Since beginning to explore the vast world of social media, I have truly believed that the value of this space is the opportunity to access curated and qualified conversations, relationships, and communities.
After watching another awesome 2-minute gem by Seth Godin, who effortlessly sums up the framework of social networks (Oh yea, this was in early 2009), I was inspired to share my thoughts and experiences.
What is ROI, Anyway?
At the end of the day, despite how much attention the definition has attracted in the social media field, Return on Investment is still a very subjective term. To effectively measure ROI, you have to correctly determine and define all of the various inputs and outputs, as well as how that return actually ties into the bigger picture of your organizational strategy.
This becomes a highly customized equation, and while there may be a handful of best practices, it always comes down to the goals and objectives of the individual professional or organization combined with their unique situation and environment.
Social Media and the ROI Hype
I believe that part of the craze around businesses needing hard proof of ROI in social media is around fear of change and the unknown. The world is changing, how we engage, share, and make decision is influenced by our ability to globally connect with the world on a massive scale – and this is new. For businesses, being able to see and acknowledge proof of investing in this new space allows for some certainty in an otherwise very uncertain field.
The problem is, this space is so new that there is no comprehensive textbook on ROI, nor should there be. Because of the mad rush to “get social” individuals and businesses are identifying cases and strategies where return on investment has been proven (or articulated) and blindly replicating this strategy without due consideration of the unique set of variables that make their business much different from any given case study.
Return on Relationships… Customizing ROI
At the boutique business-consulting firm I work with called Tekara Organizational Effectiveness, we know that value is held in the trust and relationships we build with our clients and business community. This function of connecting with the right people, having engaging conversations, and building valuable relationships is at the core of everything we do.
Because this is a core value and business driver for Tekara, we have implemented this thinking into our social media communications strategy.
Take a look…
*Note* This visual model is entirely based on the ability for us to qualify and curate our online communities. While having engaging conversations and building real relationships CAN hold incredible value, it is only valuable if they are the RIGHT conversations and the RIGHT relationships.
Building Qualified and Targeted Communities
There is really nothing that special about this model, but when identifying and using the appropriate tools, channels, and techniques (which are informed by our strategy), we are able to sort through all of the noise and focus specifically on the people, organizations, conversations, and relationships that are aligned to our brand and where we can truly add value!
We have seen some great success in a number of our metrics and measurements by leveraging this strategy; from social footprint and community sentiment, to website traffic, lead generation, and new business opportunities.
A Measurement Equation
So to break it down to a very simple equation, if we know that the number of qualified and targeted conversations and relationships we are able to create and build, has a direct impact on our ability to generate leads, be exposed to great business opportunities, and at the end of the day add real value to our organization, than we can effectively use this as one measure of social ROI through this strategy.
Join the Conversation
Of course, this is just food for thought, and I am eager and curious to hear your voice on this topic!
- How have you measured your investment in social media?
- What would you like to see?
- What has worked well?
7 Comments
I like your approach on this Tyrell. To expand on your “measurement equation”, an organization like ours, that sends teachers abroad, could measure our success on the number of people who are talking about us on various mediums. We don’t currently have a strong social media presence so that is a pretty killer ROI if a lot of people are talking about us. The next step for us would be to see how building out our social media presence can give those already talking about us another platform for conversation. A more focused platform.
@ReubenZ Great points and thoughts Reuben! Thank you for taking the time to share, I appreciate you applying the concepts to your own situation and am interested to learn more!
I think you are on the right track, to continue on your track of thinking I would want to learn more about “why” it is important for people to talking about you and what types of conversations would you want to listen for, engage in, and facilitate? It sounds like there may be opportunity to engage with people who are already having conversations around your brand, but also be listening for those who are expressing the need for your type of service! Secondly would be by creating these environments and spaces where people can talk about your brand and service, how can you and your business add value to the conversation!
Thank you again for your great points,
Look forward to chatting soon :)
Tyrell
This is true now, more than ever. Search engines are looking for legitimate social signals and people want meaningful interactions. Measurement has to be creative and go beyond on-page metrics. Nothing has changed – people want to do business with good people. Social media is only a (vast) extension of the community networks we’ve always had.
@leahbaade Well said, Leah. I know how well versed you are on the SEO, Content strategy side so I don’t take your input lightly!
It’s so simple at the end of the day isn’t it, if you are good at what you do, and your true values and unique voice shine, you will attract the right people and opportunities into your life! Whether through social media, or any other channel!
Thank you again :)
Oh you KNEW I was going to love this post @TyrellMara #ConversationsThatMatter :) It’s not the tools or the ‘ROI’ that’s so important…it’s the relationships developed through shared values and vision! Like Gary Vaynerchuk says “What’s the ROI of your Mom?” ~ It’s funny but think about it! We all know that your mom brought value to your life and directly impacted the person you’ve become! I believe all the magic happens in between the stuff we try to measure ~ Let’s continue this conversation!
@TeriConrad @TyrellMara Ha! “The ROI of your mom.” Thanks for this one. I love it and I’m going to use it :)
@TeriConrad Well said Teri! And continue this conversation we shall. I truly believe if we understand ourselves intrinsically and have that unique voice, we have the opportunity to connect and create vibrant connections and opportunities with anyone- the limit is only our own goals, dreams, and imagination… How big can you think?? :)
And yes, a timeless quote by garyvee , one of your favourites I know!