Social Media: ROI vs. Correlation

Do you regularly run social media campaigns for various clients? Then maintaining proper ROI for all those clients must be a major headache for you. Well, there certainly is a fine balance that you have to maintain in every single social media marketing campaign that you may run, between correlation and ROI.

So, what is this correlation, you ask? Well, simply put, it is the relationship between business success achieved by the company, and the ties of social media to that success. It can never be proved with 100% certainty, unless you are able to show that the profit margins soared as the company reached out to more and more customers via social media. A somewhat ambiguous proof can be obtained by comparing social media stats with profit margins though.

Even with the slight ambiguity, ROI vs. Correlation studies can help you gain confidence from top level management, who happen to control the kind of investment the company makes in social media. If you are running social media campaigns regularly, then this is certainly a method you may wish to follow, in order to help the management realize just how social media is helping their business, and why they should continue investing in it.

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Tags: SMM, Social Media, Social Media Marketing, Social Media Tools