If you’re familiar with the Rodger’s adoption curve, you understand that the innovators, early adopters, and early majority have already hopped on the social media bandwagon, are marketing online, and are reaping the benefits. Unfortunately, these marketing trends have not yet taken hold with the late majority and laggards. Many of the business owners residing in the latter two groups cite various, valid, reasons for holding out, most commonly, their “inability” to track the return on their social investment.
However, by leveraging tools like SocialBro and Google Analytics, diligently monitoring, and properly tracking your campaigns, you can measure ROI with relative ease. Here are 2 things you should take a look at when considering your return.
1. Have your marketing costs decreased or sales increased?
At the end of the day it’s about dollars and cents. Social media, and digital marketing in general, is far less expensive than traditional means. A Facebook business page and user generated content is free, a month’s worth of billboard advertising is roughly $1,000, you do the math. When working with business owners this is an easy idea to pitch, option 1, we save them money by cutting back, not eliminating (I would never recommend that – a topic for a different day), on traditional advertising and in turn decrease their marketing expenditures, or, option 2 add free digital marketing to their current traditional campaign and increase revenue, either way, we put more money in their pockets.
2. Has web traffic increased?
Not only is this an easily translatable, tangible piece of data that makes sense to business owners, it is by far, the easiest metric to track in the history of metrics. It really is a no brainer, by simply tracking the number of hits month over month, you can easily determine whether your social media campaign has seen some “success” or needs a bit of tweaking.
A side note on this – while increased traffic is great, it can certainly ruffle some feathers. If traffic increases 50% and sales don’t increase at all, you might reveal some underlying issues related to conversion, management, etc. that business owners may shy away from.
One final thought – at the end of the day, it is important to remember and relay, that although it does need to be leveraged correctly, social media is FREE, and any return puts you in the black.
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Calculate the ROI of Social Media – http://www.briansolis.com/2012/10/calculate-the-roi-of-social-media/
5 Simple Steps to Measure Social Media ROI – http://socialmediatoday.com/node/463590
Rodger’s Adoption Curve – http://en.wikipedia.org/wiki/Technology_adoption_lifecycle
© 2012 Brendan Brandt. All Rights Reserved.