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Social Media ROI

Social media success is difficult to measure using traditional marketing metrics. Indirect influence through social media can lead to sales, requiring a different type of measurement focused on qualitative and quantitative social factors. The document provides examples from Starbucks and Burger King that measured social media success through customer feedback implementation, sales increases, and traffic growth - showing that social media ROI can be determined by tracking goals relevant to a company's objectives. Real-world case studies help demonstrate how social media marketing can be successfully measured.

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77 views

Social Media ROI

Social media success is difficult to measure using traditional marketing metrics. Indirect influence through social media can lead to sales, requiring a different type of measurement focused on qualitative and quantitative social factors. The document provides examples from Starbucks and Burger King that measured social media success through customer feedback implementation, sales increases, and traffic growth - showing that social media ROI can be determined by tracking goals relevant to a company's objectives. Real-world case studies help demonstrate how social media marketing can be successfully measured.

Uploaded by

api-28374748
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Social Media ROI

“Social media is like teen sex. Everyone wants to do it. Nobody knows how. When it’s
finally done, there is surprise it’s not better.” - Avinash Kaushik – Analytics Evangelist,
Google. One might question why exactly is that? A simple explanation would be that
traditional measures and metrics are not easily applied to social media when investigating its
success i.e. it is difficult to determine the success of promoting your business via a social
media using the traditional measures. Measures such as;

Marketing Investment = €30,000


No. of Leads Generated = 1000
Cost per Lead = €30

The above measure states clear analysis of the project, where as a social media measure may
look like the following;

Blog Comments + Conversation + LinkedIn x Twitter = Success

To me this seems a very confusing task to determine success from the above equation and
requires a social media buff with a lot of patience. However according to cisco.com, social
media just ‘requires a tweak in the way we think about marketing performance’. They further
this by stating – ‘we need to consider that indirect influence generated via social media can
often lead to sales. It’s just a different sort of measurement’.

My next question then was, what do we measure? The social or the media? Cisco.com offers
further explanation by claiming that social is a more qualitative measure and media a more
quantitative and to measure whatever is more relevant to you companies business goals. At
this point I was still unsure as to what exactly cisco.com were measuring and how they
measured exactly. Cisco.com offers a number of real life examples in how social media has
helped a number of companies, and how they have measured the success. It was only then
that I fully understood the social media metrics and actually how successful good use of the
booming social media world can be to a company’s goals. The following is a examples of
these metrics in practice:
1. Starbuck’s campaign to increase customer satisfaction

Idea: Engage with customers and prospects using social media and ask what they would like
from you.

Success Metrics:
• Amount of good suggestions Starbucks had not thought of
• Amount of the good suggestions received that Starbucks actually implements

Goal: Amount of suggestions collected per month and amount that Starbucks actually
implement.

2. Burger King Campaign to increase offline sales

Idea: Implement a promotion on a social media platform. Give participants a printable


campaign voucher so you can track where the offline sales originated.

Success Metrics:
• Monthly sales
• Monthly store traffic

Goals:
• € monthly sales
• % increase in store traffic over the pre-promotion period

Now that there are real possibilities to measure the success of the social media marketing
drive for companies, it is certain that use of the social media networks by businesses
worldwide, regardless of size, is only going to increase. With more and more people using the
internet and social media networks maybe the days of traditional marketing are numbered.

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