Let’s start by stating the obvious; ROI of social media is not really easy to measure (Yes, there are contrary opinions about this). The CMO Survey shows that:
  • Only 15% have been able to quantify ROI of social media.  
  • 45% have not been able show the impact yet. 
  • 40% can extrapolate qualitative impact but no quantitative impact.

Seeing that ROI cannot really be quantified:
  • How can the marketers and CMO’s justify social media as a strategic differentiator?
  • As a CFO, how can I justify budget allocations where I cannot show value to the share holders.

All good questions – Strategy has to be forward looking and allocations for social media should be similar to that of R&D. As market analysis can offer insights into a “need” of a product/service, there is no guarantee that the product/service will be a success upon launch. The advantage goes to first movers who can establish brand value.

Forrester research clearly shows that consumers are influenced by the web, which is projected to grow year-over-year (YoY). A clear indication for #brands to influence #consumerbehavior via #socialmedia.

I have created a "SCEMM" framework for CMO's to create a #strategy for #socialmedia as follows:
  • Segment: Identify the segment that the product/service wants to target.
  • Channel(s): Identify the #socialmedia channel(s) where the segments are most active. 
  • Engage: Foster relationships via #brand entification. 
  • Manage: Become an active vs a passive partner.
  • Measure: Continuously measure effectiveness and congruency.
Each stage of the strategy, will require #brands to act and react accordingly.
  • Segmentation : Passive
  • Channels : Passive + Create*
  • Engage : Responsive + Engaged + Create
  • Manage : Responsive + Engaged + Create + Passive*


Unlike standard marketing channels, #socialmedia ROI can be measured using performance indicators as identified by Abhishek Rungta.

The key here is to ensure that “measurements” will provide qualitative #data based on which strategy must be adjusted.  This will ensure that strategic goals are achieved.