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What\'s the Value of Your Marketing and Communications Investments?During a challenging economy, every dollar spent on marketing and business communications is open to scrutiny. So measuring the effectiveness and impact of these programs is more important than ever.Yet even with today\'s advanced technology and tools, many organizations aren\'t sure how to determine the value, effects and relative return on their communications efforts.This presentation includes insights on the best strategies, methods and tools to help you calculate the value of your communications investments – and make the most of your marketing spend.You\'ll Learn: • Common mistakes of measuring results. • Shifting from measuring what can be measured to measuring what\'s important. • The best new and traditional tools to benchmark and track performance. • How to focus on activities that shorten the sales cycle.
Citation preview
September 17, 2009
2
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
Beyond Clips, Clicks & Hits6
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
Beyond Clips, Clicks & Hits7
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”
Beyond Clips, Clicks & Hits11
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
Beyond Clips, Clicks & Hits17
The “Monkey-See-Monkey-Count” Methodology
Counting … just because you can
Beyond Clips, Clicks & Hits18
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
Beyond Clips, Clicks & Hits20
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
Beyond Clips, Clicks & Hits23
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
Beyond Clips, Clicks & Hits29
FUNDAMENTAL #4
USE THE RIGHT TOOLS
Beyond Clips, Clicks & Hits30
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