Katie Delahaye Paine (a.k.a The Queen of Measurement) published her book Measure What Matters last year – and I’ve finally got round to reading it. As anticipated, it’s packed full of sensible advice to help organisations measure the impact of their marketing and PR activities, especially through social media. I’ve picked out 5 of the best points to share here:
1) Five ways to measure ROI
Identify what the “I” is and what the “R” is and subtract the “R” from the “I” to get the ROI. How do you calculate the Return?
- Sales or revenue – Direct, tracked sales or income (£)
- Cost savings – Calculate the alternative expense
- Paid versus earned search rankings – e.g. what it would have cost via Google Adwords
- Cost avoidance – Such as averting a crisis
- Social capital – More, stronger relationships
2) How to measure the value of your blog
Using the method above Katie gives a nice example of how to value the ROI of your blog:
Suppose it costs you $120 a year to set up a blog and you spend an hour a day on it. If you value your time at $150 an hour, your cost for the year is $54,870. If the blog generates 50 click-throughs a day or 18,250 a year, your cost per click is $54,870 divided by 365 x 50 or $3.00.
3) How to leverage your measurement results to get what you want
It seems obvious but, once you’ve measured something, you need to make sure you use that information to get what you want. Katie suggests 6 things you might want:
- Money – Use the results to get a bigger budget
- Commitment – Get buy in from senior management
- Timing – Demonstrate how important it is to get something done now – rather than later
- Influence – Win over other teams/departments.
- Help – Secure more resources or attention.
- To say “No” – Back up a decision not to do something.
4) The importance of measuring engagement
Since I first wrote about the Phases of Engagement I’ve used Katie’s methodology repeatedly. It’s the simple idea that measuring what you can easily measure – e.g. impressions, fans/friends/followers, sales – isn’t enough. You need to measure the interactions and engagement between these things, such as repeat visits, comments, positive sentiment and shares to see where people are in their commitment to your organisation. This lets you know what you can reasonably ask of them. There’s a massive difference between Linking a Facebook page and entering a home-made video into a competition.
5) Measure what matters
Katie’s mantra in measurement is “So what?” When you’re creating your measurement framework – i.e. the list of contributory targets, objectives and goals for each of your activities – you need to ask yourself this question repeatedly. If you do, you’re more likely to hit on the metrics that really matter, rather than the vanity metrics that most of us have lazily relied on in the early years of social media.
Measure What Matters by Katie Delahaye Paine is available on Amazon here. I recommend it as a good investment offering solid, measurable ROI.