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ROI This

It drives me bonkers when people skate around the ROI question, especially when it comes to Social Media.

If you’re leading your Company’s Social Media efforts and you haven’t put some sort of measurement in place, then shame on you. You can put an ROI to anything.

Supposedly, during the Marketing 2.0 Conference in Paris, when asked the ROI question about Social Media, Scott Monty said, “What’s the ROI of your e-mail account? What’s the ROI of putting your pants on in the morning”?

Yep, I get what his point was. Yep, I’m sure I’ve taken his point out of context. But, there’s an ROI to both of those things. The ROI of putting on pants in the morning? Well by golly, that would be my salary divided by the cost of the pants. Hell, you could even break down that ROI hourly.

The ROI of my email account? Well, that one’s slightly tougher. But, it would go something like: Cost of Outlook ($100) divided by how much time I saved from not having to see the person face to face or how many more “cold notes” I could make in an hour vs. cold calls. You get the point…

The next time you wonder about the ROI of Social Media, here’s some suggestions. I’m sure you’ve heard them before:

  1. Decide why your Company wants/needs to use Social Media (i.e. Customer Service, Marketing, getting feedback, etc.)
  2. Put a measurement to it. Hell, you can even put a daily measurement to every one of the above reasons.
  3. Figure out what it costs (whether it be in time, money or something else) to do that some other way (i.e. staffing a Call Center).
  4. Divide away. Bam! You have your very own ROI.
Posted by Vegasbab on April 7th, 2009 Posted in Advertising, Interactive Media, Marketing, Rant, Social Media

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