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

Evaluation & Measuring ROI Spokane Regional Marcom Association A Hill+Knowlton Strategies Company February 2012

Agency History and Background 2 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

Our Global Presence 85 offices in 46 countries EUROPE Dublin Prague Amsterdam Frankfurt Reykjavik Athens U.S . Helsinki Riga Barcelona New York Kiev Rome Austin Belfast San Francisco CANADA Lisbon Sofia Boston Berlin Seattle London Stockholm Chicago Bratislava Regina Calgary Spokane Ljubljana Stavanger Dallas Brussels Saskatoon Edmonton Tallahassee Madrid Tallinn Houston Bucharest St. John’s Halifax Tampa Milan Vienna Irvine Budapest Toronto Montreal ASIA Washington D.C. Moscow Vilnius Los Angeles Copenhagen Vancouver Ottawa Oslo Warsaw Miami Bangkok Victoria Québec City Paris Zug Beijing Winnipeg Chengdu Guangzhou Hong Kong Kuala Lumpur Seoul Shanghai Singapore Taipei Tokyo LATINAMERICA AMEASCA Chennai Jeddah Manila Abu Dhabi Montevideo Bogotá Dares Salaam Johannesburg Melbourne Panama City Adelaide Buenos Aires Doha Kampala Mumbai Quito Algiers Caracas San Jose Dubai Karachi Nairobi Guatemala City Amman Lima San Juan Gurgaon Kolkata Perth Auckland Santiago Mexico City Hannoi Kuwait City Riyadh Bengaluru Saõ Paulo Ho Chi Minh City Lagos Sydney Brisbane Hobart Lahore Tel Aviv Cairo Istanbul Makati City Tunis Canberra Jakarta Manama Casablanca H+K Strategies Offices Affiliates

Our Services 4 Change +Internal Digital Corporate B2B Communications Communications Communications Communications Media Relations Marketing Communications Public Affairs Reputation Management Crisis Management Sports Marketing Research 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 Don’t measure sporadically; Adjust Strategy develop a plan to measure results and use the findings to Measurement Tactics adjust your PR strategy and tactics. 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

Match Goals with Measurable Objectives Goals Objectives Grow the number of blog subscribers, engaged Expand Social Footprint fans or influential followers by 20% each month Increase the percentage of positive Improve Brand Sentiment coverage/conversations by 5% each month Increase Share of Voice vs. Enhance the number of coverage/conversations by 10% each month Competitors Raise the number of thought leadership Enhance Thought Leadership references by 10% each month

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: (Total $ Earned, Saved or Avoided) MINUS (Total $ Invested) ROI = = 5X (Total $ Invested)

Calculating ROI Example: (Company saved $8 million in annual customer service costs thanks to direct community engagement and problem resolution via social media) = 4X MINUS ($1.6M PR investment) ROI = or ($1.6M PR investment incl. $250K = $4m community site and software, plus $250K internal staff salaries, plus $750K agency fees plus $350K online advertising spend)

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 objectives:  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.

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