The new ROI (Return on Influence)

I recently stumbled across this video on YouTube from Digital Royalty (Their channel can be found here, and their homepage here) showing their method of social media measurement.

Key Performance Indicators (KPI) :
Digital Royalty recommends picking at least two KPI's from each of the following categories for social media measurement.

• Volume - This includes number of fans or followers, tweets per minute (TPM), trending topics, etc. Anything that represents reach and frequency.
  
• Engagement - ReTweets, subscribers, sentiment, comments, "likes" on FaceBook, etc. Things that people are using to "spend time" with your brand.
• Conversion - Click through, leads generated, sales. Anything showing activity and action.

Return on Influence (New ROI) Formula:

• Cold (engagement metric)- (Reach x Frequency) / Time Spent
  

• Hot- Sentiment and Ecosystem size
  

I thought that this was a very interesting video that does a great job of showing how one can measure social media with both traditional and non-traditional methods.

Digital Royalty's ROI (measuring social media) -


Once again, please send anything that you guys run across related to social media that you find interesting my way. Thanks!

Sean Winnett