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

Beyond Clips, Clicks & Hits4

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?

Beyond Clips, Clicks & Hits5

First, Some Simple Math

Marketing

≠

Marketing Communications

≠

Integrated Communications

≠

Tactics

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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

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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

Beyond Clips, Clicks & Hits8

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

Beyond Clips, Clicks & Hits9

The Value Of Measurement

• Prove that you met objectives

• Benchmark/track performance

• Gain competitive advantage

• “Move the needle”

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

Beyond Clips, Clicks & Hits10

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”

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Determining Value

Monetary

Utility

VALUE

Reputation

Beyond Clips, Clicks & Hits12

EVERYTHING CAN BE MEASURED!!!

Beyond Clips, Clicks & Hits13

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?

Beyond Clips, Clicks & Hits14

IT’S A JUNGLE OUT THERE

Beyond Clips, Clicks & Hits15

The “HIPPO” Methodology

Based on the Highest Paid Person’s Objective

Beyond Clips, Clicks & Hits16

The “Penguin” Methodology

Each tactic measured the same way

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The “Monkey-See-Monkey-Count” Methodology

Counting … just because you can

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The “T-Rex” Methodology

So big that it consumes your entire budget

Beyond Clips, Clicks & Hits19

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

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FUNDAMENTAL #1

START WITH RESEARCH

Beyond Clips, Clicks & Hits21

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

Beyond Clips, Clicks & Hits22

FUNDAMENTAL #2

SET MEASURABLE OBJECTIVES

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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

Beyond Clips, Clicks & Hits24

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

Beyond Clips, Clicks & Hits25

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

Beyond Clips, Clicks & Hits26

FUNDAMENTAL #3

ONLY MEASURE WHAT’S IMPORTANT

Beyond Clips, Clicks & Hits27

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

Beyond Clips, Clicks & Hits28

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

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FUNDAMENTAL #4

USE THE RIGHT TOOLS

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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

Beyond Clips, Clicks & Hits31

FUNDAMENTAL #5

MEASURE CONTINUOUSLY

Beyond Clips, Clicks & Hits32

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

Beyond Clips, Clicks & Hits33

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