Sunday, October 23, 2011

The ROI Problem

So, I just had the opportunity to watch a really great webinar. It posed 15 questions to 30 social media thought leaders. A topic that really interests me has been how to measure the ROI of social media integration. This seems to be a problem that everyone faces when using social media. It's difficult to physically measure how much  money a single tweet can rake in or how that Facebook "like" really affected your sales. In the webinar, Heather Wholing pointed out that you need to measure your social media successes based on bigger business goals. You can't use a one size fits all metric system because it is so difficult to really measure the specific impact of only a few tweets or facebook posts. She does point out however, that it is easier than ever to track results of a campaign.  Analytics tools are essential to figuring out how many viewers or followers you have. This is a difficult way to measure however because views doesn't always mean that you're making money back. I however feel that we shouldn't take such a literal minded approach to the ROI from social media. If you are using social media in a creative way and using it to reach your key publics, you are always making a good investment. A company is based on making money, but they should also value social media's ability to harbor conversations. These conversations increase customer relations and the ability to create future consumers. I love that social media is bringing back a social science approach to analytics. Because it is so hard to figure out the actual ROI of social media I think that new and cooler technologies will come around to track customers spending habits. I'm excited to see where researchers and software developers take the ROI problem.

Lauren Tennet

food for thought: "Every child is an artist. The problem is how to remain an artist once he grows up." - Pablo Picasso

woah, that's neat: << I want to make these SO bad!

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