If you know the equation, all I need to know from you is: how did you get it?
My definition of Social Media: If you are reading this then you are living in the 21st century & therefore should know a little bit about it. If you never heard about social media, then I'm sorry but you might need to read :
"Social Media 101 for dummies"
It is forgiven if you don't have time or just lack the resources to learn about social media. There is no reason why there shouldn't be special programs designed to educate managers and CEO's on social media tools.
It is very important to learn about social media. Especially today for two main reasons:
1- There are always newer tools being launched.
2- Promising returns on Social Media.
Don't waste your time exploring every tool but rather find the one's that are relevant to you and your business.
Here is how to work social media:
Companies should launch a blog/twitter/forum/etc. separate or on the same website and allow comments. Customers can express them selves. Sure you will have negative comments which is why you need to add this:
Have PR to respond to customers and moderate the integrity of the posts.
By using social media, companies are not just creating wealth. More importantly and ethically, the company remains connected and maintains a relationship with its customers.
Now, the tricky part about all of this is how to measure ROI of social media. The short answer to this is: you can't.
Return On Investment ROI can be found on the financial statements of Accountants to measure success or failure. In the case of social media ROI does not have to carry a numeric value.
When you have a conversation, you can not give it a numeric value. Different ratings can be interpreted differently by different people.
Social Media Social media is a golden opportunity for businesses to get involved with customers rather than just creating more wealth. Even if the case was to measure the ROI on social media, it is still difficult to establish a correlation between social media and the end results using current measures.
As always, your comments are welcome
The paradox of insular language
7 months ago
4 comments:
I'm not trying to nit-pick, but ROI is not presented on a balance sheet. You do make very good points, however, and as an accounting major, I recognize several problems caused by social media. Your assets much always equally liabilities and equities on a balance sheet, but how do you quantify a valuable asset like social media. Does it have a direct impact on income? If so, then it must appear in financial statements. If we cannot arrive at a dollar value for social media assets, should they be disclosed to investors at all? These questions will likely come up in the future.
I agree that social media is a great way for companies to build a relationship with customers. Not only does it create brand awareness by launching blogs, twitter accounts, Facebook pages, etc., but it gives something a customer can come back to where they may be heard. This gives the company a chance to build an emotional and long-term relationship with the consumer.
Pretty good post! While ROI on social media cant be pinpointed to specific dollar values, we have to ask: does it really need to? Social media should do more for a business than just boost sales and generate higher site traffic. It should reach out to the customer and get to know your own business from a buyer's point of view.
The funny part is that, just by reading a blog, visiting a website, or browsing through pictures, someone's Social Media Net Worth is potentially growing. That's the key word, POTENTIALLY.
Social Media definitely generates ROI, but when and how much exactly. Slightly off of Andrew's point, but you will never know if your expenses on social media will ever be matched.
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