roi demystified womma summit 2010

ROI Demystified

WOMMA Summit 2010

Scott Cuppari

Walter Carl

Stuart Sheldon

Dan Hunter

What Is ROI?

Why Is It So Hard To Do?

Case Studies

WHAT IS ROI?

Gain - Cost

Cost

Principles of Measuring ROI

Target Exposed

to Activation

Category

Mass Target

1) Isolate Program Versus Control

Reach

Impact

Cost Effectiveness/ROI

2) Use ConsistentMeasures

3) Compare to Objective Database

Top 10% Top 25%

Top 50% Bottom 50%

Impact

Target Reached

Comprehend/Interest

Purchasers

Repeat

Reach

WOM-Impacted

Purchasers

Repeat

WOM

Amplification

4) Include WOM Impact: Generation 0 to G1+…

$0

$1

$2

$3

$4

1 2 3 4 5 6 7 8 9 10 11 12Months

Test Spend =$3.12/mth

Control SpendAverage =$2.48/mth

5) Include Short Term & Long Term

Bra

nd

Sp

en

d

CASE STUDY #1

OBJECTIVES

• Trial

• Real Coca-Cola Taste and Zero Calories

COKE ZERO IT’S POSSIBLE

SOLUTION

• Brand Advocates

• Social Currency

• Tools & Triggers

• Real World & Digital

COKE ZERO IT’S POSSIBLE

PROGRAM

COST % ROI : Exceeded

BRAND BUSINESS WOM

Events: 2,500+

Views: 300M+

Trial: +7% vs. goal

Budget: On

Likelihood To Recommend: +48 pts.

Purchase Intent: +38pts.

Key Message Recall: Exceed

G0 New Triers: 65%

G1+G2 New Trial: Conf.

Volume: Up

Velocity: Up

Share: Up

4 Week Relay Rate: 11+

NPS: +20 points

G0+G1+G2 Reach: 10X+ Trial

Note: Some results generalized, masked or withheld for confidentiality.

6.9%

11.9%11.4%

5.8%

8.1%8.8%

14.2%

5.3%

8.4%

15.8%

3.7%

4.9%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

January February March April May June July August September October November December

Coke Zero Activated Markets Number of Trials/month

Experiential Trial Drives WOM

How To Value That WOM?

Direct

Reach- Number of program participants in target consumer audience

WOM

Reach

- How long customer continues to recommend

- Generational relay rates (# of people reached), adjusted for

social network overlap to determine unique reach

Incremental

Purchase

Impact

- Generational conversion rates (% new purchasers)

- Determine incremental purchases compared to control group

Long-term (1 YR)

Purchases

- Repeat rate

- Additional units purchased

- Profitability per unit

- Discount rate

Cost - Program, coupon, and sample cost

Net Conversation Value® =

$0.04*

Incremental Revenue Generated – Program Cost / Unique Conversational Reach

To get ROI, replace Program Cost for Unique Conversational Reach

* Approx. 2X CPG & Food & Beverage benchmarks.

CASE STUDY #2

Mass Loyalty Reward Campaign

Experiential Activation Trial Campaign

Mass vs. Experiential Cost Effectiveness/ROI

16

Impact

Mass Media Campaign Experiential Activation

20 x$1

$1

$1

1 x$3

$2

$1

Reach (#)Cost per Reach

Cost per Impact (Direct)

Cost per Impact (Direct & WOM)

Reach

Mass vs Experiential Cost Effectiveness/ROI

Principles of Measuring ROI

Program vs. Control

Consistent Measures

Benchmark Results

Include WOM

Short & Long Term

Conversation

Thank You