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Valuing social media ROI

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Return on investment (ROI) is your single most important measure of success for social media marketing. In simple terms, ROI is the ratio of revenue divided by costs for your business or, in this case, for your social media marketing effort.

You also need to set a realistic term in which you will recover your investment. Are you willing to wait ten weeks? Ten months? Ten years? Some forms of social media are less likely to produce a fast fix for drooping sales but are great for branding, so consider what you’re trying to accomplish.

Costs usually turn out to be simpler to track than revenues that are traceable explicitly to social media. Chapter 2 of this minibook discusses techniques for figuring ROI and other financial metrics in detail.

Whatever you plan for online marketing, it will cost twice as much and take twice as long as anticipated.

A social media service is likely to produce results only when your customers or prospects are already using it or are willing to try it. Pushing people toward a service they don’t want is difficult. If in doubt, first expand other online and offline efforts to drive traffic toward your hub site.

Social Media Marketing All-in-One For Dummies

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