I once heard my friend Gary Vaynerchuk answer the question:
What’s the ROI of social media?
His response was partially dismissive, mostly true, and certainly brought down the house. He replied with a fervent
What’s the ROI of putting on your pants?
I love that response, but I also understand why your boss may cringe after hearing it. She has a budget, key performance indicators, and responsibility. She’s asking you about ROI because she wants to support you. She needs to understand the ROI so she can allocate said budget, and analyze how well you’re doing. So how can you impress upon your boss that she must invest in social media today? Here are some tips:
Show her the data.
Make sure that you record the date you started, and of course track all activity. Your goal that you need to keep in mind is that you’re making a very qualitative endeavor (social media) into something as quantitative as you possibly can. You must create benchmarks, and track your progress. A few simple ways to track your progress include leveraging tools like Hootsuite, or bit.ly when tweeting or posting links. Tweetreach allows you to analyze the content of your tweets and will produce some really lovely visual reports for you to share with your boss. This will help you distill the activity when presenting your case.
Show her the competition.
This is easy. If you’re at a small to mid-sized business, I’m sure you have a lot of competition. Whether it be based solely on location, size, or direct competition – start researching. Check to see if your competition has any social media presence. Are social icons on their website? Are they conducting SEM programs? Do they have a Pinterest board? Aggregate snapshots of all social locations using Techsmith’s Snagit, and present to your boss. This type of presentation will be sure to stir a visceral reaction in your boss. The reality is social media is here to stay, and I’m certain some of your competition are active.
Show her the content.
Be sure to create a central repository of all the content you share via the social places – I recommend 37Signals Basecamp. This will cost some money, but it will reap dividends. Sometimes after you post on Facebook or Twitter (and your not tracking activity) it’s difficult to remember what photos, or video you posted. Also, keeping a good inventory of this content will articulate to your CEO that you already have great content and that you don’t have to spend a ton of money to gain access to social media ready content. The first step should always be to leverage your current assets. Once those are exhausted, then start to create unique content. This can be as simple as walking around the office and snapping a few photos.
Show her the money.
If you don’t already have access to your companies Google Analytics, then get it. Google Analytics is fantastic for tracking the ROI of social media. you will be able to see how people discovered your site. If you’ve been executing properly chances are you’re going to have some traffic from the few social places I mention in step 1. There is your proof. All you need is some inkling that there is a possibility that social media generates traffic to your site.
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