return on relationship

Innovative Use of Traditional Metrics

Here’s an interesting concept: using traditional measurement tactics to determine the success of non-traditional (social media) marketing.

At first, it sounds as though this goes against my persistent encouragement for companies to measure the Return on Relationship rather than just the standard Return on Investment, but actually it doesn’t.

In his July 19 blog post entitled “The ROI of Social Media Marketing: More Than Dollars and Cents”, Forrester blogger Augie Ray introduces the Social Media Marketing Balanced Scoreboard. The key word here is balanced. Although he still uses the phrase “Return on Investment,” what he’s writing is actually about much more than the standard notion of return on financial investment only.

Ray writes, “Facebook fans, retweets, site visits, video views, positive ratings and vibrant communities are not 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 the brand is doing something to create value that can lead to financial results in the future.” In other words, ROR – Return on Relationship!

This Social Media Marketing Balanced Scorecard encourages “interactive marketers” to measure success across four areas:

  • Financial
  • Brand
  • Risk Management
  • Digital

Notice that the scorecard doesn’t measure only financial success – nor does it measure only brand success. Both are included here.

Bottom line? While we social media marketers tend to be all about innovation, there is still room for some things traditional – when used deliberately and wisely!

Ted Rubin

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 it is the engagement and interaction that takes place in these mediums that is 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 consumers are 67% more likely to buy from the brands they follow on Twitter, and 51% more likely to buy from a brand they follow on Facebook. Moreover, they’re 79% more likely to recommend their Twitter follows to a friend, and 60% more likely to do the same on Facebook.

Welcome to the “Age of Influence,” where anyone can build an audience and effect change, advocate brands, build relationships and make a difference.

Ted Rubin