Social Media ROI
Loved this presentation from Stefanos Karagos.
How many times have you had the discussion about the Facebook monies? It continues to irritate me that just because someone can update their Facebook profile in 30 seconds they think the development and management of a branded page of over 20,000 fans, customers and detractors can done in the same timeframe.
ROI usually initiates arguments over the “soft” metrics of social media. I’d like to call out the “lazy” metrics – those who use new sales as the only definition of ROI.
Forensic marketing has the ability to pull apart the sales funnel and define ROI in much more depth – taking into account the cost per acquisition of a client, the cost to serve a client and the cost to retain a client. So for example if your campaign pulls in 1,000 new sales you might be pretty happy. If the campaign was expensive, attracted the type of client that contributes little to your revenue stream but drains your resources, you might not be so happy.
Social media doesn’t need to be your conversion tool. It can be your lead nurturing tool; your investment into retaining clients or even your distraction for all the tyre kickers while your sales team hits up the tier one prospects. If your activity helps you achieve your objectives then it’s not hard to find the correlation between social media activity and ROI. Provided you’ve set the right objectives – but that’s another story.
~ by mandi bateson on March 25, 2011.