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Asmi San Diego

  1. 1. Measuring the ROI of Marketing Communications A Presentation to the Corporate Communications Summit By Katie Delahaye Paine CEO KDPaine & Partners, LLC January 21, 2005
  2. 2. <ul><li>Results = </li></ul><ul><li>ROI </li></ul><ul><li>Hard Numbers </li></ul><ul><li>Charts & Graphs </li></ul>The World According to Martians <ul><li>Work = </li></ul><ul><li>Reviewing results </li></ul><ul><li>Looking at spreadsheets </li></ul><ul><li>Downsizing </li></ul>
  3. 3. <ul><li>Work = </li></ul><ul><ul><li>Schmoozing </li></ul></ul><ul><ul><li>Lunching </li></ul></ul><ul><ul><li>Opportunistic creativity </li></ul></ul>The World According to Venutians <ul><li>Results = </li></ul><ul><ul><li>A busy trade show </li></ul></ul><ul><ul><li>An award </li></ul></ul><ul><ul><li>A front page headline </li></ul></ul>
  4. 4. Let Measurement be your dictionary What we say We got great results What Martians hear Blah, blah, blah
  5. 5. Lotus Press Coverage Analysis Percent of impressions containing messages by product
  6. 6. Lotus Press Coverage Analysis Cost per message communicated
  7. 7. Why measure ROI? <ul><li>Gut feeling doesn’t cut it anymore </li></ul><ul><li>Accountability is critical </li></ul><ul><li>If you think measurement is expensive, what’s the cost of ignorance? </li></ul><ul><li>Without data, how do you know what’s working? </li></ul>
  8. 8. <ul><li>You can’t measure intangibles </li></ul><ul><li>Measurement will show that my program isn't working </li></ul><ul><li>Measurement should be done either at the start or the end of a program </li></ul><ul><li>Measurement is expensive </li></ul>The Myths of Measurement
  9. 9. How to lose a budget in 10 days <ul><li>Don’t tie results to business outcomes </li></ul><ul><li>Use m7easurement to justify your existence </li></ul><ul><li>Measure something that no one cares about </li></ul><ul><li>Get lost in the minutiae, lose sight of the goal </li></ul><ul><li>Fail to get consensus from everyone who needs the results </li></ul><ul><li>Promise a Cadillac Measurement plan on a Segway budget </li></ul><ul><li>Deliver data when you no longer need the answers </li></ul>
  10. 10. A little Measurement history Automated Message tracking Do-it-yourself Tools Integrated Automated tools Avg cost $30 /clip Avg cost $20 /clip Avg cost $10 /clip Avg cost <$5 /clip Avg cost $8/clip Automated analysis introduced On-line analysis 24/7 Access to data The Cost of Measurement Delahaye founded Readers From target audience Surveys @ $20/ complete 1987 1998 2000 2002 2003 2004
  11. 11. Industry standards <ul><li>Standards and guidelines are available on www.instituteforpr.com </li></ul><ul><li>Clip counts and column inches are not ROI </li></ul><ul><li>AVEs are taboo </li></ul><ul><li>Analysis of messaging, positioning, issue identification are the norm </li></ul><ul><li>Competitive analysis is mandatory </li></ul><ul><li>Analyst and quote measurement is the latest trend </li></ul><ul><li>Integrating media analysis with web activity, customer outcomes is growing </li></ul>
  12. 12. 7 Simple Steps to ROI Measurement <ul><li>Step 1: Define the audience </li></ul><ul><li>Step 2: Define your measures of success </li></ul><ul><li>Step 3: Determine the specific criteria </li></ul><ul><li>Step 4: Define a benchmark </li></ul><ul><li>Step 5: Select a measurement tool </li></ul><ul><li>Step 6: Analyze the results </li></ul><ul><li>Step 7: Take action, measure again </li></ul>
  13. 13. Step 1: Who’s behavior are you trying to influence MVP/C Anyone with a pulse Influencers
  14. 14. <ul><li>Employees </li></ul><ul><li>Alumni </li></ul><ul><li>Faculty </li></ul><ul><li>Potential students </li></ul><ul><li>Students </li></ul><ul><li>Community leaders </li></ul><ul><li>Local /State gov’t </li></ul><ul><ul><li>Reduce complaints? </li></ul></ul><ul><ul><li>Increase awareness or preference </li></ul></ul><ul><ul><li>Increase sales? </li></ul></ul><ul><ul><li>Increase loyalty? </li></ul></ul><ul><ul><li>Reduce turnover? </li></ul></ul><ul><ul><li>Lower recruitment costs?. </li></ul></ul>How does a good relationship with each audience benefit your organization?
  15. 15. <ul><li>Step 1: Define the audiences </li></ul><ul><li>Step 2: Define your measures of success </li></ul>7 Simple Steps
  16. 16. Step 2: Define your measures of success <ul><li>If you are celebrating complete 100% success a year from now, what is different about the organization? </li></ul><ul><li>What about 5 years from now? </li></ul><ul><li>If you eliminated the MarCom Department what would be different? </li></ul>
  17. 17. 7 Simple Steps to ROI Measurement <ul><li>Step 1: Define the audience </li></ul><ul><li>Step 2: Define your measures of success </li></ul><ul><li>Step 3: Determine the specific criteria </li></ul>
  18. 18. Step 3: What do you need to measure? <ul><li>Outputs? </li></ul><ul><ul><li>Did you get the coverage you wanted? </li></ul></ul><ul><ul><li>Did you produce the leads you needed? </li></ul></ul><ul><li>Outtakes? </li></ul><ul><ul><li>Did your target audience see the messages? </li></ul></ul><ul><ul><li>Did they believe the messages? </li></ul></ul><ul><ul><li>Did your relationship change? </li></ul></ul><ul><li>Outcomes? </li></ul><ul><ul><li>Did audience behavior change? </li></ul></ul><ul><ul><li>Did the right people show up </li></ul></ul><ul><ul><li>Did sales increase? </li></ul></ul>
  19. 19. Step 3: Defining Your Dashboard <ul><li>Those numbers that most affect the business </li></ul><ul><ul><li>Increase in loyalty </li></ul></ul><ul><ul><li>Increase in purchase intent </li></ul></ul><ul><ul><li>Share of brand positioning </li></ul></ul>
  20. 20. Most frequently used criteria <ul><li>% change in awareness </li></ul><ul><li>% change in preference </li></ul><ul><li>% change in purchase intent </li></ul><ul><li>% increase in prospects or new contacts </li></ul><ul><li>Cost per message communicated </li></ul><ul><li>CPM </li></ul><ul><li>Cost per minute spent with prospect </li></ul><ul><li>Strength of relationships </li></ul><ul><li>Cost per % of target population reached </li></ul><ul><li>Share of recommendations (positive/negative) exposure </li></ul><ul><li>Share of visibility </li></ul><ul><li>Share of quotes </li></ul><ul><li>Share of brand benefits mentioned </li></ul>
  21. 21. Mea Culpa = Own The Problem The Pentium Flaw IBM threatens to stop using Pentium chip Reverses decision
  22. 22. Actions Speak Louder Than Words Story broke, and the news of Levi's $200 million employee benefits package and $8million grant to local communities affected by closings showed that Levi's cares for its workers Levi Strauss closes 11 plants and lays off 6,395
  23. 23. The News Was The Same, The Actions Were Different Job cuts expected 8,000-14,000 layoffs announced Another 6,000 layoffs announced Kodak’s layoffs 0 20 40 60 80 100 120 140 160 9/16 - 9/23 10/2 - 10/9 10/18 - 10/25 11/2 - 11/9 11/18 - 11/25 12/2 - 12/9 12/18 - 12/25 1/2 - 1/9
  24. 24. 7 Simple Steps to ROI Measurement <ul><li>Step 1: Define the audience </li></ul><ul><li>Step 2: Define your measures of success </li></ul><ul><li>Step 3: Determine the specific criteria </li></ul><ul><li>Step 4: Define a benchmark </li></ul>
  25. 25. Benchmark Guidelines <ul><li>Stretch goal </li></ul><ul><li>Peer company </li></ul><ul><li>The underdog who's nipping-at-your-heels </li></ul><ul><li>Whatever keeps the Martians up at night </li></ul>
  26. 26. 7 Simple Steps to ROI Measurement <ul><li>Step 1: Define the audience </li></ul><ul><li>Step 2: Define your measures of success </li></ul><ul><li>Step 3: Determine the specific criteria </li></ul><ul><li>Step 4: Define a benchmark </li></ul><ul><li>Step 5: Select a measurement tool </li></ul>
  27. 27. Step 5: Selecting a measurement tool Clicktrax, Web trends % increase in traffic #s of clickthrus or downloads Increase inquiries, web traffic, recruitment % aware of or believing in key message % of articles containing key messages Total opportunities to see key messages Cost per opportunity to see key messages % awareness of your product Cost per Impression % of audience preferring your brand to the competition Metric Survey Media content analysis – Communicate messages Survey Monkey, Zoomerang Awareness Survey Monkey, Zoomerang Preference Tool Objective
  28. 28. Step 5: Deciding what’s best More expensive High response rates Fast Phone survey Slow More time to code and analyze Self selecting audience Easy to program Fast Inexpensive Self selecting audience Slow, cumbersome Readers can be biased or have bad days Seldom very timely Can analyze large volumes of articles very quickly to determine share of discussion, share of visibility and share of positioning Very fast, very efficient Strengths Better sampling reaches everyone Paper Survey Most are English only Convenience sample (only those who have email addresses) On-line survey Excellent for complex messaging, tonality, subtle differences Manual Content Analysis Doesn’t pull out influencers and spokespeople well Doesn’t determine tone Can’t determine subtle or complex messages Many foreign publications are not available on line Automated content analysis Limitations Tool
  29. 29. Step 5: Pick a tool: The latest <ul><li>Clipping services </li></ul><ul><ul><li>CustomScoop, Cyberalert, e-Watch, Factiva, Dialog, Nexis </li></ul></ul><ul><ul><li>Computerized Content Analysis </li></ul></ul><ul><ul><li>Biz 360, Cymfony </li></ul></ul><ul><li>International Analysis </li></ul><ul><ul><li>Still mostly manual </li></ul></ul><ul><li>Automated survey tools </li></ul><ul><li>Survey Monkey, Zoomerang </li></ul><ul><li>Web measurement </li></ul><ul><li>ClickTrax, Web trends </li></ul><ul><li>Integrated Knowledge Management Tools </li></ul><ul><ul><li>Performa, Vocus </li></ul></ul>
  30. 30. 7 Simple Steps to ROI Measurement <ul><li>Step 1: Define the audience </li></ul><ul><li>Step 2: Define your measures of success </li></ul><ul><li>Step 3: Determine the specific criteria </li></ul><ul><li>Step 4: Define a benchmark </li></ul><ul><li>Step 5: Select a measurement tool </li></ul><ul><li>Step 6: Analyze the results </li></ul>
  31. 31. Step 6: Analyze and glean insight <ul><li>Research without insight is just trivia </li></ul><ul><li>Figure out what works and what doesn’t work </li></ul><ul><li>Determine what you need to do NOW </li></ul><ul><li>Determine what you need to do next </li></ul><ul><li>Make sure your recommendations are actionable </li></ul>
  32. 32. Actionable Conclusions A sk for money Get C ommitment Manage T iming I nfluence decisions Get O utside help Just Say N o
  33. 33. What to do with the data once you get it
  34. 34. 7 Simple Steps to ROI Measurement <ul><li>Step 1: Define the audience </li></ul><ul><li>Step 2: Define your measures of success </li></ul><ul><li>Step 3: Determine the specific criteria </li></ul><ul><li>Step 4: Define a benchmark </li></ul><ul><li>Step 5: Select a measurement tool </li></ul><ul><li>Step 6: Analyze the results </li></ul><ul><li>Step 7: Take action, measure again </li></ul>
  35. 35. Step 7: Do it again <ul><li>Regular research is far more valuable than one-shots </li></ul><ul><li>Make sure your data is ready when you need it </li></ul>
  36. 36. 7 ways to do research without a budget <ul><li>Become someone’s research project </li></ul><ul><li>Involve your board of directors and volunteers </li></ul><ul><li>Research something that HAS a budget </li></ul><ul><li>Take advantage of free offers </li></ul><ul><li>Become a case study </li></ul><ul><li>Team up with peer organizations </li></ul><ul><li>Analyze data that already exists </li></ul>
  37. 37. Case Study: Rensselaer County <ul><li>Goal: More favorable attitudes, better image </li></ul><ul><li>Benchmark: Saratoga County </li></ul><ul><li>Measurement Budget: $7500 </li></ul><ul><li>Tools used: IPR Guidelines, phone survey, Excel, Publisher </li></ul>
  38. 38. Case Study: Rensselaer County <ul><li>Output Measures : </li></ul><ul><li>Total opportunities to see key messages </li></ul><ul><li>Share of positives vs. negatives </li></ul><ul><li>Share of visibility </li></ul><ul><li>Share of positioning </li></ul><ul><li>Outtake measures </li></ul><ul><li>More favorable attitudes </li></ul><ul><li>Greater likelihood to approve </li></ul><ul><li>Outcome measures </li></ul><ul><li>Economic growth </li></ul><ul><li>Projects approved </li></ul>
  39. 39. Opinions became much more positive
  40. 40. More people thought of the county as an excellent place to locate a business
  41. 41. Strong support increased
  42. 43. Case Study: Central Arizona Project <ul><li>Goal: Measure relationships with target audiences – media, elected officials, customers </li></ul><ul><li>Survey instrument: IPR Guidelines </li></ul><ul><li>Tool: Survey Monkey </li></ul><ul><li>Budget: $1000 </li></ul>
  43. 44. Case Study: Southwest Airlines Date: February 12, 2004 Southwest. COM Vamonos release generated $38,000 in ticket sales
  44. 45. Southwest Airlines made four big announcements on July 15, 2004
  45. 46. Release about 22 new daily flights generated $1 million in ticket sales
  46. 47. Southwest’s PR has generated over $1.5 million in ticket sales <ul><li>Service to Philadelphia </li></ul><ul><ul><li>Began with 14 daily flights to 6 cities </li></ul></ul><ul><ul><li>Expanded to 28 daily flights to 14 cities </li></ul></ul><ul><ul><li>Expanding again to 41 daily flights to 17 cities </li></ul></ul><ul><li>Revenue passenger miles for the eight months ended August 31, 2004, increased 11% to 36.3 billion </li></ul>Source: Southwest Airlines
  47. 48. Predicted vs. Actual Loyalty (Based n GRP/Loyalty model) Peak in unfavorable news coverage, e.g. pricing plan
  48. 49. Predicted vs. Actual Attitudes (Based n GRP/Loyalty model) *Print and broadcast stories X circulation/viewers Customer Sciences Illustrative AT&T data, 1997. Peak in favorable news coverage; President’s Conference on Volunteerism
  49. 50. Correlation between LD acquisitions and Positive Price/Value news impressions Customer Sciences R = .33
  50. 51. Changing a state’s reputation <ul><li>NH’s First in the Nation Primary attracts nearly 4000 journalists to the state </li></ul><ul><li>NH’s image in the past has been: “persnickety,” “flannel shirted yokels,” “worst economy in the country,” “last without Martin Luther King Day,” </li></ul><ul><li>The campaign to “influence the influencers” </li></ul>
  51. 52. Specific endorsements increased
  52. 53. Negatives were reduced, positives increased
  53. 54. Key Messages Increased as Well
  54. 55. Positioning on key issues improved as well
  55. 56. The financial impact of media coverage 220 million media impressions 22 million positive impressions (10% positive impressions) 660,000 non-primary visits (3% of 22 million) $33 million in potential tourism revenue
  56. 57. The impact of media coverage on business development 660,000 visits to NH (3% of 22 million) 13,200 corporate decision- makers and entrep. (2% of 660,000 - actual US figure is 11%) 132 new business with avg. 20 emp. per business= 2,640 employees @ $10,000 subsidy/business development value per emp.= $26,400,000 132 new businesses (1% of 13,200 or .0002 of all visits)
  57. 58. Thank You! <ul><li>For more information on measurement, subscribe to The Measurement Standard, www.themeasurementstandard.com </li></ul><ul><li>To start developing your own dashboard or for a copy of this presentation go to: http://www.measuresofsuccess.com </li></ul><ul><li>Or call me at 1-603-868-1550 </li></ul><ul><li>Or give us your business card and we'll be happy to send it to you </li></ul>

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