How do you prove the ROI of social?
Every organization needs to approach measuring the return on their social media investment in a way that makes sense for them. A good starting point is to think of social ROI as the sum of all social media actions that create value.
Here’s a four-step plan to develop a social ROI formula that reflects your priorities:
Calculate your true investment in social media.
Set objectives that connect to larger business goals.
Choose the metrics that are right for your organization.
Calculate social’s impact on revenue and business goals.
Step 1: Calculate your true investment in social media
To accurately gauge your return on an investment, you first need to know exactly how much you’re investing. Your investment in social media includes:
A winning formula for social ROI
See how the Vancouver Canucks hockey team measures their investment in social—and calculates their return.
Step 2: Set objectives that connect to larger business goals
To prove meaningful social ROI, you need to connect social media activities to specific business outcomes, such as:
Choosing the right objectives
Learn how to choose goals that make sense for your organization in our webinar Proving the ROI of Your Social Strategy.
Step 3: Choose the metrics that are right for your organization
Not every metric will be useful when measuring the ROI of your social efforts. Go beyond vanity metrics—choose
metrics that connect social activity to real business results.
7 social media metrics that matter
Discover seven metrics that will help you define your return on social, and identify the ones that work best for your needs.
Step 4: Calculate social’s impact on revenue and business goals
With your business objectives and the metrics that matter in place, it’s time to calculate your ROI and connect social to real business results.
Your unique ROI formula
Learn how to contextually define the ROI of social media and prove success in a way that speaks to your entire organization.
Next steps: Improving your social ROI
Get executive buy-in to take social to the next level
One of the benefits of being able to measure (and prove) your return on social is that it can help you make the case for bigger budgets and more resources. After all, everyone likes to back a winner. Frame the impact social is having (or could have) on the bottom line in ways that will resonate with not only your boss, but the C-suite, too.