The Truth about Your Return on Investment with Social Media Marketing

Social Media Return on Investment (ROI)

We are often asked: How do you track a return on investment (ROI) for Social Media?

There are the obvious metrics: Direct Sales, Media Impression, Response Rate, Reach, Lead Generation and Traffic. However, there are 3 areas of Social Media ROI that are overlooked:

1.     Research & Development

2.     Retention

3.     Referrals

Instead of viewing social media as an extension of existing customer care or an advertising channel, try shifting your focus.

Social Media is a building block that has the power to support, inform and accelerate nearly every aspect of your business.

Now, let’s dive into these three areas!

Research & Development

Social Media allows you to engage with a large group of customers who are already invested in your brand. Therefore, it can help you develop better and stronger audience personas, compared to the traditional smaller focus group. 

Surprisingly, most companies are not taking advantage of this valuable demographic research.  A Kalypso study on “Social Media and Product Innovation” revealed that while 70% of brands surveyed intend to use social for research and development, but only 33% have a plan in place that allows them to apply those learnings.


Customer Retention

Did you know that most Marketing Managers are likely to focus on acquisitions instead of retention? It’s 5 to 25 times more costly to obtain new customers than to retain existing ones, according to the Harvard Business Review.

Social Media is an opportunity to tap into customer retention. Social Media allows customers to feel as if they have a direct line to your business. Keeping current customers top of mind while developing your strategy is a great way to keep them engaged and coming back for more!  



Social Media is a powerful tool for generating referrals. Social allows you to create a buzz around your product and if you are lucky, your content can go viral and spread like wildfire. And,

since word-of-mouth is the primary factor behind 20% to 50% percent of all purchasing

decisions, business shouldn’t be ignoring social’s impact.


Want to lean more about these powerful ROI metrics? Give us a call today!