Beyond Buzzwords: ROI vs. Brand Building on Social Media
What’s the difference between return on investment (ROI) and building your brand on social media? Sometimes it can be confusing to tell the difference between the two, so Entrepreneur set out to clarify the differences between the two.
The main problem most businesses have is that they don't approach social media strategically. If you want it to drive sales, you should dictate to your partners, "We want a strategic plan that leverages social channels to drive sales." When your consultant is talking about "building your brand" and seems to avoid the ROI question -- remember, you may have to ask -- he or she likely doesn't have the requisite experience in working with businesses and brands that are bottom-line focused. Social media offers volumes of intangible or intrinsic value such as brand building, reputation protection and strong customer service; when used strategically and with business goals in mind, it can be used for extrinsic value, too.