ROI Demystified
WOMMA Summit 2010
Scott Cuppari
Walter Carl
Stuart Sheldon
Dan Hunter
What Is ROI?
Why Is It So Hard To Do?
Case Studies
WHAT IS ROI?
Gain - Cost
Cost
Principles of Measuring ROI
Target Exposed
to Activation
Category
Mass Target
1) Isolate Program Versus Control
Reach
Impact
Cost Effectiveness/ROI
2) Use ConsistentMeasures
3) Compare to Objective Database
Top 10% Top 25%
Top 50% Bottom 50%
Impact
Target Reached
Comprehend/Interest
Purchasers
Repeat
Reach
WOM-Impacted
Purchasers
Repeat
WOM
Amplification
4) Include WOM Impact: Generation 0 to G1+…
$0
$1
$2
$3
$4
1 2 3 4 5 6 7 8 9 10 11 12Months
Test Spend =$3.12/mth
Control SpendAverage =$2.48/mth
5) Include Short Term & Long Term
Bra
nd
Sp
en
d
CASE STUDY #1
OBJECTIVES
• Trial
• Real Coca-Cola Taste and Zero Calories
COKE ZERO IT’S POSSIBLE
SOLUTION
• Brand Advocates
• Social Currency
• Tools & Triggers
• Real World & Digital
COKE ZERO IT’S POSSIBLE
PROGRAM
COST % ROI : Exceeded
BRAND BUSINESS WOM
Events: 2,500+
Views: 300M+
Trial: +7% vs. goal
Budget: On
Likelihood To Recommend: +48 pts.
Purchase Intent: +38pts.
Key Message Recall: Exceed
G0 New Triers: 65%
G1+G2 New Trial: Conf.
Volume: Up
Velocity: Up
Share: Up
4 Week Relay Rate: 11+
NPS: +20 points
G0+G1+G2 Reach: 10X+ Trial
Note: Some results generalized, masked or withheld for confidentiality.
6.9%
11.9%11.4%
5.8%
8.1%8.8%
14.2%
5.3%
8.4%
15.8%
3.7%
4.9%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
January February March April May June July August September October November December
Coke Zero Activated Markets Number of Trials/month
Experiential Trial Drives WOM
How To Value That WOM?
Direct
Reach- Number of program participants in target consumer audience
WOM
Reach
- How long customer continues to recommend
- Generational relay rates (# of people reached), adjusted for
social network overlap to determine unique reach
Incremental
Purchase
Impact
- Generational conversion rates (% new purchasers)
- Determine incremental purchases compared to control group
Long-term (1 YR)
Purchases
- Repeat rate
- Additional units purchased
- Profitability per unit
- Discount rate
Cost - Program, coupon, and sample cost
Net Conversation Value® =
$0.04*
Incremental Revenue Generated – Program Cost / Unique Conversational Reach
To get ROI, replace Program Cost for Unique Conversational Reach
* Approx. 2X CPG & Food & Beverage benchmarks.
CASE STUDY #2
Mass Loyalty Reward Campaign
Experiential Activation Trial Campaign
Mass vs. Experiential Cost Effectiveness/ROI
16
Impact
Mass Media Campaign Experiential Activation
20 x$1
$1
$1
1 x$3
$2
$1
Reach (#)Cost per Reach
Cost per Impact (Direct)
Cost per Impact (Direct & WOM)
Reach
Mass vs Experiential Cost Effectiveness/ROI
Principles of Measuring ROI
Program vs. Control
Consistent Measures
Benchmark Results
Include WOM
Short & Long Term
Conversation
Thank You