SCHWARTZ CROSSROADS

Measuring Social Media ROI

Here at Schwartz, we've been talking quite a bit lately about measuring results of social media programs. Not just programs we've designed for clients, but those of people who we meet at conferences or with whom we're just chatting.

Without a doubt, many companies are thrilled with their involvement in social media. They love the outlet that participating in blogs or forums gives them, they're able to talk with people on Twitter whom they'd likely otherwise miss and they're connecting with patient communities on Facebook. (One client, Digium, gives us a tour of their use of social networking technologies here to gain "customer feedback, suggestions, highly qualified sales leads" and to talk with people in their industry.)

Some, though, are a little disappointed in social media. When I hear that, my first question is always "what did you hope to gain that you're not seeing?" I often wonder whether they're measuring success based on number of Twitter followers or Facebook fans--today's corporate version of a teenage popularity contest. This would be unfortunate because such metrics are nearly irrelevant for many B2B companies.

PR people need to keep in mind the Cheshire Cat's words of wisdom to Alice: "If you don't know where you're going, any road will take you there." It's our job to help clients think through exactly what they're trying to achieve and to recommend use of social platforms because they make sense, not because they exist and are free.

Last week I attended a Mass Technology Leadership Council discussion on social media and lead generation. Mark Roberge, HubSpot's VP of sales, led the talk. Toward the end, he turned the group's attention to measuring social media ROI--certainly a topic of interest to a number of people today. (Some great reads are here, here and here.)  

Mr. Roberge talked about website visitors and sales leads--reasonably straightforward things to quantify and important metrics for any B2B company. He also talked about "SEO assets" such as inbound links and improved performance in organic search results. Those things take time to build--perhaps a problem is that some companies look for an immediate impact in this department when it may be more reasonable to expect a change in six months' time. 

Just guessing, but I bet some of the letdown that a few companies feel stems from their desire to get something for next to nothing--a measurable impact from use of free technology. Certainly using social technologies is free, but so is calling up The Wall Street Journal or "Good Morning America." Anyone can do it--the question in every case is whether you've got anything interesting to say and can articulate it in something like a compelling manner. In any case, it's your PR person's job to figure it out.

Altogether, these things are a great reminder to me that B2B companies using social media--and their PR people--need to be clear in setting objectives and in understanding the likely timeframe for success.

Posted by Laura Kempke on September 14, 2009 at 4:35 PM