The following is an abbreviated step-by-step guide to measuring social media ROI.

Step 1: Define Goals & Success Metrics
The first step of ROI measurement is defining your goals.  What do you hope to accomplish by being active in the social space?  One problem is that brands launch social campaigns without clearly identifying or understanding their goals, which makes measuring success difficult (if not impossible).  

Here are a few examples of social media goals:
•    Expand brand or product awareness
•    Increase engagement with brand
•    Generate qualified leads
•    Drive sales
•    Build community
•    Create brand advocates
•    Qualify fans and convert them to customers
•    Improve customer satisfaction
•    Establish company as a thought leader
•    Attract talent

Once goals have been defined, the next step is determining the appropriate success metrics that align with these goals. For example, if a goal is to increase brand awareness, metrics might include the volume of online discussion or “buzz” about your brand, the level of audience engagement (re-tweets, comments, posts, video views), the number of fans, followers, etc. and the number of user impressions.

The following are examples of social media success metrics:
•    Volume of  online “buzz” about a brand
•    Volume of positive sentiment
•    Number of fans, followers, readers (or number of high-quality/targeted fans)
•    Engagement (number of video views, duration of views, time spent on the company blog site, time spent playing a company’s branded game application, etc.)
•    Volume of user comments posted to company blog, profile or posted content
•    Retweet or peer-sharing statistics for related content and posts
•    Comment or retweet resonation (number of user comments multiplied by
    how many followers or friends each user has)
•    Media coverage
•     Media impressions (mentions on blogs or other media multiplied by the size
    of the audience)
•    Quantity of new or qualified sales leads (referred from social sites)
•    Website Referral Traffic (from social sites)
•    Advertising click-through rates
•    Volume of customer service issues handled

Step 2: Establish a Baseline
In order to effectively measure success, make sure to first establish a baseline by determining your current position within the social landscape.  For instance, if your goal is to increase awareness and you will be tracking the amount of “buzz” or mentions about your brand, you must first know what the current levels are before taking actions to reach that goal.  Without establishing this baseline, it’s difficult to accurately show ROI.

There are a variety of analytics tools available to help with social media measurement.  I won’t go into too much detail here (there are dozens of options), but a few of these include Google Analytics, Social Mention, Viral Heat, Scout Labs, Radian6, and Listen Logic.  These tools can be used to gather key social media metrics and help you identify strengths and weaknesses of your social presence.

Step 3: Measure and Track Success
After you launch your social media program, begin the measurement process to track success.  Gather the success metrics from your analytics tools and start to see how (or if) they correlate to higher sales, increased customer satisfaction, website traffic, store traffic, etc.  Try to identify trends where possible. Does positive consumer sentiment or an increase in chatter about your brand lead to higher website/store traffic, leads or sales?  Recognizing these trends and identifying their point of origin is key in measuring social media ROI.  

(Image Credit: "Basics of Social Media ROI," by Oliver Blanchard)

In a recent Sales Caffeine email newsletter from Jeffrey Gitomer, there is an article by Michelle Joyce on Making Transactions Memorable.  She had a pleasant experience at the McDonald’s drive thru in Huntersville, North Carolina, and summarized what made the transaction memorable.
 
These three simple steps can be considered website redesign tips to improve user experience at your eCommerce websites and in all your interactive marketing efforts.

1.  Start with a smile and engage your prospect in a friendly manner.  Would you do business with someone you didn’t like?  Well, neither would your prospect.  This guy made me like him – immediately.  When he made that connection, the transaction became enjoyable and personal.  It was all about me, not just my order. 

2.  Offer alternative solutions.  People want choices.   Don't assume that your customer is aware of them.  Uncover their needs and help them make a choice.  McDonald's already mastered the upsell technique with their famous line, “Do you want fries with that?”  What kind of additional features and services can you upsell?  What kind of additional revenue are you leaving on the table at every sale?

3.  End the transaction with something memorable.  When is the last time that a fast food worker told you to “drive safely”?  Usually, it is the perfunctory "thank you” and “have a nice day”; but this guy made me feel like he was genuinely concerned about my personal safety.  What are you saying to your customers that make them remember you personally?

Michelle ends by saying:  The reality is that people are still buying products and services in this economy.  The only question is "Will they buy them from you?"

Definition 6 is an interactive marketing agency that can help you make a connection to your users, whether customers or prospective ones.  We are experts in website development and custom application development.  Even though we are an Atlanta Ad Agency, we have clients across the US that we help differentiate themselves from their competition.

If you've heard of Content Delivery Networks (CDN) then you probably either work for one or you've had issues with website performance. Or maybe you believe that there is a potential concern with increasing website traffic and how your application will handle it. First of all, if you're facing the fear of an expanding user base, you've obviously done something right. So how do you avoid being the one left holding the bag while end-users fall off your site in droves? Maybe a CDN is the right way to go...but maybe not.

As a Technical Project Manager for Definition 6, I've had the opportunity to work with clients and projects that require, at least, an initial discussion regarding performance, and others who simply do not. Let me focus on those companies first. If you own a lead generation website that leverages alternatives means for producing sales and receives 2,000 - 5,000 unique visits daily, odds are, you're not going to need advanced performance capabilities. If you are noticing issues, then take a look at your production configuration. Are you on a shared solution? Are you serving up heavy, rich media content? Are your servers out-of-date and unmanaged. Take a closer look and you might find that the potentially expensive CDN solution isn't necessary.

But for website owners that are out of capitol to invest in peformance increasing devices for a struggling system, or for those that wish to provide enhanced, rich media content to users, then look at a CDN as a possible solution to your problems. I recently read a post on www.websitemagazine.com by Peter Prestipino in which he introduced TinyCDN (www.tinycdn.com). If you've researched CDN's, you know how expensive it can be, depending on the size of your content and frequency of delivery. TinyCDN is a good example of a feasible solution from a complexity standpoint and budget concerns.

If you're considering one of these options, hopefully you've taken the time to discover what is causing your website's slow performance. What you don't want to do is spend your budget on improving usability and find out after implementation of those changes that users are experiencing the same degraded performance. Take the time to baseline your performance metrics, from an application and server standpoint. There are numerous tools available that can provide these key metrics. Take a look at your analtyics package as well, what is it telling you? Application can't keep up with continuous requests? Or maybe you've had a dramatic increase in requests to view your new product video. If you're in a pinch, give something like TinyCDN a try. A band-aid solution might not be so bad if it's reasonably priced and avoids the loss of users.

Project Manager, Lisa Seals, shared a great case study with us that she found on the Marketing Professionals site.  The study talks about how the Days Inn chain uses mobile text marketing as opposed to mass email marketing and rich media advertising to communicate with guests, build loyalty, increase revenue and provide value-add services.  The article boasts text marketing as “customer service 2.0” for the hospitality industry.  Here are a few key items Lisa shared with our Client Services team…

1. Building the opt-in list.  The campaign began by generating awareness for the new texting program - front-desk associates ask guests at check-in whether they'd like to participate.  Special contests are set in place driving people to text (and opt-) in order to win a weekend getaway.  The program was promoted through elevator notices, keycard holders, and other key collateral.

2. Engaging the opt-ins.  The chain implemented a marketing plan of text messages which consisted of general promotions, hotel-specific promotions, and customized messages based on guests’ specific needs.

3. Lessons Learned.  The chain used a double opt-in program to attract only those guests who were truly interested – guests were reassured that their information would not be shared.  The time of day for messaging was considered for nationwide messages and messages were managed on frequency depending on a guest's length of stay.

Days Inn had a 22% increase in room upgrades and substantial increases in website traffic through their text marketing campaign.  There was even an increase in the use of hotel amenities with a 15-20% increase in reward program signups – not to mention the immeasurable increase in brand awareness.