Measuring the ROI on Social Media Initiatives

by Joanna Pineda Posted on July 23, 2009

Analyzing The Data I met with a group of CEOs this morning and social media came up in conversation. More than several members of the group wondered if a social media strategy is worth the effort. In other words, how do we measure the return on investment (ROI) of our social media initiatives?

This is a topic that comes up a lot at Matrix Group. Unfortunately, there isn’t a magic formula for calculating ROI on social media activities. Mashable says that you can measure the ROI in two ways:

At Matrix Group, our social media initiatives include: a blogging strategy (this blog and participating in other blogs like WomenGrowBusiness), Twitter, Facebook, and Flickr.  Here are the metrics we use to track ROI:

Qualitative Metrics

In this area, I’m honored that I made the Washingtonian’s list of Top 100 Techies and SmartCEO’s list of top 50 CEOs in the DC area.  In addition, we’re getting lots of mentions and clients are referring to our social media pages on a regular basis.

Quantitative Metrics:

Ultimately, where the rubber meets the road is whether or not we are getting leads and converting prospects to clients. Over the past year, here is what we have seen:

No matter how you track it, we’re getting a positive return on our social media and that’s worth blogging about.  How about you?  Are you tracking the ROI of your social media activities?  What’s been your experience?

2 replies on “Measuring the ROI on Social Media Initiatives”

Being a thought-leader in your industry is a remarkably powerful tool that has a very intangible value. It is similar to brand strength, which is immeasurable and invaluable at the same time.

This has a far-reaching impact that extends into an area not mentioned by Mashable or your post: employee retention and recruitment. Openly communicating through multiple channels/networks helps a company be transparent: it exposes the culture, activities and performance. In a world where relationships, personality and ethics ultimately prevail, a company with a history of genuine communication builds the respect and trust of its employees and partners (and of course, customers!).

Thank you so much for sharing your own company’s social media strategy and how you measure Return on Investment from your social media marketing activities. While the Mashable definition of social media ROI is not the only one out there, it does provide a solid framework. I am wondering, since it has been almost nine months since you published, how your social media ROI as measured above is doing these days?

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