A primary reason for using the return and the ROI is social media financial accountability. As social media initiatives become mainstream, executives are holding them to the same accountability as other business initiatives, demanding financial returns and ROI on social media investments.
To estimate the social media return and ROI, you need to start with a 3-step process:
- Define your social media goal.
- Based on the goal, define your social media return.
- Finally, define how you will tie hard dollars to the social media return.
However, social media return and ROI depend primarily on the goals of your social media campaign.
Source: How to Estimate Your Social Media Return on Investment, Social Media Examiner