Measurement key to social media ROI – study

US-- Effective measurement is crucial to getting ROI from social media marketing, according to a study by the Aberdeen Group.

The study, by customer management research fellow Jeff Zabin, found that more than two thirds of the best-performing companies had a process in place for monitoring social media, and urged firms to make use of tracking tools to measure their social media performance.

Zabin identified numerous metrics in use by different companies, ranging from established web audience measures to methods aimed at gauging influence, and metrics tied to customer acquisition, retention and profitability.

He writes: “In the end, there is a litany of different ways to measure the ROI of social media marketing activities. Not all of them are equally compelling or valid, and many companies still struggle to demonstrate business outcomes that ultimately translate into revenue growth and/or cost reduction. Metrics that correlate online conversation to financial outcomes, particularly increased shareholder value, are likely to gain in popularity over time. Why? Because when it comes to measuring the results of marketing activities, including those related to social media, it's the profit and loss statement that matters most.”

Author: Robert Bain

Related links:

Aberdeen Group examines social media ROI