Before businesses can measure ROI, it needs to be defined. ROI does not only mean money in and money out. It’s about efficient business success.
According to Sanjay, If you are using Social media as a pure marketing tool, your ROI will be in terms of Reach and Engagement. The sort of extended reach we are getting in any form like posts shared is one form of measuring the ROI. So against the one element of cost we are spending on Social Media, we are getting two important returns – Reach and Engagement.
If you are handling Customer Service over social media, make sure that the brand damage is less. Social media is itself equivalent of your PR efforts and advertising efforts. ROI can be measured on how accurately you can measure your PR efforts, advertising efforts and customer service. Relate social media to those activities to find that there are equal grounds for social media activities as that of traditional media.