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Measuring and Demonstrating
Value in Communications and
Marketing
Presentation to IABC San Diego
Kirsty Nunez
Q2 Insights,...
A Communications Approach
Communication campaigns are designed
to change the awareness, attitudes and
behaviors of populations across a variety
of d...
Return on Investment (ROI) is a financial
concept that describes the ratio of earnings
divided by the costs associated wit...
In reality few communications campaigns
can be measured using financial ROI.
Return on Communications (ROC) must
include metrics that measure
awareness, attitudes and behaviors
and, in some cases, fi...
Principals for ROC Measurement
Adapted from ROI in PR Measurement: Developing a Practical Strategy
Mike Daniels, Senior Co...
Key Elements of ROC
Return on
Investment
Awareness, A
ttitude and
Behavior
Metrics
Digital
Metrics
Business
Metrics
Communications Value Measurement
Return on
Investment (ROI)
Awareness, Attitu
de & Behavior
Metrics
Digital Metrics
No Fin...
Planning for Measurement of ROC
Define campaign
objectives
Identify desire
outcomes
Define the
audience
Describe the
communications
methods
Steps in Measu...
Define the Campaign Objectives
Inform
New News (New
Product, New Location)
Increase Awareness
Communicate
Positioning
Reco...
Identify Desired Outcomes
Awareness Understanding Attitude Change
Behavioral
Change
Mobilization Public Support
Policymake...
Define the Audience
Consumers Business Customers Employees
Stockholders Policy Makers
The audience may be based on
demogra...
Describe Communications Methods
Broadcast
Direct Mail
Website
Social Media
Email
Mobile
Coalitions, Advocacy
Define the Metrics
Measures may be drawn from campaign objectives, output, outcomes and
communications methods, for exampl...
Measurement Tools
Recommended Measurement Tools

Return on Investment (ROI)

Focus Groups
Pre/Post Survey or Test / Control Survey Depth I...
Return on Investment
Focus on one campaign and not all communication activity
Steps in Calculating ROI
– Total financial value of new sales, in...
Return on Investment (%)
(Income / Cost) × 100
Return on Investment
(Income - Cost) / Cost
Return on Investment Calculation
Awareness, Attitude
and Behavior Metrics (Survey)
Pre- and Post-Test Design
Pre-Test
Communications
Campaign
Post-Test
Pre- and Post-Test Design
Post-Test Pre-Test Difference
Variations on the Pre- and Post Design
Pre-Test
Mid-
Campaign
Post-Test
“Test”/ Control Study Design
Communications
Campaign
Survey
No Exposure to
Communications
Campaign
Survey
Campaign
Audienc...
Pre /Post and Test/Control Design
Pre-Test
Communications
Campaign
Post-Test
Pre-Test Post-Test
Campaign
Audience
Matched
...
Digital Metrics
Digital Metrics
Applicable to multiple digital platforms, including Websites and blog sites.
• Organic Search Rank
• Blogs...
Applicable to
multiple digital
platforms, inclu
ding Websites
and blog sites.
Digital Financial Metrics
Cost Per Click
(CP...
Email Metrics
Similar to digital metrics with offsite exposure via email.
Email
Engagement
Open Rate
Click Through
Rate
Co...
Key Social Media Metrics
Metric Description Tool
Referral from Social
Conversion Rate
Social Influence
Score
Post Virality...
Business Metrics
Business Metrics
Inquiries Response
Sales Costs
Hypothetical ROC Summary
for Management
2%
Hypothetical Success Metrics Dashboard
Communications Return on Investment (ROI) Business Metrics
Digital Metrics Aware...
Case Study
Utility Outage App Promotion
Campaign
Objectives
Desired Outcome
Target Audience
Communications
Methods
• Inform: availabi...
Pre / Post Study Design
• Awareness and Usage
• Communication
Utility Outage App Promotion
Return on
Investment
Awareness,...
Outage App Success Metrics
Return on Investment Business Metrics
Digital Metrics
Awareness, Attitude and
Behavior Metrics ...
Do It Yourself
When To Do It Yourself
• Small scale and low profile communications campaign
• Lower budget
• Time consuming to educate a ...
When Not To Do It Yourself
• Potential bias due to emotional involvement in brand and stakeholders
• Lack of expertise, tr...
• Google Analytics
• Social Tab
• Social Mention
• Facebook
• Twitter
• Klout and Kred
Do It Yourself Resources
Awareness,...
Thank You
Thank You
Q2 Insights, Inc.
San Diego
2236 Encinitas Blvd, Suite H
Encinitas, CA 92024
Phone 760-230-2950
Fax 760-230-2951...
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San Diego IABC Communications ROI Presentation June 19 2013

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Measuring and Demonstrating Value in Communications and Marketing

We all know how difficult it can be, but also how important it is, to measure and showcase the value of our communications. Do your efforts have any impact on your company's bottom line? And how can we use this information to continue to improve and refine our communications strategies?

This presentation provides an overview of how to ensure communication effectiveness and demonstrate value using proven research methods that give you the metrics you need to show ROI. Case studies, do-it-yourself strategies, and professional research methods are presented.

Presented by Kirsty Nunez, President of Q2 Insights, Inc., a marketing research firm with offices in San Diego, CA and New Orleans, LA. Kirsty’s graduate education is in research psychology (MA) and applied statistics (MSPH). A career market researcher and innovation facilitator, Kirsty has more than 25 years of qualitative and quantitative research experience directing projects for a diverse group of local, regional, national and international organizations.

Published in: Business, Technology
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  • Internal Communications / No Financial Outcomes: Employee involvement, encouragement, engagement, relationship building, sharing best practices, building organizational trustInternal Communications / Financial Outcomes: Employee retention, safetyExternal Communications / No Financial Outcomes: Get out to voteExternal Communications / Financial Outcomes: Promotion of products and services
  • Communications campaigns are designed to impact behavior by informing, persuading and reminding.
  • Transcript of "San Diego IABC Communications ROI Presentation June 19 2013"

    1. 1. Measuring and Demonstrating Value in Communications and Marketing Presentation to IABC San Diego Kirsty Nunez Q2 Insights, Inc. June 19, 2013
    2. 2. A Communications Approach
    3. 3. Communication campaigns are designed to change the awareness, attitudes and behaviors of populations across a variety of domains.
    4. 4. Return on Investment (ROI) is a financial concept that describes the ratio of earnings divided by the costs associated with generating the earnings within a timeframe. It is often expressed as a percentage. Income Cost Return on Investment
    5. 5. In reality few communications campaigns can be measured using financial ROI.
    6. 6. Return on Communications (ROC) must include metrics that measure awareness, attitudes and behaviors and, in some cases, financial ROI.
    7. 7. Principals for ROC Measurement Adapted from ROI in PR Measurement: Developing a Practical Strategy Mike Daniels, Senior Consultant, Report International Ltd Chairman, AMEC, March 2012 Measure the effect on outcomes and not just outputs Business results should be measured when possibleDigital metrics (web, email, soc ial media) can and should be measured Attitudinal or behavioral change Web traffic, social engagement and media coverage Set Campaign Objectives Transparency and ability to replicate are essential to measurement
    8. 8. Key Elements of ROC
    9. 9. Return on Investment Awareness, A ttitude and Behavior Metrics Digital Metrics Business Metrics
    10. 10. Communications Value Measurement Return on Investment (ROI) Awareness, Attitu de & Behavior Metrics Digital Metrics No Financial Outcomes With Financial Outcomes No Financial Outcomes With Financial Outcomes             Internal Communications External Communications Business Metrics    
    11. 11. Planning for Measurement of ROC
    12. 12. Define campaign objectives Identify desire outcomes Define the audience Describe the communications methods Steps in Measuring ROC • Calculate ROI if appropriate • Conduct a comparison study to measure awareness, attitudes and behaviors o Pre / Post o Test / Control • Obtain digital and business metrics Identify the metrics
    13. 13. Define the Campaign Objectives Inform New News (New Product, New Location) Increase Awareness Communicate Positioning Recognition and Appreciation Employee Communication Persuade Impact Volumes (Sales, Traffic, Leads) Manage Issues Change Attitudes and Behaviors Increase Attendance Fight Off Competition Employee Recruiting Employee Retention Stock Value Policy Change Remind Reinforce Branding Reinforce Loyalty Reinforce Retention Reinforce Behavior Safety
    14. 14. Identify Desired Outcomes Awareness Understanding Attitude Change Behavioral Change Mobilization Public Support Policymaker Support
    15. 15. Define the Audience Consumers Business Customers Employees Stockholders Policy Makers The audience may be based on demographics, psychographics, behaviors, attitudes or a mixture.
    16. 16. Describe Communications Methods Broadcast Direct Mail Website Social Media Email Mobile Coalitions, Advocacy
    17. 17. Define the Metrics Measures may be drawn from campaign objectives, output, outcomes and communications methods, for example: Area Output Metric • Identify number of direct mail pieces sent • Number of influencers advocating safety goggle message Outcomes • Assess awareness of when to use safety goggles • Determine the extent to which safety goggle usage increased • Identify number of eye-related injuries Communications Methods • Assess relative importance of communications methods (direct mail, email, website, social media) in conveying safety goggle message
    18. 18. Measurement Tools
    19. 19. Recommended Measurement Tools  Return on Investment (ROI)  Focus Groups Pre/Post Survey or Test / Control Survey Depth Interviews Digital Metrics Employee and/or Management Advisory Teams Business Metrics
    20. 20. Return on Investment
    21. 21. Focus on one campaign and not all communication activity Steps in Calculating ROI – Total financial value of new sales, increase in share price, reduction in accidents, etc. – Include revenue generated, cost savings and cost avoidance – Survey can be used to help clarify areas communications can legitimately claim – Err on the side of underestimating rather than over estimating – Include staff costs, production costs, and the cost of research Calculate “income” generated by communications campaign “Discount” the total income by estimating the percentage of income for which communications might legitimately take credit Calculate the cost of communication campaign Divide discounted income by the cost of the communication campaign and multiply the result by 100 to obtain a percentage Work with finance department to refine your ROI calculation
    22. 22. Return on Investment (%) (Income / Cost) × 100 Return on Investment (Income - Cost) / Cost Return on Investment Calculation
    23. 23. Awareness, Attitude and Behavior Metrics (Survey)
    24. 24. Pre- and Post-Test Design Pre-Test Communications Campaign Post-Test
    25. 25. Pre- and Post-Test Design Post-Test Pre-Test Difference
    26. 26. Variations on the Pre- and Post Design Pre-Test Mid- Campaign Post-Test
    27. 27. “Test”/ Control Study Design Communications Campaign Survey No Exposure to Communications Campaign Survey Campaign Audience Matched Controls
    28. 28. Pre /Post and Test/Control Design Pre-Test Communications Campaign Post-Test Pre-Test Post-Test Campaign Audience Matched Controls
    29. 29. Digital Metrics
    30. 30. Digital Metrics Applicable to multiple digital platforms, including Websites and blog sites. • Organic Search Rank • Blogs • Rating Sites • Shares, Likes • Unique Site Visits • Page Views • Average Time on Site • Bounce Rate • Rate of Return Visits • New Versus Returned Visitors • Visits • Average Pages Per Visit • Average Time on Page • Page Path • Number of Bookmarks • Content Clicks • Click Through Conversion • Number or Volume Sold • Engagement (Registration, Email Signup, Game Play, Document Download, Form Submission, Send to a Friend, Share, Like) Impressions Offsite Visits to Site Visits to Goal Pages Conversion
    31. 31. Applicable to multiple digital platforms, inclu ding Websites and blog sites. Digital Financial Metrics Cost Per Click (CPC) Visits Per Action / Acquisition (CPA) Cost Per Impression (CPM)
    32. 32. Email Metrics Similar to digital metrics with offsite exposure via email. Email Engagement Open Rate Click Through Rate Content Area Clicks Link Clicks Forward Opt-outs Visits to Site Visits to Goal Pages Conversion
    33. 33. Key Social Media Metrics Metric Description Tool Referral from Social Conversion Rate Social Influence Score Post Virality Track referral from each social channel Social referral to website Social influence # of stories / # of unique people the post reached Google Analytics Social Tab Google Analytics Facebook Klout and Kred
    34. 34. Business Metrics
    35. 35. Business Metrics Inquiries Response Sales Costs
    36. 36. Hypothetical ROC Summary for Management
    37. 37. 2% Hypothetical Success Metrics Dashboard Communications Return on Investment (ROI) Business Metrics Digital Metrics Awareness, Attitudes and Behaviors Metrics (Survey) 39% 27% 14% Inquires Increase Total Awareness Increase Income / Cost ------------------- Cost Attributable to communications campaign4% Sales Increase 12% Call Center Decrease 18% 8%40% Increase YouTube Followers 3,064 Email Signups 15,016 Visitors Landing Page Brand Preference Increase Call Center to App Behavior Change App Usage
    38. 38. Case Study
    39. 39. Utility Outage App Promotion Campaign Objectives Desired Outcome Target Audience Communications Methods • Inform: availability of app for outage information • Persuade: use of smart phone app for outage information • Download and use of app for outage information • Reduce volume of call center calls • Improve brand loyalty Residential customers in four states Bill insert, Email, Facebook, YouTube Video, and Call Center
    40. 40. Pre / Post Study Design • Awareness and Usage • Communication Utility Outage App Promotion Return on Investment Awareness, Attitud e and Behavior Survey Digital Metrics Business Metrics  Digital and social measures Number of downloads, duration of usage , frequency of usage, affect on Lifetime Value, impact on call center • Behavioral Change • Attitudinal Change
    41. 41. Outage App Success Metrics Return on Investment Business Metrics Digital Metrics Awareness, Attitude and Behavior Metrics (Survey) 31% 37%21% 12% Decrease Uptick in app downloads Indicate “will feel” part of communication Call center volume tracked to four-week campaign Unprompted awareness in smart phone app
    42. 42. Do It Yourself
    43. 43. When To Do It Yourself • Small scale and low profile communications campaign • Lower budget • Time consuming to educate a vendor about the business or the campaign • Opportunity to create hands-on involvement amongst the team
    44. 44. When Not To Do It Yourself • Potential bias due to emotional involvement in brand and stakeholders • Lack of expertise, training and experience • Significant project management time and expertise required • Significant project depth and breadth • Limited knowledge of one or more of four metrics (ROI, Survey, Digital Metrics or Business Metrics) • Unaware of resources available
    45. 45. • Google Analytics • Social Tab • Social Mention • Facebook • Twitter • Klout and Kred Do It Yourself Resources Awareness, Attitude and Behavior (Survey) Digital Metrics • SurveyMonkey (surveymonkey.com) • American Association for Public Opinion Research (AAPOR) (appor.com)
    46. 46. Thank You
    47. 47. Thank You Q2 Insights, Inc. San Diego 2236 Encinitas Blvd, Suite H Encinitas, CA 92024 Phone 760-230-2950 Fax 760-230-2951 New Orleans 5001 E. Hwy 190 Service Road, Suite D-3 Covington, LA 70433 Phone 985-867-9494 Fax 985-867-9936 Q2Insights.com info@q2insights.com

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