ROI and Social Media – No, It’s “ROE”

by Colleen Rugg

They key thing to remember that in social media, when measuring “ROI” you really want to measure “ROE” – Return on Engagement.  It’s important your team is looking for how people are engaging with you on social media, and whom they refer, and what people are saying about your brand.

Just like when someone sees a commercial on TV, hears an ad on the radio or sees magazine or billboard ads, then goes into a store to buy a product, a company cannot truly quantify what drove that person to buy.  So with social media, you have the ability to see where your buyers are coming from only if you ask questions (during check-out or when a salesperson closes the deal, or when a person checks into a store, buys a product and uploads the pic).  “Where did you find us?” “My friend told me about you on Facebook” or “I searched Google for XYZ and came across a helpful blog on your website.”I heard about a contest and decided to take part.  I didn’t win XYZ, but loved it when I tried it.” When you know how people have bought your products/services, you might want to think about ways to reward them for making purchases – like 10% off their next purchase if they upload a pic of themselves in the store in your store.

Measure ROE instead of ROI. Artwork by: Kristian Zaspel (c) My SMN

It’s important to gain the loyalty of clusters/groups of people as they will carry your message farther and for a longer time vs. one person here or there that have a huge following.  Focus on acquiring more social media savvy people to try your products/services and ask them to share those experiences.

Do you need help with your next “ROE” report?  If so, give us a call.  We provide social media packages and also consult and educate on an hourly basis.

 

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