Coca-Cola North American, Escalate, ChatThreads and IMI led a discussion on how to measure ROI on marketing programs...even "below the line." Packed house so check it out!
6. Principles of Measuring ROI
1) Isolate Program 2) Use Consistent 3) Compare to
Versus Control Measures Objective Database
Category Target Exposed
Mass Target to Activation Reach
Top 10% Top 25%
Impact
Cost Effectiveness/ROI
Top 50% Bottom 50%
7. 4) Include WOM Impact: Generation 0 to G1+…
Reach
Target Reached
Impact Comprehend/
Interest
Purchasers WOM
Amplification
Repeat WOM-Impacted
Purchasers
Repeat
5) Include Short Term & Long Term
$4
$3 Test Spend
Brand Spend
=$3.12/mth
$2
$1 Control Spend
Average =$2.48/mth
$0
1 2 3 4 5 6 7
Months 8 9 10 11 12
9. COKE ZERO IT’S POSSIBLE
OBJECTIVES
• Trial
• Real Coca-Cola Taste
and Zero Calories
SOLUTION
• Brand Advocates
• Social Currency
• Tools & Triggers
• Real World & Digital
10. COKE ZERO IT’S POSSIBLE
PROGRAM BRAND BUSINESS WOM
Events: 2,500+ Likelihood To G0 New Triers: 4 Week Relay
Recommend: 65% Rate: 11+
Views: 300M+ +48 pts.
G1+G2 New NPS: +20
Trial: +7% vs. Purchase Intent: Trial: Conf. points
goal +38pts.
Volume: Up G0+G1+G2
Budget: On Key Message Reach: 10X+
Recall: Exceed Velocity: Up Trial
Share: Up
COST % ROI : Exceeded
Note: Some results generalized, masked or withheld for confidentiality.
11. Experiential Trial Drives WOM
18.0%
16.0% 15.8%
14.0% 14.2%
12.0% 11.9%
11.4%
10.0%
8.8%
8.0% 8.1% 8.4%
6.9%
6.0% 5.8%
5.3%
4.9%
4.0%
3.7%
2.0%
0.0%
January February March April May June July August September October November December
Coke Zero Activated Markets Number of Trials/month
12. How To Value That WOM?
Direct
- Number of program participants in target consumer audience
Reach
- How long customer continues to recommend
WOM
- Generational relay rates (# of people reached), adjusted for
Reach
social network overlap to determine unique reach
Incremental
- Generational conversion rates (% new purchasers)
Purchase
- Determine incremental purchases compared to control group
Impact
- Repeat rate
Long-term (1 YR) - Additional units purchased
Purchases - Profitability per unit
- Discount rate
Cost - Program, coupon, and sample cost
13. Net Conversation Value® =
Incremental Revenue Generated – Program Cost /
Unique Conversational Reach
$0.04*
To get ROI, replace Program Cost for Unique
Conversational Reach
* Approx. 2X CPG & Food & Beverage benchmarks.
15. Mass vs. Experiential
Cost Effectiveness/ROI
Mass Loyalty Experiential Activation
Reward Campaign Trial Campaign
16. Mass vs Experiential
Cost Effectiveness/ROI
Mass Media Campaign Experiential Activation
Reach
20 x Reach (#) 1x
$1 Cost per Reach $3
Impact
Cost per Impact
$1 $2
(Direct)
Cost per Impact
$1 $1
(Direct & WOM)
1
6
17. Principles of Measuring ROI
Program vs. Control
Consistent Measures
Benchmark Results
Include WOM
Short & Long Term