Measuring Social Media Marketing ROI

Friday 27th, December 2013 ,

Merely creating a social presence is never enough. Businesses need to measure RoI from their social investments. Here’s how to do that.

Ever since social networks started offering possibilities to businesses around the world, every marketing guru has been advocating the merits of setting up a social media marketing process. It’s no surprise, therefore, that most businesses today have at the very least a vague idea about it. Unfortunately, that’s where it stops. Organizations often don’t know how they should measure return on investment from social media.

For starters, organizations need to understand that there’s no generalized formula to measure social media RoI. It depends on what each organization’s priorities are. Ideally, every business should have a social media marketing strategy. As part of that strategy, businesses define what their objectives from social media marketing are. Instances could include establishing thought leadership, improving customer service effectiveness, increasing number of leads and so on. Depending on what those objectives are, marketers can easily chalk out what constitutes their definition of social media RoI.

Given here are some examples.


  • Financial returns – measuring social media’s direct impact on sales (if any)
  • Brand reputation – social listening allows brands to proactively monitor and manage their reputation globally.
  • Prospect engagement – measuring levels of engagement with prospects through the various stages of their decision journey
  • Channel effectiveness – how is investing in the channel benefiting your business? How does it translate in terms of visits, leads and customers?
  • Search ranking – investing time and effort in social media marketing should ideally improve search ranking.
  • Reach – how is your brand faring in terms of reach after investing in social media as opposed to earlier?
  • Response rates – has your brand’s response rates to customers improved? Has customer service been enhanced?

The aspects described above can be broken to measurable metrics which can then be collated together to form actionable insights.



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