Comments on: 8 Steps To Demonstrate Positive Return On Investment For Social Media Marketing

By: Thorsten Claus

Thorsten Claus — Mon, 22 Feb 2010 15:30:27 +0000

Great comment – let’s say your sales stayed the same, but what if you have not done any social marketing. Would your sales have tumbled? A way to test hat is to promote a single product with social marketing, building a micro-site …

A couple of other pitfalls:

1/ Measuring your sales or hit-rate on the website before might not be enough if you’re in a cyclical industry: an increase of sales of your XMas store near XMas is probably nothing unexpected. The question is whether your increase was A) higher than in the years before, and B) whether your market share amongst your competitors was increased as well

2/ If you’re a larger company probably many activities are geared towards higher revenue / lower costs. The problem now is to connect your efforts directly to your activities. Maybe the sales went up because everyone else increased their price by 10cents. Maybe a major competitor went out of business. Maybe there was a product consolidation and now each of your products – including the social marketed one – gets a larger wallet share of your customers.

3/ Also measure the internal cross-conversion rate: We know that social marketing sometimes has its own way… a couple of times we realized that our campaign was not what we expected it to be: it drove lots of people to the website, but the items they bought were actually something else. We tried to do this on purpose a couple of times – have people teasered with a lower-priced product to make them buy a higher-margined procuct – but with mixed results. I don’t think we can promise clients that we can use this strategy on any product and it will execute every time…

By: Calla Gold

Calla Gold — Sun, 21 Feb 2010 15:45:38 +0000

As a small business owner and adopter of social media, at least Facebook and Linked in, I found this a very useful article. I thought there was no way to quantify the benefit of engaging in the social media whirl.
Your article was thoughtful and technical rather than just theoretical and I appreciate that.
I’ve made some sales because of my involvement in social media. Surprisingly I enjoy it, which is a hidden benefit. Perhaps a bit too much!

By: ROI and Social Networking «

ROI and Social Networking « — Sat, 20 Feb 2010 16:08:31 +0000

[...] 8 Steps To Demonstrate Positive Return On Investment For Social Media Marketing [...]

By: 7 Key Findings On The Use of Social Media And E-Commerce: New Study « Jeffbullas’s Blog

Sat, 06 Feb 2010 06:31:44 +0000

[...] those discounts without ever leaving Facebook. The bottom line is if retailers are looking for an ROI on social media, give shoppers the same [...]

By: Twitter: 5 Business Case Studies « Jeffbullas’s Blog

Twitter: 5 Business Case Studies « Jeffbullas’s Blog — Mon, 18 Jan 2010 15:35:29 +0000

[...] Takeaway: Johnston says “Qualitative rather than quantitative improvements” is what Twitter is about, not ROI. [...]

By: 40 Reasons Why The CEO Still Uses The Yellow Pages « Jeffbullas’s Blog

Mon, 11 Jan 2010 12:15:00 +0000

[...] can’t measure the “ROI” for Social [...]

By: Mike Klein

Mike Klein — Mon, 11 Jan 2010 00:27:45 +0000

I ask the simple question: What’s your Return-on-Ignoring?

One only has to read a few ’social media horror stories’ to realize that at the very least organizations should be monitoring the social media space.

By: Social Media ROI and Enterprise 2.0 « Inspired Marketing

Social Media ROI and Enterprise 2.0 « Inspired Marketing — Sat, 19 Dec 2009 06:27:09 +0000

[...] 8 steps to show Social Media ROI [...]

By: Planetwebfoot

Planetwebfoot — Mon, 14 Dec 2009 16:31:22 +0000

Great post, well researched and presented. I especially like your section on the framework for measuring social media benefits. Participation is critical, if users and of course businesses don’t engage then there will be a substantially lower ROI.

By: Xisco Vicente

Xisco Vicente — Mon, 07 Dec 2009 22:43:13 +0000

let make this question :
¿does the websites without selling point make revenues? , no directly but yes on a comercial universe.