Social Network: ROE vs. ROI, Part II

The case for socializing your business

Last month we ended with how one measures ROE? Today, there are a growing number of ways to measure ROE. Google Analytics, Facebook brand pages and third-party social media clients such as Hootsuite and Tweetdeck are some examples. Each of these have features that allow you to see how many people have viewed your content, where they are located and how long they stayed on your site. You can also measure ROE by noting how many users reply or comment on your posts or if new clients mention your recent tweet.

As your social media campaign gains momentum, you might also determine success by assessing the level of user engagement among your various followers: A sale, donation, referral or public display of gratitude shows not only that your followers are listening to you, but that they trust and believe in your business and want to share that with others.

Improve Your SEO

As a business owner, you have likely invested time and energy into designing and maintaining a website that helps people understand your brand. Of course, we want all of our potential clients to find our website. One way this is done is search engine optimization (SEO). Today, SEO is one of the places where social media ROE can transform into ROI and validate your investment in social media. In 2012, it will be imperative to consider how your social networking campaign affects your SEO.

Search engines such as Google and Bing now take social media into account when designing their search algorithms. The February 2011 update to Google’s search algorithm, known as Panda, determines search rankings by looking for websites with quality content, defined by Google as fresh, relevant and frequently updated.

What this means is that Google is considering the ROE of your social media campaigns in order to determine how you appear in search rankings. Have others shared links to your website or blog? How many others? Have you been mentioned in Tweets and on Facebook? Google now takes into account not only the number of engaged users, but also the type of user engaging with your site, which Google calls Author Authority.

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