Title: Questions/Answers: Relationship Marketing and Relationship Commerce
1 – Relationships… how do you build them online?
I believe everything we do in our personal lives and business revolves around relationships… now more than ever. With effort, an online relationship may begin from the request of a Facebook friend or following someone on Twitter; but make no mistake – that initial request or follow will never create the relationship. Trust is built upon interaction, when you’re true to your word, authentic, and genuine. To build relationships online, you (as a brand or individual) have to offer value in return. Be it via valuable information or personal introductions, engagement and interaction will remain key. By asking questions and proposing ideas, you can engage your followers in such a way to give them the ability and reason to respond. Then when they do respond, interact with them to solidify your relationship, lest it fade away. Directly acknowledge their response, ask follow-up questions and share their insights with others. Follow me on Twitter (@tedrubin) and you’ll see what I mean. The more responsive you are to your audience, the more responsive they’ll be to you. And that’s where relationships are born.
2 – What is the true value of a Facebook to a Marketer/Brand
I believe many are looking at this in too narrow a fashion. Everyone is trying to assign a dollar value to a Facebook fan or Twitter follower instead of addressing the fact that engagement and interaction that takes place in these mediums and are incredibly important to a brand. Building a relationship with existing and future customers is the true value and strength of social media/marketing. ROI is certainly incredibly important whenever investing, but companies have to start looking at ROR, Return on Relationship, when planning, strategizing and most importantly evaluating social 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 by Chadwick Martin Bailey and iModerate Research Technologies found that 60% of Facebook fans and 79% of Twitter followers are more likely to recommend those brands since becoming a fan or follower. And an impressive 51% of Facebook fans and 67% of Twitter followers are more likely to buy the brands they follow or are a fan of. Considering Facebook’s over 400 million users, the opportunity is great for social media marketers.
3 – ROR… what is that?
Facebook fans, retweets, site visits, video views, positive ratings and vibrant communities are not measureable financial assets—they aren’t reflected on the balance sheet and can’t be counted on an income statement—but that doesn’t mean they are valueless. Instead, these are leading indicators that a brand is doing something to create value that can lead to financial results in the future. In addition these relationship can be leveraged through initiatives, campaigns, and events to create real dollar value for a brand. In other words, ROR – Return on Relationship!
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. Yet make no mistake: “Social Media is a facilitator of relationships, but it is not the relationship itself.” You have to give to get; it’s so simple in concept yet not always easy to wrap your arms around when online since it is not as simple as a favor, a hug or a handshake.
4 – What is Relationship Commerce?
The way I see it, we’re overdue for a revolution in retail. So many of us have been sharing our passions and discoveries, it’s about time we acquired tools that empower us to share in the economic benefits. I believe that our economy is experiencing a monumental shift towards an era of increased self-sufficiency. We all need to learn to earn, to provide for ourselves. We can’t continue to live dependent upon the (one time) security blanket of big corporations, parent companies and traditional jobs. They may not always be there.
How many of you spend more than 10 hours a week on your online presence? 15 Hours, 40+? How many times have you recommended something to a friend and how many times have you made a purchase based upon the recommendation of a friend? How many of us wish that our passions, our energy and our influence could evolve away from pure hobbies and into a revenue stream? Relationship Commerce, sharing what you love with others and facilitating their ability to buy it, easily can be a piece of that puzzle. That’s how it can make shopping better. Relationship Commerce is simple yet novel, it’s commerce that emanates from people you know and trust. It is this interpersonal exchange, the relationship, which differentiates Relationship Commerce. Life is not just about financial exchange, and neither is commerce. Relationships matter!
This is truly what I call ROR: Return on Relationship, and I believe it’s what the future holds for shopping, for commerce and the economic wellbeing of each and every one of us. It’s Relationship Commerce.
5 – What can marketers do in the next five minutes to apply this information?
A great Twitter behavior that is often over looked as being important… thanking people for RT’ing you and for giving you a mention/shout out. Recognition.
Engage: ask questions, propose ideas—> Give your followers/fans the ability and reason to answer.
Most misunderstand Twitter… not a broadcast tool, not stand alone for marketing, but an extremely valuable networking, experimenting, seeding tool. Also always remember we all have lurkers, those watching and following our conversations, so even though they do not make themselves known they are there. Be aware.
Great points Ted.
Social marketing is about helping others first.
For one, I actually find it funny to see the ” broadcast ” tweets.
It’s like going to a backyard BBQ, and saying to a bunch of strangers – ” I just got awarded top sales honors ” – Guess what, nobody cares.
Networking begins with listening, and if more people fine tune their listening skills, they will be sucessful in social media.