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It’s a Tough One: The ROI of Social Media

October 11, 2012

So what’s the deal?!
Can you calculate it or not?

Recently, I’ve met several skeptics that don’t believe in the power of social media. It’s amazing to me that they really do exist (at very high levels), & truth be told, they will never let their company go full throttle until they know the ROI specifics. Being that I am in the business of social media everyday, my preference is to work with clients that know, respect & trust the power of it – so I can work with them to better their organizations.  Not have to SELL them on being social.

But, if I really had to try . . . I’d start here:

MYTH:  You cannot calculate the ROI of social media.

TRUTH:  There is an ROI of anything that provides value.

THE OBVIOUS:  Calculating social media is NOT obvious 😉

A recent study conducted by the Lenskold Group reported that the top reason of why measuring social media is important?  They need to improve the effectiveness (65%) . . . but, a whopping 48% feel pressure from the higher levels to report qualified outcomes!

In the early days, leadership might not have been sure what they wanted, but they knew their competitors were doing something on social media – so they made sure they “joined the party.” This meant that there wasn’t any real business analysis; it just happened because the boss said so. Or, companies had individual employee innovators and early adopters, who took it upon themselves to initiate social media programs. These types of people did so before they got permission from upper management or a formal budget.  & some businesses, have unfortunately been left in the proverbial dust because they just don’t like learning new technology (or make it a priority).

Now, ROI’s a hot topic.
People want to know – how can I calculate the ROI of social media??

To be honest, I don’t think people want to sit through a 2 hour math class seminar.  Anyone can Google “How to calculate the ROI of social media” & get the formula.  Usually, once they find out there’s intricate math involved, they shy away from finding out the ROI. But, if you are different than the norm & REALLY want to create those calulations for your biz, I can leave you with this . . .

Ready? Set. Go (the best place on the web to explain it in detail for you in 6 minutes):

Happy calculating!

Connect. Inform. Grow. Simplifying Social Media!
Rose Caiazzo of Rose Consulting, LLC

About Me:
Skype:  RoseCLLC

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