related anchor text

- Branded search volume

As long as you have some kind of a number, you can calculate some kind of ROI.

Target a Response

We have all become guinea pigs. We are all learning how we go, trying to figure out how to use Twitter and Facebook to drive real business value. There’s the direct response approach, of course. But why not target it a bit? Put out a special offer through social media channels, and you can measure the response. When you can measure something, you can get close to an accurate ROI.

Take a cue from the MGM Grand hotel in Las Vegas. Their head of marketing has delved into another aspect of social media. Their employees monitor Twitter to spot dissatisfied hotel guests, then send off staff to fix the problem. Then they had back on to Twitter to try to measure the response. How many problems did they intercept? How many were they able to solve? What does solving one customer’s problem equal in real dollars? These questions can now be answered and with that comes an approximation of real value.

Find a Comparison

Lee Odden once told me an anecdote regarding his company. He said the company drives about 15-20 major media mentions per month from social media. He estimates that this equates to paying a PR firm $10,000/month. These are not traditional metrics but they sure do help to drive a point home. Social media, when used effectively, can replace the need for professional PR.

Just Measure It

What’s to be afraid of? It’s just social media ROI. It won’t bite. Well, not literally anyways. Stop making excuses, stop mumbling about branding, and find a way to quantify social media success in real dollars. You’ll be glad you did.




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