Kicking ROI to the Curb for Real Metrics

ROI, ROI, ROI — it’s a common buzzword bandied about a lot, but so often misused. ROI is not page views and other “surface” metrics. These metrics contribute, sure, but ROI is more about how well your company is doing.

The first measure of real ROI is always “Am I making money?” It’s easy to get sucked into the kumbaya of social media, the “join the conversation” mantra, but in reality, you’re in business to make money so that you can support yourself, your business, your employees, and your dependents and hopefully have a rich and full life as well.

If social media isn’t helping you do all those things, your metrics will help you figure out why and correct it, all for a fraction of the cost of throwing yellow pages and newspaper ads out into the wild untagged.

The second measure of real ROI is repeat business. If your social media is engaging and your metrics are strong, any business that offers its customers value will see repeat business. If you don’t see repeat business and positive customer sentiment about your brand, metrics, again, will help you see how to fix it.

The third measure of real ROI is positive word-of-mouth marketing. Do your metrics show that people are talking about your business? Do those conversations lead to conversions on your site? If you can answer yes to both questions, then this ROI metric is strong.

The last measure of real ROI is a healthy business. Are you running yourself ragged trying to update every social media site and do it all for your company? Stop it! Stop it right now!

If you’re spending more than an hour a day on social media, website maintenance (unless you’re making a major overhaul), engagement, and the basics of metrics, then you aren’t managing your time well, and your business will suffer. Burnt out is bad for business.

Get your time under control. Your metrics are there to help you fine-tune what you’re doing where online so that you can build your business, not run yourself ragged trying to out-social the Joneses.

Pay attention to what metrics tell you about where your customers are. If you’re spending hours a week making YouTube videos because someone told you video is the thing to do right now but your customers never click the links or come to you from your videos, reassess.

These folks may be coming to you from Twitter, or Facebook, or, heck, even LinkedIn. Pay attention and put your best efforts in the strongest places for your business. It will save your time and sanity.