Roi Of Social Media Marketing

Last month, Forrester Research’s Augie Ray published a report on The ROI of Social Media Marketing that I’ve recently had a chance to take a highlighter to: there are a lot of sensible nuggets in the document; it’s a must-read for any marketer.

For example, in making the case for a “Balanced Scorecard” approach to Social Media Marketing ROI, Mr. Ray posits that many brands fail to measure true business value. “A mass of followers that ‘like’ the brand but never return to the fan page is far less valuable than a handful of followers who frequently share brand updates with friends.”

This gets back to SHIFT Communications’ oft-cited credo, “Campaigns do not create relationships but relationships can buoy campaigns.” In too many cases, the “best practices” espoused by digital agencies are less about “serving the community” and more about driving a rush of new fans, without much thought re: how to keep those fans engaged on a LONG-TERM basis. But, that’s another blog post.

Mr. Ray also wisely notes that Social Media’s shiny-object status should not make it the best or only thing to measure: “With offline, online, and social strategies increasingly integrated, attributing value to the ‘last touch’ on social networks can result in undervaluing other marketing vehicles.” Halellujah.

Most importantly, Forrester’s report demands marketers “align measurement to all corporate objectives, not just sales.” A brand must take into account factors such as Risk Managment, Branding, and Digital Effectiveness as well as Financial ROI. Mr. Ray provides a simple, great example of how these factors play together:

“Financial results are important but even when marketers can easily measure direct sales, they must not forget to test other important results. Frequent promotions seeded into social channels may generate inexpensive sales but can damage brand health by decreasing the attention from consumers, or substituting affinity for the brand with affinity for discounts.” (Emphasis added.)

The “Balanced Scorecard” approach that Forrester ultimately proffers to marketers is well worth consideration … But I wonder how many corporate marketers have the tools and systems, partnerships and perspective required to do it justice??

Continue reading here: Content Curation - The Cure For What Ails Pharma Social Media?

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