1.
Enough with
the Edutainment talk.
Give me the realz.
Enough with
EDUTAINMENT R.O.I.
the Edutainment BS.
Give me the realz.

2.
EDUTAINMENT IS NOT FREE.

3.
1. It takes people.

4.
2. It takes technology.

5.
3. It takes time.

6.
We have… rocks.
… all of which are limited resources.

7.
These resources
=
100%
of your budget
Employees
Marketing
Advertising
Training & Development
Each resource
has a specific cost
I.T. Accounting
Each resource
yields specific results
Sponsorship

8.
These resources
generate
100%
of your business
Sponsorship Losing even 1%
Employees
Marketing
Advertising
Training & Development
I.T. Accounting
of your budget’s efficiency
could seriously ruin
your day.

9.
Okay fine. But if
I’m going to take a chance
on this Edutainment thing,
it had better make good business
sense! Why should I allocate
resources to it?

10.
Reason #1:
It will result in a cost reduction.
Improve employee retention?
You mentioned something
about business intelligence
and analytics?
Reason #2:
It will generate more revenue.
I want more new clients,
more revenue per client,
more loyalty,
etc.

11.
Now go figure out what
program you have to cut
to fund this Edutainment thing.
Remember that our bonuses
are on the line.

12.
Understand that funding
for a new Edutainment
Program doesn’t appear
Which buckets do we empty
to fill this new one?
out of thin air.

13.
SAY HELLO TO:
Business Justification
R.O.I.

14.
. . .
RETURN ON INVESTMENT

15.
THE R.O.I. EQUATION
Investment Expectation of return

16.
ROI =
THE R.O.I. EQUATION
(GAIN FROM INVESTMENT - COST OF INVESTMENT)
COST OF INVESTMENT

17.
Truth about R.O.I.
ROI is a business metric,
not a edutainment metric.
Only measuring digital or social engagement
won’t get you anywhere.

18.
Reason #1:
COST REDUCTION
Reason #2:
REVENUE GENERATION
Remember what Mr. Bossman said…

19.
I shrank my advertising budget by 20%
and my sponsorship budget by 40%.
Now I can afford a team of Edutainment
rock stars. Can I get a hellz yeah?
Okay, hotshot,
You have your Edutainment doohickey.
Now I’d better see some real results!
Or else…

20.
Woohoo!
I have a job!!!

21.
Dudes, we are
ON THIS!!!
Let’s start engagin’!!!
I call dibs on the
corporate blog.

22.
One Month Later…
ACCOUNTING
Cool.

23.
Oh my! Look at all the new
visitors to our website!
And our email open rates!
Hot damn, we even have
comments on the blog!
What about our
Twitternets?

24.
This rocks!
I never had it so
good!!!

25.
Three Months Later…
ACCOUNTING
Cool.

26.
Monitoring to base…
Monitoring to base…
Our Google Analytics are through
the roof! Even our social mentions
are wicked good!
We have liftoff!
Yeah but…
What about
the P&L?

27.
Measuring “social”
really rocks my
world.

28.
Six Months Later…
ACCOUNTING
Anything?
Nope.
Nada.

29.
What kind of mood is
the old man in today?
Not good.
He doesn’t care how many visitors
the website gets, or how many
eyeballs we’ve reached, unless it
means we’re growing
the business.

30.
But why?
Our website is getting
mad hits, Jack!
And we have 3,000 followers
on Twitter now!
I’m sorry, son.
If your Edutainment program
is generating revenue, we aren’t
seeing it. We need to allocate
resources where we can
make money.
It’s just business.

31.
Darn it.
This media measurement
stuff isn’t working.
We need to start
tying this stuff to actual
business performance.
Where to start?
Let’s see…
At the beginning?

32.
Things happen in sequence.

33.
Non-financial impact is not ROI (yet).

34.
Types of non-financial impact
Website visitors
Social mentions
Click-throughs Positive press
Email open rates
Positive WOM
Free member sign-ups
Negative press
Negative WOM
Customer feedback
Blog subscribers
Pinterest pins
Employment applications
Retweets
Facebook friends
Blog comments
YouTube views
Twitter followers Impressions

35.
Non-financial impact = potential.

36.
ROI = actualized potential.

37.
Reason #1:
COST REDUCTION
Reason #2:
REVENUE GENERATION
Remember what Mr. Bossman said…

38.
I need proof that
what we’re doing
is actually working.
Start with proof of concept.

39.
Step 1: Establish a baseline
8% YoY Growth
before edutainment since edutainment

40.
Baselines illustrate changes
Is something happening here?
before edutainment since edutainment

41.
Step 2: Create Activity Timelines

42.
Step 3: Look at revenue
Revenue

43.
Step 3: Look at # of transactions
Transactions

44.
Step 3: Measure net new clients
Transacting clients

45.
Transaction data should be specific
F.R.Y. FREQUENCY, REACH, YIELD
For example:
How often clients spend. (transactions per month)
How many clients you’re reaching. (net new clients)
How much they spend. ($ per transaction)

46.
The latest numbers indicate
that our YoY revenue $ is up 60%.
The number of new clients has doubled.
So has our revenue per client.
Something’s working!
Groovy!
Let’s figure out what.

47.
Step 4: Measure transactional precursors

48.
Step 4: Measure transactional precursors

49.
We overlaid all of our timelines
and noticed that since our Edutainment
activities began, our website visits are up,
our social mentions are also up, and
everyone seems to love us.
So is there a
discernable pattern
in this?

50.
Step 5: Overlay all timelines
edutainment activities
social data
web data
number of clients
loyalty metrics
etc.

51.
Step 6: Look for patterns
Before After
Impact
Impact
Impact
No Impact
Uncertain Impact

52.
Step 7: Prove relationships
How was this group touched
Before After
by Edutainment?

53.
How long
will all this
analysis take? It’s all a process
of elimination, really.
isolating patterns,
quantifying changes,
proving ad-hocs…
Then all
we have to do is
figure out what the cost
savings and revenue gains
are, and plug them
into the equation.

54.
ROI =
THE R.O.I. EQUATION
(GAIN FROM INVESTMENT - COST OF INVESTMENT)
COST OF INVESTMENT

55.
THE R.O.I. EQUATION
Investment Expectation of return

56.
Oh wow.
This R.O.I. thing
wasn’t at all about
measuring media,
impressions and
eyeballs!

57.
ACCOUNTING
All things
remaining the
same…
We may have
proof of
concept.
Hot damn!
First things first: Prove that edutainment works

58.
So it turns out that our
Edutainment program is impacting
every aspect of our business except
attracting new staff.
Can you get on that? Yeah. We need
to find out why we aren’t having
an effect there. Kthxbye.
Then use what you know to make it work better.

59.
Dudes, we are
ON THIS!!!
Let’s start engagin’!!!
I’ll start crafting some
wicked blog posts.
Attract new staff.
Roger that.

60.
Finally, someone with some
real metrics for me to sink my teeth into!
Good job, Sparky! You done gewd!

61.
So I guess Edutainment
is going to stick around a little while
longer after all, isn’t it?
Yessir.
Looks like our budget
is safe for now.

62.
Drinks for
Everybody!

63.
Slideography
Slide # Source
3, 9, 10, 11, 18-31,
37, 38, 46, 49, 53,
56-62
4
6
UFO (TV series)
http://ufoseries.com/
http://www.minnpost.com/stories/2008/06/18/2282/this_doesnt_compute_as_more_wo
men_enter_scientific_fields_their_numbers_in_computer_science_are_declining
Kim Jong Il puppet, from “Team America”
http://blogs.rockymountainnews.com/bridget/kimjongil.jpg
Inspiration/Attribution SlideShare presentation: ‘Basics of Social Media ROI’
Olivier Blanchard - Principal, BrandBuilderMarketing