Measurement of digital marketing ROI in social media

A few days back, a digital marketing professional was looking at an article that claimed to address ROI for social media marketing programs. The article focused mainly on engagement, despite the claim that it’shows verifiable ROI’. Although the content was excellent, information on return on investment was not provided in the text. The exception was the introduction.

The problem with using “user engagement” when calculating ROI is its vagueness. It can be anything, from being thought about, viewed and clicked on to or loved. The article was a good example of how web metrics can be used to fine tune a digital marketing campaign. A KPI that includes ‘engagement’ doesn’t necessarily mean ROI. One of two things must be measured to achieve ROI: increased revenue or decreased expenses per pound.

This is difficult to do, especially since social media activity is based on branding. It igpanel is nearly impossible to calculate ROI on engagement if a client doesn’t have a strong brand value that can be used for purchase-related actions (impressions and clicks).

Connecting Social Media ROI to Customer Service

The Public Relations Society of America held a conference on digital marketing in San Antonio, Texas. It was focused on travel and hospitality. At the conference, the topic of discussion was on best practices for showing business benefit (ROI) from social media programmes, social media measurement, social media integration and marketing, branding and digital media strategy. The Internet marketing panel members responded to the question by saying that it was important to examine a specific social networking campaign in the context of its industry. Digital marketing professionals need to establish measurable goals and integrate social networking with customer service.

The majority of those present at the digital marketing conference (which included representatives from airlines, hotels and travel agencies as well as restaurant and restaurant operators) had some basic knowledge of the relationship between social media, ROI and customer service. Later, the digital marketing conversation shifted to the importance of metrics to govern call centre operations like cost per call and incremental revenue per call. It was also discussed how these metrics should be redefined in order to measure ROI for a social media program.