Download pptx - Padilla Beyond Clips Clicks And Hits 091709

September 17, 2009

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AgendaIntroductions And Level SettingWhy Measurement Is DifficultThe Importance Of MeasurementCommon MethodologiesFive Fundamentals Of MeasurementCase Study ExamplesConclusion/Questions

Beyond Clips, Clicks & Hits

Beyond Clips, Clicks & Hits3

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


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?


First, Some Simple Math

Marketing

≠

Marketing Communications

≠

Integrated Communications

≠

Tactics


The Basic Hierarchy

• Marketing

- Marketing Communications>Collateral>Seminars & Events>Media Relations>Public Relations>Perception Research>Crisis / Critical Issues>Advertising >Publicity>Direct Marketing> Interactive>Social Media

• Finance

- Investor Relations>Collateral> Investor Events>Media Relations>Public Relations>Perception Research>Crisis / Critical Issues


Together They Help Organizations Reach The Audiences Important To Their Success

Your company

Customers

Shareholders

Employees

Suppliers andPartners

Channel Partners

Media

Industry Associations

Standards Bodies

IndustryAnalysts


Why Measure? Because The Results Help:

• Prioritize work

• Justify the spend

• Refine a program

• Move from anecdotal to factual

• Shift from “reactive” to “proactive” mode


The Value Of Measurement

• Prove that you met objectives

• Benchmark/track performance

• Gain competitive advantage

• “Move the needle”

- Sales?- Awareness?- Response – Trial, evaluation, adoption


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”


Determining Value

Monetary

Utility

VALUE

Reputation


EVERYTHING CAN BE MEASURED!!!


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?


IT’S A JUNGLE OUT THERE


The “HIPPO” Methodology

Based on the Highest Paid Person’s Objective


The “Penguin” Methodology

Each tactic measured the same way


The “Monkey-See-Monkey-Count” Methodology

Counting … just because you can

http://www.wired.com/wiredscience/wp-content/image.php?u=/images_blogs/photos/uncategorized/2007/12/03/mathchimp.jpg


The “T-Rex” Methodology

So big that it consumes your entire budget


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


FUNDAMENTAL #1

START WITH RESEARCH


Numerous Research Options

• Quick surveys and polls

• Omnibus surveys

• One-on-one, in-depth interviews

• Focus groups (traditional or online)

• Advertising analysis

• Intercepts/on-the-spot surveys

• Media monitoring

• Social media monitoring

• Competitive analysis

• Media content analysis


FUNDAMENTAL #2

SET MEASURABLE OBJECTIVES


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


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


Example: Business Objective #2

• Improve customer preference of brand

- Marketing Objective: By 4Q09, achieve 55 percent brand awareness among 25- to 40-year-old men in the U.S. by increasing awareness by 10 percent

- Financial Communication Objective: Increase number of analysts following the company

- Communication Objective: Maintain no. 1 share-of-voice position in tier one trade publications compared to competitors A, B and C


FUNDAMENTAL #3

ONLY MEASURE WHAT’S IMPORTANT


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- 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


Audience – Specific Outputs, Outtakes And Outcomes

Target

AudienceCares About

Desired Action

KeyMessage

Comm. Strategy Metric

Financial Analysts

• Company performance

• Strength of management team

• Market leadership

• Recommend stock

• Buy/retain stock as core in long-term growth portfolios

• Write positive reports

• Next big market opportunity is “XYZ,” and our company has a leadership position here

• Company performance exceeds industry leaders

• Focus conference activity and regional road shows on priorities

• Upgrade IR Web site

• Increase market cap

• Change mix of shareholders

Channel Partner

• Sales leads• Revenue• Margin

• Promote to existing customers

• Recommend in new proposals

• Accurately represent us

• Easiest to install

• Easiest to use

• Easiest to do business with

• Education• “Company in

a box”• Regional

advertising

• Leads• Sales cycle• Jobs quoted• Jobs won• Revenue by

partner


FUNDAMENTAL #4

USE THE RIGHT TOOLS


Sample Measurement Tools

• Radian6

• LexisNexis

• Google News

• Google Analytics

• Compete.com

• Clipping Services

• Search.Twitter.com

• BoardLeader.com

• BlogPulse

• Technorati

• Survey Monkey

• Gallup

• BizShark.com

• Alexa.com

• D&B Database

• BackType.com


FUNDAMENTAL #5

MEASURE CONTINUOUSLY


Benchmark, Track, Analyze And ActReview

last year’s

metrics; set

program objective

s

Monitor and

track progress

Leverage

observable

changes

Feed evaluati

on results

into planning process


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

Thank You