As businesses put more time, resources, and emphasis on social media, they want to see measurable results. But what if the return on investment (ROI) of social isn’t immediately obvious? Hootsuite Copywriter Sam Milbrath writes that it is not always easy to measure the value of lasting connections and meaningful relationships.
I’ve spent the last two years speaking to our customers about their successes on social media. In reflection, I’ve realized that some of our most successful customers on social aren’t businesses, but are organizations with less conventional KPIs. For example, how can police or fire departments track the conversion rate of a Tweet if they are not seeking profit? What about a tourism organization that needs to increase referrals but can’t track the actual sale at the end of the line? Or a nonprofit with the goal to increase awareness?
These organizations rely on social to achieve results that are difficult to measure. But if none of them are tracking the ROI of social, then how should they measure success?
A New Approach to Social Marketing: Return on Relationship or ROR
A Nielsen Global Trust Survey from 2012 showed that 92 per cent of global consumers say they trust what they hear from people they know over what they see in an ad — an 18 per cent increase since 2007. Studies also show that fans or followers of a brand or business on social media are significantly more likely to buy products and services or recommend to a friend.
In March 2009, Ted Rubin, author and acting CMO of Brand Innovators, started using the term Return on Relationship. He argues that instead of asking, “What’s the ROI of social?” we should be asking, “What’s the ROI of trust?” or of loyalty or influence.
Return on Relationship, ROR, is the value accrued by a person or business from nurturing a relationship. It’s measured through organic engagement, community management, and sentiment monitoring. It all comes down to one word: Value. How do your social media efforts create value for you, as a brand, and for your audience? What prompts people to come back to your social channel(s) and to any other place you are looking to drive them to?
Social marketing is less about driving traffic and more about attracting people. “Social marketing has evolved from seeing who could gather the most Likes to seeing who has the most ‘on target’ fan base—a simple quality over quantity shift,” says Rubin. Measuring ROR is not easy; it involves not only analyzing connection growth, but also understanding the impact your customers’ voices have on your brand and reputation. This includes sentiment analysis, as well as engagement metrics for your content, like organic sharing rates.
So whether an organization has products and services for sale or not, building relationships on social media promotes trust, loyalty, and influence. This leads to improved business reputation and influence, increased sharing and awareness, and — when applicable — increased revenue. Simply put, people prefer to do business with those they like and trust—the definition of the word relationship.
