Content & Cash: CIDM Edition
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Another version of Content & Cash, Melissa Rach's talk on establishing the value of content first delivered in 2012. This version was done for the CIDM Best Practices conference in Washington in Stevenson, Washington.
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Content & Cash: CIDM Edition
- 1. Melissa Rach @melissarach DialogStudios.com Content CASH Photo: © 1984 Betty Weinaug
- 2. I am two people. Johnny is the nice one. Cash causes all the trouble. —Johnny Cash 2
- 3. Business expectations To make an investment, funders expect: • To know exactly what content will do for the organization • Proof of competency/quality • Exactly how much it will cost • Provable value and ROI Hard numbers. Right now. 3
- 4. yikes.
- 5. We can do it • We know content work is valuable • We know content is a benefit (necessity) for businesses • And the organizations are catching on, too 5
- 6. Today • Selling and scoping • Estimating value/ROI • Measurement 6
- 7. But first… some anger management
- 8. 1.It’s not (always) about disrespect or even money. ©2014 Abbey Hambright Etsy.com/shop/abbeychristine
- 9. Economics is making the best out of life. —Gary Becker 9
- 10. Decision making is scary Investing in content: • Means NOT investing in other things • Might result in loss of: • Money • Time • Other opportunities • Professional reputation • Emotional anguish 10
- 11. And hard… People: • Are limited by what they know • Latch on to things that are familiar • Choose the safest option • And then immediately start worrying that they’ve made the wrong decision 11
- 12. 2. Content is a harder decision than most Photo: ©1980 Betty Weinaug
- 13. Content breaks all the economic rules • Things of value are usually • Exclusive • Transparent • Hard to replicate • Endless supply AND endless demand 13
- 14. Content work is a service • “New” industry • Very diverse • No obvious accreditation • Doesn’t fit nicely into a traditional business 14
- 15. 3.Numbers don’t need to be exact. Photo: ©1980 Betty Weinaug
- 16. As far as the laws of mathematics refer to reality, they are not certain; and as far as they are certain, they do not refer to reality. —Albert Einstein 16
- 17. Measurement is… A set of observations that reduce uncertainty where the results are expressed as a quantity. 17
- 18. Numbers are a communication tool Numbers reduce uncertainty: • Approximate values • Shortcuts for the brain • Common vocabulary 18
- 19. Selling and scoping (building a relationship) Photo: © 1978 Betty Weinaug
- 20. The goal: Make a confident decision that’s beneficial to everyone. 20
- 21. 1. Define the need What is the need? What are you offering? • New or updated content • Cleaned up content/fixed mistakes • More efficient, happier workplace • Unifying strategy • Ongoing service How does this work benefit the business? How do (will you) you know? 21
- 22. 2. Understand the process Get all the information you can, find out: • What is the decision? • What impacts that decision? • Who impacts the decision? • What experience do stakeholders have with content work? • Is there a budget? 22
- 23. 3. Make connections 23 Photo: © 1980 Betty Weinaug
- 24. 4. Understand all benefits and costs Type Benefits Costs Monetary Profit or savings Cost of creation Sensory Get satisfaction/ 24 alleviate pain Endure extra pain or reduce satisfaction Temporal Save time Lose time Opportunity-based Gain advantages Eliminate possibilities Psychological Reduce anxiety Add anxiety Social Increase stature Blamed for problems Convenience-based Makes things easier Makes things more difficult
- 25. 5. Tell a hopeful story Create a story that highlights key benefits, such as: • We can serve users better • We can be more efficient • We can beat the competitors • We can be more accurate 25
- 26. 6. Eliminate fear • Discuss the details • Answer questions • Address concerns • Start small or do some proof of concept work • Provide references (services) or samples (goods) • Be patient 26
- 27. Estimating value and ROI (the magic formula) Photo: © 1980 Betty Weinaug
- 29. Value of what? Strategy or Service Content as product Content as influence Efficiency tool 29
- 30. Strategy or Service Content as product Content as influence Efficiency tool Value of what? 30
- 31. Content as product What is the content product worth? • Benefit: Profit from the sale of the product • Cost: Cost to create the product 31
- 32. Photo: © 1980 Betty Weinaug
- 33. Strategy or Service Content as product Content as influence Efficiency tool Value of what? 33
- 34. Content as influence What is the piece of content worth? • Benefit: Increased profit as the result of an end-user behavior change • Cost: Cost to create the content 34
- 35. Estimates, not exacts Figure out what you know; fill in the blanks with assumptions • The average Johnny Cash t-shirt costs $20 • Analytics show that 50 people start the process of purchasing a t-shirt online every day, but only 10 finish the process • User research shows that the instructions on the purchase pages are very confusing • We assume 5-10 people leave the purchasing process because of something unrelated to the site, and 5-10 leave the process when they see the shipping costs • We assume the remaining 20-30 people would complete the purchasing process if the instructions were more helpful • Therefore, the value of the instructional content is likely around $144,000- 216,000 per year ($20 x 20-30 people x 30 days X12) • The cost of fixing the content is approximately $5,000 35
- 36. Intermission Photo: © 1982 Betty Weinaug
- 37. Strategy or Service Content as product Content as influence Efficiency tool Value of what? 37
- 38. Efficiency tool What is the tool worth? • Benefit: Cost savings as the result of employee behavior change (or happiness) • Cost: Cost to create/maintain the tool and train people to use it 38
- 39. Strategy or Service Content as product Content as influence Efficiency tool Value of what? 39
- 40. Strategy (or service) What is the strategy worth? • Benefit: Combination of: • Savings/profit from: • Content as product • Content as influence • Tools • Sub-services • Value of non-monetary benefits • Cost: Cost to create/implement the strategy 40
- 41. Estimating results BEFORE work starts
- 42. Max Gain x % Success = Risk if denied Max Loss x % Failure = Risk if approved
- 43. Estimating probable results Basic project information: • Maximum gain: $216,000 • Maximum loss: $5,000 • Chance for success: 70% Expected opportunity loss: • Risk of approved: $5,000 X 30% = $1,500 • Risk if rejected: $216,000 X 70% = $151,200 43
- 44. Pricing basics • Look for comparables • Give ballpark estimates early • Estimate on time, price on value • Aim for a consumer surplus • Always provide numbers in person 44
- 45. Price is like setting a screw. A little resistance is a good sign. —Harry Beckwith 45
- 46. There are a lot of good economists, but there is only one Roger Clemens. — Robert Solow (1987 Nobel laureate) 46
- 47. Measurement (being well-rounded) Photo: © 1977 Betty Weinaug
- 48. Our friend, Johnny… Stats 50+ million albums sold Created: 96 studio albums 63 compilation albums 153 singles Honors 17 Grammy Awards 9 CMA Awards Rock and Roll Hall of Fame Rockabilly Hall of Fame Songwriters Hall of Fame Gospel Music Hall of Fame Country Music Hall of Fame Nashville Songwriters Hall of Fame Kennedy Center Honors National Medal of Arts Hollywood Walk of Fame 48
- 49. Variety of measurements • Analytics • Qualitative assessments • User research and usability • External expert review • Internal expert review • Efficiency measurements
- 50. Measure often, expect long-term results • Establish a baseline • Measure consistently over time • Use different timelines for different types of content 50
- 51. Score! Section score: 88 out of 100 ↑ 15% since April
- 52. Photo: © 1977 Betty Weinaug
- 53. ©2014 Abbey Hambright Etsy.com/shop/abbeychristine
- 54. It’s about decisions not disrespect
- 55. It’s NOT us-against-them it’s about building relationships
- 56. It’s about reaching understanding and reducing uncertainty
- 57. It’s about estimates not exacts
- 58. It’s not traditional but it’s achievable
- 59. Your work is valuable. Go prove it.
- 60. Thanks! SLIDES: bit.ly/CIDMCash @melissarach melissa@dialogstudios.com www.dialogstudios.com 60 Photo: © 1981 Betty Weinaug
- 61. Want to know more? Content Strategy for the Web (second edition) Check out chapter 10 By Kristina Halvorson and Melissa Rach How to Measure Anything by Douglas W. Hubbard Marketing Professional Services by Philip Kotler, Thomas Hayes, Paul N. Bloom Naked Economics: Undressing the Dismal Science by Charles Wheelan 61
Editor's Notes
- Name Title Author Columnist
- Talking about money is awkward and uncomfortable in most situations It’s even harder when you’re trying to pin dollars to something as amorphous as content Money is an important part of any industry—we need to eat
- People aren’t asking us for this stuff to be jerkfaces They’re asking because they think that is the way business is “supposed to be done”
- Let’s face it. This stuff was never the content person’s forte. Two things I didn’t think I’d ever use computers and economics. Gross.
- Everybody wants to fix this problem, solve this puzzle – we’re all problem solvers. You are in just as good of a position as anyone else to do it. Most people are economically illiterate-even execs. I’m not saying it’s going to be easy. Or quick. It’s not. But content is important. And it’s our jobs to figure out the question.
- It’s easy to get angry. We know content is what people come to websites for. It’s what they want out of a brochure. Customers need it to make decisions or perform activities we want them to do. So, why is it hard for people put money towards it? Why is it easier to put money toward design, technology, or anything else!?
- We can learn from Johnny’s attitude He knew he didn’t fit the mold, and he knew he couldn’t play by the rules Yet, he went on to become one of the most successful performers of his generation He did it by being equal parts genuine, wiley, and rebel He figured out how the system worked, and he then he used it to his advantage We can be rebels Getting educated about economics We can rebel against the conventional concepts economics We can find work-arounds
- When deciding to spend money on content, decision makers many have to let go things they already have and like, or things they wished for – like when the frig breaks down and your plans for a new tv are gone… Money Other opportunities: If I spend time on this, what else am I missing? Time: Waste time on this project and could be farther behind Professional rep: You hired these people, you’re responsible Emotional anguish: Don’t want the whole thing to be painful
- People guess based on: Rules of thumb/short cuts Experience Common sense We do this all the time Looking at the sky for the weather Flying vs. motorcycles Play it safe -- Where do you go when you’re kid is screaming in the back of the car? McDonalds or that charming-looking café you’ve been meaning to try
- Dorky kid, we musicians were starting to need polish Grew up in the cotton field Mom made his clothes Had an ok voice, but not great Got a $5 guitar in the army
- Perfect storm of economics crappiness
- People have no idea what we do Have nothing to compare us to No past experience to draw on
- Numbers: Business runs on numbers Shortcut for the brain – hot outside vs. it’s 80 degrees All sort of arbitrary 14C/60F It doesn’t need to be exact, in fact, it hardly ever is New Coke Most people prefer new Coke to old Coke 5 out of 6 people prefer new Coke to old Coke 83.3% of respondents prefer new Coke to old Coke Whoops
- It’s not about us against them, as long as procurement isn’t involved It takes: Listening Sharing Time Don’t start with money.
- Do you need a plumber or a pipe Why do you care? Because they are valued differently Let’s say you have a pipe burst in your house The pipe itself is worth $2 The work of the plumber who fixes the leak is worth a lot more even though you can’t quantify piece of mind And buyers expect different amounts of information during the service Goods are just the price of the manufacturing, and the profit margin Pricing services are hard
- I am often ready to spend extra money for convenience The value of a content work – depends on the combination of these qualities. You want it fast, alleviate all the pain? That’s different from a long timeline and focusing on one pain point.
- This is about storytelling
- So the real questions are: Value of what? What’s a benefit? What’s a cost?
- Are you estimating or measuring progress?
- First, the easiest one.
- Challenges Projecting the market value of the product (price people willing to pay or do without) Remembering all of the steps in the content creation process
- Calculated by hourly rates , percentage of time spent on this task, and time saved during the year Don’t forget approvers
- You can base price on: Cost Competition Demand/value
- Our friend Johnny did well for himself
- So, when you feel like this… remember...