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

Presentation on "Communications Measurement: Linking PR to Sales"" -- delivered by Tim Marklein, Executive VP of Measurement & Strategy for Weber Shandwick -- presented February 21, 2011 at the South Carolina Governor's Conference on Tourism & Travel in Charleston, SC.

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

  1. 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 Twitter: @tmarkleinSlide 1 -- February 21, 2011
  2. 2. 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 AspenSlide 2 -- February 21, 2011
  3. 3. Don’t Let This Happen to You…Slide 3 -- February 21, 2011
  4. 4. Linking PR to Sales Requires…  Determination  Persistence  Creativity  Strategy  MethodologySlide 4 -- February 21, 2011
  5. 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 ShandwickSlide 5 -- February 21, 2011 Measurement & Strategy practice
  6. 6. 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.orgSlide 6 -- February 21, 2011
  7. 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, AnnenbergSlide 7 -- February 21, 2011 School of Communication, “Fifth Annual Public Relations Generally Accepted Practices” study, Q1’08
  8. 8. Or as Duane Parrish put it… Heads in the beds Feet in the fairways People in the parksSlide 8 -- February 21, 2011
  9. 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 backwards to determine how • Anecdotal evidence • Data-based evidence • Correlation • Contribution • CausationSlide 9 -- February 21, 2011
  10. 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. 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. 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. 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. 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. 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 flowSlide 15 -- February 21, 2011
  16. 16. 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 & StrategySlide 16 -- February 21, 2011 practice, “Inline” measurement framework
  17. 17. Old world, new world: Digital/social outcomes Source: Altimeter Group and Web Analytics Demystified, 17 -- February 21, 2011
  18. 18. 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
  19. 19. Old world, meet new world: Shifting media changes criteria and scale • What’s more valuable? • Chicago Tribune print story • 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 dataSlide 19 -- February 21, 2011
  20. 20. Silo #1, meet silo #2, silo #3, etc.: Cross-media evaluation shows mutual impactSlide 20 -- February 21, 2011
  21. 21. 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
  22. 22. Measurement, meet strategy: Flexible + repeatable + integrated metrics activities reach relevance outcomes worthWhat activities Did you reach Were you What business What is thewere 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. 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. 24. Measurement, meet strategy: Sample dashboard for integrated commsSlide 24 -- February 21, 2011
  25. 25. Measurement, meet strategy: Advocacy drives sales Advocates can help a company grow an average rate of their competitorsSlide 25 -- February 21, 2011 Source: Bain & Company
  26. 26. Thank You!!! Email: Blog: Twitter: 26 -