Nowadays there is a lot talking about Social Media for marketing purpose and the important contribution of them to the marketing campaigns but how is possible to quantify this contribution?
The Social Return Of Investment (SROI) is a possible answer. Originally, this rate was elaborated to monetize extra financial values such as environmental and social value, which impact also the investments made.
For the evaluation of this cost-benefit analysis is important to have a marketing plan available, which contains the following four points:
Goals and business objectives and social media campaign objectives, which are part of the list below:
Increase traffic for blog and website;
Increase the number of inbounds calls and consequently the number of business opportunities;
Increase the online visibility of brand and company’s products;
Establish the reputation among the Social Media community as “Expert” in your topic or market;
Generate more sales (ecommerce) and improve win rate.
2. SM Strategy
Based on the objectives identified, the plan requires a short and long strategy of communication. Indeed, in case of more leads generation, you may want consider, for example, a “Lead generation card” for Twitter or “Ad campaign” for Facebook. These two initiatives can be effective immediately but for a long term strategy it is beneficial to have a blog in order to have leads generated by the own traffic.
If the goal is to boost sales with e-commerce, a short term strategy can include the use of Facebook carousel ads and consider the development of Apps on a long term plan in order to provide to customer a friendly way to interact and buy from the company.
3. Traffic analysis.
The analysis of visitors’ traffic for the channels used can reveal important information to improve the effectiveness of the campaign itself. It is possible to use applications and services provided by external companies to get a clear picture of the users and to identify prospects and the company messages.
4. SROI calculation and evaluation.
The formula to calculate the Social Return of Investment is: SROI= (Benefit – costs) x 100 / Costs.
After calculating the rate is also important to analyse if the results are in line with plan’s objectives. Furthermore, beside the calculation of a mere number, the analysis has to consider also the organisation’s social impact generated by the campaign.