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Disruptors: Measuring social media ROI

How can hotels measure the ROI of their social media efforts? This is a common question and the answer is three parts:

If making money directly from social media efforts is the only goal for these communication channels then it’s time to rethink why your brand is participating in the space. There are many other benefits to social media and monetizing the human-to-human connection, which social communication delivers, should not be the first priority.

Think about how social media can save you money before you focus on how it can generate revenue. The lowest hanging fruit is using social for research and customer service efforts.

You can, in fact, measure and monitor the direct financial value of your social media following using a formula called RevPAF (Revenue Per Available Fan or Follower). This formula was inspired by the hotel industry’s RevPAR metric. RevPAF is done by simply dividing total social reach (Twitter Followers, Facebook Likes, etc.) by the total amount of money generated from social media. This allows you to arrive at your RevPAF. If the booking links that are included in your social media content are tagged/coded properly you can track clicks from a social platform all the way through to conversion (hotel booking) on a website.

 


Amy Jo Martin, Digital Royalty, Tempe, Arizona

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