Brands Need to Focus on ROR: Return on Relationship™

Everyone is trying to assign a dollar value to a Facebook fan or Twitter follower instead of addressing the fact that the engagement and interaction that takes place in these mediums are incredibly important to a brand.

Building a relationship with existing and future customers is the true value and strength of social media/marketing and what will and has allowed brands to survive and flourish for the long-term.

ROI (return on investment) is incredibly important whenever investing, but companies have to start looking at ROR: Return on Relationship™, when planning, strategizing and most importantly evaluating social marketing … especially smaller competitors who can more easily drive and control Relationship Marketing.

A new study shows that those who are fans or followers of a brand on Facebook or Twitter, respectively, are significantly more likely to buy products and services or recommend the brand to a friend. Specifically, the study found that over 50 percent of Facebook fans and Twitter followers say they are more likely to buy, recommend than before they were engaged in those mediums. Welcome to the “Age of Influence,” where anyone can build an audience and effect change, advocate brands, build relationships and make a difference.

Most measurements and empowerment stats use with regard to relationships (i.e. number of Facebook fans, Twitter followers,  retweets, site visits, video views, positive ratings and vibrant communities) are not financial assets. These stats cannot be reflected on the balance sheet or counted on an income statement, but that doesn’t mean they are worthless. Instead, these are leading indicators that a brand is doing something that is creating value which will lead to financial results in the future.

In other words, ROR. This is a  term I started using and evangelizing after many years of seeing that the true long-term value of brand “and” personal marketing is the relationship that will be with you for the long-term and will drive ROI if developed and used effectively.

Long-term, E-commerce success is in a big way relative to Relationship Commerce, building relationships and interacting with consumers. Relationships are extremely important. The relationship a customer has with a company can make or break the company’s success. This is perfectly exhibited with what Amazon and Zappos do to nurture a relationship. Relationships matter.

In a fast paced, digital world, defining and maintaining our relationships has become unexpectedly difficult. Social Media has enabled us to connect with an infinite number of individuals; it has given us the tools to extend relationships that years ago would have been impossible. Now the key is to nurture those relationships and extend them to assist in product creation, decrease in customer service issues, life of the customer, sharing with friends, and increased sales.

Initially published at: PR at Sunrise October 26, 2010

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Ted Rubin

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67 Comments
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    […] other words, with our Brand Advocates, the ROR (Return on Relationship) is high.  A strong relationship with a Brand Advocate is likely to not only […]

  5. posted by
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    […] other words, with our Brand Advocates, the ROR (Return on Relationship) is high.  A strong relationship with a Brand Advocate is likely to not only […]

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    […] time to re-focus ROI (Return on Investment) to ROR (Return on Relationship): let your brand be bold and innovative enough to demote “advertising” and promote “building […]

  7. posted by
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    […] other words, with our Brand Advocates, the ROR (Return on Relationship) is high.  A strong relationship with a Brand Advocate is likely to not only […]

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    […] time to re-focus ROI (Return on Investment) to ROR (Return on Relationship): let your brand be bold and innovative enough to demote “advertising” and promote “building […]

  9. posted by
    Michelle Maskaly
    Mar 11, 2011 Reply

    I love this graph:

    “In other words, ROR. This is a term I coined after many years of seeing that the true long-term value of brand “and” personal marketing is the relationship that will be with you for the long-term and will drive ROI if developed and used effectively.”

    ROI will be seen if there is the combination of these things, plus a little bit of patience 🙂

    Your ROR is absolutely 100 percent the way people need to think!

  10. posted by
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    […] time to re-focus ROI (Return on Investment) to ROR (Return on Relationship): let your brand be bold and innovative enough to demote “advertising” and promote “building […]

  11. posted by
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    […] Although not everyone agrees with the sentiment of Lee’s article (just read the comments!), in my opinion and experience, she is right on target.   Build relationships with your women consumers, and you will see exponential returns (Return on Relationship: ROR). […]

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    […] For more on this subject, visit to Ted Rubin’s blog by clicking right here, right NOW! […]

  13. posted by
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    […] Although not everyone agrees with the sentiment of Lee’s article (just read the comments!), in my opinion and experience, she is right on target.   Build relationships with your women consumers, and you will see exponential returns (Return on Relationship: ROR). […]

  14. posted by
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    […] whole experience formed my ROR (Return on Relationships) philosophy – that… It’s All About Relationships, and the key to continued success for any […]

  15. posted by
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    […] whole experience formed my ROR (Return on Relationships) philosophy – that… It’s All About Relationships, and the key to continued success for any […]

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    […] whole experience formed my ROR (Return on Relationships) philosophy – that… It’s All About Relationships, and the key to continued success for any […]

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    […] that’s not why over 54,000 of us follow Ted on Twitter… he has coined the term Return on Relationship where he stresses that brands need to focus on building relationships with its advocates first; […]

  20. posted by
    Sheds
    Oct 8, 2011 Reply

    “Great point!

    “”ROI (return on investment) is incredibly important whenever investing, but companies have to start looking at ROR: Return on Relationship, when planning, strategizing and most importantly evaluating social marketing … especially smaller competitors who can more easily drive and control Relationship Marketing.””- I love this part. And I agree that more companies would really focus on this.”

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    […] e.l.f. experience is what formed my ROR (Return on Relationships) philosophy, and with each conference I attend, each new interaction I have with bloggers, and all […]

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    […] e.l.f. experience is what formed my ROR (Return on Relationships) philosophy, and with each conference I attend, each new interaction I have with bloggers, and all […]

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    […] There is always value in focusing resources RIGHT NOW on building relationships, no matter what innovation you are planning.  There is no better time than the present to set the stage for a high ROR (Return on Relationship). […]

  24. posted by
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    […] e.l.f. experience is what formed my ROR (Return on Relationships) philosophy, and with each conference I attend, each new interaction I have with bloggers, and all […]

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    […] There is always value in focusing resources RIGHT NOW on building relationships, no matter what innovation you are planning.  There is no better time than the present to set the stage for a high ROR (Return on Relationship). […]

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    […] Pete!  This makes perfect sense and ties right into my favorite social measurement, Return on Relationship (ROR).  Where is the business relationship without relevance?  The two are intricately linked—and […]

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    […] Relationships ARE the new currency – honor them, invest in them, and start measuring your ROR! […]

  29. posted by
    Spike
    Jan 16, 2012 Reply

    I want to send you an award for most helpful internet writer.

    • posted by
      Ted Rubin
      Jan 16, 2012 Reply

      Thank you. Truly appreciate.

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