This week Paul Gillin and I discussed on the latest episode of FIR B2B the “impact” of social media. As Paul pointed out, a new survey finds that CMOs expect social media spend to grow from 7.4% of budgets to 10.1% in the next 12 months. That’s a trend we have seen in recent years as organizations dive more into digital. That number will continue to increase; however, the challenge according to the study results is that firms are finding it difficult to measure. I think it’s safe to assume we are all in that camp. Why is that? Is it a lack of resources? A lack of direction?
As Jay Baer pointed out back in 2012, not measuring ROI is your fault. This remains a great read for all of us as we think about metrics.
In my opinion, measuring “impact” will vary from firm to firm and even within firms from division to division. We each have different ideas of what success looks like and how it will matter to our organizations. To measure impact or ROI in B2B you always need to understand what you are trying to achieve first. I have always leaned toward breaking down what to measure into three categories: awareness, education or sales. Hootsuite outlines three steps to achieve ROI. Just always remember, no social media ROI measurement is perfect or comprehensive, which is why narrowing your focus and knowing what you are trying to achieve ahead of time is so important.
I like to think that metrics come into two categories: Attention or Influence. These are broad categories but I try to break down how they can help you can do. If you’re still looking for way to measure impact, Glenn O’Neill has an excellent post listing five resources on communicating evaluation results. I particularity liked the toolkit from the Pell Institute and the evaluation guide from the CDC. Altimeter also offers a great ROI Cookbook that’s worth reviewing. Personally, I think when it comes to metrics and measurement you need to always think about asking the right questions.
What do you think makes is most difficult to measure ROI? A lack of resources? A lack of direction from the business? Too much data? Let us know in the comments.