Measuring Social Media Success with Return of Investment Numbers

Most online entrepreneurs believe that social media is an important and critical element in the marketing mix—especially for online business ventures. Unfortunately, some professionals are still doubtful on the positive effects of social media to their business.

Considering most business owners and entrepreneurs rely on return on investment (ROI) to confirm if they are moving in the right direction, it therefore makes sense to use ROI in measuring and proving the success of social media in marketing. Besides, ROI has always been a standard measuring tool to determine success rates.

Most online businesses, including the Florida Web Design and Chatter Buzz Media use ROI to measure the effectiveness of its social media marketing. Although it doesn’t give the full picture of how social media affect an organization, ROI remains a standard measuring tool that most entrepreneurs and business owners believe in. Hence, it is the best proof anyone can have to confirm the importance of social media marketing to an organization.

Listed below are other reasons why ROI is the best tool to measure the success of social media marketing.

• ROI is always being measured.

It is the standard form of measurement in any business, so it’s always being measured and reported at the end of every quarter, if not each month. Despite this, ROI may not always show positive results for social media marketing. In these cases, other metrics may also be used to balance ROI and show that social media marketing truly delivers value to the organization.

• ROI shows quantity

In most businesses, numbers are important. They are among the most important factors when business owners and entrepreneurs make decisions. Rates and percentages not only help in decision making, but they also help in confirming or rejecting a new business strategy, including those that incorporate social media marketing.

• ROI effectively justifies costs on social media marketing

All types of business expenses are included in calculating ROI. Every purchase made and expense paid is weighed against the profits earned. Because of the continuous changes in social media, its costs continue to increase as well. Hence, its ROI should be measured and reported regularly to justify the costs and expenses as well as to prove how much it positively affects an organization.

• ROI provides proof that you’re ready for expansion

After proving the success of your social media marketing, the next logical step would be to expand. On the other hand, a business owner can’t just jump into a business expansion. Success should be proven first prior to planning for an expansion, and the best way to prove success is through ROI. By showing that the previous social media marketing endeavors have been successful and that returns have more than doubled, the organization would more than likely agree for an expansion.

• ROI shows what is and isn’t working

Another benefit to measuring ROI is that it also shows what strategies work and fail. This is extremely important, since no one likes to waste their time, effort, and resources in pursuing strategies that will fail in the end. It also allows for an immediate change in strategies, without waiting for the yearly reports. According to Orlando Web Design, monthly ROI reports could be used to predict whether a specific social media strategy is successful.

Social media is indeed a critical aspect of marketing an organization. Despite its rapid changes, no extra effort is needed to measure and monitor its success. ROI is still as effective a measurement as ever, even for brand new social media strategies


Credentials – Article Posted By:

Samantha Mason  is the SEO and Social Media Guru for Florida Web Design , and Orlando SEO Company that have grown nationwide servicing B2B clients .  You can reach Samantha on Google+ , Twitter, and Facebook.

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