Social Media ROI: The Yin & Yang Prospective
Posted on 20. Jan, 2010 by phizzmedia in Blog
Social Media ROI is something Karen O’Brien of Crimson Consulting Group has obviously spent time researching and blogging about. After reviewing Karen’s Blog and the archives it’s apparent she has a knack for outlining the process of executing a Social Media marketing campaign (see Karen’s White Paper).
In Phizz’s previous post, Social Media ROI: What to Measure, the discussion revolved around measuring ROI using traditional methodology (i.e. CPI/CPM, CTR, CTC vs PPC & CPA). These formulas numerically define benefit (if any) a business receives in terms of overall branding and ultimately can be linked to monetary value. This is extremely important to any business with a desire to focus their marketing budget on activities which reap monetary reward.
In the following text Phizz will help define analysis as it relates to Monetary ROI and Relationship ROI…
Social Media isn’t just about Monetary ROI, it’s about Relationship ROI as Jill Foster explains so well in The Gabby Geek and Replacing ROI’s Old Monetary Vision. Phizz believes both are important to businesses because in a traditional sense all businesses run on relationships owned/managed as well as the cost to grow and nourish these relationships. Monetary ROI and Relationship ROI are the Yin & Yang of Social Media. The basic principle of Yin & Yang according to Taoist philosophy is that Yin & Yang exist as opposite equals; basically a harmony or balance between completely opposite forces are a requirement for existence.
It’s useful to apply this thought process to your Social Media analysis when it comes to Monetary ROI and Relationship ROI because both are essential, but in many ways opposite.
3 Yin & Yang Social Media Tips
- Measure Your Monetized Investment in Social Media as Units of Time
- Define How Much Time You’re Willing to Spend to Achieve a Defined Number of Relationships
- Determine How Many Relationships It Takes to Achieve a Monetary Goal
Here’s a visualization…
In closing, all Phizz is trying to explain is this:
Monetary ROI and Relationship ROI are intertwined and important to understanding overall Social Media ROI. You cannot have one without the other! You’re business most likely requires earning equity with clients and building their trust (Relationship ROI) as well as increasing profits through directed, intentional investments of time and money in marketing and growth (Monetary ROI). The Yin & Yang Perspective is a harmonious cycle that’s neither new or groundbreaking, but is key to understanding how ROI works in Social Media.
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