3 ways social media (ROI) can be calculated

15 Apr

1. Define Your Inputs for Lead Generation

Indirect and Direct Response Conversion Point- Measure those who filled out your lead forms. Look for the number of leads and the growth rate in each range.

New Business Campaign History- Look at all of your new business for the month against the campaign history that has been reported in your cookies. How many times was social media has assisted at any point in the campaign history leading up to the sale? (Kelly, 2013)

2. Use Lead Scoring to Place Leads Into the Proper Place in the Sales Funnel

Break your leads into three distinct pools of prospects. Define timeframes for conversion based on your business and the standard buying cycle.

Slow- In the pre-research/awareness phase. They find what you say interesting and they want to follow it, but they aren’t looking for a solution right now.

Medium- In the research/consideration phase. They are looking at products to be considered as a solution. You want to find the tipping point for them. It is likely that most of the marketing dollars get spent converting these people.

Fast- In the decision-making/buy phase. They want a solution and they have a clear time frame for when they need it. Most of your sales team spends their time actively working them. (Kelly, 2013).

3. Understand Where Social Media Efforts End and Sales Efforts Begin

Social media lead generator. Once the lead comes in, marketing efforts and sales team efforts kicks in.

“If you are reaching people at the pre-research/awareness phase with social media and you do not have marketing programs or sales processes to support it, you may cut bait on the only marketing effort that is touching this group” (Kelly, 2013). Make sure to review your sales and marketing efforts to see affects of ROI.

A lack of awareness program, could be the reason you aren’t converting these leads. “Evaluate social media for the value it really brings to the table and make sure you don’t overlook some of the areas where social media is already delivering ROI to your company” (Kelly, 2013).

Eg. H&M is pretty popular on many social media outlets. These outlets are driving a ton of people to H&M’s website. Here you can see that H&M’s leads are woman 25-34. Reviewing sales from this customer base can give H&M an idea of ROI for their social media. Looking at their new business for the month against the campaign history that has been reported can also help them assess their ROI.

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Kelly, N. (2013). Social Media Examiner . Retrieved 2013, from How to Measure Social Media Return on Investment for the Complex Sale: http://www.socialmediaexaminer.com/how-to-measure-social-media-return-on-investment-for-the-complex-sale/

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