Download - 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