Social Media and ROI: What are you Measuring?

This morning, I spent about 2 hours explaining social media and how it works. I don’t mind this time. If they get it, the time was well spent; if they don’t then I know that’s an area of my business I need to work on. The conversation went well but I could still see the hesitation, the lingering doubt even when they said “this sounds wonderful but we need to think about it” and that was followed shortly by “what’s our ROI on this?”

I could spend a good chunk of time explaining Google Analytics, Alexa, link building, and HootSuite’s analysis tools but they take away from why social media was created in the first place: social interaction. I lost my potential clients when they started whipping out calculators, breaking down how many sales they would have to make to meet my monthly demands, how much time they would have to set aside, etc. While they saw the value, their heart wasn’t into the purpose of social media; it was all about the end result. If you get lost in the monetary value of social media you’ll never make sense of it and what it can do for your business.

There is no price tag on human interaction. You can try to quantify social media with all the tools available but the value lies in your conversation and how much time you invest building those relationship, increasing your visibility, and becoming a credible source for your audience. You can’t measure that value instead you can ask yourself “is this a meaningful exchange or am I wasting time?”

If you stay open-minded to the technology, make it a goal to provide valuable information, and engage in meaningful conversation, you will see a return on your investment. If you log in everyday with dollar signs in your eyes, log off until you’re ready.

Check out this video by Socialnomics for additional feedback on social media ROI:

Photo courtesy of Intersection Consulting

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  • http://wordsdonewrite.blogspot.com Words Done Write

    Aw, yes, the ROI on social media. The question that won’t die. I get it, I really do. But it’s an excuse for fear. A reason not to change with the times. Social media is NOT something companies can ignore anymore. Or, they do so at their own peril.

    That video is a great find. It really spells it all out. Social media is here to stay and if a business is not harnessing the power of the consumer, they ARE losing current and potential customers. What’s the ROI on that?

    -Amber Avines @wordsdonewrite