“ROI” is somewhat of a dirty word for social media marketers. Some people think they have it all figured out, suggesting formulas for businesses to follow. Others, like Scott Stratten dismiss ROI altogether, highlighting instead the importance of engagement and conversations.
The truth is probably somewhere in the middle. Avinash Kaushik suggests at looking at conversation, amplification and applause rates, and economic value. But he also advocates for using both quantitative and qualitative data.
To add confusion to the mess, social media ROI might also depend on your company’s size.
Tying social efforts to business objectives and sales is no easy task — it’s no wonder some experts believe that our obsession with ROI is killing social media.
In the future, better tools should help us marketers navigate the ROI problem, but in the meantime I think that this infographic from WOMMA is incredibly helpful. It identifies the following as the “3 Myths of Social Media ROI“:
- That “likes” and followers are acceptable measures of social media ROI;
- That ROI measurement procedures for traditional marketing (TV, radio, print) apply to social; and
- That social ROI should be measured independently of other channels.
Although perhaps a little too simplistic, the infographic concisely explains some common misconceptions about social media measurement.
Check out infographic below!