Every investment requires a return, and especially when we talk about marketing, the whole process depends upon the return it generates. The perfect social media ROI has been a point of debate among online marketers. Most of them say that there is no model; some say that lagging ROI is the model, and to some marketers, time saving is the perfect ROI model for social media.
The matter of the fact is that, there is no singular ROI model for social media instead there are models. When a company invests in social media optimization, there are different models, with the help of which the company can calculate the return on investment. Some of the major social media ROI models are given below:
1. Lagging ROI:
Instead of going for a single project or product for social media marketing, the key is to develop a portfolio, where there will be different products. However, some of the products will not be fit for social media marketing, but this is the benefit of making a portfolio, you get to take care of products that won’t generate revenue, that couldn’t be let alone. A lagging ROI lets you keep care of such products.
2. Reduced Head count ROI:
Social media saves time, the more time you save the more people you have to perform different tasks. This reduced head count ROI can help you calculate the revenue generated by those employees who worked on different tasks, due to time saved on social media.
3. Proxy Metrics:
A proxy metrics ROI, helps you calculate the cost saved or profit earned by social media marketing, in contrast to different conventional marketing techniques, be it, PR, advertising, or word of mouth marketing.
4. Improved Conversions:
Another and apparently most logical ROI model for social media marketing is by calculating the conversions caused by your marketing efforts. Meaning, how many people have bought your product due to the promotions you did on social media.
Conclusion:
In short, there is no single ROI model for social media, instead companies should develop several ROI models to measure and calculate effectiveness of their social media marketing efforts.










