From Social Media ROI – Part 1 and Social Media ROI – Part 2, we saw different ways of calculating the Social Media ROI. In the third part, I am introducing a down-loadable Excel spread sheet (link at the bottom of this post) for calculating the Social Media ROI. The spread sheet is based on the following:
- Work that Charlene Li and Jeremiah Owyang of Forrester Research did in 2007 on the ROI of blogging.
- Work that Bill Johnston of Forum One has done for Online Community ROI.
- The remaining work is based on un-sourced research.
For this research, we identified 13 parameters that play a role in determining the ROI of Social Media. It is not necessary to include all parameters in a ROI calculation – pick the parameters that make sense.
The general idea is that for each parameter and calculation, we need to determine the offline cost. Then, comparing the offline cost with the estimated cost of gaining the same results (increased revenue, decreased cost, more customers etc) using online Social Media, we can determine the ROI (re-read post Social Media ROI – Part 2 for more info).
Download the Social Media ROI Spreadsheet.
Two things before you download
- If you use the Social Media ROI spread sheet, please link back to this blog post and mention my name.
- If you change the Social Media ROI spread sheet, please email me the changed spread sheet together with a note describing the changes (my email address is in the right nav bar).