At a glance: This paper explores five observations about major sponsors and their relationship with their key properties:  Global and major brands have clearly defined marketing objectives and strategies designed to reach, communicate to and with, touch, involve, engage and persuade their target market. Sponsorship is now one, but important, element in the marketing mix to reach these objectives.  Sponsors expect more of properties and rights holders than in the past. In today’s World they do not want properties to simply act as just a “supplier” and sell them their stock, off-the-shelf product that they offer to all potential sponsors. They are not interested in just standard logo and signage type assets that only provide visibility, but instead seek innovative methods of touch and engagement that will enhance the experience and “stickiness” of their sponsorship.  Sponsors are looking for sustainable partnerships where properties become “strategic partners” and work with them in the same way as their other marcomms agencies and professional services partners – advertising, PR etc. - helping to contribute to the success of the brand through a deep understanding of the sponsor’s specific business needs.  Research indicates that not only is there a lack of open communication between sponsors and rights holders, but that many in their organisations do not understand the benefits of sponsorship.  Whilst there is a wealth of quantitative information to evaluate the effectiveness, impact and return on investment of sponsorships, there appear to be serious gaps: o The qualitative research and stakeholder feedback areas are the most important, but least undertaken. o Evaluation of the relationship and partnership, with agreed KPIs and performance reviews, is rarely undertaken o There is a need for a “whole-of-sponsorship” evaluation tool that pulls together both the quantitative and qualitative measures for ROI and ROO, as the basis for mid-season or annual review meetings.

1. Relationships – the third “R” in driving
sponsorship performance and value:
The journey to a sustainable “strategic partnership”, using performance
management techniques and on-line tools for “Whole-of-Sponsorship”
reviews that include evaluation of ROI, ROO and the relationship.
By
Ron Latham, Managing Director, Latham Consulting
Daniel Rowlands, Partner, Performware
At a glance:
This paper explores five observations about major sponsors and their relationship with their key properties:
 Global and major brands have clearly defined marketing objectives and strategies designed to reach,
communicate to and with, touch, involve, engage and persuade their target market. Sponsorship is now one, but
important, element in the marketing mix to reach these objectives.
 Sponsors expect more of properties and rights holders than in the past. In today’s World they do not want
properties to simply act as just a “supplier” and sell them their stock, off-the-shelf product that they offer to all
potential sponsors. They are not interested in just standard logo and signage type assets that only provide
visibility, but instead seek innovative methods of touch and engagement that will enhance the experience and
“stickiness” of their sponsorship.
 Sponsors are looking for sustainable partnerships where properties become “strategic partners” and work with
them in the same way as their other marcomms agencies and professional services partners – advertising, PR
etc. - helping to contribute to the success of the brand through a deep understanding of the sponsor’s specific
business needs.
 Research indicates that not only is there a lack of open communication between sponsors and rights holders, but
that many in their organisations do not understand the benefits of sponsorship.
 Whilst there is a wealth of quantitative information to evaluate the effectiveness, impact and return on investment
of sponsorships, there appear to be serious gaps:
o The qualitative research and stakeholder feedback areas are the most important, but least undertaken.
o Evaluation of the relationship and partnership, with agreed KPIs and performance reviews, is rarely
undertaken
o There is a need for a “whole-of-sponsorship” evaluation tool that pulls together both the quantitative and
qualitative measures for ROI and ROO, as the basis for mid-season or annual review meetings.

2. Relationships – the third “R” in driving Now, sponsors are looking for sustainable partnerships
sponsorship performance and value: The where properties become “business partners”. In keeping
journey to a “strategic partnership” with their professional dealings with other media mix
suppliers, the relationship between key sponsors and
Gone are the days when sponsorship decisions were made properties has developed from a “Seller-Buyer” one to that
for emotional attachment and friendship-based reasons, of a partnership, with agreed KPIs and performance
without any real assessment and thought about brand “fit”. evaluation reviews, helping to contribute to the success of
the brand through a deep understanding of the sponsor’s
With the evolution of sponsorship and the addition of specific business needs.
support promotional activities designed to leverage and
maximise the sponsorship investment, effective control has From “Supplier” to “Strategic Partner”
moved from the boardroom and “C” suite, to the The evolution in sponsor/property relationships from
professionals in marketing and sponsorship departments. being just a “Supplier” to “Sponsorship Partner”, to that
of a “Key Sponsorship Partner”, then to a “Strategic
Today, with the advent of major Global and National Partner” is beginning to take hold as more properties
sponsors with large and specifically targeted sponsorship and their sponsors embrace the twin pillars of Return
portfolios, many sponsors want their properties not to just on Objectives (ROO) and Sponsorship Performance
sell them standard assets and activation packages, but to Management (SPM).
become a “Strategic Partner” and “business builder, helping
to optimise their revenue through an understanding of their Sponsorship evaluations and stakeholder feedback
specific business needs and delivery on their Return on surveys, with “whole-of-sponsorship” KPIs and 360⁰
Investment and Return on Objectives needs. feedback, can measure and capture both quantitative
and qualitative ratings and, using the two-dimensional
Sponsorship in the marketing mix matrix below, can map the position and journey of each
Global and major brands have clearly defined marketing sponsorship.
objectives and strategies designed to reach, communicate
to and with, touch, involve, and persuade their target
market. Sponsorship is now one, but important, element in
the marketing mix to reach these objectives.
As sponsorship has moved out of the Boardroom (away
from the Chairman and his wife) and into its own area within
today’s professional marketing department, it has become
far more than just writing a cheque to the property.
Marketers and their sponsorship team now see the
sponsorship as a “Product” and an extension of their brand,
with the core asset being the property and what it can offer
in terms of a ‘fit” with their target market, wrapped up in all
the activation and promotional leverage opportunities used
to maximise its exposure, reach and engagement.
Sponsorship is a critical part of the marketing mix that
provides a “rifle shot” to reach their target market, as
against the “shotgun” effect of mass media like TV, print
and radio advertising. But sponsorships also compete for a The partner journey from Supplier, to Sponsorship to Key
share of the sponsor’s advertising and promotional budget Sponsorship, then a “Strategic Partner” is a Win: Win for
that is both fragmenting, with the emergence of new digital both sponsors and properties with a focus on working
and Internet-based channels, and shrinking under pressure together to fulfil their joint objectives.
in these challenging economic times. (Total 2011 Ad spend
was down 1.4% on 2010). It can be tracked through four stages, dependent on how
their performance is rated by their key sponsors:
Partner relationships  Early: “Red Zone”; Low performance ratings; New
Properties understand that to sponsors they are simply a sponsorship; Low involvement and activation; Logo
supplier of one of many media options available to reach only; Strictly transactional, occasional relationship;
their target audience and consumers.  Efficient: “Orange Zone”; Below average ratings;
Moderate importance to sponsor; Some activation;
Sponsors, particularly major sponsors, expect more of Regular contact (one point); Proficient in product
properties and rights holders than in the past. In today’s capability and relationship; Delivers results;
World they do not want properties to simply act as just a  Effective: Average/above ratings; Proven product
“supplier” and sell them their stock standard, off-the shelf capability - flexible, innovative; Growing importance
product that they offer to all potential sponsors. to sponsor; Key account rep main contact, frequent
contact; Strong results, added value.
They seek sponsor innovation, with specific benefits and  Excellence: “Green Zone”; High ratings; Proactive,
assets that will add value to their sponsorship and provide a understands their business; Critical to marketing mix;
real competitive advantage and a unique positioning, to help Strong relationship, multiple touch points; Works
them stand out in a cluttered marketplace. closely with sponsor to achieve objectives.

3. Is the journey really necessary? Sponsor Engagement and Communication
For sponsors, the answer is absolutely “Yes” - to enable Research indicates that not only is there a lack of open
them to build competitive advantage and drive value. communication between sponsors and rights holders, but
that many do not understand the benefits of sponsorship.
For properties, the Pareto principle will be a deciding factor:
they will need to make the journey with their major sponsors
(the 20% that account for 80% of their revenue) and the
lessons learned will benefit and help retain other sponsors.
“Strategic Partners”
With the evolution of the sponsorship relationship and
journey to that of a “Strategic Partner”, what new
capabilities will sponsors demand of their properties and
rights holders? How will the dynamics of account
management need to change?
Rights holders will need to focus on two key areas to
enhance sponsorship performance and improve their
relationship with sponsors:
 Customer focus: They must adopt a customer focus
 85% of sponsors and 77% of rights holders agree
culture with a more agile, responsive organisation that
“There is a need for more open communication
responds to specific sponsor needs. Some may require
between sponsors and rights holders”
a dramatic paradigm shift in how they select, manage
and sustain their account management teams. It is important that properties and rights holders be
proactive with communication and engagement
Many must change their culture, people, relationships strategies with their key sponsors, whilst sponsors need
and processes to elevate customer focus to the level of to reciprocate and keep their partners informed of other
importance demanded by the sponsor organisation brand activities that might impact on, or complement the
(particularly marketing and brand management) to drive sponsorship.
and maintain mutually beneficial relationships.
 46% of sponsors and 38% of rights holders agree with
 Broadening skills and capabilities: Key account the statement “the benefits are not well understood in
managers may lack the client management and my organisation”, indicating there is a need to
analytical skills required to build and maintain the communicate and share success by both parties.
relationship and need to become more broad-based in
their business capability. Both issues gain in importance during challenging
economic times and may put the sponsorship at risk.
To improve performance in this area, account managers
and teams must better understand the sponsor’s business
and shift from a focus on “selling sponsorship” to a focus on The Economy
“addressing their requirements”. They will need to develop The continued tough economic outlook for the next few
new skills which will enable them to meet shifting needs with years presents properties and sponsors with both
greater agility and impact. At the same time, however, significant challenges and opportunities.
traditional relationship-building and sales skills will still be
important. The key will be to develop business management For properties, their key challenge is to retain their major
skills, while maintaining strong sales ability, to benefit the sponsors, through driving their partnership even harder to
rights holder in the long run. deliver on a sponsor’s objectives.
Managing complex sponsor relationships The objective for maintaining a sponsorship investment
Sponsor relationships have evolved from “one point-of- over time is to build an association between the sponsor
contact” between the rights holder and sponsor to “multiple and the property in the minds of consumers.
points-of-contact”, often coordinated by a key sponsor
account manager who orchestrates the activities of the Sponsors wish to retain their competitive advantage and
rights holders’ team. build on the brand equity and association gained through
the sponsorship. History shows that smart brand marketers
The sponsor account manager will often work across the who can maintain their advertising and promotional spend
organisational matrix. To help them perform this role more during a downturn actually increase their share of voice,
effectively, rights holders will need to seek ways to provide visibility and top-of-mind awareness, whilst those who cut
their account managers with a holistic view of all A&P budgets suffer declines which make it difficult to catch
sponsorship activities, including access to information. up when the economy improves and budgets return to
normal levels.
It is vital to establish personal relationships with all levels
and touch points within a sponsor’s organisation, so that The challenge for sponsors, in assessing whether to
even if key people leave the organisation, relationships continue their commitment, is to demonstrate that the
continue at other levels and can be used to leverage and sponsorship achieves their objectives and that this is well
build relationships with new people. understood within their organisation

4. Sponsorship Evaluation – The business case
Rights holders, event owners and sports organisations, are Their research also shows that key stakeholder feedback
businesses and need to regard their sponsors as strategic is seen as the most important evaluation measure (99%),
partners and treat them as if they are key account but that only 43% of rights holders undertake sponsor
customers and they are suppliers. They need to build feedback surveys.
relationships and provide added value so that sponsors may
build on the sponsorship with support activities that link and
extend the visibility of the association and their brands.
In order to build the strategic partner relationship and retain
sponsors, they need to work with their sponsors to
undertake regular evaluation of the sponsors’ satisfaction
with the sponsorship and whether it meets their objectives.
For rights holders there are important benefits from
sponsorship evaluation, i.e. to:
 Better understand the needs and expectations of
sponsors in order to work with them to meet their
objectives
 Ensure their relationships are strong and the
benefits well understood at all levels in the
sponsor’s organisation Sponsorship Evaluation – The gap
 Demonstrate they deliver ROI for brands, with There are many market, media and specialist sports
success stories to attract and retain sponsors research companies that provide a wealth of quantitative
information to evaluate the effectiveness, impact and
For sponsors, sponsorship evaluation is about performance return on investment of sponsorships, including: TV & radio
management of their investment in order to measure ROI ratings, advertising expenditure; Media exposure (TV,
and support the business case for its continuity. Print, Radio, Internet); Consumers: consumer attitudes,
interest, attendance, passion, sponsorship awareness etc,
In their sponsorship evaluation process, sponsors should and many have become the benchmark used by rights
undertake a formal evaluation at the end of the contract holders and sponsors alike.
period and, where the activity covers a season, a mid-
season review so that any issues may be identified and There appear to be two gaps in sponsorship evaluation:
discussed, with improvement plans agreed and actioned  A tool to pull together all the various evaluation KPIs to
“For knowing afar of the evils that are brewing, they are create a “Whole-of-sponsorship” view.
easily cured. But when they are allowed to grow until  A process to measure the critical partnership KPIs of
everyone can recognise them, there is no longer any the relationship, including feedback from the key
remedy to be found.” Machiavelli sponsor stakeholders.
Sponsorship Evaluation – Summary
Sponsorship Evaluation – Importance Research has identified three critical areas of concern for
2010 research by Repucom, in the Sponsorship Outlook sponsors as they seek to evaluate the value of a
Survey, shows that Key stakeholder feedback is seen as the sponsorship and to justify its retention in this uncertain
most important performance measure, with 99% seeing it as economic climate:
either “Extremely, Very or Quite important.
 Communication: 85% of sponsors agree with the
Seven of the eight other measures that rated highly in statement that “There is a need for more open
importance are quantitative measures related to the brand, communication between sponsors and rights
i.e. awareness/attitudes, participation in promotional activity, holders”.
sales figures etc., or audience reach and participation and
media exposure metrics.  Benefits: 46% of sponsors agree with the
statement that “The benefits of sponsorship are not
Importance of Performance Measures well understood in my organisation”.
Key stakeholder feedback 27% 39% 33%
 Evaluation: Key stakeholder feedback is the most
33% 58% 6%
Brand research /tracking important evaluation measure (99%), but only 43%
Media exposure analysis 24% 46% 24% of rights holders undertake sponsor feedback
Attendance figures 27% 36% 27%
surveys.
Media reach (TV audience) 27% 36% 24%
 There is a need for a “whole-of-sponsorship”
15% 55% 18%
Promotional participation review process to bring together all the
Independent research 21% 36% 21% sponsorship evaluation surveys and research.
Rightsholder health trends 6% 46% 21%
Unless sponsors and properties adopt strategies to
Sales figures 9% 21% 27%
address these concerns they risk a reduction in revenue,
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
as scarce A&P funds are reallocated to other media that
Extremely important Very important Quite important
Source: Repucom sponsorship outlook 2010 can demonstrate a better return on investment.

5. Sponsorship Performance Management
For sponsors, their sponsorship property partners should be Managing supplier relationships today has gone from
regarded as key suppliers of a product that helps to identifying and buying goods and services based on
differentiate their brand and supports their marketing negotiated pricing to the strategic ability of recognising
strategies and investment. "win-win" opportunities for both buyer and supplier through
enhanced supplier management activities.
Viewed in this light, like any other key supplier, sponsors
need to consider adopting the same rigorous Performance
Management tools, techniques and processes used
elsewhere in their organisations to drive performance and
relationship improvements, e.g.
 Procurement: Supplier performance management,
 HR: People performance management
 Marketing: Agency performance and relationship
management
Many organisations have either already adopted, or plan to
implement Supplier Performance Management (SPM)
programs to encourage their supplier partners to strive for
excellence in delivery of supply, quality and price, partner Considering supplier management challenges faced by
relationships and service and support. organizations in the modern global economy, it is no
wonder that almost half the respondents from their
The methodology used for SPM varies. All use KPIs and Perspectives on Supplier Management in 2011 survey
scorecards and also involve other functional managers, but placed a high value on supplier management.
some are still using paper-based methods or spread sheets
to rate suppliers and collate results. While supplier management has always been a critical
aspect in doing business, the tools used by organisations
But all this is starting to change. In today’s tough market to monitor and manage supplier relationships have evolved
and competitive environment more organisations are tremendously over the past decade. Fuelled by outside
realising that SPM programs also need to be about factors such as the need for transparency of suppliers for
communication of performance expectations and regular both direct and indirect supply chains, and increased
formal reviews, often two-way, to provide feedback on how demands for measuring suppliers against specific KPIs,
suppliers are performing against those expectations. supplier management functions have moved from the
"back-office" to the "boardroom."
Similarly, the advent of on-line scorecards and multi-
perspective assessment tools, coupled with traditional HR
performance management techniques are making the
assessment, reporting and action planning to address
weaknesses an easy task to manage and drive supplier
performance improvement.
“When you measure and communicate supplier
performance regularly, suppliers improve their cost, quality
and responsiveness. Done in an automated, systematic
way, performance improves dramatically, in some cases by
over 50%.”
(Source: Aberdeen Group)
To illustrate the current adoption of supplier management,
SPM – The business case the results of their research also shows that most
Research by the authoritative Boston-based research organisations have either taken on some formal supplier
company, the Aberdeen Group, confirms the intuitively management initiative over the past few years (38%), or
obvious conclusion that using SPM programs and plan to implement (53%) in the next few years.
managing supplier performance will produce higher value
supplies and drive continuous improvement in supply value. Their summary of the Perspectives on Supplier
They found that companies with SPM programs achieved Management in 2011 survey states: “Supplier
performance improvement in every category that was management is an area that has evolved over the past
studied - an average supplier performance improvement of decade. And organisations will increasingly need to focus
more than 20% across four main KPIs - compared with on supplier relationship management and the functions
those that had no SPM program. that are described within it.
Their conclusion: “Organisations that have not embarked
on a supplier management strategy are missing
opportunities for driving performance improvement, more
importantly, ignoring opportunities for benefiting from the
intangible benefits such as positive brand equity and
relationship improvement”.

6. SPM - Learning’s from HR. Sponsorship Evaluation – Our approach
Performance management is a discipline that has been Sponsorship evaluation and key stakeholder feedback
used by Human Resources professionals for more than programs should be part of a process of continuous
forty years for managing behaviour and results. improvement of formal feedback, review of results and
agreed improvement plans.
Four key lessons learned over that time, which have
worked in driving performance improvement for employees
Four core philosophies underpin our approach:
and have application in SPM include:
 Evaluating performance is important because:  Performance improvement is a “Journey” to improve
o What gets measured gets done sponsor satisfaction, engagement and partner
o If you don’t measure results, you can’t tell success relationships, with the end game being sponsorship
from failure retention, through ROI.
o If you can’t see success, you can’t reward it
o If you can’t reward success, you’re probably  The process must ensure high property participation
rewarding failure through prior engagement, agreement to KPIs
o If you can’t see success, you can’t learn from it communication of results and evident change.
o If you can’t recognise failure, you can’t correct it
o If you can demonstrate results, you can win  Our measurement criteria are based on Global best
support” practice, using hard business drivers as well as
 Engagement is critical. traditional sponsorship and relationship KPIs that
provide a “whole-of-sponsorship” basis for mid-season
o Specific objectives and KPIs and their ratings
and annual review meetings.
criteria must be agreed to by both parties
o Post review meetings with sharing of detailed
reports and results and to discuss and agree  We are content agnostic in our assessment tools - we
performance and any improvement actions are don’t insist on standard questions, just to preserve
essential. benchmarking. Our on-line software is simply a platform
for clients to use their own design, content, KPIs, rating
 360° Feedback: Is a multi-dimensional assessment scales and descriptors
tool used by HR to assess the competency and
behaviours of their key managers and to get ratings KPIs need to be sponsorship specific, with realistic and
and comments from various stakeholder groups, e.g. appropriate rating scales and descriptors that align with
peers, direct reports, customers etc. objectives and achievable expectations.
Many SPM assessments also utilise this type of “Whole-of-sponsorship” KPIs focus on two key areas:
feedback to gain the opinions of all stakeholders within  Product and Capability: ROI and ROO (Return on
their organisation, so they can understand user Objectives) KPIs around the brand and activation/
perspectives at either a geographic or business unit support activities and the partner relationship.
level to complement that of the procurement manager  Business Contribution: KPIs that measure how the
and also compare it with any self-assessment. sponsorship engages key stakeholders and how it
adds value to the business.
 Two-way reviews: Many organisations also ask their
employees to provide feedback on their manager’s
performance, separately from a 360° feedback review.
This technique is used in SPM for high-touch, high-
value strategic partner relationships where the supplier
is particularly dependent on the timely performance of
the client, without which their performance will be
impacted – particularly in the area of advertising and
marcomms agency performance reviews.
In many instances, these SPM assessments are also
combined with a 360° feedback to gain the perspective
of all parties and stakeholders.
SPM – Application to sponsorships
Many of the lessons learned from procurement, HR and
marketing areas about the application of performance
management tools, techniques and processes are directly
transferable to sponsorship performance management.
A well-designed “whole-of-sponsorship” evaluation,
Three critical benefits from this knowledge transfer will be:
including regular performance reviews and 360⁰
the ability to assess all KPIs in a “Whole-of-sponsorship”
stakeholder feedback, will assist sponsors and properties
rigorous evaluation, with feedback from all stakeholders; a
to assess performance objectively and drive improvement.
focus on achieving best practice standards and driving Thus ensuring the sustainability of the partnership for
performance and relationship improvement to that of a mutual benefit.
“strategic partner”.

7. SPM – the on-line tools
The advent of web-based, multi-user software makes the  Reports – each sponsorship:
implementation of SPM easy and encourages a o Individual reports on results
collaborative approach to continuous performance o Overall reports with performance comparisons;
improvement in what are complex business relationships,
often with multiple touch-points in both organisations,  Review - Meet with sponsors to identify strengths and
sometimes spread over many geographic locations. prepare action plans to address any areas of perceived
underperformance.
The Performware™ platform of proven on-line tools
incorporates and builds on traditional Performance Reports
Management techniques. They allow organisations to Feedback to properties on how sponsors rated performance
review their business partners, agree on action plans to is critical and forms the basis of review meetings and action
improve performance and to better manage the relationship plans. The software provides on-line generated reports for
- for mutual benefit. both the individual sponsorship and for comparison across
The software is designed to objectively measure high their portfolio of sponsorships.
value, high touch relationships and raises the bar for more
effective supplier reviews. It is non-prescriptive, fully Detailed, automated, on-line reports mean that analysis and
customisable and allows users to determine all content. We feedback can be timely, with a menu of reports in dashboard
can easily replicate any current sponsorship review format, and graphics formats covering:
scoring criteria and process and the tool is intuitive, with  Sponsorship portfolio reports for sponsors – By KPI,
user-friendly features that makes efficient use of time for rankings, ratings, trends;
users. Results are presented on-line in a dashboard and  Individual sponsorship reports – Ratings and comments,
graphics format. with analysis by department or stakeholder level.
There are three on-line assessment tools, designed for
different uses, each with a KPI importance weighting option
and the ability to collect supporting comments, to
compliment and explain ratings and make the feedback
more actionable for suppliers:
 Performance Manager: For assessments by category
or sponsorship managers. The supplier self-
assessment option provides the opportunity for
increased engagement and allows them to compare
their self-ratings, as the basis for discussion on the
differences in perception, expectations and any
improvements required. Both supplier portfolio and
individual supplier reports are available to users on-
line.
 360 Feedback Manager: For multi dimension
assessments by key stakeholders, where there are How we work with you
multiple touch points within the sponsor Company. As When we work directly with sponsors and properties, we
well as sponsorship managers assessing provide:
performance, the 360° feedback tool enables  Website (your branding) set up, our generic “whole-of-
functional managers and “front-line” users to be sponsorship” or your customized KPIs and questions
involved in the assessment process – e.g. Operations,  Review and participant set up, survey/review
Marketing, Finance etc., all with section specific KPIs. administration (automated emails etc.), progress
 Relationship Optimizer: With two-way assessments, reports
and 360 feedback capability, this tool is generally used  Full reports: Individual sponsor and Property reports,
where there are high touch, high value relationships aggregated portfolio reports, special analysis “drill-
with multiple stakeholders and dependent down” reports, personal presentation of results.
relationships. Often used for a “drill-down” review to
further investigate poor performance identified by one When we work with sponsorship consultants, we provide:
of the other tools.  Website (your branding), KPIs, survey set-up
 Survey administration, progress reports
The critical steps in a successful sponsorship evaluation  Administrator training, if you wish to produce your own
program process are: reports
 Full back-up service and support
 Define KPIs and metrics. And agree with properties:
“If you want to have early warnings about possible problems
o Sponsorship specific objectives, e.g. merchandise in a relationship and a way to surface issues and to address
sales budgets, audience targets. them collaboratively, you have to have a mechanism to take
o Core KPIs, common to all sponsorships the temperature of the relationship, comparing its
o Relationship KPIs effectiveness up against some agreed metrics, and then
talking about the results.”
 Evaluate sponsorships: (Source: Vantage Partners)
o Key stakeholders rate performance
o Properties can rate their own performance

8. Summary
 Marketing Mix: Today, Global and major brands have They will need to develop new skills which will enable
clearly defined marketing objectives and strategies them to meet shifting needs with greater agility and
designed to reach, communicate to and with, touch, impact. At the same time, however, traditional
involve, engage and persuade their target market. relationship-building and sales skills will still be
important.
Sponsorship is now one, but important, element in the
marketing mix to reach these objectives. Marketers and  Research has identified three critical areas of concern
their sponsorship team now see the sponsorship as a for sponsors as they seek to evaluate the value of a
key communication vehicle. It is an extension of their sponsorship and to justify its retention in this uncertain
brand, with the core asset being the property and what it economic climate:
can offer in terms of a ‘fit” with their target market, o Communication: 85% of sponsors agree with the
wrapped up in all the activation and promotional statement “There is a need for more open
leverage opportunities used to maximise its exposure, communication between sponsors and rights
reach and engagement. holders”.
o Benefits: 46% of sponsors agree with the statement
 Innovation: Sponsors expect more of properties and that “The benefits of sponsorship are not well
rights holders than in the past. In today’s World they do understood in my organisation”.
not want properties to simply act as just a “supplier” and o Evaluation: Key stakeholder feedback is the most
sell them their stock, off-the shelf product that they offer important evaluation measure (99%), but only 43%
to all potential sponsors. They are not interested in just of rights holders undertake sponsor feedback
standard logo and signage type assets that only provide surveys.
visibility – they already have brand awareness - but
instead they seek innovative methods of touch and  Evaluation Gap: Whilst there is a wealth of quantitative
engagement that will enhance the experience and information to evaluate the effectiveness, impact and
“stickiness” of their sponsorship. return on investment of sponsorships, there appear to
be serious gaps:
 Strategic Partners: Sponsors are looking for o Qualitative research and stakeholder feedback are
sustainable partnerships where properties become the most important, but least undertaken.
“strategic partners” and work with them in the same way o Evaluation of the relationship and partnership, with
as other marcomms agencies and professional services agreed KPIs and performance reviews, is rarely
partners. Helping to contribute to the success of the undertaken
brand through a deep understanding of the sponsor’s
specific business needs and delivery of Return on  Whole-of-sponsorship” evaluation: There is a need
Investment and Return on Objectives. for a “whole-of-sponsorship” evaluation tool that pulls
together both the quantitative and relationship
The journey to that of a strategic partner is not easy, but measures for ROI and ROO, as the basis for mid-
is worth the effort. It requires paradigm shifts by both season or annual review meetings.
parties, particularly in attitudes, requiring openness, trust
and information sharing. Sponsors expect their “Whole-of-sponsorship” KPIs focus on three areas:
properties to communicate and engage with them at all  Sponsorship specific objectives: e.g. merchandise
levels and to be proactive in suggesting ways to further sales budgets, audience targets.
leverage and support the sponsorship.  Product and Capability: ROI and ROO (Return on
Objectives) KPIs around the brand and activation/
 Customer focus: Properties must adopt a customer support activities and the partner relationship.
focus culture with a more agile, responsive organisation  Business Contribution: KPIs that measure how the
that responds to specific sponsor needs. Some may sponsorship engages key stakeholders and how it
require a dramatic paradigm shift in how they select, adds value to the business.
manage and sustain their account management teams.
 Performance Management: For sponsors, their
Many must change their culture, people, relationships sponsorship property partners should be regarded as
and processes to elevate customer focus to the level of key suppliers. Viewed in this light, like any other key
importance demanded by the sponsor organisation supplier, sponsors need to consider adopting the same
(particularly marketing and brand management) to drive rigorous Performance Management tools, techniques
and maintain mutually beneficial relationships. and processes used elsewhere in their organisations to
drive performance and relationship improvements.
 Broadening skills and capabilities: Property sponsor
account managers may lack the client management and Many of the lessons learned from procurement, HR and
analytical skills required to build and maintain the marketing areas about the application of performance
relationship and need to become more broad-based in management tools are directly transferable to
their business capability. To improve performance, sponsorship performance management – particularly
account managers must better understand the sponsor’s engagement, reviews and constructive feedback as the
business and shift from a focus on “selling sponsorship” basis for any improvement plans.
to one of “addressing their requirements”.
To access an example assessment, or to have your sponsorship
evaluation survey converted to the Performware on-line assessment
tool, contact Ron.Latham@performware.com.au ph +61 2 9959 3815