ROI vs ROR ?

I recently stumbled across a new way to think about return on investment. The author of the post suggested that instead of analyzing strategies from a 'return on investment' basis - we instead analyze the strategies and opportunities from a Return on Relationship view.

Personally, I really like this. In 2004, I was campaign manager for a closely competed Maine State Senate district race (in southern Maine). One of the strategies we used was to identify COIs - people who were Centers of Influence with large personal networks.

When you analyze your marketing strategy - do you target COIs? What is the Return on Relationships from engaging these COIs at tableside? Better yet, what is the ROR on searching for and engaging COIs through social media?

Tags: ROI, relationships, strategy

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Permalink Reply by Kelly on October 8, 2009 at 8:25pm

This method of thinking makes me salivate! Yes relationships are critical, networking paramount, but return on relationships as a metric - that makes me giggle. Please don't forget we do not reside in a socialistic country. Leave soft skills to your HR team. Drive velocity, reduce waste, and increase volume. Better yet, toss me your phone number - I will buy you next year.

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Permalink Reply by Jeffrey J Kingman on October 8, 2009 at 9:16pm

Glad I could contribute to you salivating and giggling, Kelly. By the way, welcome to FohBoh!

I'm not sure I get the connection to socialism you propose. About leaving soft skills, there are tens of thousands of operations that do not have an HR team. Relationships with all stakeholders are tantamount and crucial to operator success, just as driving velocity, efficient production are. Increasing volume is dependent on all these factors, and others, working coherently and collaboratively.

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Permalink Reply by Kelly on October 8, 2009 at 9:33pm

Blach!

I think Andrew Carnegie just rolled over in his grave.

Pass the bordeaux. I need a drink.

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Permalink Reply by Brett Bartlett on November 18, 2009 at 8:18pm

Wow, love the ROR focus.

Being able to develop some serious ROR can do wonders for a restaurant among all the social networks available to customers.

Really Really like the focus of Chalkboarder and the influence your having on Fohboh Jeffrey.

Take care,
Brett

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Permalink Reply by Jeffrey J Kingman on November 18, 2009 at 9:07pm

Brett,

Thank you greatly and humbly.

Jeffrey

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Permalink Reply by Dan Smith on November 19, 2009 at 10:21am

Interesting questions. What matrices are deployed to evaluate or analyze the data? What can be used as benchmarks and how are they determined? Are there methods to recognize defects in measuring and are there any best practices that may be used in other industries? How was it accomplsihed in yoru political circle and was it effective (did you win?)? Obviously it is easy to recognize a starting point in an ROI (the investment) and therefor easier to see results based on a fninancial set of data. I would like to learn more..