ROI!!!!

As we all know, social media is not free. It takes people, technology, time and many limited resources. When we allocating these limited resources to social media, we must consider cost reduction and revenue generation. In order to measure the investment-return relationship of social media, we can use ROI which is a business metric. ROI is “Return of investment”.

ROI = (GAIN FROM INVESTMENT - COST OFINVESTMENT) / COST OF INVESTMENT

The first step : Establish a baseline of social media

The second step : Create Activity Timelines for social media

The third step: Look at Sales Revenue and numbers of transactions generated by social media.Transaction data should be collected specifically in this step . There are three main ways to collect transaction data, which are "F.R.I"

FREQUENCY- How often customers transact with the company.(transactions per month)

REACH- How many customers social media marketing strategies of the company are reaching.(net new customers)

YIELD- How much the company spend on social media marketing strategies. (cost of per-transaction)

The forth step: Measure transactional precursors

The fifth step: Overlay all timelines of social media.

The sixth step: Look for patterns.

The seventh step : Prove relationships.

Although the data and useful information are not easy to collect, with ROI, companies can measure the commercial value of social media well.