A lot of marketers are frustrated by social media. Even though you get lots of metrics (visits, friends, fans, etc.), these are typically difficult to connect to the only number that really matters – sales.
In a recent survey, Marketing Sherpa asked CMOs how they measure the ROI on social media. As it turns out, they work hard to track the source of every deal in their CRM systems. That gives them the ability to track inbound leads from social media, search marketing, banners, emails, etc. right through to the final sale, even if the sales cycle is many months long.
Many of us lack the sophistication of a well-integrated CRM system. In those cases, it makes sense to start with readily available metrics that build towards a sale, including:
- Social media followers
- Web visitors
- Leads generated
Most of us know what a lead is worth. Working backwards you can estimate the value of your Facebook, YouTube, Linkedin or Twitter followers. You can then enhance your initial estimates using feedback from the sales team. They are usually not shy about saying whether leads from a certain source are qualified.
The other side of the ROI equation is cost. Do you know how much it costs you to get followers on each of these platforms? True confession – we don’t. But we have seen an increase in traffic and customer inquiries, so we know it is working.