Evaluation & Measuring ROI · A Hill+Knowlton Strategies Company February 2012 Evaluation &...

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

Transcript of Evaluation & Measuring ROI · A Hill+Knowlton Strategies Company February 2012 Evaluation &...

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 2

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 4

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

or

= $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

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.

A Hill+Knowlton Strategies Company

Contact:

Jennifer West

[email protected]

Margot Sinclair Savell

[email protected]

Questions?