Here’s an rock solid presentation on social media return on investment (ROI) to your CEO (or your boss) by Olivier Blanchard on slideshare. He made these available 2 years ago; that’s a long time in Internet years, maybe even longer in Internet marketing years. But his message is still quite relevant today and will be still relevant tomorrow. For business leaders who (still) have challenges in understanding this social media thing, this should help make things clearer.
- Social media is not free. It takes 1) people, 2) technology, and 3) time.
- Social media, like everything else in a business, must help reduce cost and increase revenue.
- Analytics only reports on non-financial impacts of social media.
- Social media performance needs to be tied to financial impact.
- To measure financial impacts of social media efforts, try the following:
- Establish a baseline (pre-social media measurements,)
- Create and report on social media activities timelines (social media activities over time,)
- Compare sales figures, number of transactions, net new customers before and since social media started; and be sure to include plenty of specific details on transactions.
- Measure transaction precursors such as new mentions, store traffic, website visitors, click through rates, blog comments, etc.
- Overlay all timelines to view transactions cause and effect together at the same time.
- Look for trends and related patterns.
- Then make business decisions to enhance what ‘s working and rectify what’s not.
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