The eternal question on Social Media Marketing ROI

Again and again our customers wonder how to calculate the ROI (return on investment) for Social Media Marketing. The answer is not what you expect.

We had that question again and again and so we decided to hire a consultant to know what other companies (in Japan) promise their customers as for ROI.
Our consultant took over a week and the results where so interesting. He said:

“According to my research, the calculation of ROI is … what your customers please.
The companies I investigate and personally talk with, gave me different calculations and ensure different results ranging from 20% to 200%. ..
therefore, my conclusion is that that there is no correct  approach to make a calculation of ROI in Social Media Marketing”

brands

“ROI on traditional marketing is already very hard to calculate and so it should be harder to give accurate specifications on a marketing technique that depends on social trends, general perception and so many more facts will have to be consider.”

Our customers mention that we have had positive changes since they started having our marketing services, specifically in popularity, public relations and visits to its online catalogs, website and promotions. Sales have generally improved but we can not calculate the direct relationship with a solid formula.
Other customers have also had an improvement in sales but again, there is too much data with too many different facts that have to be analyzed in a long period of time.The best way to have measurable ROI and successful marketing improvisations is by having ongoing  campaigns and promotions for sales and branding purposes, followed by a good public relations support. ROI will come out after analyzing the results and making good constant corrections.

 

This conversation reminds me of a marketing disaster story.

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