We all know by now that working social media is an integral part of any brand promotion and marketing campaign but business owners often want to know how to measure the ROI (Return on Investment) of their social media efforts. What is the real value of all those “likes” and “shares” and how do you measure the seemingly immeasurable?
There are four major areas to assess when trying to figure out the ROI for social media:
1. Financial: With regard to your social media campaign, have you seen an increase in company revenues?
2. Brand: Are your levels of brand perception or recognition on the rise, particularly within your target market?
3. Digital: Has your company increased its social media digital assets?
4. Risk Management: Does your company have adequate means to process, document and respond to social media inquiries and comments?
If you’re able to answer positively in all four categories, then your social media campaign is on the right track. However, according to studies, 60% of consumers expect companies to respond to them via social media yet only 30% of customers actually do receives online responses from businesses. When considering your social media ROI it’s critical to remember that it’s the actual interaction and relationship building with your customers that moves a brand forward.
It’s the consistent attention to interaction that creates the true ROI on your social media. Using Facebook and Twitter to announce special promotions, sales and discounts can drive up your revenues. Foursquare check-ins, Facebook shares and getting pinned on Pintrest all increase your brand recognition and perception and are a direct result of strengthening your online relationships with your clients.
Always remember that your social media ROI is a long term goal with long term benefits and the ultimate focus should be to build a community of brand ambassadors and loyalists for your business and brand.
Gabriela Escandón is Social Media and SEO Strategist at Mijo! Brands in Mexico.
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