Return on Relationships (RoR): How Strong Relationships Enhance Your Marketing Strategy

What is RoR, and why does it matter?

Marketing has evolved far beyond just offering products, selling services, or generating leads. In today’s world, where customer choices are heavily influenced by emotions and trust, it’s all about strengthening relationships. But building those connections doesn’t happen overnight.

It requires a combination of consistency, recognition, and value creation. But here’s the challenge: how do you measure that? How do you show that your blogs, LinkedIn® posts, or even something as simple as a holiday card contribute to your brand’s success?

The answer lies in Return on Relationships (RoR).

RoR as a foundation for sustainable growth

Strong relationships often form the bedrock of sustainable revenue (RoI). Why? Because customers are more likely to buy from brands they feel connected to. It’s about trust, not just transactions.

Here are a few ways RoR and RoI intersect:

• Trust drives revenue: Think about the prospect who has been following your content on LinkedIn® for months. When they need a product or service you offer, your visibility and relevance keep you top-of-mind.
• Loyalty reduces costs: Retaining an existing customer is more cost-effective than acquiring a new one. Plus, it’s easier to upsell or cross-sell to satisfied customers.
• Referrals create value: Happy customers who have had positive experiences are eager to share them, generating word-of-mouth buzz and bringing in new customers without direct marketing costs.

Measuring RoR: Making the intangible tangible

RoR might sound abstract, but it’s measurable. Here are some concrete ways to assess your Return on Relationships:

1. Customer Lifetime Value (CLV): Measures the total revenue a customer generates over their lifetime with your business.
2. Customer Acquisition Cost (CAC): Tracks how much it costs to acquire a new customer. A lower CAC often reflects smarter use of relationships.
3. Customer Churn Rate: The percentage of customers who stop doing business with you over a specific period. A lower churn rate indicates stronger relationships.
4. Social Media Engagement: Track how often your content is viewed, shared, or commented on. High engagement often correlates with a loyal following, which may include your customers.
5. Email Open and Click Rates: High open and click rates show that people trust your organization and value your content.
6. Website Behavior: Metrics like time spent on your site and conversions reveal how much interest and trust new visitors have in your products or services.
7. Customer Feedback and Reviews: What are customers saying about you on platforms like Google or Trustpilot? Positive feedback speaks volumes about the quality of your relationships.
8. Net Promoter Score (NPS): This measures the likelihood of customers recommending your brand. It’s a key indicator of the strength of your relationships and customer satisfaction.

RoR Leads to RoI, but Not the Other Way Around

Strong relationships (RoR) lay the groundwork for revenue, but revenue alone cannot build relationships. Why? Without genuine connection, customers may easily switch to competitors. A temporary discount might drive sales, but it doesn’t foster lasting loyalty. In fact, discounts can even diminish the perceived value of your offering. A customer who feels connected to your brand will choose you without needing an incentive—and they’ll keep coming back.

What’s Your RoR Worth?

In every discussion about marketing investment, I ask clients: “What’s it worth to leave a lasting impression?” That feeling, that connection—that’s what RoR is all about. It’s not just a nice-to-have; it’s the cornerstone of sustainable growth. Yes, it takes time and effort, but the payoff is invaluable.