This is where we get to the difficult phase in understanding community value. As we have mentioned, collecting accurate data is one of the biggest impediments to calculating the ROI of a community. When a full data set is available, it is possible to analyze the data and calculate the ROI with 100% accuracy. However, organizations are complex and finding specific data for comparable periods is often rare.
When a full data set is available, it is possible to analyze the data and calculate the ROI with 100% accuracy
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Calculating the return of community is hard even when you are able to gather all the data. If you have no background in data or statistics, calculating the return is going to be difficult to understand in places. However, this is also what makes being able to calculate the return so valuable. So few people can do it today.
Calculating the return of community (remember not profit or ROI, as we haven’t reached this stage yet) means understanding a combination of methods shown below. These methods are:
- Use proxy metrics.
- Direct Analysis.
- Run An Experiment.
We will quickly explain each.