3. “If we can put a man in orbit, why can’t we
with any degree of accuracy, determine the
effectiveness of our communications? The
reason is simple and perhaps, therefore, a
little old-fashioned: people, human beings
with a wide range of choice. Unpredictable,
cantankerous, capricious, motivated by
innumerable conflicting interests, and
conflicting desires.”
Ralph Delahaye Paine, Publisher, Fortune
Magazine , 1960 speech to the Ad Club of
St. Louis
4. Conversations are a company-wide
resource
He/she who owns social media, owns the brand and he/she with the most data wins
Conversations
Customer Marketing & Competitive Business HR
Service Sales Intelligence Analytics
5. Everything you know about
measurement obsolete
Old School Communications
• The definition of media has changed 21st Century Role
• The definition of timely has changed
• The definition of reach has changed
– GRPs & Impressions are impossible to count (an irrelevant) in social media
• The definition of success has changed
– The answer isn’t how many you’ve reached, but how those you’ve reached
have responded
Page 5
6. Old School Metrics
• AVEs
• Eyeballs
• HITS (How Idiots Track
Success)
• Couch Potatoes
• # of Twitter Followers
(unless you’re a
celebrity)
• # of Facebook Friends/
Fans (unless they
donate money)
Page 6
7. It’s the end of measurement as we know it
1 person --Dave Carroll (United Breaks Guitars) cost United $180M—the cost of more
than 51,000 replacement guitars.
USO’s donation server crashed when Obama was wrapping care packages
Procter & Gamble is now paying for engagement, not eyeballs
Sodexho cut $300K (NET) out of its recruitment budget using Twitter
HSUS generated $650,000 in new donations from an on-line photo contest on Flickr
IBM sells more with a $500 podcast than it does from an ad
11 Mom’s turned around Wal-Mart's image and delivered measureable increases in sales.
In a week, the Red Cross raised $35 million for Haiti relief via texting
Mark Stouse at BMC Software reports results in EPS every quarter
SAP made $1 million from its small business community
Stanford Univ. measures success on Facebook from applications & revenue
8. Media Engagement & Online Giving
35,152,789 OTS
Red line
indicates media
impressions
6,253,852 OTS
12. The Engagement Decision Tree
Consider-
Awareness Preference Trial Purchase
ation
Purchase/
Observe/ Engageme
Find Participate Act/Link/
Lurk nt
WOM
13. Measurable Goals for Marketing
Today
1. Marketing/leads/sales/
2. Mission/safety/civic
engagement
3. Relationship/reputation/ Or get to this
positioning
To fix this
14. Goals drive metrics, metrics drive results
Reputation/ Get the word Sales
Goal Relationships out
Relationship Engagement Index
scores % hearing
Cost per customer
acquisition
Recommend-
ations % believing Web analytics
Metri
Positioning
cs % acting
Sales leads
Marketing Mix
Engagement Modeling
14
16. The 7 steps to the perfect 21st Century
Measurement Program
1. Define the “R” – Define the expected results?
2. Define the “I” -- What’s the investment?
3. Understand your audiences and what motivates them
4. Define the metrics (what you want to become)
5. Determine what you are benchmarking against
6. Pick a tool and undertake research
7. Analyze results and glean insight, take action,
measure again
17. Step 1: Define the “R”
• What return is expected? – Define in terms of the
business or mission.
• What problems are you trying to solve?
• What were you hired to do? What difference are you
expected to make?
• If you are celebrating complete 100% success a year
from now, what is different about the organization?
• If your department is eliminated, what would be
different?
17
18. Reach & Influence are not ROI!
• Revenue minus cost = ROI
• Revenue = $$ in or $$ not spent Reach
– HSUS Frequency
• Flickr Revenue: $650,000 Hits
Friends
• Contest Cost $1000
Followers
• ROI = $649,000
– Sodexho
• Twitter costs: $50,000
• Cost savings: $350,000
• Net savings (ROI): $300,000
19. ROI = revenue or savings
• ROI = cost savings Reach
– + Cost of program Frequency
– – Cost elimination Hits
• ROI = greater efficiency Friends
– +cost of program Followers
– – cost of doing something “the old way” (cost per
percentage point gained)
• ROI = greater revenue
– +cost of program
– –value of leads/sales
20. How PR Impacts Financial
Performance
• Generates Revenue, Sales, Profit
• Marketing Public Relations drives sales
• Investor Public Relations drives investment
• Public Relations drives donations & membership for relevant organizations
• Drives Efficiency
• Better audience targeting
• Reaching more people with a credible message for less money
• Avoids Catastrophic Cost
• Quality counsel helps to mitigate impacts of crises
20
21. Measuring PR’s Contribution to the Bottom Line
• Revenue Generation
– Survey customers to determine intent to purchase isolate causal effects
through statistical analysis
• Efficiency
– Determine comparative cost of different communication approaches;
calculate percent of target reached; determine change in purchase cycle
resultant from PR activity
• Catastrophic Cost Avoidance
– Assess competitors and peers who may have faced similar crises, track
emergence of their crisis and impact on sales, stock price and relevant
business measures to evaluate the potential impact that was avoided.
21
22. Step 2: Define the “I”
• Public Relations is not “FREE”
– Staff time
– Agency time
– Social Media costs
• Facebook, Promoted Tweets
– Senior Staff time
– Opportunity cost
22
23. Step 3: Define your audiences and how you
impact them
• There is no “audience.” There are multiple constituencies
• Should you blog or Twitter? Don’t ask me, ask your
customers
• Understand your role in getting the audience to do what
you want it to do
– Raise awareness
– Increase preference
– Increase engagement
23
24. Step 4: Define your benchmarks
• Emerging benchmarks
• Past Performance
• Think 3
– Peer
– Underdog nipping at your heels
– Stretch goal
• Whatever keeps the C-suite up at night
24
25. Step 5: Define your Key Performance Indicators
(KPIs)
" The Perfect KPI
" ets you where you want to go (achieves corporate
G
goals)
"
Is actionable
"
Continuously improves your processes
"
Is there when you need it
"
KPIs should be developed for:
"
Programs
"
Overall objectives
"
Different tactics
25
26. Step 6: Pick a tool
1. Content Analysis
2. Web Analytics
3. Survey
27. Step 6: Selecting a measurement tool
Objective Tool
Increase inquiries, Web Analytics, CRM,
leads, sales, web Marketing Mix
ust be:
M traffic, recruitment Modeling
• Accurate Increase awareness/ Survey: Online --
preference SurveyMonkey,
• Complete Zoomerang or Mail
• Efficient Communicate Media content
messages analysis
• Actionable
Beat the competition Competitive media
content analysis
Survey
27
28. Why you need a Kick-Butt Index?
• You decide what’s important:
– Is it worse to be bashed or not talked about at all?
• Benchmark against peers and/or competitors
• Track activities against KBI over time
28
29. What should go into a Kick-Butt Index?
" Positive:
" Negative
" Mentions of the
" Omitted
brand " egative tone
N
" ey messages
K " o key
N
" ositioning
P message
" isibility
V " ncorrect
I
" uotes
Q positioning
29
30. Charting KBI over time between
divisions
Optimum Content Score Relative to Competitors
The Percent Difference Between Each Business Unit's Average Optimum Content Score and the
500% Average Optimum Content Score of Tracked Competitors for each Business Unit
400%
Patriot (Korea)
European MD radar
300%
200% SAS
% Difference
AESA ASAT, Patriot
FBX-T for F-15E, MALD, IDS
Glory APS and
DIB Army MTS AMRAAM APG-63 (v3) IIS
100% DDG-1000 MSE VIIRS vs. RIS JPL
competitors' EPX ATFLIR MS
RISS, GBS
0%
-100% APG-79, APG63 ERGM cancellation
ALR-67(V)3 VIIRS delays NPOESS; BOE B-52 jammer
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
2007 2008
31. Components of a Relationship Index
• Control mutuality
– In dealing with people like me, this organization has a tendency to throw its weight around. (Reversed)
– This organization really listens to what people like me have to say.
• Trust
– This organization can be relied on to keep its promises.
– This organization has the ability to accomplish what it says it will do.
• Satisfaction
– Generally speaking, I am pleased with the relationship this organization has established with people like me.
– Most people enjoy dealing with this organization.
• Commitment
– There is a long-lasting bond between this organization and people like me.
– Compared to other organizations, I value my relationship with this organization more
• Exchange relationship
– Even though people like me have had a relationship with this organization for a long time; it still expects something in
return whenever it offers us a favor.
– This organization will compromise with people like me when it knows that it will gain something.
– This organization takes care of people who are likely to reward the organization.
• Communal relationship
– This organization is very concerned about the welfare of people like me.
– I think that this organization succeeds by stepping on other people. (Reversed)
32. Step 7: Analysis - -Research without insight is
just trivia
• Look for failures first
• Check to see what the competition is doing
• Then look for exceptional success
• Compare to last month, last quarter, 13-month
average
• Figure out what worked and what didn’t work
• Move resources from what isn’t working to what is
32
33. Actionable Conclusions
Ask for money
Get Commitment
Manage Timing
Influence
decisions
Get Outside help
Just Say No33
34. Best Practices:
• Correlations to bottom-line impact • Benchmarking against your peers
– Donations – Looking at what the best do
– Memberships – Setting goals accordingly
– Sign-ups – Use data to persuade recalcitrant
– Leads spokespeople
• Using data for planning • In Crisis
– Define the time frame, market/topic – Listen instantly to a wide range of
you want to study influencers
– Use Google News to identify the – Identify weaknesses in
conversations around the topic communications, customer service,
or in the product
– Analyze the conversations for type,
tone and positioning • Improve your reputation
– Look at share of positioning, tone or – Listen first, then respond
conversation – Stop doing stupid things
35. Budgeting Considerations
• Measurement should average 3-7% of a total PR budget, based
on research by USC Annenberg
• Ask client to use existing survey and tracking resources often
available through consumer insights or market analytics
department
• Start with your local University and become a project for them
35
36. Resources to Get Started
• http://www.instituteforpr.org/
• PRSA Measurement Toolkit
• “Measuring Public Relationships: The Data-Driven Communicator’s Guide to
Success,” by Katie Delahaye Paine, Published by KDPaine & Partners
• “Measuring Social Media,” by Jim Sterne, Published by Wiley
• “Primer of Public Relations Research,” by Don W. Stacks, Published by
Gilford.
• “Evaluating Public Relations: A Best Practice Guide to Public Relations
Planning, Research and Evaluation,” Second Edition by Tom Watson and Paul
Noble, Published by Kogan Page
• “Unleashing the Power of PR: A Contrarian's Guide to Marketing and
Communication,” by Mark Weiner, Published by Jossey Bass
• “
36
