Information About The Book!

Lorem ipsum dolor sit amet, consectetur adipiscing elit. In nibh sapien, aliquet tincidunt fringilla at, feugiat quis enim. Cras consequat, ipsum et posuere venenatis, nulla massa mattis eros, sed varius turpis quam sit amet purus. Vestibulum vehicula consectetur congue. Sed facilisis nisi in lectus convallis, porttitor hendrerit est consequat. Vivamus hendrerit, ante sed ornare molestie, tortor lorem suscipit tortor, id sodales mauris metus quis purus. Nulla egestas tellus eu enim consectetur, sit amet sagittis nisl eleifend. Mauris laoreet venenatis sem, lacinia mollis augue mollis ac. Nulla a neque a justo dignissim feugiat. Mauris rhoncus eros sit amet augue dictum fringilla. Nunc dictum lobortis convallis.


Aenean vulputate urna est, ac sollicitudin enim vulputate et. Vestibulum tempus lacinia consequat. Donec posuere enim mi, vel lobortis erat pulvinar nec. Duis felis purus, adipiscing sed dolor at, volutpat sagittis magna. Sed imperdiet scelerisque mauris, vulputate dictum augue egestas sit amet. Nullam sit amet eros non purus fermentum dapibus ac a mi. Curabitur id viverra nibh. Donec scelerisque vulputate nunc, non interdum orci. Morbi ut quam eleifend, placerat ipsum eget, iaculis arcu. Curabitur blandit consequat nulla. Praesent non pellentesque neque. Duis tortor purus, dignissim sit amet sagittis egestas, feugiat nec elit. Cum sociis natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus. Nullam pellentesque lectus nec arcu ullamcorper, a vulputate augue semper. Duis auctor velit in nisl scelerisque consectetur. Sed ornare quam diam, at placerat risus tristique at.


Vivamus vel facilisis ante, vel porttitor metus. Sed eu congue nibh. Fusce non diam ut enim pretium pellentesque. Vivamus quis euismod quam, non aliquet risus. Etiam ornare lorem sit amet gravida eleifend. Cras quis nibh pretium, pretium turpis consectetur, lobortis leo. Phasellus sed vestibulum metus, id vestibulum odio. Donec quis nisl ante. Fusce tristique sagittis erat ut bibendum.

The Importance of a Social Media ROI Diagnostic

Posted by on October 22, 2009

stethoscope diagnostic

I’m going to be going much more in depth with social media ROI in the coming months so I’m hoping you stick around with me.  My company Chess Media Group (I’m told the site goes live Monday!) has been working on some very exciting things in the ROI space that we will be announcing and showcasing over the course of the next few months.  First off, I should preface this by saying that Chess Media Group is a social business consultancy and not a social media consultancy. This means we look at how social media impacts business; we don’t just see social media as another “media” channel.  Now having said that let me also state that the key to any successful social media strategy (and subsequently a campaign) is going to start with building and setting up an ROI framework.  Forget about launching three month campaigns all the time and just relax for a minute.  I’m not saying you shouldn’t have a social media presence to respond to issues that arise online.  I’m saying don’t spend hundreds of thousands of dollars on a campaign without an ROI framework, it’s pointless.  Again, start from setting up your ROI framework.

I can definitely go into this in more depth and I will over the next few months, but let’s start off with some of the things that a social media ROI diagnostic should accomplish.  A social media ROI diagnostic should give you the following:

  • A solid understanding of how the business operates, makes money, and interacts with customers.
  • A solid definition and understanding of what exactly ROI is and what impact is, ROI = financial; Impact = non-financial
  • Insight into how existing analytics platforms work within the site, what do they calculate; what can/can’t they do?
  • What are the company business objectives for all of the social media efforts and what are their respective metrics and benchmarks?  This should be broken down by business function or department.  See Metrics Man for a good example of what I mean.
  • Analysis of a customer database or CRM system and what their capabilities are and how they can be integrated with other solutions.
  • Analysis of any overlap between social media ROI and traditional marketing ROI, the goal here it to improve and maximize both.
  • Idea of what the quick ROI wins are (low hanging fruit anyone?) and what the longer term approaches are.
  • Resource analysis in terms of who (most likely a team) is going to be managing the social media efforts and how they are going to be managed
  • A breakdown of business challenges and opportunities that are keeping the company from calculating ROI (can be complex, we will explore this in detail later).
  • A breakdown of the technology challenges and opportunities that are keeping the company from calculating ROI (also can be very complex and something we will cover later).
  • Increased marketing credibility and authority within the company

All of the above topics can be expanded upon; however, this should give you an idea of the types of things you want to accomplish from a social media ROI diagnostic.  I firmly believe that setting up a solid social media ROI framework will not only allow you to understand, measure, and maximize social media ROI but also allow you to improve your marketing ROI and accountability as a whole.  This type of framework focuses on enterprise size clients with large budgets.  As you can see understanding and getting to ROI is not a trivial task, especially for a global company. The good news is that once you run your initial ROI diagnostic you won’t have to do it again for quite a while, if ever with the exception of continuous monitoring and adapting.

The reality is that moving forward companies (enterprise companies especially) are absolutely going to need a more accountable way of measuring their social media efforts, it might not happen tomorrow or next month; but you better believe that with companies like Chess Media Group offering ROI and accountability services that this is going to become a standard and an absolute must for measuring social media efforts.  One-off solutions or simple analysis of Google analytics aren’t going to cut it guys; we’re talking about full-scale solutions here; solutions that are going to be at the foundation of all of your social media efforts.

It’s time to get real about Social Media ROI; no more bullshit.

  • donbartholomew

    Hi Jacob,
    Good post. Nice to see you trying to put social media ROI into the Enterprise context. Thanks very much to the link to my blog post on social media frameworks and approaches. I look forward to continuing the dialogue on social media ROI.
    -Don B @donbart

  • thanks for sharing, i'm looking forward to seeing what you have in store for future posts, have added you to my google reader

  • lanin89

    Woo this is a nice blog, i would love to read more.

    Buy Aion Kinah | Cheap Aion kinah

  • Good post and very well written bu you i like your way of writing mate!

  • Jacob, Great post. My current role requires me to determine the ROI of the Social Media channels I manage. I look forward to following along and discussing.

    • You are very welcome, hope you found it valuable. Let me know how you progress in the ROI space, curious to hear what happens.

  • Hi

    A good information about social media roi and this is perfect way of marketing.

  • Hi

    A good information about social media roi and this is perfect way of marketing.

  • It would be best to learn and study first all the things you need to learn before entering a field especially social media marketing and online business so you are confident that you are doing right and confident that you will get a satisfying ROI by the help of social media.

  • great post you got there ! thanks for the share, really appreciate it !