Wondering if your social media initiative is providing value to your organization? Knowing how to calculate social media ROI is not always obvious, but this infographic will help you figure out how to take your social media metrics and turn them into valuable information for your business.

1. Need to improve
65% effectiveness
Most marketers
48%
Need to improve integration
59%
indicate social
with other marketing
48% Pressure to report
media measurement feel pressure to report
quantified outcomes
is a high priority. qualified outcomes of 39% Have or will be increasing
social media budget
social media.
22% The right measurement tools
are now available
Engagement or
participation quantites 43%
20%
New names generated 36%
Less than
Prospects or leads
generated 32% But, most marketers
of marketers can calculate
the ROI of Social Media
Change in awareness
or perceptions 26% are unsure how
Incremental sales 20% to calculate social
Return on investment (ROI) 19% media ROI.
Incremental revenue 18%
In 2010, the term “social media ROI”
Lot’s of people are presented 2.5 million hits. And now, less
talking about it. than a year later, the same search will
present over 1.5 billion.*
“How do we
determine ROI?”
It’s being debated over 800 times a day
in social media. And 59% of the time, the
“How do we discussion is neutral. Put simply, most
businesses aren’t sure how to
quantify gains that answer these questions.*
aren’t financial?”
“How do we know
we’re measuring
the right things?”
Justifying ROI is We’re in the “third wave”
of social media - the early
becoming EVEN majority, the pragmatists
more important. are asking for it.
2.5%
Innovators
13.5% 34% 34% 16%
Early Adopters Early Majority Late Majority Laggards
Here’s the equation… Benefits - Costs x 100 = Percentage Return
ROI =
we need benefits and Costs on the Investment
costs.. (not metrics or KPIs)
Customer Engagement Marketing Execs feel
Direct Customer Communications Customer Engagement
Speed of Feedback leads the benefits of
Low Cost
Brand Building Social media.**
Lead Generation
Customer Service
CMO’s use Site Traffic Site Traffic
as the highest metric to Number of Fans
measure ROI.*** Number of Positive Mentions
Number of Contributors
Number of Page Views
Number of Posts
Video: How To Build a Business Case for Social Media
Video: How To Calculate the ROI of Social Media
Here are resources
Video: How Social Media Benefits the Whole Company to help you calculate
Ebook: ROI of Social Media: Myths, Truths & How To Measure
White paper: Calculating the ROI of Social Media the social media ROI.
* http://www.mutualmind.com/blog/2011/06/ceo-cmo-guide-social-media-roi/
** http://www.focus.com/fyi/real-cost-social-media/
*** http://odmgrp.com/wp-content/uploads/2012/02/The-Marketers-Paradox-Social-Media-ROI.jpg