A New Look at Measurement:
What's the Value of Your Marketing
and Communications Investments?
During a challenging economy, every dollar spent on marketing and business communications is open to scrutiny. So measuring the effectiveness and impact of these programs is more important than ever.
Yet even with today's advanced technology and tools, many organizations aren't sure how to determine the value, effects and relative return on their communications efforts.
This presentation includes insights on the best strategies, methods and tools to help you calculate the value of your communications investments – and make the most of your marketing spend.
You'll Learn:
• Common mistakes of measuring results.
• Shifting from measuring what can be measured to measuring what's important.
• The best new and traditional tools to benchmark and track performance.
• How to focus on activities that shorten the sales cycle.
2. Agenda
Introductions And Level Setting
Why Measurement Is Difficult
The Importance Of Measurement
Common Methodologies
Five Fundamentals Of Measurement
Case St d Examples
C Study E l
Conclusion/Questions
2 Beyond Clips, Clicks & Hits
3. The State Of Affairs
• Anything that costs money must be justified
• Most organizations don’t know how to measure the value, impact, effects
and relative return on communication efforts
• As a result, many resort to counting what they can count
3 Beyond Clips, Clicks & Hits
4. Common Questions We Get
• How do I calculate the ROI of marketing and communications?
• How do I weigh individual elements in the marketing mix?
• Can I tie publicity to sales or a stock price?
• What have you done for me lately?
4 Beyond Clips, Clicks & Hits
5. First, Some Simple Math
Marketing
≠
Marketing Communications
≠
Integrated Communications
≠
Tactics
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6. The Basic Hierarchy
• Marketing • Finance
- Marketing Communications - Investor Relations
> Collateral
C ll l > Collateral
C ll l
> Seminars & Events > Investor Events
> Media Relations > Media Relations
> Public Relations > Public Relations
> Perception Research > Perception Research
> Crisis / Critical Issues > Crisis / Critical Issues
> Advertising
> Publicity
> Direct Marketing
> Interactive
> Social Media
6 Beyond Clips, Clicks & Hits
7. Together They Help Organizations Reach The Audiences Important To
Their Success
Customers Industry
Associations
Shareholders
Media
Your company
Employees
Channel Partners
Suppliers and Standards Bodies
Partners Industry
Analysts
7 Beyond Clips, Clicks & Hits
8. Why Measure? Because The Results Help:
• Prioritize work
• Justify the spend
• Refine a program
• Move from anecdotal to factual
• Shift from “reacti e” to “proacti e” mode
“reactive” “proactive”
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9. The Value Of Measurement
• Prove that you met objectives
• Benchmark/track performance
• Gain competitive advantage
• “Move the needle”
- Sales?
- Awareness?
- Response – Trial, evaluation, adoption
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10. Why Is It So Difficult?
• It takes time
• It takes money
• We’re dealing with human behavior
• External factors
• There are no 1:1 correlations
• Integrated programs
• It’s viewed as justification rather than a value-add
• Distinguishing between “value” and “ROI”
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11. Determining Value
Monetary
VALUE
Utility Reputation
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13. You Need To Determine…
• How much should I put into it?
• Do I know the vital metrics (for finance, operations, sales, marketing, etc.)?
• Can you act on the data?
• What’s my time frame?
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14. IT’S A JUNGLE OUT THERE
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15. The “HIPPO” Methodology
Based on the Highest Paid Person’s Objective
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18. The “T-Rex” Methodology
So big that it consumes your entire budget
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19. Five Fundamentals Of Measuring Programs
1. Start with research
2. Set measurable objectives
3. Only measure what’s important
4. Use the right tools
5. Measure continuously
19 Beyond Clips, Clicks & Hits
23. Tips To Developing Measurable Objectives
• Objectives must:
- Address a specific outcome
- Designate the specific target audience
- Specify a specific level of attainment
- Identify a specific timeframe
23 Beyond Clips, Clicks & Hits
24. Example: Business Objective #1
• Generate $25 million in revenue from X product line
- Sales Objective: Improve win-ratio by 40 percent and shorten sales cycle by 20
percent
- Marketing Communication Objective: Increase qualified sales leads by 20 percent
over 2008
- Product Marketing Objective: Identify three to five possible line extensions based
on feedback and use of initial launch model
- Financial Communication Objective: Increase institutional ownership by 10
percent
24 Beyond Clips, Clicks & Hits
25. Example: Business Objective #2
• Improve customer preference of brand
- Marketing Objective: By 4Q09, achieve 55 percent brand awareness among 25- to
40-year-old
40 year old men in the U.S. by increasing awareness by 10 percent
US
- Financial Communication Objective: Increase number of analysts following the
company
- Communication Objective: Maintain no 1 share of voice position in tier one trade
no. share-of-voice
publications compared to competitors A, B and C
25 Beyond Clips, Clicks & Hits
27. Metrics – The Three O’s
• Outputs: Execution of program elements
- All work measured on budget, timing and message alignment
- Are we getting the work done efficiently and effectively?
• Outtakes: The net impression
- Strive for majority of deliverables
j y
- Media coverage, circulation, event attendance, distribution, search rankings
- Are we reaching the right people?
• Outcomes: The behavior that follows
- Tied to business goals
- Sales increase, lead generation, unaided awareness, incoming versus outgoing
media calls
- Programs, not tactics
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28. Audience – Specific Outputs, Outtakes And Outcomes
Target Desired Key Comm.
Cares About Metric
Audience Action Message Strategy
Financial Analysts • Company • Recommend • Next big market • Focus • Increase
performance stock opportunity is conference market cap
• Strength of • Buy/retain “XYZ,” and our activity and • Change mix of
management stock as core in company has a regional road shareholders
team long-term
long term leadership shows on
• Market growth position here priorities
leadership portfolios • Company • Upgrade IR Web
• Write positive performance site
reports exceeds
industry leaders
y
Channel Partner • Sales leads • Promote to • Easiest to • Education • Leads
• Revenue existing install • “Company in a • Sales cycle
• Margin customers • Easiest to use box” • Jobs quoted
• Recommend in • Easiest to do • Regional • Jobs won
new proposals business with advertising • Revenue by
• Accurately partner
represent us
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32. Benchmark, Track, Analyze And Act
Review last
year’s
metrics; set
program
objectives
Feed
evaluation Monitor and
results into track
p
planning g p g
progress
process
Leverage
observable
changes
32 Beyond Clips, Clicks & Hits
34. Example #1: Vital Images Outreach
Review last year’s metrics; set program objectives
Monitor and track progress
Leverage observable changes
Feed evaluation results into planning process
Company seeks
more sell-side
analyst coverage
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35. Example #1: Vital Images Outreach, cont.
One-year IR program results:
• Raised stock price 39 percent to >$30
• Market
M k t cap increased 38 percent t >$400 million;
i d t to illi
now at $550 million
• Three new national sell-side analysts initiated coverage
• Increased institutions holding >100,000 shares from
g ,
15 to 26, up 73 percent
• Successful $100 million secondary offering completed
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36. Example #2: Rockwell Automation Convergence
Needed to eliminate the long-standing technical –
and turf – barriers between IT and factory-floor
engineers
Embarked on a program to educate and persuade
tighter collaboration
Breaking down
barriers to
strategic sales
36 Beyond Clips, Clicks & Hits
37. Example #2: Rockwell Automation Convergence, cont.
Garnered over 600 media placements
On-site visits and presentations to 8,000-plus
customers on four continents.
Attracted more than 1,000 attendees combined for
three educational webcasts
Increased Internet traffic by nearly 50 percent to
Web landing pages
Exceeded sales forecasts for the first-of-its-kind
Stratix 8000 switch
Two-thirds of attendees at webcasts indicated
o t ds o atte dees ebcasts d cated
intent to buy Rockwell Automation products
Educated more than 1,000 salespeople and
distributors
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38. In Closing
• Everything can be measured
• Don’t fall into the ROI trap
• The value of measuring tactics is limited
• Consider measurement a process … not a point in time
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