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The Real ROI of Social Media

There is a wealth of tools available to help businesses navigate the rapidly growing terrain of social media marketing.  But before opening the toolbox, in order to make the strongest impact, it’s important to first take a holistic view of the power behind a social media strategy.

Here are some key considerations


1.  The goal of a social media campaign is to generate interest in your brand. Sales will follow organically.

Social media platforms like Twitter and Facebook give businesses a non-intrusive method to distribute information about their products and bolster credibility in the marketplace by sharing information related to their industry. Demonstration of this subject-matter expertise, in turn, can pique consumer interest, which then leads to an exploration of the products and services of the information sharer.

Although we’ve been calculating ROI since the day we sold our first cup of lemonade from the neighborhood cul-de-sac, in the social media space, what’s equally important is ROC (Return on Conversation).  Social media is a breeding ground for opportunities to generate interest from and engage in conversations with potential clients.

2.  You can’t put a price tag on positive conversations about your brand.

Every conversation is an opportunity to build trust and credibility—the pillars of brand loyalty—with potential clients.  Nearly all of us carry a giant megaphone in our pockets (literally), ready to share our perspectives on a particular service or product.  Mobile technology allows us to instantly share our experiences, both positive and negative, and it gives us immediate access to information that influences our buying decisions.

Before making a purchase, we check message boards, read reviews, and request feedback using Facebook or Twitter.  If a friend or trusted contact speaks highly of a company or product, we’re more inclined to buy.  Research is everywhere; just a few taps on a touch screen or mouse clicks away.

That’s the true power of social media: everyone has a voice.

Now that we understand ROC and its potential to help generate brand loyalty (i.e. recurring revenue streams), it’s just about time to open the toolbox.  Before you do, here’s one last consideration.

3.  Invest the time to craft a compelling social media strategy.

There’s no one-size-fits-all solution for every business. So it’s important to develop a baseline knowledge of the strategies and tools available to help you measure success and maximize your reach.

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