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