Presentación Katie Delahaye Congreso PRORP 2010

Presentación Katie Delahaye Congreso PRORP 2010

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  Demonstrating PR ROIto the CEO Katie Delahaye Paine
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  “If we canput 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
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  Conversations are acompany-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
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  Everything you knowabout 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
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  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
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  It’s the endof 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
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  Media Engagement &Online Giving 35,152,789 OTS Red line indicates media impressions 6,253,852 OTS
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  Correlation exists betweentraffic to the ASPCA web site and the organization’s overall media exposure
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  Exposure drives donations
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  A measurement timeline Social MSM Online Media Eyeball HITS Engagement counting
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  The Engagement DecisionTree Consider- Awareness Preference Trial Purchase ation Purchase/ Observe/ Engageme Find Participate Act/Link/ Lurk nt WOM
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  Measurable Goals forMarketing Today 1. Marketing/leads/sales/ 2. Mission/safety/civic engagement 3. Relationship/reputation/ Or get to this positioning To fix this
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  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
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  Facebook: Correlating MSM,CGM and signups •  Strong correlation •  Non-negative discussion only 15
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  The 7 stepsto 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
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  Step 1: Definethe “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
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  Reach & Influenceare 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
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  ROI = revenueor 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
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  How PR ImpactsFinancial 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
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  Measuring PR’s Contributionto 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
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  Step 2: Definethe “I” •  Public Relations is not “FREE” –  Staff time –  Agency time –  Social Media costs •  Facebook, Promoted Tweets –  Senior Staff time –  Opportunity cost 22
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  Step 3: Defineyour 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
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  Step 4: Defineyour benchmarks •  Emerging benchmarks •  Past Performance •  Think 3 – Peer – Underdog nipping at your heels – Stretch goal •  Whatever keeps the C-suite up at night 24
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  Step 5: Defineyour 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
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  Step 6: Picka tool 1.  Content Analysis 2.  Web Analytics 3.  Survey
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  Step 6: Selectinga 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
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  Why you needa 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
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  What should gointo 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
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  Charting KBI overtime 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
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  Components of aRelationship 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)
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  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
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  Actionable Conclusions Ask for money Get Commitment Manage Timing Influence decisions Get Outside help Just Say No33
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  Best Practices: •  Correlationsto 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
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  Budgeting Considerations •  Measurementshould 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
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  Resources to GetStarted •  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
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  Thank You! Questions?