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
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
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
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
Margot Sinclair Savell
Questions?