"A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio. The return on investment formula:
In the above formula "gains from investment", refers to the proceeds obtained from selling the investment of interest. Return on investment is a very popular metric because of its versatility and simplicity. That is, if an investment does not have a positive ROI, or if there are other opportunities with a higher ROI, then the investment should be not be undertaken."
BUT there is another ROI, the Return of Influence.
Social Media can influence the perception and value of your brand.
Social Media = + Customer List [Community Engagement]
Social Media allows you to efficiently increase the number of engaged customers.
More engaged = more value.
+ Differentiation = + value to Brand
+ Engaged customers = + Value of Customer List
+ Differentiation = + Net Income
+ Engaged customers = + Net Income
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