ROI + ROE = Insightful Results

Do we rely too much on the hard metrics of an ROI model and miss the value of soft measurement factors like; what the ‘experience’ was to the consumers?

Yes many brands understand the value of giving consumers a brand experience and that evaluating the actual impact of a piece of activity is important, but although traditional ROI measurements provide us with certain information, they lack the evidence to prove just how effective they were in the long term.

A ‘Return on Experience’ model seems more fitting to accommodate to today’s consumer – a results model that provides tangible results and that proves the value of each practice. I’m not saying that we often obscure the consumer experience by the need to justify an impressive ROI figure, but that by thinking strategically, and combining the elements that drove the response rates with what aspect of the activity encouraged consumer interaction, means that we can gain a deeper understanding and a clearer holistic picture.

With an ROE model we can see the full picture. It is an essential part of measurement and one that gives insight into customers and their behaviour, and by analysing the correlation between experience and consumer behaviour means we can help give a brand an edge.

So in addition to a ROI model, incorporating a ROE element means that the hard measures of the ROI metrics; leads, redemptions, direct sales, etc., can be complimented, and overlayed with the softer measures metrics such as; brand trackers, focus groups, pre/post surveys etc.

It is all well and good if a campaign increased sales, but there are still the key learning’s to be gained as to what element of the campaign caused this, and why did it evoke such a response? Combining both models can give an all encompassing holistic view. From what the catalysts were that drove sales, to what actually influenced positive consumer perceptions of the brand, and allows us to see how well the experiences’ activities were received by the target audiences.

These outcomes are so important, especially in the current economic climate, where we need to go that little bit further to ensure that all campaign activity is strategic and caters to consumers growing demands and needs. Missing the value of soft measures, such as consumer feedback, could be seriously detrimental to a brand.

Consumer respect is earned rather than guaranteed, and so it’s the brands that demonstrate a true understanding of their consumers, ones that forge two-way relationships, and go beyond their expectations, that will prosper in these turbulent times.

Digital media is taking a more strategic role...

Digital media is taking a more strategic role in integrated campaigns at all levels.

It is a fragmented market which at best grazes on media, so the opportunity to engage at point of impact is critical. Focus has to be placed on what the individual consumer wants at a particular time, and this is increasingly from the digital medium. We should be looking to use all channels to push ideas… engaging with consumers… then using the whole media mix to pull them in.

Appreciating the needs of the audience is critical to building effective experiences. We need to immerse ourselves in our audience's world to understand their motivations, interests, likes and dislikes.

We have to engage customers or we will lose them. We have to be inclusive and not exclusive with our experiences. We have to understand that today’s consumers own the interactive space, that they have become their own creators, collectors, editors, distributors, broadcasters and community builders. We need to treat them with respect, engaging and stimulating them with creative that involves them, and which builds long-term relationships.