There’s an old joke about two marketing people. They’re talking about work and one says to the other, “I know 50% of my budget is wasted, I just don’t know which 50%.” For most marketing people, the joke is a little too close to home.
Sure, almost any marketing person can measure the easy things; I spend X on a webinar, it generated 1000 leads so my cost per lead is $20, it should generate 50 meetings and 10 closed deals. Calculating the ROI on traditional marketing campaigns is relatively straightforward. But what about the tough things to measure? Especially the big, tough things like the ROI on your social strategy. What’s being used to measure social media ROI? How do you measure the value of a ‘like’?
The ODM group posted research showing that 38% of marketers use increased fans, likes, and comments to measure success. According to a study from Radian6, the majority of CMOs use site traffic as the highest metric to measure. In the same study it’s noted that less than 20% of marketers can calculate the ROI of social media. And yet justifying ROI is becoming even more important as social media becomes a standard part of the marketing mix. But, once again, how does traffic convert to sales and, just as importantly, how do you measure it?
Filling this need is Social Measurementtm, part of PowerReviews’ Essential Social Suite (ESS). Social Measurement analyzes the relationship between social activity and sales on your site. The powerful analytics engine answers key questions and provides clarity into how social content and engagement drive traffic and sales on your site. Social Measurement provides over 80 out-of-the-box reports analyzing social content, engagement, and conversion, allowing you to answer the tough questions about ROI and your social strategy.
While you still might wonder which 50% of your budget is wasted, with Social Measurement at least you’ll know that it’s not what you’re spending on social.
Talk back: How does your company measure social success? What are the key metrics used to prove social ROI?