Tag Archives: Journey

Can Accountants Measure the ROI of Social Media?

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Accountants that are using Social Media for business have either recognized and set specific goals that they expect to achieve, or at a minimum have anticipated general benefits that they feel they will realize from using it as a tool in their accounting firm. To find out if your strategy has been successful and is attaining the desired results you must quantify some things over time and measure your Return on Investment (ROI). So we now have to determine, is there an appropriate way of measuring the ROI of Social Media?

Business strategists say that everything that is done for and within the parameters of a business’s activity has to be measurable. Unless social media can be measured, its effectiveness as a business tool remains questionable. The argument for the measurement of everything, including social marketing expenditures, is that it provides a basis and a guide for decision makers whether or not to increase the budgetary requirements in the future. These statistics or measurements are used to calculate a “value” or perceived benefit that is being realized, your Return on Investment (ROI).

Wikipedia defines Return on Investment as: “The ratio of money gained or lost (whether realized or unrealized) on an investment relative to the amount of money invested.” Simply put, the definition of ROI is already in itself — a (1) RETURN on (2) INVESTMENT. But this definition is limiting because it is based purely on the assumption that there is an amount of money invested. Hence, the expected return is also an X amount of money.

In measuring the ROI in Social Media Marketing, assumptions can be easily skewed because there is no “monetary” investment, it is technically free. Does this mean that if there is no money “invested” that there is no tangible return to measure? The answer is no. The investment comes in a different form, your time. We can apply the same principles used to measure financial ROI to calculate the ROI of your non-monetary investments.

The first crucial step that every accounting firm must take is to set clear goals and expectations for their social media strategy. It will be difficult if not impossible to determine if you are making progress if you really have no idea of where you are going, or what you expect to achieve.

Baseline measurements must be obtained before you begin to track and monitor your progress. You must know where your accounting firm stands before you begin. Where are you today? You will be unable to measure your progress if you don’t know where you started.

In Social Media, a lot of your activities are based on human interactions and conversations on your firm’s Facebook, Twitter or LinkedIn sites. These types of interactions are not easily measured. In this case your firm will need to rely on a variety of statistical tools to accumulate your “metrics”.

Being Accountants, we love to play with numbers. A quick tip: Metrics alone will not provide you with a clear ROI measurement. You will need to use the metrics to recognize the trends and correlate them to activities within your business. Some examples of trends that Accounting Firm Partners might want to look out for.

Example 1: Your Accounting Firm Partner’s Twitter page’s followers increased 100% from the previous month – did this correlate to an increase in inquiries for your Accounting Firm’s services?

Example 2: Are your fans or friends on your Facebook site proceeding to your Accounting Firm’s corporate website after checking you out on your Social Network? After which, how many new clients did you get?

In closing, remember that measuring the ROI of Social Media is unlike any other typical calculation. You must first begin with clear goals and expectations, and baseline measurements. While “metrics” are required, they are not the sole determination of success. These numbers must be used to determine trends and correlation of these trends to changes in your business. You will then be able to make informed decisions about adjustments to your strategy for the benefit of your accounting firm.

How to Live Stress Free in the Glass House of Social Media

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Ten years ago, the phrase “Facebook fired” wasn’t in our vocabulary. Today a Google search for “fired for twitter post” brings up 158 million pages. Although you can delete photos and status updates, you can’t un-ring the bell, as too many “soon-to-be ex-employees” have found the hard way. Using Social Media is like living in a glass house – people on the outside can see what you’re doing on the inside. This doesn’t have to be a stressful situation. Instead, it represents a huge opportunity to connect with your target audience if you go about it the right way.

Post strategically

The key to living in the glass house of Social Media without worry is to approach posting socially as a strategic activity. The purpose is to connect with your audience and build and develop the “know,” “like,” and “trust,” factors that are crucial to converting prospects to clients and maintaining a long-term relationship. A strategic approach means developing a series of guiding principles that your posts and updates will be in alignment with.

Post in integrity

Nothing turns people off as fast as duplicity. People will forgive a lot of mistakes, but hypocrisy is a tough one for people to get past. There are lots of examples of people and businesses whose efforts have been hindered because the incongruity between their public face and their private face caught up with them. As Zig Ziglar once said “If you always tell the truth you don’t need a long memory.” If you only use Social Media to share pictures and post updates that are in alignment with your business and your personal “brand”, you don’t have to worry about living in a glass house.

For some, this really won’t be much of an issue at all. For others, it will be. The key here is that if you think that this could be an issue for you, don’t use Twitter, Facebook, etc., spontaneously. Instead, think about it before you post it. Sounds simple, but this simple approach, if followed, would have saved many public figures embarrassment and in some cases their livelihoods.

Mixing business and personal

Social Media marketing done right is not about being clinical or sterile in your updates. It is about achieving a balance between professional and personal that will attract your ideal audience and make them want to follow you and engage with you and then go on to do business with you. To achieve this balance steer clear of “TMI” or the sharing of too-much-information, usually personal in nature. Share the kind of things that will be interesting to your audience and supportive of your social marketing goals. Steer clear of anything that won’t help you develop know-like-trust with your target audience.

Social marketing can help you connect with your target audience like never before and contribute to the growth of your business. Don’t let the stress of living in a glass house keep you from moving into Social Media. To put the power of social to work for your business, check out 5 Ways to Grow Your Business Using Social Media.