While I don’t like to equate social media with ROI, but rather positive measurement, here is some good stuff:
The technical definition of ROI is (x-y)/y where x = sales and y = investment.
Social media is a marketing tool (as well as other functional organizations’ tool such as customer support). Marketing is NOT sales – Marketing increases the probability of sales by creating awareness and generating qualified leads. While this is still an endless debate in companies, marketing should not be measured on sales. There are other applicable measurements that should be made to evaluate the effectiveness of marketing. A sales organization wins sales, but they require the support of marketing (and many other organization partners).