Second article in a three-part series on Social Media ROI
Social media has become a driving force in American society, and the greater human society as a whole. Almost everyone under the age of 30 is aware of Facebook, Twitter, LinkedIn, and a variety of other social media outlets. As people increasingly turn away from face to face engagements and toward online networking, businesses are trying to adapt their practices to take advantage of the opportunities provided by social media and online networking sites.
Businesses always think in terms of money; how much money is going out and how much money is coming in? When economic times get tough businesses always look first at where their money is going out before worrying about where money is coming in from. Return on Investment, or ROI, is a very big term in business. With the evolution of social media, businesses are increasingly turning to this new media outlet for marketing. As such, many businesses are trying to determine the ROI of their social media practices.
Determining how social media initiatives impact a business’s ROI is difficult because the results will not jump out on a spreadsheet revealing their impact in plain sight. Instead, businesses looking for social media’s impact on ROI need to go beyond cash flow, costs, and stats on paper. A better approach to measure ROI from social media should include the following:
- Providing a face for your business
- Get input from customers
- Join the discussion
- Encourage involvement
- Build business relationships
Most employees at any given company have passions related to their company, and passions that are unrelated to the business. Keying in on a passion an employee has that relates to your business, and then allowing that individual to run a social media program puts a human face on your company’s online profile. For example, if a moving companies’ provider has an employee who considers themselves an amateur photographer they should be encouraged to create an online presence where employees and customers can share photos from their travels.
Social media’s biggest impact might be in providing customers with a louder voice for the company to hear. Allowing marketing and sales departments to run social media programs will allow them a direct link to the customer base. This not only allows them to focus in on exact customer bases, but also receive feedback from those customers.
Word of mouth has taken on a greater impact in our social media age than it ever could have before. The internet allows information about your business to reach every corner of the world. Engaging in discussion and discourse with customers in a positive manner creates good word of mouth about your company that can reach much farther than just around the block or in the next town.
Lastly, the ROI of a company’s social media efforts can be seen by encouraging involvement and building business relationships. Companies from different industries can come together through social media connections to support projects that benefit the greater good, and even encourage their customers to get involved as well. Travel insurance companies, for instance, can encourage their customers to support community development projects in a region they routinely visit. It can be as simple as a donation, or as involved as volunteering time to the cause.
Social media’s impact on a company’s ROI is definitely there, but it won’t jump off the page of a spreadsheet. Rather, businesses need to dig deep for ways to make social media work for them.
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