Measuring Effectiveness

A Brief Introduction to Data for Measuring Effectiveness

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“If you can’t measure it, you can’t manage it”

Peter Drucker

“The client loved the work”

“We gained 20,000 new fans on Facebook”

“Employees said it was the best campaign they had ever seen from

the brand”

“The product sold out as a result of our campaign”

“We became the most talked about beer brand on social media”

Not being able to demonstrate true effectiveness is simply not good enough

Oh dear… All genuine extracts from recent awards papers we’ve found!

Continuous Interview the same

sample of people or data, repeatedly.

Focus on quantitative robustness

Ad Hoc Focuses on specific

marketing problems. They collect data at one point in time from one sample

of respondents. Also focus on quantitative

robustness

Two $pes of data to measure effectiveness.

Continuous Data

Tomorrow Homes so good that you’ll

want to stay in rather than move from.

Today We will find you the

perfect home (not just house).

1. Sales Data

What is this?

Allows you to see changes in key measures over time and what are the contributing factors.

What Can You Measure?

Value, Volume, Distribution, Market Share, Rate of Sale, Weekly, Monthly and Annual Changes by brand, pack, channel, customer, changes to value sold

on deal and can see competitive picture.

Sometimes Called EPOS data.

Who Does It?

Nielsen or IRI [done through tills], internal reporting (if you own your distribution channel)





1. Sales Data

Clever Things You Can Know / Say

•  The difference YTD (year to date) and MAT (moving annual takeover) is that YTD shows sales from the beginning of the year at a specific point in time, MAT is the last

12 months of sales so evens out any fluctuations (Feb 20014-Jan 2015 sales = MAT JAN 2015)

•  Always make sure you’re stripping out seasonal changes (e.g. easter being earlier / later than last year) and promotional differences.

•  For new products, you can actually figure out the rate of sale you need to get to to achieve success (i.e. if we want to be fifth in the market by the end of the year then

we need to be in X% distribution and selling X packs per week).

•  If the uplifts don’t look great for one month, try looking at a three month rolling average and comparing it to the three months before the campaign went live.





2. Panel Data

What is this?

Normally claimed / recorded data which recruits a very large consumer panel. Can analyse both purchase and consumption data and can tell you how many people are buying your brand, how often and for how much and

allows you to see changes in this over time.

What Can You Measure? Penetration, Frequency, AWP (average weight of purchase) or ASP (average

spend per head), average packs per trip.

Who Does It? Kantar and Nielsen are the leaders in the market.





2. Panel Data


•  Always remember to confirm if this is claimed or actual data (consumers aren’t

great at remembering what they have actually done) and if it’s purchase or consumption (normally there’s a gap between the two)

•  If Penetration goes up then Frequency normally goes down (penetration increases normally mean that more light buyers come into the brand)

•  It’s possible to use this data to really identify who your heavy, medium and light buyers are. [is 80% of your volume coming through 20% of your customers)

•  Don’t forget Byron Sharp though: brands seeking to drive penetration are the ones that grow the most over time.

•  Sometimes if you see a big increase in average spend per trip, it’s down to a price increase (it just got more expensive to buy)





3. Internal Data

What is this? Internal financial data normally recorded through some kind of SAP system.


Margin (Profits) per brand, SKU, channel. GMBM, GMAM, TCAM.





3. Internal Data

Clever Things You Can Say About This:

•  Just learn the abbreviations per client as they are often all different.

•  Understand what’s more important…sales value or profit margin for your clients.

•  Understand the most profitable parts of their portfolio and what are the drivers of profit (e.g. Biscuits and Chocolate)





4. Brand Tracking

What is this?

A bespoke monthly or quarterly consumer survey assessing brand and competitor perceptions on key areas.


Key Brand Measures that indicate propensity to purchase (awareness, consideration, net promoter score) and also core image statements (is a

brand for me, is funny etc)

Who Does It? Hall and Partners, Millward Brown, IPSOS and some other smaller players.





4. Brand Tracking


•  It’s not a good idea to change provider very often as so much of brand tracking is based on historical data.

•  For most categories you can do some analysis to understand the key drivers of consideration in the category and therefore what you need to

focus on.

•  Consumers are more likely to endorse you on a certain attribute if they like you [if I love someone, I am more likely to say that they are funny than if I don’t really like them]. So needing to win on “tastes good” doesn’t always

mean we need to tell people that.

•  If you have a distinct audience, its always really good to cut the tracking by that audience to get the right picture.

Ad Hoc Data





5. Campaign Tracking

What is this?

Normally done as a part of the brand tracker, it assesses the performance of a particular campaign on key measures.


Key comms measures such as awareness, saliency, preference. Image attributes that the campaign is influencing (irritating, funny etc) and

potential to drive brand re-appraisal.

Who Does It? Millward Brown, IPSOS, Hall and Partners but also Brain Juicer





5. Campaign Tracking


•  Always understand the methodology and what is being shown in what

order [if you’ve said you’ve recognised the outdoor then you’re likely to also say it for print].

•  Always worth looking at efficiency benchmarks. [Research agencies will say that the ad has been recognised by less than the mean score but then

if you only spent half of the mean spend on it that’s not actually a bad result]

•  Make sure you set clear expectations before on what’s important vs. what’s not [Gorilla bombed on “Understanding”]





6. Segmentation

What is this?

A quantitative study designed to segment a market or category into different groups who share similar characteristics. Can be attitudinal, needs based or

based on purchase behavior.

What Can You Measure? Allows you to more clearly identify your target audience and set objectives to

measure against with them.

Who Does It? Quant Research companies such as Clear, IPSOS.





6. Segmentation


You can normally overlay a segmentation onto TGI to enhance your

knowledge of their attitudes.

Comparison of segments is often done by indexing. Don’t forget to look at the real numbers as well.

Never let the rather bland segmentation descriptions end up on a

creative brief. They don’t sound like real people!





7. Econometrics

What is this?

A form of quantitative analysis originally developed in the first of economics. One of its main benefits is its ability to separate the effects of

contemporaneous influences and to quantify their individual effects.


Pretty much everything. You can isolate the impact of one degree Celsius on sales, one pound of advertising spend on sales, a distribution point,

promotions etc.

Who Does It? Specific econometrics agencies [Data to Decisions as an example] some

media agencies/groups have econometrics departments.





7. Econometrics


•  If your client would like to win and IPA paper, its very helpful to have econometrics.

Over 50% of the winners have conducted these [and the number is on the up all the time].

•  It helpfully doesn’t just identify the impact on sales but on total profit which is very helpful.

•  Once you have an econometric model, you can use it to test hypotheses [e.g. if we spent this much, how much would we get back]

•  Can normally compare different campaigns and different media.

•  Extremely useful for media planning. E.g. at what spend is there a point of diminishing returns, burst vs. dip etc.

Other Use%l Stuff





Calculating ROI “When we talk about ROI, we mean

the effect on your sales and your profits. It’s very important to be very

clear”

Les Binet





Calculating ROI ROI measures the gains / profits

made for the investment made.

So it’s the gains less the costs, divided by the costs.

Normally as a %





It’s an art not a science. But there is some science.

Emotional campaigns are twice as efficient over the long term

than rational ones and deliver twice as much profit.

The broader you target, the more successful you will be.

The optimal balance of investment is 60:40 between brand and activation.

Fame makes your money go four times further.

Interesting Headlines

Available on the IPA website.

Measuring Effectiveness

Marketing

Transcript of Measuring Effectiveness