I often hear business people say they don’t “get” social media. Which is code for, “I don’t have time to play on FaceBook when I should be earning money.” I wasn’t the least bit surprised when just last week, I was asked by a prospective client, “What’s the R.O.I. (Return on Investment) of Social Media and how can you measure it?” Since social media is the equivalent of word-of-mouth advertising, the metrics are different. Success is measured by relationship, connection, web traffic, lead generation, new clients and referrals.
Relationship economics is a term I coined from my friend, Larry Tyler, an author and business consultant, and it describes Social Media Metrics perfectly. He writes, “Machines have a sole purpose, to make money. An organization, comprised of people and dependent on relationships have a soul purpose. Business relationships in America tend to focus first on the business and then consider developing a relationship – a money-minded versus relationship-minded philosophy. ” I’m convinced that the web and fiber of relationships is the foundation for lasting success and true significance.
Read the interesting evidence below in this Infographic by Psoshul with 10 Examples of ROI in Social Media:
NOTE: You are cordially invited to join me for a Lunch & Learn Session on Social Media Momentum, 10/30, Noon CT. Details HERE