measuring communication success
Post on 29-Nov-2014
5.300 Views
Preview:
DESCRIPTION
TRANSCRIPT
SEARS, ROEBUCK AND CO.SEARS, ROEBUCK AND CO.
Measuring Success:Both externally and internally
Measuring Success:Both externally and internally
March 2003March 2003
AgendaAgenda
Measuring external communication Linking public relations to sales Focusing on ROI
Measuring internal change management communication
Scope of the Conversion Measuring associate understanding and attitudes Customer and financial measures Conclusions
Measuring external communication Linking public relations to sales Focusing on ROI
Measuring internal change management communication
Scope of the Conversion Measuring associate understanding and attitudes Customer and financial measures Conclusions
Keep it simpleKeep it simple
Revenue - Costs = ProfitRevenue - Costs = Profit
Simplifying further...Simplifying further...
Marketing Communication
Media Relations
Events, Publicity, etc.
Crisis Communication
Investor Relations
Etc.
Revenue Increases
Cost Control
Typically measurement...Typically measurement...
Stops at awareness Often stops short of awareness
Measures output. Not impact. Is often compared to advertising
Ad equivalencies are the wrong measure No measurement of impact, change in attitude
or behavior
Stops at awareness Often stops short of awareness
Measures output. Not impact. Is often compared to advertising
Ad equivalencies are the wrong measure No measurement of impact, change in attitude
or behavior
Do they believe? Do they believe?
Businesses want to measure behavior change -- Are they buying?
Are customers buying your products and services?
Are employees buying your messages?
Businesses want to measure behavior change -- Are they buying?
Are customers buying your products and services?
Are employees buying your messages?
Clipping and Message AnalysisClipping and Message Analysis
Can be a useful management tool Measures activity and output of PR group Measures whether key messages are being seen Helpful in gauging whether coverage is negative or positive Identifies positive and negative bias of media Can calculate cost per impression But, it is not a measure of ROI or behavior change
Can be a useful management tool Measures activity and output of PR group Measures whether key messages are being seen Helpful in gauging whether coverage is negative or positive Identifies positive and negative bias of media Can calculate cost per impression But, it is not a measure of ROI or behavior change
Taking clippings further...Taking clippings further...
Link to changes in awareness, preference or behavior (purchase)
What is the impact on revenue? What is impact on cost control, associate attitudes
or other intermediate measures?
Link to changes in awareness, preference or behavior (purchase)
What is the impact on revenue? What is impact on cost control, associate attitudes
or other intermediate measures?
News ReleasesEvents
Media calls, etc(Effort)
(Difficult to measure)
Publicity(semi-controllableand measurable)
Measure is circulationor viewers
(MediaLink)
Most people never see the article or
hear the broadcast(0 impact)
Effort that nevergets printed, broadcast
(0 impact)
Percentage of effort results in publicity
Percen
t of w
asted
effo
rt
Target AudienceConsumers who see or hear the publicity and are
part of the intended audience for message(difficult to measure, but assumed to be
a fraction of the circulation number)
No impact on consumers
“I still won’t shop.”
Consumers who have an attitudinal shift -- “I will shop as a
result of that story”(measurable-- Oprah and
BrandKeys)
Those who readthe article, intend to
shop, but neverfollow through
Consumers who takeaction as a result, and
visit a store with intent to purchase
(Traffic - no currentmeasurement device)
Those who don’tfind what theyneed or wantand make no
purchase
Customers make purchaseMeasure is revenue $
(SPRS report)
Budget funds PR activity
($)
Subract cost of all investments,leaving profit $ tied to PR program.
ROI is how much of this is generatedfor every dollar invested at beginning
Those not in targetaudience -
not likely to purchase.
(minimal impact)
Businesses keep score with $What is the relationship between a $ invested in PR and
company revenue or profit?
Measures existing
Subtract customerswho purchased withoutbenefit of the publicity(test market vs. controlor incremental above baseline) (AdEffect)
Does it work?Does it work?
Can you identify changes along the path? Is there a link between public relations events and
revenue? Two examples of how changes have been
measured at Sears and how you can design a model for your business.
Can you identify changes along the path? Is there a link between public relations events and
revenue? Two examples of how changes have been
measured at Sears and how you can design a model for your business.
BackgroundBackground
One placement on the Oprah show involved providing Christmas gifts for foster children in a small Texas community.
Sears provided all the gifts for 100 children Oprah exclaimed “We love Sears!” Can this be measured?
One placement on the Oprah show involved providing Christmas gifts for foster children in a small Texas community.
Sears provided all the gifts for 100 children Oprah exclaimed “We love Sears!” Can this be measured?
Sears is high quality companySears is high quality company
Slight positive shift following the broadcast
65% agree vs. 58% Shift came from all rating
levels
Slight positive shift following the broadcast
65% agree vs. 58% Shift came from all rating
levels
0
5
10
15
20
25
30
35
40
Ag
ree
Neutr
al
Dis
agre
e
Sears Pre Sears Post
0
5
10
15
20
25
30
35
40
Ag
ree
Neutr
al
Dis
agre
e
Sears Pre Sears Post
Sears does good things for communitySears does good things for community
Following broadcast saw a huge shift to positive on this question
Almost a five-fold increase in number of those agreeing completely
Following broadcast saw a huge shift to positive on this question
Almost a five-fold increase in number of those agreeing completely
0
10
20
30
40
50
60
Agr
eeC
omp
lete
ly
Neu
tral
Dis
agre
e
Sears Pre Sears Post
0
10
20
30
40
50
60
Agr
eeC
omp
lete
ly
Neu
tral
Dis
agre
e
Sears Pre Sears Post
Plan to shop Sears for HolidayPlan to shop Sears for Holiday
The show provided the incentive to move viewers from neutral to positive intent
Increased to 70% vs. 59% before show
The show provided the incentive to move viewers from neutral to positive intent
Increased to 70% vs. 59% before show
0
5
10
15
20
25
30
35
40
Agr
eeC
omp
lete
ly
Neu
tral
Dis
agre
e
Sears Pre Sears Post
0
5
10
15
20
25
30
35
40
Agr
eeC
omp
lete
ly
Neu
tral
Dis
agre
e
Sears Pre Sears Post
Percent
“I plan to shop at Sears for the holidays.”“I plan to shop at Sears for the holidays.”
The Oprah PR placement provided the additional incentive needed to move some viewers from a neutral position to a positive intent to shop at Sears.
Neutrals dropped from 73 respondents to 52, and somewhat negatives dropped from 29 to 18.
The strongest negatives remained the same.
The positive side of the intent to shop increased from 178 to 210 respondents.
The Oprah PR placement provided the additional incentive needed to move some viewers from a neutral position to a positive intent to shop at Sears.
Neutrals dropped from 73 respondents to 52, and somewhat negatives dropped from 29 to 18.
The strongest negatives remained the same.
The positive side of the intent to shop increased from 178 to 210 respondents.
24.3 24.3
9.66.7
34.3
17.3
6 6.7
35 35.6
05
10152025303540
Ag
ree
Co
mp
lete
ly
Ne
utr
al
Dis
ag
ree
Sears Pre Sears Post
24.3 24.3
9.66.7
34.3
17.3
6 6.7
35 35.6
05
10152025303540
Ag
ree
Co
mp
lete
ly
Ne
utr
al
Dis
ag
ree
Sears Pre Sears Post
1 2 3 4 5Sears Pre 35 24.3 24.3 9.6 6.6Sears Post 35.6 34.3 17.3 6 6.6
Percentage of Respondents
…estimate what you’ll spend at Sears during this holiday season.…estimate what you’ll spend at Sears during this holiday season.
We saw earlier there was a positive shift in the number of people saying they planned on shopping at Sears.
About 10% increase in positive intent.
If we assume the mid-point for each range, and $600 for the over $500 data, then these 300 respondents represent an average of $195 per respondent after seeing Oprah, versus $140 before.
An increase of +39% per shopper in the amount they estimate they’ll spend at Sears.
We saw earlier there was a positive shift in the number of people saying they planned on shopping at Sears.
About 10% increase in positive intent.
If we assume the mid-point for each range, and $600 for the over $500 data, then these 300 respondents represent an average of $195 per respondent after seeing Oprah, versus $140 before.
An increase of +39% per shopper in the amount they estimate they’ll spend at Sears.
48.6
40.3
5.62 3.3
35.6 34.3
17.3
6 6.6
0
10
20
30
40
50
60
Lessthan$100
$100to
$250
$251to
$350
$351to
$499
Over$500
Sears Pre Sears Post
48.6
40.3
5.62 3.3
35.6 34.3
17.3
6 6.6
0
10
20
30
40
50
60
Lessthan$100
$100to
$250
$251to
$350
$351to
$499
Over$500
Sears Pre Sears Post
What was the impact?What was the impact?
Shift in attitude led to planned spending increase of $40-million
Discounted by 2/3 to account for intentions that never come to fruition, the actual spending increase may be about $13-million
Subtract costs and calculate ROI
Shift in attitude led to planned spending increase of $40-million
Discounted by 2/3 to account for intentions that never come to fruition, the actual spending increase may be about $13-million
Subtract costs and calculate ROI
Fashion Footwear and NYTFashion Footwear and NYT
January feature placement in New York Times -- New York/New Jersey edition
What was the impact in that market vs. a control market and vs. national?
January feature placement in New York Times -- New York/New Jersey edition
What was the impact in that market vs. a control market and vs. national?
The New York TimesThe New York Times
Fashion Footwear ResultsFashion Footwear Results
Week following placement NY and NJ markets were up vs. year ago.
Chicago down National down
Week following placement NY and NJ markets were up vs. year ago.
Chicago down National down
-20-15-10
-505
10152025
Ne
w
Je
rse
y
Ne
w
Yo
rk
Ch
ica
go
Na
tio
na
l
Week 1 Week 2 Week 3
-20-15-10
-505
10152025
Ne
w
Je
rse
y
Ne
w
Yo
rk
Ch
ica
go
Na
tio
na
l
Week 1 Week 2 Week 3
Footwear ConclusionsFootwear Conclusions
A single placement in a credible publication made a dramatic difference in sales compared to both national and comparable market
The only variable that changed that week was the New York Times placement
Translated into measurable dollars Cost of placement vs. incremental revenue
increase gives ROI
A single placement in a credible publication made a dramatic difference in sales compared to both national and comparable market
The only variable that changed that week was the New York Times placement
Translated into measurable dollars Cost of placement vs. incremental revenue
increase gives ROI
Connecting the dots...Connecting the dots...
Two examples measure the impact of single “communication events” -- not the cumulative impact of entire program
The right events can have a significant positive impact
Activities and events which do not have positive impact are suspect
Impact can be either a shift in attitudes or actions
Two examples measure the impact of single “communication events” -- not the cumulative impact of entire program
The right events can have a significant positive impact
Activities and events which do not have positive impact are suspect
Impact can be either a shift in attitudes or actions
Measuring internallyMeasuring internally
Can the same principles be applied to an internal audience?
How do you define success in a large change management communication program?
Can the same principles be applied to an internal audience?
How do you define success in a large change management communication program?
BackgroundBackground
In late 2001 in Full Line Stores… Announced 4,000 layoffs Announced Productivity Improvements Sears. Where Else? introduced Morale is not at an all time high
In late 2001 in Full Line Stores… Announced 4,000 layoffs Announced Productivity Improvements Sears. Where Else? introduced Morale is not at an all time high
Measures going in wrong direction...Measures going in wrong direction...
50
55
60
65
70
75
80
1999 2000 2001
Associate Attitudes% positive
Understand
Strategy
Feel good
about future
Making
changes to
compete
Conversion ObjectivesConversion Objectives
Improved customer satisfaction Easier to shop Easier to operate and easier to support store model
Clear lines of accountability throughout the organization
Improved execution on in-stock, in-store marketing, customer service
Improved profitability
Improved customer satisfaction Easier to shop Easier to operate and easier to support store model
Clear lines of accountability throughout the organization
Improved execution on in-stock, in-store marketing, customer service
Improved profitability
Communication PrinciplesCommunication Principles
Open and honest Share information as soon as it’s available Focus on key audiences, while making information
available very broadly Credibility is key
No sugarcoating No promises we can’t keep Focus on the end result and how to get it
Use existing communication channels where possible; emphasize personal communication
Open and honest Share information as soon as it’s available Focus on key audiences, while making information
available very broadly Credibility is key
No sugarcoating No promises we can’t keep Focus on the end result and how to get it
Use existing communication channels where possible; emphasize personal communication
Communication ObjectivesCommunication Objectives
Gain alignment among senior management for the changes that will be necessary
Create high awareness and understanding for: Why change is needed What changes will be made and why
Win support for the dramatic changes, despite announcements of layoffs and new job descriptions and accountabilities
Focus on new model: easier to shop, easier to operate
Gain alignment among senior management for the changes that will be necessary
Create high awareness and understanding for: Why change is needed What changes will be made and why
Win support for the dramatic changes, despite announcements of layoffs and new job descriptions and accountabilities
Focus on new model: easier to shop, easier to operate
Communication TacticsCommunication Tactics
Identify and leverage credible channels Senior leadership meetings - FLST initiated One-on-one meetings with leadership Town Hall meetings (existing and new) PMO Website Regular features in S Journal, S Update Training meetings and support materials Detailed conversion manuals Communication materials provided to DGMs for
cascading through stores organization
Identify and leverage credible channels Senior leadership meetings - FLST initiated One-on-one meetings with leadership Town Hall meetings (existing and new) PMO Website Regular features in S Journal, S Update Training meetings and support materials Detailed conversion manuals Communication materials provided to DGMs for
cascading through stores organization
Communication Tactics (cont’d)Communication Tactics (cont’d)
Issues and questions fielded in multiple ways, with response ASAP
Video Updates to field midway through conversion In-store meeting materials for consistent
messaging Input into training materials to reinforce new store
model of excellent customer service Ongoing communication through newly defined
MAP and Weekly Updates
Issues and questions fielded in multiple ways, with response ASAP
Video Updates to field midway through conversion In-store meeting materials for consistent
messaging Input into training materials to reinforce new store
model of excellent customer service Ongoing communication through newly defined
MAP and Weekly Updates
MeasurementMeasurement
Baseline MOC results reviewed Key questions pulled for ongoing pulse surveys Surveys following major communication events Weekly review of Q&A and Issues raised to
identify gaps in communication program Informal discussions within stores organization
Didn’t overreact to anecdotal information Checked feedback against data
Baseline MOC results reviewed Key questions pulled for ongoing pulse surveys Surveys following major communication events Weekly review of Q&A and Issues raised to
identify gaps in communication program Informal discussions within stores organization
Didn’t overreact to anecdotal information Checked feedback against data
Performance Improvement ProgramPerformance Improvement Program
StrategyStrategyMarketingMarketing Supply Chain
Supply Chain
Store & Field
Store & Field
Store & Field Organization
Store Activity
In Store Marketing
Labor Management
Sign Creation
Flow Optimization
Integrated Order Management
Liability Inventory
Ad Production
Promotional Profitability
Lands’ End Initiative
Covington Roll out
Center Core
Home Fashions
Footwear
Appliances
HRHR
e-Learning
e-Recruiting
Associate Services
Projects that have a direct impact on the store were grouped together into a synchronized field “Conversion” calendar
Conversion ScopeConversion Scope
Store Structure District Structure Region Structure
Number of Stores
Center Aisle Cashwraps ALL Signage and Fixturing ALL Four Zone Merchandising ALL Appliances 101 Center Core 543 Home Accents 557 Mattresses 32 Men’s Big and Tall 349 Open Sell Shoes 216 Tool Territory 149
Store Structure District Structure Region Structure
Number of Stores
Center Aisle Cashwraps ALL Signage and Fixturing ALL Four Zone Merchandising ALL Appliances 101 Center Core 543 Home Accents 557 Mattresses 32 Men’s Big and Tall 349 Open Sell Shoes 216 Tool Territory 149
Merchandise and Customer Assist Consultative Selling Center Aisle Cashiering
POS Signing Ad Setup/Take-down Replenishment POG/ZOG Liability Merchandise Labor Management e-Learning e-Recruiting
Merchandise and Customer Assist Consultative Selling Center Aisle Cashiering
POS Signing Ad Setup/Take-down Replenishment POG/ZOG Liability Merchandise Labor Management e-Learning e-Recruiting
Note: initiatives will be implemented in all stores except where a specific number is given
Field Organization
Field Organization
Store Environment
Store Environment
Service LevelsService Levels
Activities and Processes
Activities and Processes
Communication OutputCommunication Output
PMO website has had more than 2-million hits during conversion; Of the 24,000 visitors 23,000 are from the field.
PMO base conversion has been successfully implemented, and has been widely supported
Articles every month in corporate publications Communication is becoming embedded as a core
leadership responsibility in the stores organization Web site is becoming an operational tool more than
information only tool
PMO website has had more than 2-million hits during conversion; Of the 24,000 visitors 23,000 are from the field.
PMO base conversion has been successfully implemented, and has been widely supported
Articles every month in corporate publications Communication is becoming embedded as a core
leadership responsibility in the stores organization Web site is becoming an operational tool more than
information only tool
Communication Results - AssociatesCommunication Results - Associates
Associate attitudes (all store associates) are more positive than they have been since 1998.
Understanding of strategy is higher than it has ever been.
Associate attitudes (all store associates) are more positive than they have been since 1998.
Understanding of strategy is higher than it has ever been.
50
55
60
65
70
75
80
19
99
20
00
20
01
Wa
ve
1
Wa
ve
2
Wa
ve
3
Assoc iate Attitudes% positive
Understand
Strategy
Feel good
about future
Making
changes to
compete
Store management is even more positive ... Store management is even more positive ...
Assistant Store Managers and hourly leads feel good about the future, believe we are making the changes necessary to compete, and understand our strategy.
Assistant Store Managers and hourly leads feel good about the future, believe we are making the changes necessary to compete, and understand our strategy.
50
60
70
80
90
100
Wave 1 Wave 2 Wave 3
UnderstandStrategy
Feel goodabout future
Makingchanges tocompete
Customer feedback is also encouragingCustomer feedback is also encouraging
Customers reacted favorably to the new store environment
Store revenues were on target for Holiday
Customers reacted favorably to the new store environment
Store revenues were on target for Holiday
Financial Benefits are on trackFinancial Benefits are on track
Conversion costs stayed on budget Field operating costs met planned savings Capital expenditures within budget Communication had no incremental budget increase Full Line Store profitability is up more than 30% Sears posted record earnings in 2002
Conversion costs stayed on budget Field operating costs met planned savings Capital expenditures within budget Communication had no incremental budget increase Full Line Store profitability is up more than 30% Sears posted record earnings in 2002
ProductivityProductivity
Objective is to create a culture of continuous productivity improvement
Ongoing process of continuous improvement in efficiency and effectiveness
Ultimately, time will tell Can we continue to improve both customer
satisfaction and productivity?
Objective is to create a culture of continuous productivity improvement
Ongoing process of continuous improvement in efficiency and effectiveness
Ultimately, time will tell Can we continue to improve both customer
satisfaction and productivity?
ConclusionsConclusions
Looking at measurement from the perspective of the CEO will help clarify what’s important
Establishing a logic model for communications and measurement of results is good start
Building evidence over time will help improve ability to make fact-based decisions about public relations and communication investments
In some areas (such as marketing public relations) we can remove the mystery of the craft and earn respect of management team on their terms
There is still much to do
Looking at measurement from the perspective of the CEO will help clarify what’s important
Establishing a logic model for communications and measurement of results is good start
Building evidence over time will help improve ability to make fact-based decisions about public relations and communication investments
In some areas (such as marketing public relations) we can remove the mystery of the craft and earn respect of management team on their terms
There is still much to do
SEARS, ROEBUCK AND CO.SEARS, ROEBUCK AND CO.
Questions? Questions?
Tom Nicholson
Sears, Roebuck and Co.
Tnich00@sears.com
Tom Nicholson
Sears, Roebuck and Co.
Tnich00@sears.com
top related