There Is a Way to Measure the ROI of Your Social Media Marketing

It doesn’t involve keeping meticulous records of your own budget spending for social media marketing.  It’s your customers’ budget that you need to keep a close eye on.  In other words, forget about customer response to your social media marketing efforts and instead take a close look at those customers’ motivations when utilizing social media marketing, and keep a watch on their investments as they invest in the marketers’ brands.

Even as it is becoming quite clear that social media marketing leads to serious advertising cost savings, it is not always so straightforward to connect specific social media actions directly to sales.  No one disputes the improved efficacy of market research efforts when marketers implement online prediction markets or delve into forums to obtain vital customer feedback on product concepts, however. 

One of the biggest goals of all social media marketing campaigns has always been to increase brand awareness.  In a strikingly astute maneuver a few days before Election Day 2008, Starbucks promoted a free coffee giveaway by running spots on Saturday Night Live and YouTube which were recirculated on Twitter, all culminating in a huge increase in brand exposure.  On an even deeper and potentially more significant level, brand exposure can also be radically improved by social media performed with an intent to actively engage customers.  When Southwest Airlines incorporated podcasts, videos and other social meda tools to promote its “Nuts About You” blog, the airline garnered valuable insight on touchy issues like assigned seating.

Even that time-honored practice of promoting things through word of mouth is increased in a predominantly positive fashion as satisfied loyal customers spread the word, either about the brand itself or through some stellar social media created by the company.  Likewise, unhappy dissatisfied customers can have a negative impact through these same channels.