Evaluation & Measuring ROI Spokane Regional Marcom Association - - PowerPoint PPT Presentation

A Hill+Knowlton Strategies Company

February 2012

Evaluation & Measuring ROI

Spokane Regional Marcom Association

Established in 1927 as the nation’s first PR Agency Part of WPP company, a group of world-class consultancies 84 offices in 46 countries and more than 50 affiliate offices 16 US offices with presence in all key markets More than 2,000 associates globally Work for more than 180 companies of the Fortune 500 More than 60% of clients are serviced by more than 2 offices More than two-thirds of clients are provided three or more service offerings

Agency History and Background

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Our Global Presence

U.S. ASIA AMEASCA CANADA LATINAMERICA

Bogotá Buenos Aires Caracas Guatemala City Lima Mexico City Calgary Edmonton Halifax Montreal Ottawa Québec City

85 offices in 46 countries

Abu Dhabi Adelaide Algiers Amman Auckland Bengaluru Brisbane Cairo Canberra Casablanca Bangkok Beijing Chengdu Guangzhou Hong Kong Kuala Lumpur Seoul Shanghai Singapore Taipei Tokyo Austin Boston Chicago Dallas Houston Irvine Los Angeles Miami

EUROPE

Amsterdam Athens Barcelona Belfast Berlin Bratislava Brussels Bucharest Budapest Copenhagen Dublin Frankfurt Helsinki Kiev Lisbon London Ljubljana Madrid Milan Moscow Oslo Paris Jeddah Johannesburg Kampala Karachi Kolkata Kuwait City Lagos Lahore Makati City Manama H+K Strategies Offices Affiliates Montevideo Panama City Quito San Jose San Juan Santiago Saõ Paulo Regina Saskatoon

• St. John’s

Toronto Vancouver Victoria Winnipeg Prague Reykjavik Riga Rome Sofia Stockholm Stavanger Tallinn Vienna Vilnius Warsaw Zug Chennai Dares Salaam Doha Dubai Gurgaon Hannoi Ho Chi Minh City Hobart Istanbul Jakarta Manila Melbourne Mumbai Nairobi Perth Riyadh Sydney Tel Aviv Tunis New York San Francisco Seattle Spokane Tallahassee Tampa Washington D.C.

Our Services

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B2B Communications Corporate Communications Change +Internal Communications Digital Communications Marketing Communications Media Relations Public Affairs Reputation Management Research Crisis Management Sports Marketing Social Responsibility

Research + Data Insights

Global reach, local expertise

– Deliver data insights into complex communications challenges, wherever they take place.

High-end data analytics

– Improve decision-making, fuel strategy, mitigate risks and streamline communications.

Inform future strategy

– Develop actionable findings to help “move the needle.”

Overview: Consistent Measurement

Goals Tactics Measurement Adjust

Don’t measure sporadically; develop a plan to measure results and use the findings to adjust your PR strategy and tactics.

Strategy Execution

Where do you start?

What is the process?

Set your goals and objectives Determine your budget Decide what you want to measure over what time frame Analyze your competitors’ voices and stories to understand: – What others are doing successfully – Where there are missed opportunities Choose your metrics; do not measure everything Always evaluate media quality and message, not just quantity

Examples of Goals

Expand Social Footprint Improve Brand Sentiment Increase Share of Voice versus Competitors Enhance Thought Leadership

Goals Objectives

Expand Social Footprint

Grow the number of blog subscribers, engaged fans or influential followers by 20% each month

Improve Brand Sentiment

Increase the percentage of positive coverage/conversations by 5% each month

Increase Share of Voice vs. Competitors

Enhance the number of coverage/conversations by 10% each month

Enhance Thought Leadership

Raise the number of thought leadership references by 10% each month

Match Goals with Measurable Objectives

Identify Successes and Missed Opportunities

Successes and Missed Opportunities lead to:

• Improved messages
• Enhanced audience and channel knowledge
• Additional strategic ideas and tactics
• Informed future strategy

What is the Return on Investment?

First, what is not ROI?

• Results ≠ ROI
• Volume of Stories ≠ ROI
• Number of Fans/Followers ≠ ROI

ROI = The estimated dollar value of your communication efforts

ROI Investment Metrics

• Fees
• Headcount
• Out-of-Pocket Expenses

ROI Results Metrics

• Increased Revenues
• Increased Profits
• Decreased Costs
• Avoided Costs

Calculating ROI

The formula: ROI =

(Total $ Earned, Saved or Avoided) MINUS (Total $ Invested) (Total $ Invested)

= 5X

Calculating ROI

Example: ROI =

(Company saved $8 million in annual customer service costs thanks to direct community engagement and problem resolution via social media) MINUS ($1.6M PR investment) ($1.6M PR investment incl. $250K community site and software, plus $250K internal staff salaries, plus $750K agency fees plus $350K online advertising spend)

= 4X

• r

= $4m

Other PR Values (non-financial)

Stronger relationships lead to stronger business; showcase value about the impact of PR on:

• Brand awareness
• Corporate reputation
• Public opinion
• Customer experience & loyalty
• Stakeholder relationships
• Market share

Key Measurement & Analytics Takeaways

All PR measurement should be based on specific goals and

• bjectives:
• With a benchmark report, you have baseline findings against

which to measure effectiveness throughout the year – and you can use that information to inform your future strategy.

• Stand-alone quantitative metrics are not typically valuable.

Combing quantitative and qualitative analysis to find out what’s behind the numbers.

• The number of followers on its own is not a valuable metric of

social influence. Go beyond impressions to engagement.

• ROI of PR can be calculated as the estimated dollar value of

your communications efforts.

• Non-financial PR value can also be measured.

A Hill+Knowlton Strategies Company Contact: Jennifer West jennifer.west@hkstrategies.com Margot Sinclair Savell margot.savell@hkstrategies.com

Questions?