Recommendations from Forrester Consulting Report: The ROI of Social Media Marketing:
Social media can deliver business results, but to validate your social media efforts requires a combination of approaches:
- Eliminate financial measures that are not direct and attributable. Sales are an important metric, but if financial results are not immediately and apparently associated with social media efforts, do not use proxies to convert nonfinancial results into financial equivalents. Instead, transition your metrics to the other perspectives.
- Do not rely on just one or two perspectives. While financial and digital efforts are easiest to measure, do not neglect the vital benefits delivered by the brand and risk management perspectives. You cannot assess properly and thoroughly your social media marketing programs without the long-term value delivered by these perspectives.
- Don’t use the term “ROI” unless you are referencing financial returns. ROI has an established and understood meaning — it is a financial measure, not a synonym for the word “results.” Marketers who promise ROI may be setting expectations that cannot be delivered by social measures.