In today's marketing world one of the biggest challenges that brands are trying to understand is how to measure ROI in their social marketing strategy. The one thing about measuring ROI is that the equation to figure out the ROI is no longer the same.
There was a time where people didn't know that a brand existed until they saw the advertisements of that brand. So catching a potential customer's interest and capitalizing, on the spot, was very crucial. The marketing strategy had to captivate the customer and entice them to use the brand. That method allowed marketing ROI to be measured easily.
In the social media era it's a little different. Talking about a brand and brand transparency are what allows potential customers to come to a understanding of the brand, which could turn them into paying customers. In the past a customer would buy the product or use a service to find out what it was all about. ROI was easy to measure on those bases.
Nowadays, a person will engage with the brand or listen to other customer's reviews on social media before trying the product or service. Since many people are doing that it would be difficult to understand the impact a marketing dollar has on potential customers.
Even though in business it's all about the money, brands should focus more on ROE ( Rate of engagement) to get a idea of the impact that their social media strategy is accomplishing. There is a correlation between customer engagement and customer purchases that can not be ignored.
A brand's following and engagement will give more of a clear analysis of its ROI than any other measurement used before.
Marquee Mark
