1. Build Your Bottom Line With Data-Driven Public Relations: Advanced ROI, KPI and ROMI Measurement February 13, 2009Katie Delahaye PaineMember, IPR Measurement Commissionwww.instituteforpr.comCEOkdpaine@kdpaine.comwww.kdpai.comkdpaine.blogs.com

2. Why Measure?
The main reason to measure objectives is not so much to reward or punish
individual communications manager for success or failure as it is to learn from the
research whether a program should be continued as is, revised, or dropped in favor of another approach
James E. Grunig, Professor Emeritus, University of Maryland
If we can put a man in orbit, why cant we determine the effectiveness of our communications? The reason is simple and perhaps, therefore, a little old-fashioned: people, human beings with a wide range of choice. Unpredictable, cantankerous,
capricious, motivated by innumerable conflicting interests, and conflicting desires.
Ralph Delahaye Paine, Publisher, Fortune Magazine , 1960 speech to the Ad Club of St. Louis
3. Agenda
General Principles of Measurement
The immutable Laws of 21st Century Communications
7 Steps to Building the perfect measurement system
Tools Youll Need
Design your own measurement workshop
4. Conquering your fears
5. A measurement timeline
6. Social Media renders everything you know about measurement obsolete
Old School PR
21st Century Role of PR
You cant talkwhen the marketing department is talking sales, leads and revenue
Impressions are impossible to count in social media
Who cares about impressions when you can measure brand engagement ?
Who cares about reach when you can measure revenue?
Wouldnt you rather be closer to your customers?
Better measurement tools are available
Page 6
7. Why Traditional Metrics (AVEs) are like buggy whips
They both confuse activity with outcome
The goal is to arrive at your destination, not to have a faster horse
They both were based on a flawed premise
Neither PR people nor horses respond well to beatings
Comparing PR to Advertising is like comparing the Surrey With a Fringe On Top to the Space Shuttle they serve different purposes
They both were rendered obsolete by technology
Page 7
8. 12 Signs that itsthe end of measurement as we know it
In Iran, people armed with Twitter and cell/phones are fighting guys with guns and possibly winning.
The State Dept, and the Dept of Defense considers Twitteringand other forms of social media critical to national security
BMC Software measures communications effectiveness based on contribution to EPS
BestBuy measures 85% lower turnover as a result of its Blue Shirt community
State Farmuses an internal blog to measurably improve morale
ASPCA correlates increases in on-line donations and increased membership withits social media efforts
HSUS generated $650,000 in new donations from an on-line photo contest on Flickr
NWF increased wildlife spotting as well as members with its Twitter account
The Red Cross measures the effectiveness of Twitter via lives saved and harm avoided
ImmunizeBC measures success in terms of vaccines given, awareness AND traffic
IBM receives more leads, sales and exposure from a $500 podcast than it does from an ad
11 Moms turned around Walmarts image and delivered measureable increases in sales.
@comcastcaresturned around Comcasts customer service reputation
A social media campaign for War Child delivered a 38% increasein donations and 300 new volunteers
9. The EngagementDecision Tree
9
10. The immutable laws of 21st Century PR Measurement
There is no market for your message
All the benchmarks have changed
Size doesnt matter so stop screaming, start listening
Its not how many eyeballs, its the right eyeballs
HITS = How Idiots Track Success
ROI doesnt mean what you think it does because you cant divide by zero
You become what you measure, so match the measurement tool to your objective
10
11. The measurement fork in the road
Marketing/leads/sales
Reputation/relationships
To fix this
Or get to this
12. Goals drive metrics, metrics drive results
Goal
Metrics
12
13. Changing reputation with charts
Tone of Conversation over time
60
50
30
40
2
30
16
Mentions
Positive
Neutral
17
Negative
5
20
12
27
24
4
2
1
20
2
9
3
10
16
15
8
8
10
5
9
9
4
6
2
5
4
4
4
4
2
2
2
2
2
2
2
0
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2007
2008
14. Negative coverage over time
15. Correlation exists between traffic to the ASPCA web site and the organizations overall media exposure
16. Tying activity to development/marketing goals
16
17. CEOS think its important, Marketers dont
CEOs are more likely than Marketers to value PR highly
Dominant coalitions tend to value and support communicators who first demonstrate their worth
When PR reports to the C-Suite they measure:
Crisis avoidance/mitigation
Influence on corporate culture
Influence on corporate reputation
Influence on employee attitudes
Influence on stakeholder awareness
Influence on stakeholder opinions
When PR reports to marketing they measure :
Contribution to sales
Total circulation of clips
Total number of clips
Number of clips in top tier media
(Source: 2005 PR GAP IV Study, Strategic Public Relations Center, USC Annenberg School of Communications)
17
18. How PR fits into ROMI
PR delivers measurable impact on:
Positioning
Awareness
Preference
Sales/revenue
Market share
Web traffic
Cost savings
When factored in to marketing mix modeling, PR delivers significantly higher value
18
19. PR delivers more results for less money
Miller discovered that PR campaigns generate 4% of incremental sales compared to 17.3% of incremental sales for TV.
However, PR delivered that 4% for less than 1% of the budget.
19
20. PR is shown to deliver more value
A major consumer company found that PR delivered 8 times the value of TV and 4 times the value of trade advertising.
20
21. Proof of PRs impact on sales
P&G found that PR drives sales
Three of the six products showed PR with the highest ROI of any marketing tactic
Overall PR delivered a 275% ROI
AT&T found that PR delivered customers at a fraction of the cost
21
22. What do you need to measure?
23. Goals, Actions and Metrics
23
24. The 7steps toPR ROI
Define the R Define the expected results?
Define the I-- Whats the investment?
Understand your audiences and what motivates them
Define the metrics (what you want to become)
Determine what you are benchmarking against
Pick a tool and undertake research
Analyze results and glean insight, take action, measure again
24
25. Step 1: Define the R
What return is expected?
What were you hired to do?
If you are celebrating complete 100% success a year from now, what is different about the organization?
If your department was eliminated, what would be different?
25
26. Step 2: Define the I
What is the investment?
Personnel
Agency compensation
Senior Staff time
Opportunity cost
26
27. Step 3: Define your audiences and how you impact them
There is no audience.There are multiple constituencies
List every stakeholder
Where do they go for information?
Whats important to them?
What is the benefit of having a good relationship with that stakeholder group?
Understand your role in getting the audience to do what you want it to do
Raise awareness
Increase preference
Increase engagement
27
28. Understand your environment: The 7Ws
Who are the audiences? (Demographics & Psychographics)
What issues are important to them?
What are they seeing now?
Where do they go for information?
What do they think about you now?
What do you want them to do/think/say/write?
What do you need to do about it?
29. What makes a perfect communications KPI?
Gets you where you want to go (achieves corporate goals)
Is actionable by individuals as well as departments
Continuously improves your processes
Is there when you need it
30. Step 4: Define your Key Performance Indicators (KPIs)carefully because you become what you measure
Cost savings
Efficiency
Cost per message communicated
Cost per new lead/customer acquired
Productivity:
Increase in employee engagement/morale
Lower turnover/recruitment costs
Engagement:
Ratio of posts to comments
% of repeat visitors
% of 5+min visitors
% of registrations
Trust:
Improvement in relationship /reputation scores with customers and communities (Loyalty/Retention)
Thought leadership:
Share of quotes
Share of opportunities
Message penetration
Positioning on key issues
Improvement in favorable/unfavorable ratio
Improvement in Optimal Content Score (OCS)
30
31. Potential Metrics for Media
Cost Per Message Communicated
Share of discussion vs. the competition
Share of brand visibility vs. the competition
Share of recommendations (positive coverage) vs. the competition
Share of spokesperson visibility vs. the competition
Share of negatives
Share of coverage of key topics
Share of rants and raves in the blogosphere
Share of mentions by key media
31
32. Measuring the impact of messaging
Percent of impressions containing messagesby product
A major software company had had many different product launches over the course of a year. By measuring the extent to which key messages were communicated, versus those messages they didnt want to see in print they were able to judge the effectiveness of each launch. Further, by investigating the large number of negative messages they were able to isolate problems with a specific group of media. Turns out, the person responsible for that group of publications was sidetracked by her wedding and hadnt returned phone calls.
32
33. Metric: Cost per message communicated
The press tour was clearly the most efficient for communicating key messages and the big party was least efficient.
Measuring which tactic was most efficient
33
34. Potential metrics for blogs
Number of unique users
Returning versus new readers
Referring source statistics
Links from other sites
Rank
Conversation Index: The ratio of blog comments to blog posts (where applicable)
Total time spent on the site
The popularity of the content itself, which gets the most views
Traffic from blog to web site
Sales
34
35. Potential Metrics for Community Relations
Ratio between positive and negative press in local media
% of articles in local media that contain our key messages
% improvement in relationships scores between us and local community and those that influence the local community
Lower litigation costs
35
36. Why an Optimal Content Score?
You decide whats important:
Benchmark against peers and/or competitors
Track activities against OCS over time
Positive:
Mentions of the brand
Key messages
Positioning
Visibility
Negative
Omitted
Negative tone
No key message
36
37. How to calculate Optimal Content
38. Standard classifications of discussion

Responding to criticism

39. Giving a shout-out 40. Making a joke 41. Making a suggestion 42. Making an observation 43. Offering a greeting 44. Offering an opinion 45. Putting out a wanted ad 46. Rallying support 47. Recruiting people 48. Showing dismay 49. Soliciting comments 50. Soliciting help 51. Starting a poll 52. Validating a position 53. Acknowledging receipt of information 54. Advertising something 55. Answering a question 56. Asking a question 57. Augmenting a previous post 58. Calling for action 59. Disclosing personal information 60. Distributing media 61. Expressing agreement 62. Expressing criticism 63. Expressing support 64. Expressing surprise 65. Giving a heads up