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.
2. Agenda Introductions And Level Setting Why Measurement Is Difficult The Importance Of Measurement Common Methodologies Five Fundamentals Of Measurement Case Study Examples Conclusion/Questions Beyond Clips, Clicks & Hits 2
3. 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 & Hits 3
4. 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 & Hits 4
5. First, Some Simple Math Marketing ≠ Marketing Communications ≠ Integrated Communications ≠ Tactics Beyond Clips, Clicks & Hits 5
6. 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 Beyond Clips, Clicks & Hits 6 Finance Investor Relations Collateral Investor Events Media Relations Public Relations Perception Research Crisis / Critical Issues
7. Together They Help Organizations Reach The Audiences Important To Their Success Beyond Clips, Clicks & Hits 7 Customers Industry Associations Shareholders Media Your company Employees Channel Partners Standards Bodies Suppliers and Partners Industry Analysts
8. 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 & Hits 8
9. 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 & Hits 9
10. 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 & Hits 10
13. 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 & Hits 13
14. IT’S A JUNGLE OUT THERE Beyond Clips, Clicks & Hits 14
15. The “HIPPO” Methodology Beyond Clips, Clicks & Hits 15 Based on the Highest Paid Person’s Objective
18. The “T-Rex” Methodology Beyond Clips, Clicks & Hits 18 So big that it consumes your entire budget
19. Five Fundamentals Of Measuring Programs Start with research Set measurable objectives Only measure what’s important Use the right tools Measure continuously Beyond Clips, Clicks & Hits 19
26. 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 & Hits 23
27. 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 & Hits 24
28. 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 & Hits 25
30. 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 & Hits 27
31. Audience – Specific Outputs, Outtakes And Outcomes Beyond Clips, Clicks & Hits 28
35. Benchmark, Track, Analyze And Act Beyond Clips, Clicks & Hits 32 Review last year’s metrics; set program objectives Monitor and track progress Feed evaluation results into planning process Leverage observable changes
36. 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 Beyond Clips, Clicks & Hits 33
