Marketing is a curious discipline that seeks to work with the rigor of mathematics to find the heart of very human issues, such as tastes, preferences and personal choices. Some of the things that marketers are more popular are the numbers, rates and percentages. And it is rightly so. The development of these formulas is what allows measurement in any way the success or failure of our actions. But sometimes, it seems that they are (or are) trying to capture the wind trying to measure such elusive concepts as “popularity”, “success” or, in this case, “return on investments.” All formulas are necessarily imperfect. With reference to ROI, how is it possible to know the true extent of influence in purchasing decisions of consumers after seeing an advertisement in a magazine or in a public space? When we try to interpolate these arguments to participation in social networks, the uncertainties grow.
First, consider what the ROI. The concept of return on investment applies to any movement of cash or investment of money and is not unique to advertising. If I invest $ 10 on candy, and paid $ 0.50 each, I take them to school and sell them to my classmates for $ 0.75 each, I have: ROI = (Benefits-Costs) / Costs That is, this case, my ROI is 0.5, that is half won cleaner than you invested. So far, so clear. Now, how we take this to the social networks. I think the first step is to define our terms. What exactly is our investment? -Exclude actions traditional PPC advertising, as these control mechanisms are much simpler ROI. Operating costs (internet service, depreciation of assets, etc …) Time work (Who? Is not the same as the Marketing Manager to spend three hours a day attending to the social networking company, to do an employee dedicated to this work, or such time as the secretary from time to time.) Programmer expenditure designer, copyright And as for the benefits, how measurable? We have some positive symptoms, but from there to give you an exact value have a long way.
That is, we can see that since we are in social networks bill more. But how can this be attributed solely to this action? Is it the only action we have done? Surely not. How can we be sure then that this surge in sales is due to social networks? We can not know. It is evident that traditional ROI equation to which we are all accustomed, does not work in this case. There will be time to develop new methods to approach a quantum measurable. I leave some questions to which I would love to find an exact answer: How much is a contact? How much is a satisfied customer? How much better to have a huge number of daily visits to the Facebook page of the company? How much is a loyal customer? As an alternative path is then appeal to the measurement of the “symptoms” favorable than our participation in social networks let us: Mention of the brand Level of customer satisfaction Increase sales Increase in traffic In terms of the metrics specific aspects of the site: increase in incoming links, increase PageRank or Alexa ranking, or you like best metric to measure the performance of the site Yes, from participating in social networks, you may notice improvements in those points, then no so concerned about returns on investment, insurance that the action is fully justified. If you liked this post and wants to put in place, you can smoothly, provided you cite as a source