RedGage

Social Media ROI is a term trying to relate social media with revenues. Measuring ROI is an integral part of every business and is essentially required to track the progress, popularity, returns, budget and various other parameters involved in marketing to build a market strategy accordingly. Since Social Media is unpredictable due to various viral factors involved in the investing Social media, you can never tell or predict what your returns would be for a particular investment on social media. Thus traditional methods of measuring Social media won't work. Marketers need to take a rapid and flexible ways of calculating their Social Media ROI(Return on Investment)

Although it's very difficult to measure Social media ROI, still we will try to approach methods to get a near approximated value for the returns to plan and execute your marketing strategies accordingly. You can measure ROI in two ways.

                   Approach-I

1. Calculate the new customer value using social media.
2. Calculate user lifetime value.
3. Calculate Impression value.
4. Calculate customer service Value.
5. Add all the investment Returns.
6. Calculate social media expenditure.
7. Finally use above calculations to calculate your Social Media ROI.

                        Tips 

1.  Always include measuring ROI as one of the prime targets while engineering your Social Media plans.
2.  Remember to have some sort of Monitoring tool for your Social Media analytic’s data.
3.  Stay updated with your Analytic's data.
4.  Make critical use of Analytic's data to analyze your social engagement figures to optimize your site's performance.

To learn more ways of measuring Social Media ROI visit SocialMediaFanatic's blog .