While consulting doctors, technology professionals and executives of many different industries and verticals it has become apparent there are many different opinions as to how to calculate the ROI of Social Media.
There are many factors which are being overlooked aside from the actual accounting calculation of a cost per lead from a return on investment financial perspective.
Quantifying the ROI of social media can be a difficult due to the ambiguous intersection from social media engagement and the outcome of buying behavior, brand loyalty, number of recommendations and online reputation.
It is very important for brands to create a strategy using social media which will have an impact on their target market creating a highly concentrated community of qualified prospects, clients and or customers for their products or services.
With proper community engagement ratios of (sales) to (non sales) related value content, creative messages and of course responses so brands can improve their image, value of the brand and the probability that they will have a solid impact on their sales numbers.
Businesses must quantify their progress to make certain they are improving their position by properly growing their communities, deriving value in terms of their brand image leading to increased profits. This of course can lead to more monies spent on social media given the amount of time it takes to create a sound architecture, creative a competitive campaign and execute a successful strategy.
What they will find in the long run is that creating a sound architecture and proper community engagement will lower future marketing costs for increasing the value of their brand giving them a significant return on their investment.
Quantifying social media is now a key component of the social media marketing process. Social media marketers and strategists must measure the proper elements by delivering the overall objective as explained by increasing the value of the brand.
This is done by using a sound strategy catered to each specific business, industry and sector of influencers, individuals and consumers across the proper social media cornerstone (s) (ie) LinkedIn, Google+, Facebook, Twitter, Youtube, Pinterest, Flickr and many other valuable social media tools such as Yelp for online reputation management.
This is precisely why the proper strategy combined with a creative campaign works well as illustrated by a publishing on Gerber social media strategy. CLICK HERE
The media community engagement architecture explains the quantified structure and increased probability that monetary value is transferred to the business brand.
Media engagement architecture has a number of key elements:
- Influencer funnel – Proper content and media distributed across multiple channels creating a single message
- Community engagement – Listen. learn and speak to your community – Your customers always know best
- Target audience – Community of qualified prospects, clients and potential customers/clients
- Competitive set – Separating your brand from your competition – Reason to purchase
- Image of the brand – Clearly defined and synonymous across all URLs, content, media and images
- Purchase funnel – How you monazite your media efforts – Community referred to a purchasing cart, Paypal account, sales team and monetized process
From an executives wide angle view it is critical to see that media engagement architecture is a competitive set which a social media marketer must understand.
These competitive sets consist of:
- Time – Takes time and effort to build the proper architecture
- Proper Branding techniques – Creation of creative campaigns which offer qualified prospects a reason to join the community
- Endorsements of your product/service – Community endorsement of your product/service (generate likes, followers and sharing actions)
Simple examples of invisible ROI returns:
If you are doctor what is the value of having your patients talking about your services which increase the probability of more word of mouth referrals. This will lead to more of your favorite procedures and increase practice revenue.
For the technology professionals by properly creating the proper social media architecture, strategy and creative campaign you can gather intelligence from your clients on possible improvements and ideas from your clients/customers which could lead to increased profit potential.
As a key executive making decisions on where to take your company you can listen and engage with your community to see what they are saying about you giving you accurate intelligence on where to focus your efforts and lead your company.
In conclusion, the ROI of social media is much greater than the financial accounting definition of a cost per lead generated by new tools which allow you to build a powerful brand over time.
Your comments and suggestions are very important to me. Please feel free to comment or contact me regarding this publishing.