ROI Of Social Media Campaigns

Social media now holds a place alongside print and broadcast as a major, essential marketing channel for businesses. As such, social media now should be held to the same standard as those channels: your social media (Return On Investment) ROI needs to contribute to your bottom line.

To prove that your social media investment is truly warranted, you need to track how social is influencing every interaction you have with your clients. The following explains how to measure social media ROI for your business, in 4 easy steps.

1) Connect Your Social Media ROI Back to Your Business Goals

The first step involves setting social media goals that complement existing business and departmental goals. If you have set a specific number oaf leads you’re trying to attain this quarter, set the number of leads you want to specifically be driven by social media. If one of your goals is to increase landing page conversion by 10%, ensure that you’re tracking the conversion rate of people who land on the page through social channels. Audit your existing social media performance to establish baseline targets and then set appropriate goals for improvement.

2) Select Social Media Analytics Tools To Measure Your ROI

Once you’ve established your social media goals, you’ll need to identify and implement the tools and processes required to measure the ROI on your social media. This may involve adding tracking codes to URLs, building custom landing pages, and more.

There are a variety of social media analytics tools which service to track the diverse metrics you are after. Here are some to consider:

Google Analytics: Track website traffic, on-site conversions, and sign-ups originating from social media campaigns.

Salesforce: Add Salesforce tracking codes to the links you share on social networks. When paired with marketing automation software like Marketo, you’ll be able to track sales leads back to specific campaigns or social messages.

Hootsuite Analytics: Hootsuite offers a variety of analytics tools to help you track your reach, conversions and more.

3) Calculate social media expenditure 

Here you need to calculate the amount that you spend on social media during the time of your campaign or just taking a specific campaign interval into consideration. Here are the steps on how to calculate the social media expenditure:

Hard costs: Calculate the hard costs which denote the work or costs associated with the actual project during the campaign or during a specific interval.

Soft costs: Calculate the soft costs which include the unseen work that composes the initial part of developing a project during the campaign.

Cost/Time spent: Unlike other investments, social media has a greater value when it comes to time spent on it. Calculate the money spent per time spent on social media during the campaign.

Sunk costs: Calculate the sunk costs involved during the campaign which include the costs that were required during a new addition or an internal fix during the campaign.

Social media expenditure (E) = Hard costs + Soft costs + Cost/Time spent + Sunk costs

4) Adjust to Improve

Once you have identified what works and what doesn’t work on social, it’s time to adjust your strategy. The point of tracking your social media ROI isn’t just to prove your social campaigns are valuable, it’s to increase their value over time.

Due to the short life cycle of social media campaigns, a failing campaign should be changed and improved as soon as possible. Social media is never static. To meet your social media ROI goals, you’ll need to constantly update and adapt your strategy taking into account the analytic data you’re tracking.


The key to being a good marketer is testing. If you go on your assumptions, in many cases, you will be off. The only way you can figure out what’s working and what’s not is through testing. Social media is one of those channels that you ought to test. From leveraging it organically to running paid social ads, you can generate a positive ROI. The big trick to generating a good return through social media is using your creativity. From wall postings to ads, the top social media campaigns that I see working tend to be the creative ones.


Are business models in social media very different from ones prevalent before emergence of social media as we know it today?

Around 40% of world’s 7.1 billion population has access to internet today. A sharp increase in this has been the result of internet enabled mobile phones. Social media today presents a lot of power and opportunities in the hands of buyers and sellers. The emergence of social media has brought key changes in business models as compared to their traditional form. Let us take those one b yone –

  • Most of the business models in their conventional form were 2-sided. One, the seller and other, the buyer. Today, anyone who is looking to buy something goes online, seaches for the product, finds the seller with lowest quote, and most importantly looks for reviews posted by other buyers or experts. For instance, a person looking to buy a new car goes to an automotive website such as which offers detailed expert review and test drive results of the car. Further, customers who have purchased the car post their comments and real experiences. The involvement of parties other than buyer and seller in the purchase process has brought new dimensions to business. Thus, making it n-sided.
  • Tradionally, businesses were assumed to be favouring sellers only, thus, making the business model entirely supply side. Now, with high availablity of variety of products, competitive landscape, ease of access to multiple sellers, and better than ever service commitments a seller has to try really hard to win and retain a customer. Social media has helped change the market dynamics and make the business models run based on demand.
  • Another change that has been witnessed with rise of social media is the shift from content creation to content aggregation. Successful business models have been built around content aggregation viz. Reddit, Digg, StumbleUpon, Flikr, etc. There are mainly two kinds of content aggregators. One, those who simply gather material from various sources for their Websites, and other, those who gather and distribute content to suit their customer’s needs. This is also called syndication.
  • The one most visible difference is the kind of return businesses are experiencing in the current digital ecosystem. Traditionally, one popular buzz word was ‘economies of scale’. It increases value gradually and linearly. Small efforts yield small results, large efforts give large results. Whereas, with social media playing a big role in market, the returns are showing network effect. Network increases value exponentially – small efforts reinforce one another so that results can quickly snowball into an avalanche.
  • The new business models must present greater flexibility and fast response times. On one hand, companies should be in a position to address customer wishes and concerns more quickly. On the other, they must be able to react to unexpected crisis situations. After all, social media-based communication poses serious threats. Once negative opinions about a company or a product start spreading, they can reach millions of users in no time. Recall the case of brick and Vim soap delivered in a smartphone box by Snapdeal recently. Hindustan Unilever (Vim brand owner) was swift to make other company’s bloop turn his favor by sending a new smartphone to the customer. Businesses must be properly prepared for such crises and ready to act fast and act flexibly. Flexible organization within the company is essential for successful marketing via social media.



Is Mr. Kotler Still Relevant in the Today’s Age of Social Media Marketing???

Since the beginning of my social media marketing course, I have been wondering if the concepts of traditional marketing as given by marketing gurus like Mr. Kotler and Mr. Porter still valid in today’s age of social media marketing. The bad news is that the fundamentals of marketing hasn’t changed with internet, it’s just that the execution platform of the marketing strategies have changed. This doesn’t mean that the traditional form of marketing will be a thing of the past. In fact social media marketing will compliment conventional means of marketing in future.

Some of the differences between social media marketing and conventional forms of marketing are as follows:

S.No. Key Aspects of Marketing Traditional Form of Marketing Social Media Marketing
1 Type of Marketing Uniform, Structured and Clear. Ex. advertising campaigns and service hotlines, etc. Dissected, Unclear and Spread. Ex. Status updates, blog articles, twitter messages, etc.
2 Direction of Communication Unidirectional (One to many). Ex. Information spread by the company (active), consumers only listen (passive). Multidirectional (Many to many). Ex. Both company and the consumers talk and listen (both active).
3 Scheduling Long Ranging. Ex. Ad campaigns are planned both over and for long period of time. Spontaneous. Ex. Ad campaigns are not planned in detail but reactions to comments and requests.
4 Communication with customers Well considered and reviewed. Ex. Communication only between the company and the consumers (via phone, email, or letter) & point of discussion is kept secret. Fast and Public. Ex.Reactions to comments are immediate and public, anyone can read and join a discussion.
5 Availability During working hours. No direct support beyond working hours. Permanent (24/7). Constant readiness to react to (negative) comments and consumer requests replies expected within 24hrs max.
6 Scope Specific. Optimized for certain target audience and market. General. Available for anybody and everywhere. (Optimized for public.)
7 Wealth of Experience Analog. Similar successive campaigns and assured legal position. Alternating & Innovative. Changing technical requirements, innovating marketing concepts and legal position unassured.
8 Supervision Customer Protection. Marketing activities supervised mainly by consumer protection and competition. User and Platforms. Marketing activities supervised by authority for consumer protection, competitors, platform operators and users.
9 Language Formal and legally safe. Strict “Marketing Language”, ready-made full sentences. Genuine and Direct. No ready-made sentences but personal responses and short answers.
10 People Involved Marketing department, public relations department, external agencies and sales department. New media marketing department, social media department, public relations department, every employee and user and management.

The business models are in principle same for both social media marketing and traditional forms of marketing. From the cost perspective on an average the cost of social media campaign is one tenth the cost of conventional form of marketing. Also the return on investment of a social media marketing campaign can be calculated with a fair degree of accuracy as compared to traditional form of marketing.

The one major difference between social media marketing and traditional form of marketing is that social media marketing is unforgivable. One single mistake and it becomes viral throughout the web and it stays forever as no one has any control over the web. Compared to social media marketing, traditional forms of marketing can be withdrawn if the response is not favorable.

To conclude the basic fundamental remains the same only the execution change. Sorry folk u have to read Kotler and Porter.

How different is the current business model of Social media than traditional marketing?

Social media marketing is just about assuming control over the conventional advertising scene because of its practical nature and intuitiveness. Not at all like conventional promoting, social networking battles can be etched and toned to suit a particular target market with practically constant overhauls as the market’s tastes and premiums change and develop. Since online networking is still in its outset organizes, a few shoppers have a troublesome time recognizing between customary versus social despite the fact that the two vehicles are light years separated.

Traditional Marketing:

Generally, we’ve prioritized our restricted assets and time on attempting to discover and change over new prospects (the highest point of the pipe). Keeping those well-deserved clients (the base of the channel) has regularly been an idea in retrospect. That is on account of, up to this point, there was little we could do to continue existing clients that was definitely not quite the same as the strategies used to pull in new ones. Verifiably, all the better you could do in the wake of transforming a prospect into a client was to give an extraordinary client experience and simply trust they return to purchase more—and bring their companions with them. Yet engineering, specifically online networking and email, has changed the game.

Social Media Marketing:

Social Media Marketing is about perceiving that your current clients are your best resources. What’s more engineering now empowers us to impact shopper conduct both prior and then afterward the deal. With ease and simple to-utilize devices like social networking and email, you probably won’t need to trust that clients return and bring their companions with them. Presently you can contact your current clients to remind them to return, and make verbal exchange as simple as clicking the offer, in the same way as, or tweet catches.

Successful businesses understand that marketing does not end with the sale, but rather it begins after the first sale (the bottom of the traditional sales funnel). However It is ideal to consider each other part of the advertising blend first and to arrange the online networking fight as an issue to existing interchanges. It’s paramount to catalyze promoting messages with significant channels of advancement, and just utilize social networking to interweave those messages and help to further impart them to the customer. I propose utilizing both push (customary) and pull (social networking + viral grassroots) showcasing procedures to present your customers with a 360-degree, balanced understanding of your organization.

Are business models in social media very different from ones prevalent before emergence of social media as we know it today?

Social Media is a platform to help people connect with each other, share thoughts, data and contents and carry discussions with people across the geographies. The technology includes social media sites such as Facebook and LinkeIn, micro blogging sites such as Twitter, user content generated sites such as YouTube, Flickr and Wikipedia and many more. These tools have influenced the changes in the business models in today’s era. The possible categorization of the changes can be in the area of Co-Creation, Marketing and Innovation.


Every enterprise strives to grow and to do so it is very important for an enterprise to understand what the customer needs and what product/solution/services can cater to its needs. The emergence of social media has completely changed the product/service development process. Today the marketing team focuses more on how it can leverage social media to enable the customers to contribute directly to the value creation. The contribution of social media can be as extreme as content generation as in case of a community based T-Shirt company, Threadless that allows people to create and submit designs which is later voted upon to the best designs. Other examples are of E-commerce sites such as Amazon, Flipkart and Snapdeal. These sites allow the customers to give feedback about the sellers. The feedback received in this process is shared will all the customers to help them decide whether to purchase or not from a given seller.

Marketing and Innovation

How often did you receive telephone calls from banks asking you to accept the new credit card service or calls from call centers selling you some products or services? These hard selling techniques are dying because of the transformations brought into marketing by social media. The companies today try enabling customers such that these customers become the sales people or promoter of the products. Their contributions in term of feedback on website/market place/social media about the product directly adds value to the sales force. The enterprise can also leverage on the network of the customers as they can be the potential influencers for its products in customer’s network. Social Media have become a new channel to reach people. The organizations have now taken a leap to use social media not just for marketing but also to enhance business interactions through innovation and in the product development processes. The introduction of social media in innovation and product development has helped the organization in creating new product/ideas, the time to reach market has been reduced and the rate of adoption of products has improved significantly. Apart from that social media has also enable the organization to connect with people and share ideas to innovate. It is given that many time the best people are not working in your organization and that there is a high probability that the problem that you are facing is already solved by somebody else. Social media can help in this case to connect to the best people or people with the solutions to your problem. One such example of use of social media for solving its problem is when Evonik Industries, a specialty chemical company and one of the largest producers of hydrogen peroxide in the world, wanted to generate some new thinking about applications for hydrogen peroxide and so in addition to its usual pool of expertise it turned to social media. This online engagement with social media followers proved fruitful. A number of applications were suggested that the company would not have received otherwise, and they included such ideas as a formula for gold recovery, as an agent to remove mildew stains from walls, and a fuel for DIY helicopters.

Business Model in Social Media World

Business Model in Social Media World


Social Media has an impact on every part of the business model. Eg: It is changing

  • the way we acquire or interact with the existing customers.
  • the way we reach to our existing customers by disrupting existing channels and converting customers into referrers and channels themselves.
  • the way business are run by making communication between employees in the company and clients very rapid and disrupting business processes.
  • the ecosystem by allowing smaller businesses maintain larger ecosystems than before.
  • the way marketers gather information for business decisions and carry out market research.


Some of the ways in which the social media is changing the business landscape are:


Sales Funnel becomes more complex and variable:


Social media helps customers enter the funnel at variety of points. Social media also acts as a vessel for social proof and information seeking. It is a nebula entity which potentially influences all levels of the funnel and helps narrow their consideration set. Brands like Kellogs and McDonalds have used social media to create awareness in the early part of the funnel. On the other end, brands like Amazon have effectively used social media tools of ratings and reviews to increase conversions at the end of the funnel.


In today’s world of social media, attracting and binding consumers to your brand takes different strategies to be worked on based on the changing environment. These strategies need to be agile to capture different customers in different ways and exploit moments of opportunity as it arises. Brands like Pepsi Co, during the IPL matches this year, launched the thematic campaign on TV but the real time data helped it realize substantial numbers were being delivered via mobile and digital. The marketing team immediately tweaked media allocations, enhancing digital spends.

Inflexible multi-year marketing plan that focus on traditional tactics and media and that do not connect directly to product development and customer service will result in a disjointed and weak funnel for enterprise.

Changing Channels and Employee Skills:

Employees who use twitter or facebook actively need not necessarily possess the skills your enterprise needs in the social business era to build business models of the future. This skill gap is now consciously addressed by companies.

The deciding factor that people used to select a bank was the location of branches and ATMs, so banks put their vast majority of their channel dollars into branches. However, in today’s world of social media, banks differentiate on the products and services they furnish in mobile and social channels rather than the location of or service in their branch.

This will result in shrinkage of banks and the existing employees such as the window-staffing and change counting employees will need to develop new skills.

Products must be social and create trust by aggregation:

Too many brands seem to believe that inserting a “Share This” button or implementing a Facebook widget on their site makes their brand social. Instead, they need to consider why consumers share, when they are most likely to share, and how the brand can facilitate this process from within the product and service experience. For example, after you book a restaurant through OpenTable, the company sends a timely email asking if you would consider rating the restaurant while your memory is still fresh. Another example is Amazon, which gives customers a one-click method to share their recently completed purchase with friends. The key to social won’t be to have the most creative social media marketing campaign but to make it easy for your customers to share from within the product or service experience.

Cars seemed like an unlikely product for the integration of social, yet innovative automakers are leading the way with social technologies built into their product. You have already seen ads promoting cars such as the Chevy Cruze that permit drivers to interact with social networks. Even more ground breaking is Mercedes-Benz’ new telematics app, CarTogether, which allows drivers to find people with whom to share rides and helps to cut down on emissions by reducing the number of car rides people have to make.


Therefore, now is the time for companies to get ahead of the curve by disrupting your own business before the competitor does it. Social media is opening up huge opportunities to innovate.

Businesses and Social Media – How it helps create new business models

Business Models in simplistic terms explains the way firms make money.  It is the set of processes and activities using which the firms create, capture and deliver value and hence it covers the entire value chain. Needless to say, a strong business model is a fundamental requirement for any business to sustain and consequently thrive in the market. Newer markets and changing scenario has led to dynamic and improved models over time. These models challenge the old one and lay foundation for the next incremental or big leap in the existing business model. Changing customer preferences due to more aware customer, political, social and technological drivers encapsulate some of the key reasons which have contributed significantly towards business models across industries. Though each driver has had its role in the overall scheme of things, Removal of Information asymmetry through content aggregation has been one of top drivers and has had critical implications for existing models. Content Aggregation acts as a pool of relevant information for the customers and hence provides them more options, convenience, ease and ability to compare. All of this leads to customer satisfaction which in turn leads to higher footfalls and more numbers for the service provider. This is in contrast to the earlier business models where in the traditional format was followed and even the service provider didn’t have enough information at times – from a customer’s perspective- barring information which could be put under competitive intelligence.  Moving on to the service provider side of things, We need to consider the theory of the missing link and how it is related to social media. The Missing Link is the activity or process which the new business model has done away with, but was an integral part of the earlier model. The Missing Link could also be seen as a major cost center in the earlier model. But how do you remove a cost center from the new model, without having adverse implication on the firm’s business operations. The Answer lies in Technology and Social Media. It has simply converted the physical into the virtual, reducing cost and improving performance at the same time. OLA CAB service in Mumbai (India) is an apt example as to how the social media converted this missing link into a competitive advantage. Traditional TAXI providers have a call center, where in the customers make a call and book the cab. Call Center Operations add to the cost and move the fares to north making it expensive for the customer. High fares restrict the market opportunity to a particular section leading to limited growth opportunities. OLA CAB founders saw an opportunity and decided to completely do away with the call center operations. A mobile app was developed, which the customers would download on their phones and book the cab from the cell phone itself. You are not supposed to make a call to book the cab and it in fact shows you real time availability of the available cabs. It has taken all the regular taxi providers on board and hence there is no investment in buying the vehicles as well. This new business model brought down the cost considerably and OLA was able to capture a significant percentage of market share based on low prices and easy availability of vehicles. Sites such as Facebook, You tube, twitter etc. were also bombarded with user feedback helping create the right buzz around the brand and reaching the target consumers effectively. It in fact had one of the highest social media voice share based on a recently conducted survey.Apart from removal of a cost center, social media has changed the dynamics of customer feedback as well. Customer Feedback for earlier models was a good to have and not a must. Firms like OLA vouch for the fact that business can be built upon customer feedback. Customer Feedback can be a part of the business model itself, driving revenue and another critical numbers for you. Hence feedback is not something to be collected at the end, but a real time activity providing you a feel of the market. To Put it in a nutshell, Social Media has empowered firms to challenge the conventional models and helped converting the missing link into a sustainable and competitive advantage.