This is How You Measure Social Media ROI

More talk about social media ROI and measurement? You know it.

This time Mitch Joel of “Six Pixels of Separation” wrote a post about measurements and metrics. As much as I like Mitch (his articles are great and I highly recommend his blog), I really disagreed with his take on social media ROI.

credit

He states that…

“Thinking about business objectives instead of ROI makes the whole strategy that much workable and doable. In the end, instead of looking for the ROI in Social Media, maybe the smarter thing to do is to focus on what the business objectives are, and then figure out if Social Media is an effective means (from both a strategic and budgetary point of view) to help you and your business accomplish your goals.” [Source]

He uses two phrases that stand out: “business objectives” and “effective means”.

Here’s where I disagree with Mitch. I don’t agree that business should be run by “effective means”. It should be run based on decisions that lead to the most “efficient means”.

What’s the difference? Well, imagine my business objective is to build awareness about my product. I could do a number of things.

Picking up the phone and going through the phonebook would be extremely effective. Nothing beats a personal connection. But is it the most effective? Most likely, no.

Advertisements