Hello and welcome back it’s Social Media Sean here. The other day I was watching one of my favorite movies – Jerry Maguire. You know that scene where Tom Cruise is yelling at the top of his lungs “Show me the Money!”? Well it really got me thinking that more than ever business owners and executives alike are searching on a quest to find out the direct relation between their social investment and the ROI – the return on investment. One of the big challenges that they’re facing in measuring this is that directly there is no ROI associated with social media.

AUDIO VERSION

Now let me explain what I mean by that. What I mean is that social media itself – digital media that we share online that we have conversations around and social networks themselves aren’t actually going to bring us any additional revenue. Where the revenue is going to come from is our business plan, our business strategy.

Social media is an extension of that strategy. Not only that, we can’t just be ‘partly social’ for us to think that it’s going to work and to be able to effectively measure the ROI. Social media has to be part of our organization – right from Sales to Marketing, HR – the recruiting part of it, our internal communications and how we run our business.

When we look at it as a whole, no longer are we looking for this “short term amazing impact” that social media is going to have – because it’s not like that. Any business that’s been around for a long time, knows that we have to think long term when we’re doing our marketing plan – in order to really see lasting results. Social media is no different. Yes, there is a ton of money to be made through social media if you’re implementing the right strategies behind it.

There’s a lot of people doing some really great things out there. The one thing we need to keep in mind is that we are all in the people business. What that means is that we need to go to where the people are – and the people are on social media. Not just through their business but they’re living hours and hours of their lives on these networks.

When we really learn how to define who our customer is and how they act online, then we can really start to connect with them and have some lasting relationships. That is when we can really start to look at the return on not only the investment, but of the return on the relationship.

Those are my thoughts on the ROI of social media,  “showing me the money”. Hope you guys have an awesome day! Thanks for stopping by.

Sean Charles (@SocialMediaSean)

Sean Charles (@SocialMediaSean)

Social Business Technologist at Social Media Sean
I am an easy going social business entrepreneur that is positive on purpose. I get pumped about providing social solutions to luxury brands and technology start ups. I build content strategies and mange communities to help grow your business and brand equity. In other words I help you make more money.
Sean Charles (@SocialMediaSean)

@SocialMediaSean

Sean is my Name & Social Media is my Game! Jazz, Dogs & Tech! https://t.co/PRHQnTPV3q Victoria B.C. #YYJ
Thrive Leads vs OptinMonster - Which Plugin Is The Best Plugin For Building An Email List? https://t.co/bSnclYkLPl via @Reginald_Chan - 58 mins ago
Sean Charles (@SocialMediaSean)

Comments

2014-08-08T05:28:27+00:00
Loading Facebook Comments ...

4 Comments

  1. Bruce Sallan June 4, 2012 at 12:18 am - Reply

    Boy Sean, we are thinking on the same lines as a couple of my recent posts have been asking these questions – of myself and of my readers. Also, I am reflecting in my blog about finding the right balance in my Social Media life!

    • Social Media Sean June 4, 2012 at 12:59 am - Reply

      Hi Bruce, 
      I hear you on that. I come from a traditional business background and as much as I love social media we need to keep things in perspective. Expecting or promising massive short term results, especially based on how most new businesses approach social, doesn’t do anyone much good. Glad you liked the post, and thanks for stopping by.Cheers,Sean

  2. Michela Stribling June 4, 2012 at 4:24 pm - Reply

    Nice post, Sean. You’re absolutely right on the money (ha ha!), especially with your point that social media should be an extension of business strategy, and therefore, that you must take a long-term view of your plan and your results.

    By the way, I’ve found the work of Altimeter Group’s Susan Etlinger to be very useful when considering social media analytics. You might consider checking it out: http://www.slideshare.net/setlinger/altimeter-social-analytics081011final.

    • Social Media Sean June 4, 2012 at 7:26 pm - Reply

      @mstribling:twitter Hi Michela, thanks so much for stopping by & sharing the document by @setlinger:twitter Susan Etlinger. The information in there is Gold to organizations who are willing to re think, adapt and be forward thinking about the socialization of their organization as a whole. 
      :) SMS

Leave A Comment

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>