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An Alternative ROI for Social Media
Social Media in business is constantly confronted with the challenge of proving ROI (Return On Investment), and very understandably so. Any responsible business is concerned with every type investment — money, time, energy, focus, or whatever — providing some type of benefit.
The huge dead end many managers find themselves in is to expect a direct profit return from an investment in Social Media. In the best of cases, serious budget reserves are directed towards Community Managers and varied tools and systems, and in the end, that direct return is nowhere to be seen.
My first thought is that much like in all forms of PR and awareness-type advertising, Social Media’s benefits are indirect and cumulative. Indirect, in that the benefits can be analyzed by looking at traffic and other types of action generated from your brand’s own activity. Cumulative, in that this activity isn’t simply 1:1, but requires action and patience for results to sprout organically.
Yet the main point I want to press is that in Social Media, there is another essential type of ROI that may be often overlooked:
Real Online Interaction
Real: By utilizing Social Media to its full potential, you can quite inexpensively speak to hundreds, or even thousands of current and potential customers.
Online: Your customers are not required to walk into your store, make an order, or be cold-called by you in order to gain a glimpse of what your brand is all about. Whenever and wherever they are, they can have a dialog with what you seek to represent.
Interaction: Social Media is a two-way road. Your audience can speak and listen to your brand, and they can (and will) be very honest. The good thing is, the higher their level of honesty, the greater likelihood they will be expecting a response as well. A captive audience is any business person’s dream come true.
How much is Real Online Interaction worth to your business/brand?
Popularity: 25%
Author: Alex Rodríguez
Alex is a Visual & Interaction Creative at Mindclay, with his base being Motion Graphic Design. He's written and maintained several blogs and podcasts since 2004, but has been immersed in online social media since 1992. He frequently whips up a badass espresso at the office, stuff of legends (seriously, you gotta try it if you ever spin by). You can follow him on Twitter: @alxrodz, and connect with him via LinkedIn and Facebook.
9 Comments to “An Alternative ROI for Social Media”
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Good information and an interesting look at ROI for social media.
Thanks for that, Charlie!
Nice post. A great vision is often hampered by "what-ifs" and being scared about honest feedback. Take the chance! You have a more captive audience than most traditional channels do and what you do with that feedback will determine your success rate.
Great & concise breakdown!
Thanks Marc!
Great Post Alex! It can be a very hard sell to some of the older clients who don't really see the value in social media! I actually used your companies example of the large house in the circular neighborhood and the fact that as your packet said, "Social Networking happens wether you choose to participate or not". I just might have to use some of your info above on our next client, to help bring them "into the light". ha
Thanks again!
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not sure how the "my recent post link" ended up there… (must be a feature in your system). Just didn't want you think I was spamming your site. ha
No prob Adam. Yes it is a function of our blog and is intended to let you promote yourself as much as you want! :)Thanks for the comment too, great to see this is helpful!
Alex, I recall reading this article a year ago, and I was looking for it for some time. I'll be quoting you in a limonada I'm drafting. Thanks!!
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