Analytics is simply put the science of analysis, the way companies reach rational decisions based on the information available to them.

Analytics are used to analyses of data/information retrieved from a variety of sources. In respect of Return on Investment (ROI), this analysis is even more important. The question of: “Are we getting what we want from this investment?” is always a crucial one in any business.

With the advent of social marketing this question has been asked even more frequently. Depending on the experience, organizations may feel that it was too time-consuming, while other may feel that it is a worthwhile investment.

There are several ways of going about analytics in order to arrive at ROI analysis and conclusions and currently there are three analytics tools that are generally recommended:

• Google Analytics is a free tool that helps you keep track of flow of traffic, peak times etc. on your site.
• Twitter search coupled with Google Reader allows users to search for keywords and key phrases and be able to track them with Google Reader/
• Bit.ly helps you track interaction with your target audience and keep track of the information that you are sharing.

ROI Analysis and Analytics is a specialist field for marketers, but can easily be handled by anyone who is computer literate once it has been set up. Combined they can help you make investment decisions on your marketing strategy and prevent any losses should such an eventuality emerge.