The topic of how to justify spending time and money using social media? How do you measure the return on investment was raised on a forum the other day and so I thought it would be a good time to investigate and ask existing small businesses how they determine the ROI for their business when it comes to using social media.
What I discovered was that hardly anyone was measuring the ROI but instead everyone was putting it down to building new relationships, gaining business and increasing their network.
It got me thinking about old methods of marketing and how it was measured and then I have to ask the question; how many small businesses really measured their ROI? The way I see it, and I could be wrong is that most small businesses’ in most cases use the newspaper, flyers, word of mouth and a few other methods of marketing and therefore they would not go and heavily spend a vast amount of time on figuring out the ROI but rather measured it against profit and if business was coming in and profit was good then the marketing was working and if it wasn’t they would change or try other methods. This leaves me thinking that perhaps people are placing too much emphasis on measuring the ROI when in fact it is not easily measured according to top marketers.
The big advantage and the way I see it is that it is easier to connect via social media because social media gives you the opportunity to engage with your audience where as old methods of marketing don’t have this advantage and yet people still continue to try and justify why they should not get involved in using social media.
Life seems to move in waves, people who are on the look out for the next wave and catch that wave usually score a very high return on investment and by the time the others catch on, it’s too late and the people who caught the wave early are dominating the market.
I also asked Richard White of The Accidental Salesman® to share his views on how he would determine the ROI by using social media and this is what he had to say in his blog post.
Tomorrow I will start to share the answers that were was given to me by various business owners who kindly took the time to answer my questions. I just want to thank everyone for their participation in this interview/survey.
Interview 1: Nikki Cook, Copywriter
Interview2: Mark Barton, Utilities Warehouse Distributor