Some ways to measure the Return On Investment

In order to measure the payoff of the investment in Social Media, companies have to know the baseline and establish a timeline. Afer that they should compare the investment with the number of transaction and the amount of money spent by customers per transaction in order to understand the size of sales. The gain should be much bigger than the costs in order to obtain a positive ROI. But the value of using social media is not only made by numbers, marketers can also measure the efffectiveness of Social Media looking at the number of customers, in particulare the new ones. The number of click can also be used, paying attention to the three level of this element: views, transactions and cart. This means that a big number of views is not directly related with a high number of transactions and maybe customers are stocked in the "cart-zone". The goal of Social Media marketers is to translate the views into transactions. Mentions are another good way to look at the effectiveness of Social Media, but is always important to classify them into positive and negative in order to follow up the latter.