So quit making excuses and do it

“The ROI is hard to measure.”

That’s a common objection we hear from direct marketers to using the new class of online social media tools – blogs, user-generated video and digital networks – to supplement campaigns involving mail, TV and other channels. Measurement enthusiasts fret that social media programs don’t fit neatly into the metrics they’ve grown to know and love.

Well, we contend that they’re missing a big opportunity.

The ROI objection overlooks the value of engaging customers in meaningful dialogue, the kind that creates customer evangelists.

It also discounts the fact that the “I” (“investment”) side of the social media equation is trivial. In fact, the real ROI of social networks may be “risk of inaction.” In a recent survey of senior marketing officials, more than three-quarters said social media marketing could give them a competitive edge. Someone’s figuring this out. Shouldn’t it be you?

Instead, though, too often we see marketers who are afraid to push for hard numbers in new frontiers and who, as a result, often miss lucrative opportunities to spread their brand message. We say take the plunge: Learn to properly wield modern measurement tools and the potential payoff can be huge, whether that return translates into building more robust direct mail lists, enlisting more customer advocates or tapping into the opinions of what are essentially built-in focus groups.

Consider, for instance, basic Web analytics, which identify the pages people visit on your Web site, where these visitors come from, how long they spend with you and when they leave. And then there’s the realm of consumer-generated content, blogs, discussion groups, commentary among members of online social hubs. All of these permit you simple ways to measure who’s coming to your site, what they have to say and what they want. And blended with direct mail and other channels, these tools allow you to extend not just your measuring stick, but your message, too.

Once you’ve used these tactics to identify your most enthusiastic customers, you can engage them to help guide your own campaign efforts. They can even to do some marketing for you. Some companies are now starting online user groups or holding regular meetings in virtual worlds to talk with customers and get their feedback.

Speed is always essential, and utilizing high-end measurement tools gains valuable input from a group of savvy customers in a matter of hours. What’s the ROI on that?

Your most enthusiastic customers can even become deputy sales agents. Some marketers are using widgets that enthusiasts can display on their blogs and profile pages. Each click that results in a sale generates a commission for the site owner – at no expense to you.

These tactics are all fast, inexpensive and effective at enhancing the quality and efficiency of direct-mail campaigns. For the first time, it’s possible to measure returns according to what people say about you, rather than just whether they call you. Maybe the better metric would be Return on Engagement.