Measuring your ROI (Return on Investment) in business is a standard practice for any business owner or entrepreneur who wants to become and stay profitable. Knowing the specific monetary results that come from your investments of time and money guides your business decisions.
When it comes to online social networking, however, there are gray areas that often make people uncomfortable. Business owners are wondering where is the return? When is this going to pay off? And, most of all is this worth my time and money when I have other measurable marketing strategies I can use? How do I know if it is working if I cannot measure dollars going in against dollars coming out?
With online social networking, the return is not on the investment; the return is on the interaction. You do not put in money to get more money — you put in interaction to get more interaction, which returns tenfold in trust, loyalty and the development of relationships that become customers, and advocates, for your business.
When you invest in interactions, the results are in an increased number of email newsletter subscriptions, Twitter followers, Facebook fans, or blog comments. From there, you can typically track an increase in the number of product orders, new clients, or referrals.
The types of statistics you will want to collect and compare will depend on the original goals and objectives you have set for your activity in social media.
Here are some some of the analytics tools that can help you get started in understanding where you stand with your interactions online.
- Facebook Insights
- LinkedIn Network Statistics
- Twitter Counter
- Pinalyzer Analytics for Pinterest
- Statigram Instagram Statistics
- Google+ Business Page Report
- YouTube Analytics
If this all sounds a bit overwhelming for you, or if you take one look at the numbers and just say to yourself, “But what do we DO about it?” consider hiring me and my team to perform a Social Media Audit. We will take the guessing out of social media and prescribe action steps to improve your online presence right away. This week, save $50. Let us save you time in figuring out how to increase your ROI (Return on Interaction!) Click here to read more about our Social Media Audit packages.
Do you have a favorite measurement tool that you have found useful? Are you a spreadsheet type person or do you mostly go with your gut and judge your success on whether you are building relationships? I believe we need a combination of the two to accurately measure – and predict – social media ROI. What are your thoughts?