Interesting take on measuring social media ROI found on Mashable.
“We often approach social media like it’s the destination rather than the vehicle,” says Thomas. Marketers often want to “be on Twitter,” but don’t consider that it’s actually a communications tool and that consistent action must be taken to engage a following.
Thomas compared measuring social media ROI to the task of calculating the ROI of a business card. Conference attendees rack up hundreds of business cards, but how do you calculate the ROI of all of the business cards that you hand out at a conference?
Like a Facebook fan or Twitter follower, a business card merely represents potential — so, you can’t accurately measure the ROI of a business card, just as you can’t measure the value of a Facebook fan, says Thomas.
This concept shouldn’t seem new, though, because traditional marketing — such as email marketing and telemarketing — runs by these rules, Thomas explained. Marketers don’t ask, “What’s the ROI of this email newsletter?” Instead, they ask, “What’s the conversion rate for our email campaign?” And telemarketers don’t ask, “What’s the ROI of a phone call?” They ask, “What’s the conversion rate of our sales calls?”
Click the link above for the full article.