How to measure Social Media ROI?

Here I am providing you simple and easy method to measure the ROI on social media. Just follow these plans:

1.    Create a log sheet first like Excel or Google Docs to measure your time spent on certain activities.

2.    Everyday, spend one hour in the morning and one hour in the afternoon to do social networking on social media sites like LinkedIn, Twitter, Facebook and Stumble upon. You need to budget your time. You can even give some Twitter breaks during lunch, meetings etc. if you have Blackberry or iPhone. But don’t waste your time there like watching videos does not count time on social media.

3.    Everyday, you need to keep track of your time you spend on these activities. Record your times on your log sheet that I mentioned above.

4.    You can use a customer relationship manager (CRM) program such as, as they enable the users to capture social media information. When you are about to meet a new client, you have already kept track about how you met him/ her, what kind of effort you have put into them, meetings you have had, quotes you have sent and time you have spent on them. Therefore, just start adding social media interactions also.

5.    Use CRM software that lets you track sales per customer. Divide the size of their sales by the amount of time you have spent with them and you have got not only your sales ROI/ customer, but alo how much the time was worth. For example; if a sale is worth $5,000 and you spent 50 hours getting it, the sale is worth $100 per hour. If your time is worth $50 per hour, then your ROI is $2,500 or $50 per hour.

I hope this article will prove as beneficial for you to measure the ROI on social media.