White Paper:
Measuring ROI Beyond Traditional Media
by Chadwick Martin Bailey, Inc.
Beyond print and broadcast media: how to effectively measure the impact of sponsorships, experiential marketing and word-of-mouth advocacy.
It is no secret that throwing money at print and broadcast media is no longer the only (or likely, most effective) way to get your target market to take action. In response, countless articles have been written and presentations given about the changing marketing mix. Now, many CMOs are pushing their managers to incorporate buzz marketing programs, experiential marketing and sponsorships without full knowledge of how these channels work or what should be expected as an ROI.
The current state of the art in measuring marketing ROI is market mix modeling. Unfortunately, this technique does not work with evey industry and sales process. In addition, many companies dont have the years of monthly sales data (or at least 50 weeks of weekly sales data) and highly detailed documentation of monthly or weekly marketing expenditures over the same period needed just to meet the minimum requirements to be able to run the models.
So, what can you do to find out how well your programs are working?
Working with clients like Jack Daniels, Mercedes-Benz USA, Dove and Bose, weve uncovered five keys to gaining useful marketing ROI insights that:
- Demonstrate to executives the financial impact of your different marketing initiatives (traditional, sponsorship, experiential) in moving targeted markets
- Provide the necessary diagnostics to prioritize specific actions you can take to increase your ROI
1. Focus on the goals of the program
Before you measure anything, define what success means for a program in terms of actual behaviors. For example, a recent on-campus experiential marketing program was designed to drive a specific increase in online registrations. If that goal had not been pre-defined, we might have provided feedback only about the program content and experience without explaining how each element was – or was not – driving online registrations. In the end, the client would have had plenty of information about the program, but nothing that allowed them to determine whether or not it was a success.
2. Capture the cross-effects of marketing activities
Dont look at your ROI too narrowly. In most cases, a specific event or sponsorship is accompanied by multiple initiatives designed to leverage or build on the interest you have generated. If you dont broaden your view, you may under-represent the full impact of your dollars and be unable to compare how well each initiative influenced behaviors.
This past season we measured the impact of all of the elements of one clients NASCAR sponsorship (e.g., in-store promotions, race team exposure, the on-site experience) on consumers brand perceptions, usage and advocacy. Because we accounted for all of the elements of the marketing program not just the race team – they were able to re-allocate their marketing dollars towards the things that were working best.
3. Focus on revenue generating behaviors
Consumers rarely adopt brands or products that require a significant financial or relationship commitment – like Mercedes-Benz or Bank of America – on impulse. More often, the trial decision is based on a relationship with the brand that goes through multiple stages (e.g., awareness, consideration, trial, purchase, loyalty, advocacy) over time.
To demonstrate the full impact of your programs, you need to go beyond simply impressions and short-term sales. Instead, measuring what specifically drives stronger relationships with your brand, the impact of your programs on all of those associated behaviors and the dollar value of each stage. That way you can demonstrate the financial return in both the short and long-term.
4. It is not just what they are saying, but to who and how
Measuring the impact of word-of-mouth advocacy on its own – or as a byproduct of another program needs to go beyond the standard would you recommend us to a friend question that is often included in customer service or brand research. To make the findings useful, you need to know exactly what people are talking about. If someone is recommending a hotel, are they really recommending the room, location and services? Is it the staff, loyalty benefits or the overall quality of the experience? Was it great on its own or just compared to the competition?
Knowing what specifically causes people to speak about their experiences allows you to create communications and experiential programs that leverage those strengths and make it easy for your best customers to sell on your behalf. You can then track your success in driving advocacy over time.
5. Know where you stand
Timing crunches and smaller budgets – especially for non-traditional media – often result in the temptation to cut corners by not conducting a baseline or using a control group in your research. The problem is that without knowing where you stand with a target audience, it is impossible to truly understand the impact of an initiative and whether it should be changed, renewed or thrown out all together. Looking at the results in a vacuum can be extremely misleading – in either direction – and cause you to make decisions based on apparent success or failure rather than reality. Dont let bad research drive bad decision-making!
- February 2008
This content was provided by Chadwick Martin Bailey, Inc. Visit their website at www.cmbinfo.com.
Other content shared by Chadwick Martin Bailey, Inc.
Love It or Hate It: The NPS Approach Works
by Brant Cruz, Chadwick Martin Bailey, Inc.
Customer loyalty and your bottom line: Why NPS works. Read Article »
Gear Up, Not Down: Top 5 Keys to Success in a Slow Economy
by Anne Bailey Berman, Chadwick Martin Bailey, Inc.
Five prudent strategy points to consider for your business when the economy has slowed. Read Article »
New Adaptive Choice-Based Conjoint Technique Shows Promise
by Jon Godin, Director of Analytical Services, Chadwick Martin Bailey, Inc.
Adaptive Choice-Based Conjoint is a new conjoint technique that is an approach to discrete choice that would “adapt” to respondent answers as the task progresses. This article provides analysis of the process of this new method. Read Article »
Don’t Give Up On That Segmentation Study – Do It Smarter
by Chadwick Martin Bailey, Inc.
In uncertain economic times, segmentation of your market can be difficult. This article covers top concerns addressing strategists and provides actionable insight. Read Article »
Maximize Your Data
by Chadwick Martin Bailey, Inc.
This article urges you to find multiple uses for your internally generated data through critical thinking and advanced analytics. Chadwick Martin Bailey, Inc. offers examples for applying data in new capacities. Read Article »
The Marketing Performance Advantage
by Rich Schreuer, SVP, Chadwick Martin Bailey, Inc.; CMG Partners
Measuring marketing performance generates interest but is still in its infancy. This survey of 400 companies measured the state of marketing performance, how it is implemented, and its impact. Chadwick Martin Bailey, Inc. shares insights procured from the findings. Read Article »
Taking Your Market Research Demographics off Auto-Pilot
by Cathy Harrison, Senior Project Manager, Chadwick Martin Bailey, Inc.
Recent controversy stirred by the use of an outdated demographic term by the US Census Bureau reminds us to constantly reevaluate our surveys. This article shares tips on keeping your questionaires relevant and accurate. Read Article »
Beyond Excellent Market Research: What Clients Want
by Cathy Harrison, Senior Project Manager, Chadwick Martin Bailey, Inc.
Research providers can make client satisfaction a success with these tips from Chadwick Martin Bailey, Inc. Read Article »
Segmenting the New 'Gamer'
by Chadwick Martin Bailey, Inc.
An interview with Electronic Arts' Stephen Day on their work with Chadwick Martin Bailey in developing a strategy in the gamer marketplace. Read Article »
Measuring What Matters in Super Bowl Ads: The Results
by Jeff McKenna, Senior Consultant, Chadwick Martin Bailey, Inc.
What matters is the results - did Super Bowl ads effectively reach their target demographics? This market research looks at age and income in correlation with ad preferences to try and deduce each company's target audience. Read Article »
Mobile Surveys in Market Research
by Josh Mendelsohn, VP Marketing, Chadwick Martin Bailey, Inc.
This article covers the state of mobile market research as it is today along with practical advice for making mobile surveys work. Read Article »
Qualitative Market Research: 3 Simple Tips for Getting Better Results
by Josh Mendelsohn, VP Marketing, Chadwick Martin Bailey, Inc.
Here are three simple ways to ensure your qualitative projects pay off with truly useful results. Read quotes directly from researchers regarding feedback on the proposal, the report and industry knowledge. Read Article »
Why Brand Tracking Should Include Experiences (incl. Social Media)
by Josh Mendelsohn, VP Marketing, Chadwick Martin Bailey, Inc.
Brand tracking research should cover both the impact of the brand and the impact of experience. This article suggests tracking social media channels as touch points for managing your brand image. Read Article »
Best Practices for Social Media Research
by Chadwick Martin Bailey, Inc.
How do you make sense of all the buzz around social networking sites? This article proposes three best practices for leveraging and measuring communications with your consumers through this medium. Read Article »
Brand Tracking to Help Agencies and Clients
by Chadwick Martin Bailey, Inc.
Brand tracking studies often miss key areas of design and data collection, resulting in poor campaign results. Building effective studies involves individual customization and incorporating external factors that affect data. Develop a successful program with insights from Chadwick Martin Bailey, Inc. Read Article »
A Strategic Compass For Stanley-Bostitch
by Chadwick Martin Bailey, Inc.
This case study involves a brand research project with Stanley-Bostich during economic downturn. Chadwick Martin Bailey, Inc. teamed up to discover insights about their website users, the competitive landscape and how to increase their retail shelf space. Read Article »
Market Research Shows Moving in Together Leads to Clutter
by Kristen Garvey, Director of Communications, Chadwick Martin Bailey, Inc.
Research on consumers finds that a large number of Americans find they have duplicate items when they move in with a significant other. What happens to all these items? This article looks into ways to profit from your household duplicates. Read Article »
Engaging Consumers via Social Media Makes Them More Likely To Buy, Recommend
by Chadwick Martin Bailey, Inc.
New research shows consumers engaged through social media such as Facebook and Twitter are over 50% more likely to buy and recommend than before they were engaged. This study shares both quantitative and qualitative data from a study of 1500 consumers. Read Article »
3 Steps Towards Improving Data and Processes
by Josh Mendelsohn, VP Marketing, Chadwick Martin Bailey, Inc.
One of the top challenges facing marketers is a perceived lack of the right data or processes to make informed key decisions. In addition, there are challenges in using that data for decision-making. This article from Chadwick Martin Bailey, Inc. addresses ways to resolve these issues. Read Article »
Why Measurement Alone Will Not Lead to Better Marketing
by Karl Gustafson; Rich Schreuer, Senior VP, Chadwick Martin Bailey, Inc.
A study of 400 c-level professionals was conducted by Chadwick Martin Bailey to determine how companies are tracking marketing performance. The organizations that measure and manage effectively have common success factors; read this article for practices that will improve your marketing-performance initiatives. Read Article »
Bridging the Gap Between Data and Creativity Through Market Research
by Jeff McKenna, Senior Consultant, Chadwick Martin Bailey, Inc.
The gap between by-the-numbers strategic consultants and creative ad agencies can be bridged by effective market research. In this article Jeff McKenna explains how market segmentation finds consumer preferences, needs and brand attitudes that can help influence the "emotional" and creative side of advertising. Read Article »
Qualitative Research: How the Art of Listening Has Changed
by Josh Mendelsohn, Chadwick Martin Bailey, Inc.
This article takes a look at how qualitative research has changed since the rise of social media and advances in technology. Read Article »
Just Starting Your Holiday Shopping in December? You're Not Alone
by Josh Mendelsohn, Chadwick Martin Bailey, Inc.
This content provides statistics on when consumers start their holiday shopping. If you wait until December, you should know you're not alone! Read Article »
Diet Programs Out, Interactive Fitness Products In
by Chadwick Martin Bailey, Inc.
Adults looking to lose weight have found a new method - interactive fitness products. More Americans plan on using a product such as Wii Fit or EA SPORTS Active rather than using a traditional fitness equipment or diet program. Learn more in this article from Chadwick Martin Bailey, Inc. Read Article »
Why Domino’s new ads are good for the market research industry
by Josh Mendelsohn, Chadwick Martin Bailey, Inc.
The new Domino's ads break down negative conceptions about the research industry. This article describes how the content of Domino's ads are good for the market research industry. Read Article »
Addressing Concerns Over Market Segmentation in Uncertain Times
by Josh Mendelsohn, Chadwick Martin Bailey, Inc.
This article addresses major concerns about conducting segmentation studies in the current economic situation and how to overcome these challenges. Read Article »
A Look At Purchase Decisions: Life Insurance
by Dan Gersten, Chadwick Martin Bailey, Inc.
CMB Research looks at who buys life insurance, for what reasons, and at what point in their life this purchase decision is made. The study of 1500 consumers finds that it's about more than socio-economics and life-stage events. Read Article »
Interview: Avoiding the "Brand Death" Spiral
by Chadwick Martin Bailey, Inc.
When marketing doesn't communicate with operations, the brand image is affected. Rich Schreuer provides an example of customer service not meeting brand image and how this contributes to "the brand death spiral." Read Article »
Market Research Shows IT Service Providers Lack Brand Distinction
by Don Ryan, Chadwick Martin Bailey
IT decision makers around the United States were surveyed about their use of IT-related services. The questions regarding the uniqueness of brands raise concerns about brand distinction in the industry. Read Article »
Using Primary Market Research to Evaluate B2B Social Media Strategies
by Chris Neal, Chadwick Martin Bailey, Inc.
Recent research on social media has found that engaged consumers are more likely to buy and recommend a brand. Chadwick Martin Bailey, Inc. describes this research and their recent work with a leading processor company in re-evaluating their social media effectiveness. Read Article »
Don't Underestimate the Impact of Online Guest Reviews
by Judy Melanson, Chadwick Martin Bailey, Inc.
A recent study asked consumers about social media use and attitudes as it relates to travel, finding an extremely high importance rate on guest reviews. This article shares the impact of positive and negative guest reviews on booking cruises. Read Article »
How Geo-Targeting is Affecting Customer Loyalty Programs
by Josh Mendelsohn, Chadwick Martin Bailey, Inc.
This article shares examples of how companies are engaging customers via mobile, geo-based applications such as Foursquare. Read Article »
Selling Life Insurance to the Under-30 Crowd
by Dan Gersten, Chadwick Martin Bailey, Inc.
Life Insurance: The investment product that protects more than just one's money. This article shares insights from a study of 1,500 U.S. consumers on insurance. Read Article »
