Posts Tagged ‘ Return on Investment ’

What ROI means to Social Media Professionals


Image from: soicalmediatoday.com

As more and more large and small businesses are realizing their need to hop the Social Media Bandwagon, one wonders why so many of them are yet to get their feet wet. From working with a couple of marketing agencies and interacting with their clients, there seems to be one common factor that has many execs cowering under their desks when a Social media proposal rears it’s head: How much are we gunna be spending and where’s the ROI?

I’ll first respond to this with an interesting quote I found by Andres McAfee of Harvard Business School.

There is not enough ROI for figuring out ROI. It is an intellectually bankrupt exercise.

Now, I understand that this may seem harsh and most execs will now be asking “If not ROI, what should we be concerned with?” Well, the answer lies in your perception of social media and it’s purpose in business. Its primary purpose is not to squeeze pockets but to build and maintain a relationship of trust and loyalty between a company and its followers. These followers don’t need to be big investors or even customers! But once you can extend that platform for persons to ask questions, share and receive information, learn about and get closer to your company, the return will be loyal followers who believe in your promotions and have a genuine interest and appreciation for the business.

Below are a few related articles on ROI that I’ve found quite on point:

http://kylelacy.com/the-best-roi-explanation-for-social-media-and-some-additions/

http://www.socialmediatoday.com/SMC/77179

http://www.brasstackthinking.com/2010/05/13-truths-about-social-media-measurement/

http://www.hyperarts.com/blog/roi-defense-social-media/

@Kliejay

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