a) What are 3 different methods to measure ROI of social media marketing? What are the pros and cons of each?
ROI stands for Return on Investment, which is gain from investment minus cost of investment and divided by cost of investment. We need several steps to illustrate this concept.
First step is establishing a baseline to show the change between before and after using social media, in both awareness and income. The pros of this step is that this is the real start of using social media to help increase the social awareness. But it is really hard to establish a new part of social media in marketing. It does cost much time and effort at first to build it well.
Second step is creating activity timelines. It clearly shows what we have done so far since we used the social media tools. The pro is it can clearly give out the image of what the company has done or received since using social media. However, the most difficult part also the con is that it is hard to track every action of the social media tools. It will cost too much on recording everything from those platforms.
Third step is looking at sales revenue, transaction numbers, and new customers. It can help us to find out how the social media tools truly help us. Using the visual stuffs, employees of company can learn what progress they have made in the past time. It would courage them to do better in the future. On the other hand, if the data shows a negative result, it may beat people down and they will lose faith in social media tools.
Hey Yi,
ReplyDeletethe baseline are really one of the most important things. Without a baseline, you are not able to measure something. And in Social Media it is very difficult to measure things and so the baseline is helping us to see differences.
The timeslines you mentioned, are also useful tools, but like you said it takes so much time to measure each action.
All in all a very good explanation :)
Julia
I think that it is important to evaluate the trend of the business also when defining the baseline, for example: what was the growth rate in revenue before Social Media and use it as one of the factors when measuring the "after Social Media" activity.
ReplyDelete