A social media website is a new way of interacting with Internet-savvy people. Earlier, static website with pages or images posted by the web master made wonders in the online world. Today however, it is the user who converses, interacts, or posts images and content in a website.
Social Media Site – A Profitable Business
A good, optimized, popular social media site would command huge traffic – and customers who are knowledgeable and interested to pursue a trade. In a nutshell, a well-managed social media site would be profitable or earn huge Return of Investment (ROI).
However, how can one measure or determine the profitability or ROI of a social media website? As the concept is very dynamic rather than static and more like a Public Relations (PR) work rather than marketing, deducing the actual ROI can be tough. — More so, because there are no softwares or theories to substantiate the same.
Nevertheless, all is not lost. The Internet Marketing experts have found a novel way to find out the answer. Read on to know more.
Determining the Quality of the Interactions
Social media sites deal with interactions between customers through active conversations, customer relations, and similar PR works. The ROI statistics based on the quality of such interactions can be found out by answering simple questions related to the conversations.
For instance, how far is an online company part of a forum in a social media site? How often do customers prefer speaking to this company rather than shying away from it?
It is equally important to understand whether a positive relationship has been developed with key audiences. When customers interact in a forum more often, they are likely to be interested in that site. On the other hand, sites which go on through huge monologs don’t really appeal to the readers or customers. Lastly, it is essential to get involved more and more in new conversations in similar social media sites.
Human analysis such as these requires a lot of effort and money. However, if done accurately, one can realize the tone, profitability, and brand positioning in the social media site.
Determining the Quantity of the Interactions
Up till now, the positive nature, attitude, and feature of the social media website have been dealt at length. This measure is however, more subjective rather than objective in its outlook. Now, the quantity or the objective part of measuring the ROI would be assessed.
The quantitative measure would look into the number of users or traffic list of the website. It would also cater to the sales and Search Engine Optimization (SEO) ranking of the particular website.
Feedburner or Google Analytics are some tools which immediately provide data on the number of traffic that has accessed the site at a given time. It would also highlight blog traffic, subscriber count, and user trends in the site.
AideRSS is yet another tool which helps to analyse how many times a particular URL has been shared by social media networking users. It would also give reference to the posts and comments that are posted on the site. Few other tools help to analyse data related to SEO and social bookmarking.
In a nutshell, any kind of interactivity, such as users who want to join the social media network, click-through-rate, or forum activity, can be determined easily. Tools have been developed to ensure that the data is accurate and quick.
ROI can be measured through a variety of ways and using different parameters for the measurement. However, even before the inception of the site, it is essential for the website owner to calculate the success metrics. This benchmark would help to assess how far a website has progressed or regressed in due time.