26 Sep

Ouch. Most CPG Companies Don’t Measure Social Media ROI

Category: Social Media | Post by: Rebecca

Everything is so new that everything is constantly being tested. But apparently, it’s hard to measure success – or even define what it is:

In a global survey by the Just-Food media group, 54% of food and beverage executives said their company does not measure return on investment for social media, and another 18% didn’t know if their company calculated social media ROI. The survey also found that 52% of food and beverage companies now have a strategy for social media.

This echoed the sentiments of brand marketers at a conference I was at last week where companies were struggling to define measurability.

What barriers are there for you to measure success?

Posted Monday, September 26th, 2011 at 6:00 am
Filed Under Category: Social Media
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2

Responses to “Ouch. Most CPG Companies Don’t Measure Social Media ROI”

Jay Neely
September 26th, 2011 at 5:49 pm

One problem I’ve seen is an unwillingness to provide trackable offers that can be directly tied to a purchase event, like coupons.

Sales is by no means the only way to measure ROI of social media, but there are plenty of companies where it’s the only metric they care about, even though they’re not willing to implement the programs they need to measure it.

Vijay Sundaram
October 9th, 2011 at 6:02 am

Sales and revenue is the best metric for companies to measure the impact of social media strategies. This is not a soft measure like customer sentiment or customer attitudes that are both hard to measure and difficult to attribute cause.

I should disclose that I head up marketing and alliances for SocialTwist, a company that helps brands and retailers generate new business from their customers, by getting them to refer their friends. These social referrals are linked to rewards and promotions and built into their regular marketing programs. So we can measure the impact of their social media efforts in the way it matters to them – incremental revenue and new customers.

Vijay Sundaram

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