As the credit crunch starts to bite there are stories emerging of job losses, agencies closing or looking for merger opportunities.
But it still appears that some agencies have not woken up to this reality and seem content with top heavy management, slow and inflexible processes, unrealistic creative, and a lack of analysis.
Agencies that seem to have abandoned the fundamental disciplines of proposition-driven creativity, targeting, testing, and ROI strategies that are so attractive to brands as we enter recession.
Even some of the pure-play digital agencies do not seem to have mastered the disciplines required to turn their technical skills into effective customer communications.
So how should an agency prepare for recession? As important as keeping costs under control, isn’t it commonsense that in a recession clients look for ROI and quick gains?
Now is the time to move more customers online and to be smarter with data and analytics in order to hone targeting and messaging. A time to test and use the results to establish why some ideas work better than others, and then to apply those learnings. A time to focus on propositions and benefits, and to show brands how we can improve their results for less than they currently spend.
Showing posts with label ROI. Show all posts
Showing posts with label ROI. Show all posts
Tuesday
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.
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.
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