Evaluating PR’s Return on Investment – Part 2
The previous post in this series detailed that effective Public Relations (PR) efforts -- like any campaign -- must start with a clear objective, metrics, and baselines. This post focuses on the actual measurements and techniques you can use to measure the effectiveness of your approach.
In doing research on the topic, I came across posts from Don Bartholomew, who writes eloquently about measuring Social Media on his blog, Metrics Man . While his posts focus on Social Media, much of his thinking is relevant to Public Relations. Either way, it's really good and you should definitely check it out for ideas.
What are the measurements you need for PR?
If you've ever tried to measure PR, you've probably come across Advertising Equivalents (AE). Unfortunately, AEs don't really tell you anything useful. I liken it to the age-old marketing metric of "Impressions" sometimes called the "eyeballs metric." The problem with this approach is that it doesn't measure outcomes and measuring whether those "eyeballs" really saw it or not is an iffy proposition.
Another common PR metric is the number of mentions. While it's not a bad idea to try to grow mentions, it again doesn't really point to an end result. You don't do PR to simply get mentioned, you do it to serve a purpose like grow sales, change perception, or avert crisis to name a few goals. Now if you can correlate the number of mentions with tangible financial gains, I'm all for measuring that way.
So after bashing those two metrics, what's my approach?
While the best strategy depends on the specific campaign objective, I'll try to outline the most common objectives and my thoughts on suitable metrics for each:
1) Grow Sales/Leads
What to measure:
- • Percent change in sales/leads during times of PR or after an acceptable amount of time (in order to factor in latency, especially companies with long purchase cycles).
- • Market Share Growth - again factoring in latency
- • Conversion Rate Increases - the theory being the more PR you do the more the awareness and perception should increase and aid in the conversion funnel.
2) Change in Perception (i.e. Awareness or Opinion)
What to measure:
- • Web Traffic Market Share against competitors - use tools like Hitwise or Compete to see how your traffic matches up against your competition during times of PR.
- • Keyword growth - especially branded keywords as volume should increase based on more PR, assuming the PR is successful in driving interest. You can use your own web analytics tools or Google Trends to measure growth and even contribution to conversions.
- • Web traffic increases - Focus on visitors directly accessing your site and SEO visitors to see if the needle moved during periods of PR.
- • % Change in Awareness/Perception - based on pre and post surveys. These can be targeted to specific audience segments such as customers, non-customers, former customers, etc.
- • Net Promoter Score increases - Are customers more likely to be advocates of your brand?
3) Avert Crisis/Government Interventions
What to measure:
- • Does your Market Share take a hit or rebound after a crisis (be sure to factor in latency)?
- • Does your stock price take a prolonged hit after a crisis?
- • Legislative voting - Does it favor your company?
- • Measure negative sentiment - based on repeated surveys over time. Does it stay stable after crisis?
I've only scratched the surface with potential objectives, but I think you get the idea. If you have other objectives, please feel free to send them to me for further discussion.
Techniques to prove PR had anything to do with those measurements
In looking at some of the metrics above you're probably asking yourself, "OK, those are great, but I am not sure how I can actually relate the PR efforts to these results." I'll grant you some of these are more proxies than direct cause and effect. In fact, causality is likely impossible, instead we are looking for correlation. You could simply look at your baseline results and your post-PR results and make a judgement on effectiveness, but you run the risk of overlooking whether PR was a significant factor in determining the effect. In order to gain some level of confidence in these correlations, may I suggest the following approaches:
1) Statistical Analsysis To connect your efforts to specific results, you will need to conduct statistical analysis using correlation, factor analysis, and regression. Using those terms I've probably just scared off about 90% of the audience reading this post. But if you are still reading, these statistical techniques you ignored during your 2nd year of business school can help you figure out if you've indeed moved the needle in a positive direction, especially if you've adopted the idea of using baselines (as mentioned in my first post ).
By peeling back the variables (marketing campaigns, prices, economic factors, etc) and running regression you can figure out which factors had a higher level of significance in driving the behaviors. While it sounds scary, you can actually do this in Excel assuming you have called out the right variables, have decent data, and someone on hand who can help you interpret the results.
2) Isolation is one of the best ways to go about doing the statistical analysis and determining whether your PR effort was significant in driving the metrics. There are a couple of ways to use isolation:
- • Do your PR in isolated geographies and measure the effect of the experiment versus a control sample. For example, you could run a PR effort in Virginia and do nothing in North Carolina. By measuring the differences in perception for those geographies you can isolate the PR effect (assuming other variables are constant). You can do similar things with other metrics such as sales based on geographies or keyword growth in cities where you did PR.
- • Do a survey that includes equal amount of people (or a statistically valid number) who saw your PR versus people who hadn't seen it and measure each group's perception. Surveying is not free but neither is wasting money on efforts that yield no value.
3) Use Tracking Codes in online PR efforts or even offline ones that point to the web as a way to directly understand traffic and conversions based on PR efforts. Example, when you do a press release with a url, add campaign tracking codes to the resolving url to see what these visitors end up doing on your site. Same goes for Twitter or shortened urls. This is the one way where we can see true end to end results based on behavior.
For other insights on how to track PR (and social media), some blogs that I found to be useful:
If there are other blogs that folks have found insightful, please post in the comments to share.
So this concludes Part 2...the other scheduled parts will include some further drill-down into using web analytics to measure PR and some hypothetical case studies. But are there other topics you want me to explore? I'd love to hear any suggestions for further topics in this space, so please let me know!
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