Assess and Maximize the Business Value of your Social Media ROI

There has been quite a bit of chatter lately about social media ROI – and justifiably so. Business cannot afford to do otherwise especially in this challenging economic climate.

Much has been written about best practices and Olivier Blanchard deserves much of the credit for championing this important cause and sharing his excellent work on this topic.

A recurring theme that business folks and social media practitioners alike sometimes experience is that they are not certain how to demonstrate how the increasing number of twitter followers, blog commenters, site visitors, translates into sales. In spite of the pace and demands of business today this critical element cannot be forgotten. Especially, as budgets continue to be scrutinized. 

While Olivier’s presentation discusses both controlling costs it eventually goes deeper into measuring ROI from a sales growth perspective – and it is wonderful! Who doesn’t like sales growth? Sales grow is exciting.

That said, I would suggest that every dollar invested and efficiently spent can therefore produce maximum ROI. ROI that strives to put the most money back on the bottom line.  Controlling your costs while growing your sales can really maximize your ROI. That is exceedingly exciting!

Consider starting with an assessment of your current efforts. Which ones are working particularly well? Where they fall short of expectations? Can you attempt to improve results by trying different tactics? If your adjustments still fail to make a business impact, consider investing more dollars in initiatives that are producing success — sometimes called doubling down. Also, consider letting some of the unproductive dollars be returned to the business for additional leverage elsewhere like new product development or improving the user experience. Other option is to simply “return” the dollars to the bottom line and possibly that all important bonus pool.

Creating a cost advantage also provides your business with a potential strategic competitive advantage too. Consider offering the product at a lower price point to increase your share of the market or even a limited time promotional discount to attract even more net new customers.

Like pruning back the plants in your garden, you will amplify the growth potential of your Social Media efforts, save time and money by discontinuing unproductive activities and achieving the maximum ROI. You and you team will look smarter than ever and that can only improve your lot come bonus time!

Feel free to share your thoughts and experiences too.

UPDATE:

This ComputerWorld article was in play while I was heads-down.  I’ll bet there are others too!