Five Ways to measure ROI

 This week’s reading of “Measure What Matters” includes a section that clearly identifies ways to measure ROI. ROI is the return on investment. I found these facts important and wanted to share them with you all.

1.       Sales or Revenue

This is where you can use your web analytics and customer relationship management to tie actual sales to social media activity.

2.       Cost Savings

More organizations are experimenting with social media for marketing, recruitment, or customer service. By listening to conversations, you can better identify candidates or more quickly solve customer problems.

3.       Paid versus Earned Search Rankings

One of the advantages of a proactive social media campaign is that it makes your brand more current and more relevant, two criteria that determine how high up your brand will appear.

4.       Cost Avoidance

Any company can be caught in crisis. Good relationships can mitigate its extent and duration. The best way to measure would be to examine what happens to competing organizations in your marketplace.

5.       Social Capital

For an individual, the more relationships you have the better your life is, the longer you live and the healthier you are. Good social capital means that information flows more easily, innovation and efficiency increase, and legal costs go down.

I hope you all have learned something, as I have, from the readings. Feel free to add and comments and keep looking from more tips from “Measure What Matters.”