The Real ROI of Social Media and Social Marketing

I am of the thinking that the toughest hurdle that Social Media and Social Marketing face is useful ways in which to demonstrate their value.

It seems to me that there are really two types of Social Marketing focus:

B2C
and
B2B

Each has its own dynamics and communication criteria as well as priorities.

So I pose a couple of questions:

1. For you, what are the differences in how Social Media is generated in B2B versus B2C?

2. How can you monitor and measure the ROI effectiveness of Social Media in  B2B versus B2C?

I personally think that it has to be done on more than one level.  It can’t simply be Top or Bottom Line Revenue.

The answer for number 1 (to me) is that the tone in B2B is going to be more professional and purposeful so that the interaction has a recognizable value to both people in conversation.  In B2C, there is a broader focus on the living of life and far less emphasis on the the Professional side of things, leaning much more Social.

For me, the 2nd question is accomplished by understanding Results from current Marketing and Company operating actions in either B2B or B2C.   Then to understand and highlight all the areas of activity that directly or indirectly connect to movement in total company results.

Some measures can include Customer interaction volume, numbers of prospect conversations, comparing conversion rates of Interest to Purchase as well as time units spent to accomplish them.

I think there are general measures that can be used across all companies, but have to be uniquely applied for each company based on all of the factors that “Systemically” represent Action and Results.

It is a “learned” process that can have the depth of detail to rival any Six Sigma effort.

Finally, the measure of ROI in Social Media or Social Marketing must be more than Money as currency.  This makes it more challenging, but also when mastered – a much more effective predictive indicator of real company health and performance in the market.

I look forward to your thoughts, agreements, difference and additions.