Padilla Beyond Clips Clicks And Hits 040110

April1, 2010

AgendaIntroductions And Level SettingWhy Measurement Is DifficultThe Importance Of MeasurementThe Importance Of MeasurementCommon MethodologiesFive Fundamentals Of MeasurementC St d E lCase Study ExamplesConclusion/Questions

Beyond Clips, Clicks & Hits2

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 CommunicationsC ll l

• Finance

- Investor RelationsC ll l> Collateral

> Seminars & Events

> Media Relations

> Collateral

> Investor Events

> Media Relations

> Public Relations

> Perception Research

> Crisis / Critical Issues

> Public Relations

> Perception Research

> Crisis / Critical Issues

> Advertising

> Publicity

> Direct Marketing

> Interactive

> Social Media


Together They Help Organizations Reach The Audiences Important To Their SuccessTheir Success

Customers Industry Associations

ShareholdersMedia

Your companyEmployeesEmployees

Channel Partners

Suppliers andPartners

Standards BodiesIndustryAnalysts


Why Measure? Because The Results Help:

• Prioritize work

• Justify the spend

• Refine a program

• Move from anecdotal to factual

Shift from “reacti e” to “proacti e” mode• 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?- 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

MonetaryMonetary

VALUE

UtilityUtility ReputationReputation


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

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

• Intercepts/on-the-spot surveys

• Media monitoring

• One-on-one, in-depth interviews

• Focus groups (traditional or online)

• Social media monitoring

• Competitive analysisonline)

• Advertising 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 percent

- Marketing Communication Objective: Increase qualified sales leads by 20 percent over 2008

- Product Marketing Objective: Identify three to five possible line extensions based 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 percent40-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 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 deliverablesj y- Media coverage, circulation, event attendance, distribution, search rankings- Are we reaching the right people?

• Outcomes: The behavior that followsOutcomes: The behavior that follows

- Tied to business goals- Sales increase, lead generation, unaided awareness, incoming versus outgoing

media callsmedia calls- Programs, not tactics


Audience – Specific Outputs, Outtakes And Outcomes

TargetAudience

Cares AboutDesired Action

KeyMessage

Comm. Strategy

MetricAudience Action Message Strategy

Financial Analysts • Company performance

• Strength of management team

• Recommend stock

• Buy/retain stock as core in long term

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

• Focus conference activity and regional road shows on

• Increase market cap

• Change mix of shareholders

team• Market

leadership

long-term growth portfolios

• Write positive reports

leadership position here

• Company performance exceeds industry leaders

shows on priorities

• Upgrade IR Web site

y

Channel Partner • Sales leads• Revenue• Margin

• Promote to existing customers

• Recommend in new proposals

• 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 new proposals

• Accurately represent us

business with advertising Revenue by partner


FUNDAMENTAL #4

USE THE RIGHT TOOLS


Sample Measurement Tools

• Radian6

• LexisNexis

• BlogPulse

• Technorati

• Google News

• Google Analytics

• Survey Monkey

• Gallup

• Compete.com

• Clipping Services

• BizShark.com

• Alexa.com

• Search.Twitter.com

• BoardLeader.com

• D&B Database

• BackType.com


FUNDAMENTAL #5

MEASURE CONTINUOUSLY


Benchmark, Track, Analyze And Act

Review last year’s

metrics; set program

objectives

Monitor and track

progress

Feed evaluation results into

planning p gp gprocess

Leverage observable

changes


COMMUNICATION MEASUREMENT: CASES AND EXAMPLES


Example #1: Vital Images Outreach

Review last year’s metrics; set program objectives

Monitor and track progress

Leverage observable changes

Feed evaluation results into planning process

Company seeks

more sell-side

analyst coverage


Example #1: Vital Images Outreach, cont.

One-year IR program results:

• Raised stock price 39 percent to >$30 M k t i d 38 t t >$400 illi • Market cap increased 38 percent to >$400 million; now at $550 million

• Three new national sell-side analysts initiated coverage• Increased institutions holding >100,000 shares from g ,

15 to 26, up 73 percent• Successful $100 million secondary offering completed


Example #2: Rockwell Automation Convergence

Needed to eliminate the long-standing technical –and turf – barriers between IT and factory-floor engineersengineers

Embarked on a program to educate and persuade tighter collaboration

Breaking down

barriers to

strategic sales


Example #2: Rockwell Automation Convergence, cont.

Garnered over 600 media placements

On-site visits and presentations to 8,000-plus customers on four continents.

Attracted more than 1,000 attendees combined for three educational webcasts

Increased Internet traffic by nearly 50 percent to Web landing pages

Exceeded sales forecasts for the first-of-its-kind Stratix 8000 switch

Two-thirds of attendees at webcasts indicated o t ds o atte dees at ebcasts d catedintent to buy Rockwell Automation products

Educated more than 1,000 salespeople and distributorsdistributors


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