Communications Measurement:
             Linking PR to Sales
             Planning  Optimization  ROI



 South Carolina Governor’s Conference on Tourism &
 Travel – February 21, 2011
 Tim Marklein, Executive VP, Measurement & Strategy
 tmarklein@webershandwick.com
 Twitter: @tmarklein
Slide 1 -- February 21, 2011
The Long, Winding Road


               Go to the wrong airport
               Wait in line 45 minutes to rebook
               “We can’t get you to Aspen today”
               “The last bus leaves before 6:00”
               Ignore signs: “Independence Pass CLOSED”
               Backtrack 2.5 hours to Aspen




Slide 2 -- February 21, 2011
Don’t Let This Happen to You…




Slide 3 -- February 21, 2011
Linking PR to Sales Requires…


               Determination
               Persistence
               Creativity
               Strategy
               Methodology


Slide 4 -- February 21, 2011
Industry snapshot:
              Current state of communications measurement

               THE GOOD   Everyone agrees: Measurement is important
                          Basic standards, tools in place for measuring media
                          CMOs, CFOs and CEOs are asking for more
               THE BAD




                          Still lots of lip service without investment
                          “What tool should I use?” – wrong question
                          Quarterly reports are shelfware, don’t drive decisions
               THE UGLY




                          PR metrics aren’t translated into executive terms
                          Not enough definition or accountability for outcomes
                          “Random acts of measurement” – not enough integration


                                          Source: Weber Shandwick
Slide 5 -- February 21, 2011            Measurement & Strategy practice
Watershed moment: Moving beyond AVE


              • Oct’09: IPR Measurement Commission “condemns the
                name, concept and practice of ad value equivalencies”
                   • No evidence that earned media space = paid media space
                   • Simply measures media “cost,” doesn’t measure the “value”
                   • Misused as a cheap proxy for ROI – distracts from outcomes
              • IPR and AMEC working on alternatives, transition plans
                   • Shift focus to business outcomes – awareness, understanding,
                     attitudes, behaviors, engagement, sales, market share, etc.
                   • Always evaluate media quality and message, not just quantity
                   • Options for comparative “cost” evaluation: CPM, targeted reach,
                     “weighted media cost,” engagement/CPE, market mix analysis
              • Follow updates at www.iprmeasure.org


Slide 6 -- February 21, 2011
Proving PR’s value: Watch your language

                     Typical PR metrics                               Key business metrics
              • Total clips                                      • Contribution to sales
              • Total clips in top-tier media                    • Contribution to market share
              • Total circulation/impressions                    • Contribution to profitability
              • Share of voice                                   • Influence on stock performance
              • Media sentiment                                  • Influence on stakeholder awareness
              • Message pull-through                             • Influence on stakeholder opinion
              • Ad equivalency                                   • Influence on employee attitudes
              • Cost per thousand                                • Influence on customer consid/pref
              • Influence on stakeholder awareness               • Influence on customer satisfaction
              • Influence on stakeholder opinion                 • Influence on customer loyalty
              • Influence on employee attitudes                  • Influence on brand equity
              • Influence on corporate reputation


                   “It will be difficult for PR to get a larger share of the total
                 communications expenditure without quantitative means that
                        go well beyond measurement of media outputs.”

                                  Source: Adapted from GAP V report, Annenberg
Slide 7 -- February 21, 2011   School of Communication, “Fifth Annual Public Relations
                                    Generally Accepted Practices” study, Q1’08
Or as Duane Parrish put it…


              Heads in the beds
              Feet in the fairways
              People in the parks




Slide 8 -- February 21, 2011
Proving PR’s value: Focus on outcomes


                                          • Define clear, precise and
                                            measurable goals in business
                                            or marketing terms
                                            • Borrow from outcomes inventory
                                              published by PRSA and IPR (left)
                                          • Don’t worry whether you can
                                            prove PR’s impact – assume
                                            you can, and then work
   http://comprehension.prsa.org/?p=628     backwards to determine how
                                            •   Anecdotal evidence
                                            •   Data-based evidence
                                            •   Correlation
                                            •   Contribution
                                            •   Causation



Slide 9 -- February 21, 2011
Anecdotal evidence




                       The customer said they read a magazine
                       review, and that’s why they called us to
                       buy the product.




Slide 10 -- February 21, 2011
Data-based evidence




                       9.7% of the customers we surveyed last
                       quarter said they called us because they
                       read a magazine review.




Slide 11 -- February 21, 2011
Correlation




                       Every time our competitive media share
                       goes up, our sales in that region go up for
                       the next two months.




Slide 12 -- February 21, 2011
Contribution




                       Based on our marketing mix model, we
                       determined that PR contributed 2.7% to
                       our sales goal last quarter.




Slide 13 -- February 21, 2011
Causation




                       720 customers that read about us online,
                       then went to our site, bought the product
                       at an average sales price of $675.




Slide 14 -- February 21, 2011
Proving PR’s value: Integration is critical


              • Old world, meet new world
                   • Integration of traditional, digital and social media
                   • Integrating WOM and other new influence patterns
              • Silo #1, meet silo #2, silo #3, etc.
                   • Integration of PR with other communication disciplines
                   • Integration of PR with other marketing disciplines
                   • Integration across business units, products, geographies
              • Measurement, meet strategy
                   • Integration of metrics, data sources, tools, dashboards
                   • Integration of data and insights into decision-making flow




Slide 15 -- February 21, 2011
Old world, meet new world:
              New metrics, data sources, concepts

                          measures: Assess how content is accessed, shared,
                 adapted, amplified across various sites and media properties
                                  measures: Assess the volume, engagement, sentiment
                      and reach of content shared via the web.
                            measures: Assess the paid and organic search rankings for
                      company content, brands and keyword associations
                          measures: Assess the volume, engagement, feedback and
                      reach of content shared via company’s web properties
                                measures: Analyze volume, content, sentiment
                 of conversations about company/brands across sites, media
                              measures: Assess audience, reach and “touch
                 points” of company content/conversations across sites, media
              • Outcome measures: Assess how the content, conversation
                and community measures correlate with desired outcomes


                                 Source: Weber Shandwick Measurement & Strategy
Slide 16 -- February 21, 2011        practice, “Inline” measurement framework
Old world, new world:
              Digital/social outcomes




                    Source: Altimeter Group and Web Analytics
                    Demystified, http://bit.ly/dldIHf

Slide 17 -- February 21, 2011
Old world, meet new world:
                                     Analyzing WOM conversation volume, quality
                                       Low Volume / High Quality                                        High Volume / High Quality

                                              Nationwide

                                                            Prudential

                                                                                 Industry
                                                All State                        Average
           Quality of Advocacy (%)




                                                                                 State Farm

                                                                                                            Metric               Score      Industry
                                                                                                  Share of Conversation              10%           4%
                                                                                                  Net Favorability                   -62%        18%
                                                                                                  Net Recommendation                 -24%        29%
                                                                                                  Propensity to Relay                31%         50%




                                                                                                                           AIG

                                       Low Volume / Low Quality                                          High Volume / Low Quality


                                                                         Share of Conversation (%)

                                                              Source: Weber Shandwick Measurement & Strategy analysis,
Slide 18 -- February 21, 2011                                  based on Keller Fay TalkTrackTM survey data Jan’08-Dec’08
Old world, meet new world:
              Shifting media changes criteria and scale

              • What’s more valuable?
                   • Chicago Tribune print story
                   • WSJ.com online story
                   • Industry blog post with lots of comments
                   • Customer recommendation via Twitter
              • Depends on objective, audience, message, tone, influence
                   • Not all easily measured or compared across media channels
              • Key considerations
                   • Total impressions vs. targeted impressions – efficiency matters
                   • Earned CPM vs. Social CPM – very different scales, don’t equate
                   • Engagement, CPE and Conversion – varies by channel, outlet
                   • Comparative Media Cost – inconsistency of source data



Slide 19 -- February 21, 2011
Silo #1, meet silo #2, silo #3, etc.:
              Cross-media evaluation shows mutual impact




Slide 20 -- February 21, 2011
Silo #1, meet silo #2, silo #3, etc.:
              Cross-discipline metrics are key to insight


              Media                     Media                      Web                     Keyword
             Analysis                  Analysis                  Analytics                 Analysis
           (traditional)               (social)                   (site)                   (search)


               WOM                       Brand                  Customer                  Employee
              Analysis                 Tracking                Satisfaction              Satisfaction
             (surveys)                 (surveys)                (surveys)                 (surveys)


           Lead Gen                    Events &              Analyst Data &               Ind. Awards
          & Sales data                 DM data                  Reports                  & Scorecards
             (CRM)                      (CRM)                 (third party)               (third party)




                             Source: Weber Shandwick Measurement & Strategy practice –
Slide 21 -- March 23, 2010           ARROW Measurement Suite, February 2009
Measurement, meet strategy:
              Flexible + repeatable + integrated metrics


  activities                    reach               relevance             outcomes              worth

What activities          Did you reach              Were you            What business        What is the
were performed          your audience?           relevant to your       results did you    estimated dollar
  to achieve              How many               audience? Were            achieve?         value of your
   results?              impressions,             you credible?           Awareness?       communication
                          web visits,             Did your ideas         Engagement?        efforts? What
                            reports,              and messages            Reputation?       was the ROI?
                        attendees, etc.           resonate? Did         Leads? Sales?
                              were                  you drive              Loyalty?
                          generated?              conversation?           Advocacy?


 Quantity/Output                Quality/Outtakes            Business Impact             Value/Efficiency

 Communications Team                            Marketing Team                           Executive Team




                                           Source: Weber Shandwick Measurement &
Slide 22 -- February 21, 2011           Strategy practice, “ARROW” measurement model
Measurement, meet strategy:
              Sample dashboard for “inline” programs


                 Activities
                                47   Media, Blogger & Influencer Interviews
                                94   Facebook, YouTube, Blog & Twitter Posts


                      Reach
                                170 Earned & Social Media Placements
                                3.9M Earned & Social Media Impressions
                Relevance
                                64% Earned & Social Message Penetration
                                27% Earned & Social Media Share
                 Outcomes
                                14% Increase in Brand Engagement (via web data)
                                27% Category Sales Share (source TBD)
                      Worth
                                $4.72     Earned CPM (Cost Per 1K Impressions)

                                $8.22      Social CPE (Cost Per Engagement)



Slide 23 -- February 21, 2011
Measurement, meet strategy:
              Sample dashboard for integrated comms




Slide 24 -- February 21, 2011
Measurement, meet strategy:
              Advocacy drives sales

                            Advocates can
                   help a company grow an
                            average rate of




                                their competitors




Slide 25 -- February 21, 2011           Source: Bain & Company
Thank You!!!

                                Email:
         tmarklein@webershandwick.com

                                 Blog:
             www.allaboutadvocacy.com

                                 Twitter:
                   twitter.com/tmarklein




- 26 -

Linking PR to Sales (South Carolina Governor's Conference on Tourism & Travel)

  • 1.
    Communications Measurement: Linking PR to Sales Planning  Optimization  ROI South Carolina Governor’s Conference on Tourism & Travel – February 21, 2011 Tim Marklein, Executive VP, Measurement & Strategy tmarklein@webershandwick.com Twitter: @tmarklein Slide 1 -- February 21, 2011
  • 2.
    The Long, WindingRoad  Go to the wrong airport  Wait in line 45 minutes to rebook  “We can’t get you to Aspen today”  “The last bus leaves before 6:00”  Ignore signs: “Independence Pass CLOSED”  Backtrack 2.5 hours to Aspen Slide 2 -- February 21, 2011
  • 3.
    Don’t Let ThisHappen to You… Slide 3 -- February 21, 2011
  • 4.
    Linking PR toSales Requires…  Determination  Persistence  Creativity  Strategy  Methodology Slide 4 -- February 21, 2011
  • 5.
    Industry snapshot: Current state of communications measurement THE GOOD Everyone agrees: Measurement is important Basic standards, tools in place for measuring media CMOs, CFOs and CEOs are asking for more THE BAD Still lots of lip service without investment “What tool should I use?” – wrong question Quarterly reports are shelfware, don’t drive decisions THE UGLY PR metrics aren’t translated into executive terms Not enough definition or accountability for outcomes “Random acts of measurement” – not enough integration Source: Weber Shandwick Slide 5 -- February 21, 2011 Measurement & Strategy practice
  • 6.
    Watershed moment: Movingbeyond AVE • Oct’09: IPR Measurement Commission “condemns the name, concept and practice of ad value equivalencies” • No evidence that earned media space = paid media space • Simply measures media “cost,” doesn’t measure the “value” • Misused as a cheap proxy for ROI – distracts from outcomes • IPR and AMEC working on alternatives, transition plans • Shift focus to business outcomes – awareness, understanding, attitudes, behaviors, engagement, sales, market share, etc. • Always evaluate media quality and message, not just quantity • Options for comparative “cost” evaluation: CPM, targeted reach, “weighted media cost,” engagement/CPE, market mix analysis • Follow updates at www.iprmeasure.org Slide 6 -- February 21, 2011
  • 7.
    Proving PR’s value:Watch your language Typical PR metrics Key business metrics • Total clips • Contribution to sales • Total clips in top-tier media • Contribution to market share • Total circulation/impressions • Contribution to profitability • Share of voice • Influence on stock performance • Media sentiment • Influence on stakeholder awareness • Message pull-through • Influence on stakeholder opinion • Ad equivalency • Influence on employee attitudes • Cost per thousand • Influence on customer consid/pref • Influence on stakeholder awareness • Influence on customer satisfaction • Influence on stakeholder opinion • Influence on customer loyalty • Influence on employee attitudes • Influence on brand equity • Influence on corporate reputation “It will be difficult for PR to get a larger share of the total communications expenditure without quantitative means that go well beyond measurement of media outputs.” Source: Adapted from GAP V report, Annenberg Slide 7 -- February 21, 2011 School of Communication, “Fifth Annual Public Relations Generally Accepted Practices” study, Q1’08
  • 8.
    Or as DuaneParrish put it… Heads in the beds Feet in the fairways People in the parks Slide 8 -- February 21, 2011
  • 9.
    Proving PR’s value:Focus on outcomes • Define clear, precise and measurable goals in business or marketing terms • Borrow from outcomes inventory published by PRSA and IPR (left) • Don’t worry whether you can prove PR’s impact – assume you can, and then work http://comprehension.prsa.org/?p=628 backwards to determine how • Anecdotal evidence • Data-based evidence • Correlation • Contribution • Causation Slide 9 -- February 21, 2011
  • 10.
    Anecdotal evidence The customer said they read a magazine review, and that’s why they called us to buy the product. Slide 10 -- February 21, 2011
  • 11.
    Data-based evidence 9.7% of the customers we surveyed last quarter said they called us because they read a magazine review. Slide 11 -- February 21, 2011
  • 12.
    Correlation Every time our competitive media share goes up, our sales in that region go up for the next two months. Slide 12 -- February 21, 2011
  • 13.
    Contribution Based on our marketing mix model, we determined that PR contributed 2.7% to our sales goal last quarter. Slide 13 -- February 21, 2011
  • 14.
    Causation 720 customers that read about us online, then went to our site, bought the product at an average sales price of $675. Slide 14 -- February 21, 2011
  • 15.
    Proving PR’s value:Integration is critical • Old world, meet new world • Integration of traditional, digital and social media • Integrating WOM and other new influence patterns • Silo #1, meet silo #2, silo #3, etc. • Integration of PR with other communication disciplines • Integration of PR with other marketing disciplines • Integration across business units, products, geographies • Measurement, meet strategy • Integration of metrics, data sources, tools, dashboards • Integration of data and insights into decision-making flow Slide 15 -- February 21, 2011
  • 16.
    Old world, meetnew world: New metrics, data sources, concepts measures: Assess how content is accessed, shared, adapted, amplified across various sites and media properties measures: Assess the volume, engagement, sentiment and reach of content shared via the web. measures: Assess the paid and organic search rankings for company content, brands and keyword associations measures: Assess the volume, engagement, feedback and reach of content shared via company’s web properties measures: Analyze volume, content, sentiment of conversations about company/brands across sites, media measures: Assess audience, reach and “touch points” of company content/conversations across sites, media • Outcome measures: Assess how the content, conversation and community measures correlate with desired outcomes Source: Weber Shandwick Measurement & Strategy Slide 16 -- February 21, 2011 practice, “Inline” measurement framework
  • 17.
    Old world, newworld: Digital/social outcomes Source: Altimeter Group and Web Analytics Demystified, http://bit.ly/dldIHf Slide 17 -- February 21, 2011
  • 18.
    Old world, meetnew world: Analyzing WOM conversation volume, quality Low Volume / High Quality High Volume / High Quality Nationwide Prudential Industry All State Average Quality of Advocacy (%) State Farm Metric Score Industry Share of Conversation 10% 4% Net Favorability -62% 18% Net Recommendation -24% 29% Propensity to Relay 31% 50% AIG Low Volume / Low Quality High Volume / Low Quality Share of Conversation (%) Source: Weber Shandwick Measurement & Strategy analysis, Slide 18 -- February 21, 2011 based on Keller Fay TalkTrackTM survey data Jan’08-Dec’08
  • 19.
    Old world, meetnew world: Shifting media changes criteria and scale • What’s more valuable? • Chicago Tribune print story • WSJ.com online story • Industry blog post with lots of comments • Customer recommendation via Twitter • Depends on objective, audience, message, tone, influence • Not all easily measured or compared across media channels • Key considerations • Total impressions vs. targeted impressions – efficiency matters • Earned CPM vs. Social CPM – very different scales, don’t equate • Engagement, CPE and Conversion – varies by channel, outlet • Comparative Media Cost – inconsistency of source data Slide 19 -- February 21, 2011
  • 20.
    Silo #1, meetsilo #2, silo #3, etc.: Cross-media evaluation shows mutual impact Slide 20 -- February 21, 2011
  • 21.
    Silo #1, meetsilo #2, silo #3, etc.: Cross-discipline metrics are key to insight Media Media Web Keyword Analysis Analysis Analytics Analysis (traditional) (social) (site) (search) WOM Brand Customer Employee Analysis Tracking Satisfaction Satisfaction (surveys) (surveys) (surveys) (surveys) Lead Gen Events & Analyst Data & Ind. Awards & Sales data DM data Reports & Scorecards (CRM) (CRM) (third party) (third party) Source: Weber Shandwick Measurement & Strategy practice – Slide 21 -- March 23, 2010 ARROW Measurement Suite, February 2009
  • 22.
    Measurement, meet strategy: Flexible + repeatable + integrated metrics activities reach relevance outcomes worth What activities Did you reach Were you What business What is the were performed your audience? relevant to your results did you estimated dollar to achieve How many audience? Were achieve? value of your results? impressions, you credible? Awareness? communication web visits, Did your ideas Engagement? efforts? What reports, and messages Reputation? was the ROI? attendees, etc. resonate? Did Leads? Sales? were you drive Loyalty? generated? conversation? Advocacy? Quantity/Output  Quality/Outtakes  Business Impact  Value/Efficiency Communications Team  Marketing Team  Executive Team Source: Weber Shandwick Measurement & Slide 22 -- February 21, 2011 Strategy practice, “ARROW” measurement model
  • 23.
    Measurement, meet strategy: Sample dashboard for “inline” programs Activities 47 Media, Blogger & Influencer Interviews 94 Facebook, YouTube, Blog & Twitter Posts Reach 170 Earned & Social Media Placements 3.9M Earned & Social Media Impressions Relevance 64% Earned & Social Message Penetration 27% Earned & Social Media Share Outcomes 14% Increase in Brand Engagement (via web data) 27% Category Sales Share (source TBD) Worth $4.72 Earned CPM (Cost Per 1K Impressions) $8.22 Social CPE (Cost Per Engagement) Slide 23 -- February 21, 2011
  • 24.
    Measurement, meet strategy: Sample dashboard for integrated comms Slide 24 -- February 21, 2011
  • 25.
    Measurement, meet strategy: Advocacy drives sales Advocates can help a company grow an average rate of their competitors Slide 25 -- February 21, 2011 Source: Bain & Company
  • 26.
    Thank You!!! Email: tmarklein@webershandwick.com Blog: www.allaboutadvocacy.com Twitter: twitter.com/tmarklein - 26 -