class 2 - ROI

What are three different methods to measure ROI of social media marketing?

First of all and before starting to measure your ROI of social media marketing you should establish a baseline from which you start measuring your ROI (what means Return On Investment, by the way =))
Of course your social media ROI has an impact of non-financial stuff like facebook-likes, retweets, etc. it is not your actual ROI.
Now I would like to describe three different methods of measuring your ROI of social media marketing

1. Your sales revenue: Is it increasing since you have set up your baseline? If yes that is good, of course, but it is pretty worthless if only three customers generated all your sales revenue and will not buy in the next months. That is why you also should have a look at....
2. the number of transactions: Since you have set up your baseline you should have more number of transactions, as you attract now the attention of more people by using Social Media and some of these people will probably buy some products from your company.
3. Another thing on what you should have a look at is your "mentions" in the social web. Whenever somebody talks about you, you should recognize that. But not only the positive mentions, also, and probably more important, the negative mentions. You can be satisfied if you have tons of positive mentions but you should keep an eye on the negative mentions to resolve the causes of these bad mentions in terms of not getting a bad word-of-mouth that is spread about you and you are not able to correct any more when it is too widely spoken.