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Social Media Strategy – How does YOUR S.H.I.T measure up?

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While businesses are using social media platforms to interact with prospects, suppliers and customers, the question that’s frequently being asked is, how does one measure the return on investment (ROI) from the social media investment? While social media measurement is still in its infancy, and the tools are being developed, there are some techniques that can be used to measure the effectiveness of a social media campaign using Strategically Helpful Informational Tactics (or for short S.H.I.T) Using a Strategy That Impacts on Revenue and Savings One of the strategic methods for social media measurement is the direct method, which measures the simple impact of a social media camp

While businesses are using social media platforms to interact with prospects, suppliers and customers, the question that’s frequently being asked is, how does one measure the return on investment (ROI) from the social media investment?

While social media measurement is still in its infancy, and the tools are being developed, there are some techniques that can be used to measure the effectiveness of a social media campaign using Strategically Helpful Informational Tactics (or for short S.H.I.T)

Using a Strategy That Impacts on Revenue and Savings

One of the strategic methods for social media measurement is the direct method, which measures the simple impact of a social media campaign on parameters such as revenue generation and cost savings.  To measure revenue generation, the social media initiative should include helpful information tactics that require prospects and customers to take action leading to a purchase or provide their contact details so they can be followed up on for future sales. There are several ways in which this can be implemented. For instance discount coupons could be linked to Twitter and Facebook posts. A blogging platform could be used to promote an early-bird offer during a product launch or for events to a speaking event.

On the flip side, cost reduction initiatives are more suitable for service organisations and providing customer service. Using Twitter and Facebook as a customer service tool, organisations can measure the decrease in the number of customer service calls received by the call centre on account of the support service provided through social media platforms combined with forums and blogs dedicated to customer support.



Helpful Indirect Method

A helpful indirect method of measuring the effectiveness of a social media strategy is to relate it to a business metric such as sales. For instance blogging, facebook and twitter activity during a specific time frame can be compared to sales volume during the same period. Assuming that other marketing activity remained the same any additional sales can be attributed to the social media initiatives.

While using the helpful indirect method it is difficult to measure the effectiveness of the strategy with 100% accuracy, as the spike in sales through a Facebook campaign could also have resulted from increased demand for the product due to a special occasion such as personalised chocolates on Mother’s Day.

Information on Measuring Cost Effectiveness

Businesses that use mass media advertising such as TV, Radio, Newspapers and Direct Mail can compare the cost effectiveness of their social marketing efforts to these channels. For information to a website has come from can be used for each of these by having different landing pages. The example during a product launch using several media vehicles, a mechanism for tracking where traffic conversion to sales can then be worked out and the effectiveness of each channel measured.

Daily Tasks To Measure Activity

While these are some ways in which social media can be measured, there are a growing number of tools available online that can be used to measure the share of voice of a social media channel. While the tools are still in the evolutionary stage, businesses should determine what works best for them and build a system that simplifies the task of measurement. It is a good idea to make measurement a daily task, as this will ensure that the strategy is delivering results. Also based on the results, the strategy can be modified for optimum effectiveness.

Ask yourself, is your social media measuring up to be S.H.I.T.? If not, maybe you should take a close look and find out exactly what’s wrong. Marketing is all about testing and measuring. You will find that social media is no exception.