Presentación Katie Delahaye Congreso PRORP 2010


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Presentación Katie Delahaye Congreso PRORP 2010

  1. 1. Demonstrating PR ROI to the CEO Katie Delahaye Paine
  2. 2. “If we can put a man in orbit, why can’t wewith any degree of accuracy, determine theeffectiveness of our communications? Thereason is simple and perhaps, therefore, alittle old-fashioned: people, human beingswith a wide range of choice. Unpredictable,cantankerous, capricious, motivated byinnumerable conflicting interests, andconflicting desires.”Ralph Delahaye Paine, Publisher, FortuneMagazine , 1960 speech to the Ad Club ofSt. Louis
  3. 3. Conversations are a company-wide resourceHe/she who owns social media, owns the brand and he/she with the most data wins Conversations Customer Marketing & Competitive Business HR Service Sales Intelligence Analytics
  4. 4. Everything you know about measurement obsoleteOld School Communications •  The definition of media has changed 21st Century Role •  The definition of timely has changed •  The definition of reach has changed –  GRPs & Impressions are impossible to count (an irrelevant) in social media •  The definition of success has changed –  The answer isn’t how many you’ve reached, but how those you’ve reached have responded Page 5
  5. 5. Old School Metrics •  AVEs •  Eyeballs •  HITS (How Idiots Track Success) •  Couch Potatoes •  # of Twitter Followers (unless you’re a celebrity) •  # of Facebook Friends/ Fans (unless they donate money) Page 6
  6. 6. It’s the end of measurement as we know it  1 person --Dave Carroll (United Breaks Guitars) cost United $180M—the cost of more than 51,000 replacement guitars.  USO’s donation server crashed when Obama was wrapping care packages  Procter & Gamble is now paying for engagement, not eyeballs  Sodexho cut $300K (NET) out of its recruitment budget using Twitter  HSUS generated $650,000 in new donations from an on-line photo contest on Flickr  IBM sells more with a $500 podcast than it does from an ad  11 Mom’s turned around Wal-Marts image and delivered measureable increases in sales.  In a week, the Red Cross raised $35 million for Haiti relief via texting  Mark Stouse at BMC Software reports results in EPS every quarter  SAP made $1 million from its small business community  Stanford Univ. measures success on Facebook from applications & revenue
  7. 7. Media Engagement & Online Giving 35,152,789 OTS Red line indicates media impressions 6,253,852 OTS
  8. 8. Correlation exists between traffic to the ASPCA web site and the organization’s overall media exposure
  9. 9. Exposure drives donations
  10. 10. A measurement timeline Social MSM Online Media Eyeball HITS Engagement counting
  11. 11. The Engagement Decision Tree Consider-Awareness Preference Trial Purchase ation Purchase/ Observe/ Engageme Find Participate Act/Link/ Lurk nt WOM
  12. 12. Measurable Goals for Marketing Today1. Marketing/leads/sales/2. Mission/safety/civic engagement3. Relationship/reputation/ Or get to this positioning To fix this
  13. 13. Goals drive metrics, metrics drive results Reputation/ Get the word SalesGoal Relationships out Relationship Engagement Index scores % hearing Cost per customer acquisition Recommend- ations % believing Web analyticsMetri Positioning cs % acting Sales leads Marketing Mix Engagement Modeling 14
  14. 14. Facebook: Correlating MSM, CGM and signups•  Strong correlation•  Non-negative discussion only 15
  15. 15. The 7 steps to the perfect 21st Century Measurement Program1.  Define the “R” – Define the expected results?2.  Define the “I” -- What’s the investment?3.  Understand your audiences and what motivates them4.  Define the metrics (what you want to become)5.  Determine what you are benchmarking against6.  Pick a tool and undertake research7.  Analyze results and glean insight, take action, measure again
  16. 16. Step 1: Define the “R”•  What return is expected? – Define in terms of the business or mission.•  What problems are you trying to solve?•  What were you hired to do? What difference are you expected to make?•  If you are celebrating complete 100% success a year from now, what is different about the organization?•  If your department is eliminated, what would be different? 17
  17. 17. Reach & Influence are not ROI!•  Revenue minus cost = ROI•  Revenue = $$ in or $$ not spent Reach – HSUS Frequency •  Flickr Revenue: $650,000 Hits Friends •  Contest Cost $1000 Followers •  ROI = $649,000 – Sodexho •  Twitter costs: $50,000 •  Cost savings: $350,000 •  Net savings (ROI): $300,000
  18. 18. ROI = revenue or savings•  ROI = cost savings Reach –  + Cost of program Frequency –  – Cost elimination Hits•  ROI = greater efficiency Friends –  +cost of program Followers –  – cost of doing something “the old way” (cost per percentage point gained)•  ROI = greater revenue –  +cost of program –  –value of leads/sales
  19. 19. How PR Impacts Financial Performance•  Generates Revenue, Sales, Profit •  Marketing Public Relations drives sales •  Investor Public Relations drives investment •  Public Relations drives donations & membership for relevant organizations•  Drives Efficiency •  Better audience targeting •  Reaching more people with a credible message for less money•  Avoids Catastrophic Cost •  Quality counsel helps to mitigate impacts of crises 20
  20. 20. Measuring PR’s Contribution to the Bottom Line•  Revenue Generation –  Survey customers to determine intent to purchase isolate causal effects through statistical analysis•  Efficiency –  Determine comparative cost of different communication approaches; calculate percent of target reached; determine change in purchase cycle resultant from PR activity•  Catastrophic Cost Avoidance –  Assess competitors and peers who may have faced similar crises, track emergence of their crisis and impact on sales, stock price and relevant business measures to evaluate the potential impact that was avoided. 21
  21. 21. Step 2: Define the “I”•  Public Relations is not “FREE” –  Staff time –  Agency time –  Social Media costs •  Facebook, Promoted Tweets –  Senior Staff time –  Opportunity cost 22
  22. 22. Step 3: Define your audiences and how you impact them•  There is no “audience.” There are multiple constituencies•  Should you blog or Twitter? Don’t ask me, ask your customers•  Understand your role in getting the audience to do what you want it to do –  Raise awareness –  Increase preference –  Increase engagement 23
  23. 23. Step 4: Define your benchmarks•  Emerging benchmarks•  Past Performance•  Think 3 – Peer – Underdog nipping at your heels – Stretch goal•  Whatever keeps the C-suite up at night 24
  24. 24. Step 5: Define your Key Performance Indicators (KPIs)" The Perfect KPI   "   ets you where you want to go (achieves corporate G goals) "   Is actionable "   Continuously improves your processes "   Is there when you need it"   KPIs should be developed for: "   Programs "   Overall objectives "   Different tactics 25
  25. 25. Step 6: Pick a tool1.  Content Analysis2.  Web Analytics3.  Survey
  26. 26. Step 6: Selecting a measurement tool Objective Tool Increase inquiries, Web Analytics, CRM, leads, sales, web Marketing Mix  ust be: M traffic, recruitment Modeling • Accurate Increase awareness/ Survey: Online -- preference SurveyMonkey, • Complete Zoomerang or Mail • Efficient Communicate Media content messages analysis • Actionable Beat the competition Competitive media content analysis Survey 27
  27. 27. Why you need a Kick-Butt Index?•  You decide what’s important: – Is it worse to be bashed or not talked about at all?•  Benchmark against peers and/or competitors•  Track activities against KBI over time 28
  28. 28. What should go into a Kick-Butt Index?" Positive:   " Negative   " Mentions of the   " Omitted   brand "   egative tone N "   ey messages K "   o key N "   ositioning P message "   isibility V "  ncorrect I "   uotes Q positioning 29
  29. 29. Charting KBI over time between divisions Optimum Content Score Relative to Competitors The Percent Difference Between Each Business Units Average Optimum Content Score and the 500% Average Optimum Content Score of Tracked Competitors for each Business Unit 400% Patriot (Korea) European MD radar 300% 200% SAS% Difference AESA ASAT, Patriot FBX-T for F-15E, MALD, IDS Glory APS and DIB Army MTS AMRAAM APG-63 (v3) IIS 100% DDG-1000 MSE VIIRS vs. RIS JPL competitors EPX ATFLIR MS RISS, GBS 0% -100% APG-79, APG63 ERGM cancellation ALR-67(V)3 VIIRS delays NPOESS; BOE B-52 jammer Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul 2007 2008
  30. 30. Components of a Relationship Index•  Control mutuality –  In dealing with people like me, this organization has a tendency to throw its weight around. (Reversed) –  This organization really listens to what people like me have to say.•  Trust –  This organization can be relied on to keep its promises. –  This organization has the ability to accomplish what it says it will do.•  Satisfaction –  Generally speaking, I am pleased with the relationship this organization has established with people like me. –  Most people enjoy dealing with this organization.•  Commitment –  There is a long-lasting bond between this organization and people like me. –  Compared to other organizations, I value my relationship with this organization more•  Exchange relationship –  Even though people like me have had a relationship with this organization for a long time; it still expects something in return whenever it offers us a favor. –  This organization will compromise with people like me when it knows that it will gain something. –  This organization takes care of people who are likely to reward the organization.•  Communal relationship –  This organization is very concerned about the welfare of people like me. –  I think that this organization succeeds by stepping on other people. (Reversed)
  31. 31. Step 7: Analysis - -Research without insight is just trivia•  Look for failures first•  Check to see what the competition is doing•  Then look for exceptional success•  Compare to last month, last quarter, 13-month average•  Figure out what worked and what didn’t work•  Move resources from what isn’t working to what is 32
  32. 32. Actionable Conclusions Ask for money Get Commitment Manage Timing Influencedecisions Get Outside help Just Say No33
  33. 33. Best Practices:•  Correlations to bottom-line impact •  Benchmarking against your peers –  Donations –  Looking at what the best do –  Memberships –  Setting goals accordingly –  Sign-ups –  Use data to persuade recalcitrant –  Leads spokespeople•  Using data for planning •  In Crisis –  Define the time frame, market/topic –  Listen instantly to a wide range of you want to study influencers –  Use Google News to identify the –  Identify weaknesses in conversations around the topic communications, customer service, or in the product –  Analyze the conversations for type, tone and positioning •  Improve your reputation –  Look at share of positioning, tone or –  Listen first, then respond conversation –  Stop doing stupid things
  34. 34. Budgeting Considerations•  Measurement should average 3-7% of a total PR budget, based on research by USC Annenberg•  Ask client to use existing survey and tracking resources often available through consumer insights or market analytics department•  Start with your local University and become a project for them 35
  35. 35. Resources to Get Started••  PRSA Measurement Toolkit•  “Measuring Public Relationships: The Data-Driven Communicator’s Guide to Success,” by Katie Delahaye Paine, Published by KDPaine & Partners•  “Measuring Social Media,” by Jim Sterne, Published by Wiley•  “Primer of Public Relations Research,” by Don W. Stacks, Published by Gilford.•  “Evaluating Public Relations: A Best Practice Guide to Public Relations Planning, Research and Evaluation,” Second Edition by Tom Watson and Paul Noble, Published by Kogan Page•  “Unleashing the Power of PR: A Contrarians Guide to Marketing and Communication,” by Mark Weiner, Published by Jossey Bass•  “ 36
  36. 36. Thank You!Questions?