A colleague called recently preparing for a conference. They were seeking thoughts on measurement of Social Media and were disappointed to find no decent research available, particularly on the link between SM and business results.
We started chatting through some classic consumer behaviour theory and how influence models work, when a simpler approach struck me. At the time, I also had in mind an article from the AFR describing an advertiser building an engagement index rating their viewers. Guess what they learnt? Programs that rated low in volume can be high in engagement. The argument is, presumably, such shows COULD therefore be more effective for advertisers. Conspicuous by its absence was any discussion on how they prove those shows ARE more effective!
Where’s the Value?
In this economic climate, marketers are chasing how to create value for their customers. Then they want to get there by doing more with less. But if we don’t define value then how can you recognize it? Or measure how much you find? And was it worth the cost or effort anyway?
No surprise then that nearly half of senior marketers in a recent survey wanted media agencies to improve their measurement of campaigns. The survey was taken in Dec/Jan of clients from several media agencies. So the rationale is obvious.
A Simpler Approach
A simple bit of structure here goes a long way. In a few steps we can capture at a macro level the critical steps that create value:
1. Planning - Research and understand your target audience segments
2. Communications Activities – supporting and supported by good marketing activity
3. People Outcomes – what effect the activity had on people’s thoughts (cognition)
4. Business Outcomes – what tangible business benefit results? Eg. Sales, Share price gain
Most of the C-Suite (eg.CEO) people are keenly interested in tracking step 4. But how many of them have metrics for the other steps? Without knowing exactly what has occurred in step 2 and 3, there are no diagnostics of this ‘Value Chain’. If results didn’t meet expectations no one knows why or what to do differently next time.
With so much advertiser effort focused on tiny parts of step 2, how do they actually learn if and where anything went wrong?
So, whilst marcoms activity can create value it may not. Even if it does create value you need to be able to show it. The further down the Value Chain you can show it the greater business success you should have.
I look forward to your comments on the above.
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