Posts Tagged ‘ROI’


PR Measurement: Beyond Vanity Metrics

Friday, September 23rd, 2016
http://claringtonwatchdog.blogspot.com/2008/05/efw-business-case-rubbish.html.

http://claringtonwatchdog.blogspot.com/2008/05/efw-business-case-rubbish.html

“Sometimes just putting out basic metrics can actually hurt your measurement program and not help management see the true ROI and efforts you are putting in.” That was how Nicole Moreo began this AMEC measurement week webinar.  Well, that certainly got my attention! I thought how can reporting on basic metrics hurt my credibility?  Nicole explains.

Vanity metrics are metrics that feel important but are ultimately superficial, or worse, deceptive. What we usually think of are things like impressions, likes, re-tweets, AVEs (ad value equivalency), share of voice, mentions, page views, etc. They are not performance indicators. While some of these are important for benchmarking purposes, they should not be relied upon for actual intelligence.  In the big picture, vanity metrics actually hold you back.

So, how do we figure out what to measure?  First, Nicole cautioned, resist the urge to run out and subscribe to the latest tool or aggregator service that claims to programmatically measure for you.  She went on to outline the steps PR pros must take—before embarking on a measurement program.

Listen and Ask

Listen to senior management, your team, your clients (internal or external). Ask questions, such as

  • What is the strategic goal of the PR / marketing program, specifically the business goal? You may hear, for example, “increase share of voice” (SOV)—why? Or, “we want to put this message out on social media so people can see it”—why? What is the goal? Are you trying to increase sales? Are you trying to get people to download a whitepaper? How does that tie back to the business goal?
  • Who are the key audiences? Your program is obviously not to every single person in the universe, so precisely who do you want to reach?
  • Which platforms will be effective—based on the answers to the first two questions?
  • What are the internal KPIs (key performance indicators) that are being used? What business point does that tie back to?
  • What is the internal reporting structure?
  • What insights are you hoping for?

Once you have the answers to those questions, you want to use your metrics as a tool to tell a story (after all, that’s what public relations practitioners are good at—storytelling)!

So What?

Start with the basic metrics, like share of voice—but who are you comparing to? Competitors? Other divisions within the company? Ensure what you are comparing is apples to apples.  Engagement is also a basic metric that allows you to know how many people are actually interacting with your content and potentially have the influence to share it. Tonality (sentiment) is another that you may opt to use and there are others but start with these basics.  Then, ask again, so what? That may lead you to another point, where you once again ask, so what? Nicole recommends asking this three times will help you find the answers that offer a mix of qualitative explanations and quantitative variables.

She went on to offer specific examples, showing charts and graphs  sharing how each of them created a story of insights and intelligence that were meaningful and actionable. This was all possible by asking the right questions before embarking on the program.

Please feel free to add your own thoughts or experiences here in the comments section, and continue to check back here for more AMEC PR measurement tips from the experts!

Crunching the Numbers: How to Tie PR and Sales

Thursday, April 17th, 2014
Photo by PRNews

Photo by PRNews

The PRNews PR Measurement Conference in Washington, D.C. earlier this month provided a platform for the industry’s measurement experts to share their knowledge and strategies. Yesterday, we wrote about Mark Stouse’s recommendations for thinking like a CEO to link PR efforts with sales numbers. Today we cover the second half of the presentation, in which Angela Jeffrey, managing director U.S. at Salience Insight, brought metrics and formulas to help realize those PR-sales metric connections. If you want to DIY and need an easy formula for calculating ROI and cost efficiency, here are the formulas Jeffrey explained.

ROI=Payback-Investment/Investment*100
Payback = incremental revenue
Investment = what you put into it [either in time (calculated as dollars per hour) or in dollars]

Here is a simpler formula for determining the correlation between ROI and PR. It is not a valid ROI but is valid a contribution toward it.

Revenue Event= (Payback-Investment)

Where payback is incremental revenue and investment is what you put into it.

To calculate cost efficiency metrics by your activities, use:

Cost-per-impressions (Tweets, Fans, Website Visits)
* Add up target impressions
* Divide campaign costs by impressions
* Results: Cost for one person to see your item

You can use the results for a specific survey or campaign to compare cost against the total of progress seen.

Cost-per-awareness (Attitude, Understand, Preference or Loyalty Uplift)
* Gather percent of uplift in survey scores
* Divide campaign cost by percent gain
* Result: Cost of percent gain in survey results

When it comes to measuring your web analytics, do your homework first.  Understand Google Analytics and be able to create goals and funnels. Having those goals and funnels in place actually helps you determine what you want your outcome to be. Most of us do not usually get the opportunity to influence sales. So where you can, define macro and micro goals.

An example of this was developed by Avinash Kaushik, where he created a formula or assigning dollar results to micro goals, which can show progress against macro goals, and can be established with a bit of internal research and agreement with management. An example of a micro goal would be a “contact me” sign-up form, and a macro goal would be a $500 sale or donation garnered from that signup form. So if it took ten “contact me” sign-ups for one sale or donation, that would mean that each sign up cost $50.

Once you have your goals established, set up a goal funnel to compare your web analytics with the channels.  Track visits and dollars spent from each channel and divide the revenue by number of visits from each platform to compare values-per-visit.

If you use a competitive share of voice, which is weighted tonality, to link outcomes, you can see the correlations. But earned media coverage analysis must include qualitative measures like message, prominence, or dominance, as well as quantitative measures like number of items or impressions.

Ultimately, successfully measuring the link between public relations and sales means a lot of math and careful analysis, but streamlining your processes and orienting them toward measurement will lead to reliable data that gives you deeper insight into your PR efforts. How are you tying your ROI & Outcomes/Outputs to your PR and Sales activities? Which measures give you the most insight?

Think Like a CEO: Measuring the Link Between PR and Sales

Wednesday, April 16th, 2014
Think Like a CEO: Measuring the Link Between PR and Sales Mark Stouse Crystal DeGoede BurrellesLuce Fresh Ideas

Photo by PRNews

How do you measure the link between PR and sales and drive brand revenue and engagement?

Last week I attended the PRNews Measurement Conference at the National Press Club in Washington, D.C. The annual conference brings together the most spirited group of measurement experts.

The session started off with its first speaker, Mark Stouse (Twitter: @markstouse), VP Global Connect at BMC Software. He stated that there are three big questions that every CEO wants the answer to, not just from the sales leaders or marketers but from everyone within the organization, including PR practitioners:

1. How well are you performing in your area of business?

2. How well are you leveraging the resources you already have?

3. What contributions are you making to the organization?

What the CEO or CFO of your organization cares about the most is revenue, margin and cash-flow. In order to make your way into a position of delivering value to the CEO and answer those three questions, you have to start thinking like a CEO. CEOs don’t care about possibilities, they care about probabilities; nor do CEOs care about how creative something is, they care about if it actually works. So, when CEOs talk about cause and effect, they want to see correlation (at a minimum), and preferably, causality.

Your c-suite expects you to understand what you do so well that you have the necessary data in-hand and are confident enough to present this data at any time. If you cannot predict what the outcome of your PR is going to be, then a CEO may see your success as luck, whereas if you’re able to use your data to predict an outcome, that would show skill. Showing the relationship between  public relations and sales through data-driven correlation and causality is critical to obtaining executive buy-in.

Stouse recommends four key steps to success:

1. Think like a CEO

2. Understand your functional performance
3. Understand what ROI really is
4. Connect the dots with sales productivity

Another way to tie your PR measurements and metrics to sales is to support the three legs of sales productivity (below) and to tie investment to revenue, margin and cash-flow.

1. Demand generation
2. Deal expansion (sale to the same person)
3. Sales velocity (close the deal quickly)

According to Stouse, we are all in sales. We have to sell to people on the outside and on the inside. It redefines the marketing mix model.

If you tie into the numbers and the money you will be credible and get that seat at the table.

Check back tomorrow for mathematical insights from the session’s second presenter, Angela Jeffrey.

The Infographic Guide to Measuring Your Public Relations Efforts

Monday, April 7th, 2014

Measurement has been a big topic in PR for decades, but it continues to dominate our discussions because the digital age has given us more tools, metrics, and points to measure than ever before. We know it’s important to establish measurable goals and set benchmarks, but what about the actual tools for measurement? How do we get started with the tons of data at our disposal?

Ensure you’re measuring the correct things – outcomes, not outputs – and consider integrating tools like Balanced Scorecard, the Barcelona Principles, and the Sources and Methods Transparency Table. Learn how to use big data the right way by deciding your most important metrics and making decisions based on facts and evidence.

To help you fill up your public relations measurement toolbox, we’ve created this measurement primer. For more detailed tips and insights, check out our newsletter, Finding Meaning in Measurement.

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