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ROI for Internal Communicators

What's the real secret to how internal communications can show it's value to leadership and their organization? Return on Investment (ROI). In this presentation, we'll walk you through the Why, What, How and When of ROI for internal comms.

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ROI for Internal Communicators

  1. 1. The Why, What, How and When of ROI Sara Jackson & Tarek Kamil ALI July 21, 2020
  2. 2. Sara Jackson Internal Comms Pro 2 Internal comms evangelist using events, teaching, & podcasting to collectively raise the value of the internal comms industry. Reach me at: ▪ ▪ ▪ Twitter @pixiedustsara ▪ LinkedIn Sara Jackson
  3. 3. Tarek Kamil CEO, Cerkl 3 Software engineer who loves math, A.I., big data. “How can we use technology to make the world a better place?” Reach me at: ▪ ▪ ▪ Twitter @tarekkamil ▪ LinkedIn Tarek Kamil
  4. 4. 1. WHY SHOULD I CARE ABOUT ROI? You’ll “value” this answer. 4
  5. 5. VALUE ROI is the key to showing the value of what you do. How do you add value to the business? 6
  6. 6. 2. WHAT IS ROI? It’s easier than you think. 7
  7. 7. ROI: the financial benefit to the company vs cost of the initiative.
  8. 8. Gain - Cost Cost X 100 Hint: ROI is reported as a percentage.
  9. 9. Hurdle Rate: The minimum ROI acceptable by the company. (get this from Finance)
  10. 10. 3. HOW DO YOU USE IT? It’s easier than you think. 11
  11. 11. This is how your friends in marketing speak...
  12. 12. This campaign drove $2 million in sales for an ROI of 300%.
  13. 13. $2 million - $500k $500k = 300% ROIx 100
  14. 14. “3 Legged Stool” - Natalie Guzman Internal Comms Pro Podcast S3E1 Innovation requires more than an idea. Secure buy-in BEFORE approaching finance. Use ROI to secure buy-in. 15 HR IT Internal Comms
  15. 15. “ The CFO never argues to the left of the equal sign. - Jay Shelton Internal Comms Pro Podcast S3E2 16
  16. 16. 4. WHEN DO YOU USE IT? Show me the money! 17
  17. 17. Any time you are 1 step away from dollar savings. Some examples: When to calculate ROI Open Enrollment The value of each employee enrolling for benefits is $X/year. 18 Customer Satisfaction Every point increase in customer satisfaction is worth $X/year to the company. Employee Time Saving our employees Y minutes per month is worth $X/year to the company. Reducing Errors Every percentage reduction in errors is worth $X/year to the company.
  18. 18. Let’s take a look at some examples... 19
  19. 19. The Scenario: Digitize Your Employee Newsletter
  20. 20. Let’s calculate the ROI...
  21. 21. Agency Design $20,000 Printing $15,000 Mailing $20,000 Staff Time $8,000 TOTAL $53,000 COST TO PRINT 4 NEWSLETTERS PER YEAR Agency Design $2,000 Staff Time $24,000 TOTAL $26,000 COST TO EMAIL 12 NEWSLETTERS PER YEAR
  22. 22. 53,000 - 26,000 = 27,000 27,000 / 26,000 (Cost) = 1.038 X 100 = 103.8% ROI
  23. 23. The Scenario: Intranet upgrade
  24. 24. “I’m drowning. I don’t have time for this.” Your Day Map out your current day or week. Identify where you and your team are spending your time. Color code the following: ▪ Strategic planning ▪ Content creation ▪ Meetings ▪ Responding to email ▪ Creating newsletters ▪ Analyzing data Tools to Automate Identify areas of work where duplication efforts are present. These are hints of areas that can be automated. ▪ Meetings ▪ Content Distribution ▪ Content Calendar ▪ Newsletters ▪ Templates ▪ Measurement ▪ Reports/Dashboar ds Teach to Fish Set up an internal comms toolbox to empower other departments. ▪ Resource Guide ▪ Photo Library ▪ Service Delivery ▪ Establish levels 27
  25. 25. Resources The following free resources are provided by Cerkl and Internal Comms Pro. Cerkl Resource to calculate ROI: ▪ ROI Real-time Calculator ▪ Downloadable ROI Spreadsheet ICPro Podcast Episodes: ▪ Demystify Internal Communication ROI: Secrets from a CFO ▪ The Perfect Trifecta 28
  26. 26. Thank you very much for your time! 29 If you have any questions about anything in this presentation, please don’t hesitate to reach out to Sara or Tarek.