I have been asked a lot what is the ROI of social media.

Maybe I was thinking of how to link traditional methods of measuring ROI in social media and thus unable to give a proper answer.

However, reading Scott Monty’s blog post of “leading by example, I would now say the ROI of social media is one satisfied customer who happen to blog, tweet, etc about your brand.

Wrote Scott,

Coming down from the ivory tower every once in a while and interacting with your customers is an important aspect of any business. It's so important not to lose touch with the people that actually touch and use your products, to hear what they have to tell you and to be open about receiving feedback.

It's a constant challenge to do that on a large scale, but the individual points of input cannot be discounted, for it is these people who will be so moved and so affected that they tell everyone they know about it (or call a television station or make a YouTube video about it).

Locally, Cowboy Caleb is proud of owning a Pirelli calendar after being send one because he blogged that he bought a few Pirelli tires.

I have since defined social media as being a collection of medium that provides interactivity between the brand and consumer.

Hence, shouldn’t ROI be about your interaction with your customers?

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