Traditional measures from column inches (quantity) to creative awards (quality) often focus on activities and interim outputs, rather than end results such as the achievement of corporate objectives. Sure, there might have been coverage and awards won, but what changed for the client?
For some, financial viability might be more important than being better known. A lower profile might benefit an organisation seeking a more selective clientele. Increasing understanding might be more important than amusing people, or wowing them creatively. Much depends upon objectives, priorities and timescale.
Speed of impact is now more important. Situations, requirements and priorities can quickly alter. As windows of opportunity come and go, there might be less interest in PR campaigns that take time to bear fruit. Much can change in a few months.
Initiatives that deliver single outcomes such as increased awareness are also going out of favour. More people want to use limited resources to achieve multiple objectives. Corporate communications and their assessment must reflect new expectations.
Find your focus
More focused ways of assessment such as calculating a return on investment (ROI) is an option. Take business development, where the challenge can be immediate and practical, such as launching a new product or winning bids. Smart companies avoid large, general and multi-year campaigns in favour of direct communications support.
Communication tools can transform how people engage key stakeholders and quickly achieve multiple objectives. Early adopters in sectors such as financial services, telecoms, manufacturing and retailing are boosting performance, speeding up and enabling bespoke responses, increasing understanding, cutting costs, reducing stress, avoiding risks, ensuring compliance and generating a large ROI.
People are helped to quickly understand complex areas and to do difficult jobs. Likewise, 24/7 support is provided when and where required, whether in an office, at home or on the move. Delivery can be via a laptop, palmtop, mobile phone, or via the internet, and integrated with web communications and social networking.
Online communications deliver quick wins
Once communications activities deliver quick and significant returns. The impact of these activities can usually be isolated from other possible causal factors. One of the earliest adopters of communications support to engage key audiences in the telecommunications sector was Lucent Technologies.
The ROI on Lucent's INDex Encyclopaedia could be assessed by win rates, cross and up selling, shortened sales cycles, lower induction and training costs, less time out of the field, fewer mistakes, etc. Taking just the increase in sales gave an ROI of 26.66 times project cost. The area of business grew over 2.5 times in three years.
Eyretel provided call recording solutions, and also commissioned more focused communications. Quick impacts were registered on the indicators cited for Lucent. Bringing orders forward, closer customer relationships, and faster induction were also important. Like Lucent it became an attractive acquisition target.
Eyretel sales rose 25% in eight weeks. Increased understanding among sales staff and prospects meant the need for engineers to accompany field visits fell by 66%. Just these savings, and orders directly resulting from the new approach, delivered a year one ROI of 71.43 times project costs.
In one CISCO systems region, before using communications support, not one account manager wanted to sell a new offering. The business quickly understood the benefits and closed deals in various countries. The directly attributed sales by just the first few users interviewed gave a six month ROI of 38 times project costs.
Communications impacts can be identified and various indicators used to measure ROI. A programme that does not offer a quick payback, multiple benefits and high ROI, or whose results are difficult to measure, should be questioned. It may not be focused, use contemporary tools, or be justified.
Prof Colin Coulson-Thomas FCA, FCCA, FCIS, FCIPD, FCIM, FCIPD is an experienced director and board chairman, and developer of new ways of engaging key groups.
1 comment
It would have been very helpful if the author had explained the formula he had applied to calculate these amazing ROI returns. Otherwise, it reads like some form of dreamed-up magic calculation. The use of ROI in public relations is a serious research area of great interest to practitioners and academics but this article doesn't advance it. I have reviewed many academic and trade press articles, and considered examples of how ROI can be applied but, apart from an AVE-linked version of ROI in 1977, there have been no claims of more than 20:1 results.