1. Measurement, Evaluation and Return on Investment on Communication Campaigns Based on COI Payback and Return on Marketing Investment Report, November 2009

2. Slide 2 Objectives To improve the measurement and evaluation of communications and introduce ROI where possible on all communications activity in order to: -Develop marketing materials that are more effective -Improve efficiency by understanding and investing in things that work -Improve budgeting -Improve forecasting of results -Improve management of expectations and outcomes

3. Slide 3 What are we trying to measure? Economic value generated: -Wider economic benefits as a result of a campaign e.g. anticipated increases in future productivity, output or investment. EXAMPLE: Markets Revenue generated: -Estimated revenue generated to the council as a result of the campaign. EXAMPLE: Ice Rink Saving money directly: -Making savings that are as a direct result of the campaign. EXAMPLE: Foster Care, Council Tax Payments Online Saving money indirectly: -Making savings as a result of a link to a campaign. EXAMPLE: Check it out Spend money well: -Inspiring campaigns that really hit the target audience that can increase uptake of the campaign and improve quality of response Public money in priority areas: -E.g. campaigns that generate uptake of a particular scheme/benefit that actually costs the council. EXAMPLE: Apprenticeships, increased reporting etc. Campaigns with no payback: -Campaign deliver no financial benefit as they aim to deliver benefits that cannot be quantified. Can have other measurable outcomes such as perception changes. EXAMPLE: ASB

4. Slide 4 How we going to do this? 1.Map Objective s 2.Set Scope of Analysis 3.Plan to Measure Outcome s 4.Measur e Impact of Campaig n 5.Put a Value on Impact of Campaig n 6. Calculate Payback and ROI

5. Slide 5 How we going to do this? Pre-Campaign During Campaign Post-Campaign 1.Map Objective s 2.Set Scope of Analysis 3.Plan to Measure Outcome s 4.Measur e Impact of Campaig n 5.Put a Value on Impact of Campaig n 6. Calculate Payback and ROI

6. Slide 6 Pre-Campaign During Campaign Post-Campaign How we going to do this? Establish clear campaign objectives and relate them to measurable outcomes and financial returns were possible Establish other factors that will contribute to outcomes. What proportion of outcomes can be attributed to the campaign versus other interventions? 1.Map Objective s 2.Set Scope of Analysis 3.Plan to Measure Outcome s 4.Measur e Impact of Campaig n 5.Put a Value on Impact of Campaig n 6. Calculate Payback and ROI

7. Slide 7 How we going to do this? Pre-Campaign During Campaign Post-Campaign Set limits of what is to be achieved by the campaign: What the campaign needs to deliver to meet targets and reach a certain level of ROI Each stakeholders specific requirements for the campaign 1.Map Objective s 2.Set Scope of Analysis 3.Plan to Measure Outcome s 4.Measur e Impact of Campaig n 5.Put a Value on Impact of Campaig n 6. Calculate Payback and ROI

8. Slide 8 Pre-Campaign During Campaign Post-Campaign How we going to do this? Identify campaign measures: Set baseline, forecasts and trends Set-up reporting mechanisms 1.Map Objective s 2.Set Scope of Analysis 3.Plan to Measure Outcome s 4.Measur e Impact of Campaig n 5.Put a Value on Impact of Campaig n 6. Calculate Payback and ROI

9. Slide 9 Pre-Campaign During Campaign Post-Campaign How we going to do this? Collect and analyse data Rule out or qualify other factors that may contribute to change Account for other factors Forecast results 1.Map Objective s 2.Set Scope of Analysis 3.Plan to Measure Outcome s 4.Measur e Impact of Campaig n 5.Put a Value on Impact of Campaig n 6. Calculate Payback and ROI

10. Slide 10 Pre-Campaign During Campaign Post-Campaign How we going to do this? 1.Map Objective s 2.Set Scope of Analysis 3.Plan to Measure Outcome s 4.Measur e Impact of Campaig n 5.Put a Value on Impact of Campaig n 6. Calculate Payback and ROI Attribute financial values to the results of the campaign

11. Slide 11 Pre-Campaign During Campaign Post-Campaign How we going to do this? Multiply financial values by the results of the campaign to get “payback” Calculate costs: media, research, creative, print ROI = (Payback – Costs)/Costs Evaluate campaign based on ROI/Payback/Costs e.g. Channel/audience effectiveness 1.Map Objective s 2.Set Scope of Analysis 3.Plan to Measure Outcome s 4.Measur e Impact of Campaig n 5.Put a Value on Impact of Campaig n 6. Calculate Payback and ROI

12. Slide 12 Burglary Example Reduction in Incidentsx % Attributable to Campaignx Reduction in Incidents Attributable to Campaignx Money Saved Per Incident*: Victim/Insurance costs: £ x Criminal Justice System costs: £ x TOTAL: £ x Total Saved as a Result of Campaign*: Victim/Insurance costs: £ x Criminal Justice System costs: £ x TOTAL: £ x Payback £ x Campaign Cost £ x Net Payback (Payback-Campaign Cost) £ x ROMI = Net Payback/Campaign Cost x *Prices adjusted to 2010 levels Assumptions: 100% of the reduction in incidents attributable to the campaign Cost of burglary figures based on 2004 report from the Home Office Prices adjusted to 2010 levels Every £1 spent on the campaign “saved” £65 in victim / insurance and CJS costs

13. Slide 13 Fostering 09/10 Example Assumptions: Assumes 50% increase in approvals following campaign Assumes 5 year average foster carer career Costs based on Fostering Network estimates Every £1 spent on the campaign “saved” the council £15 in agency costs Campaign resulted in 50% extra enquiries Assume that this will result in 50% extra approvals No. of Extra Approvals Attributed to the Campaignx Money Saved Per Extra Approval Cost of LA Foster Carer Per Year £ x Cost of IFA Foster Carer Per Year £ x DIFFERENCE PER YEAR: £ x Total Saved Per Year as a Result of Campaign: £ x Total Saved Per Foster Carer During 5 year Career £ x Payback £ x Campaign Cost £ x Net Payback (Payback-Campaign Cost) £ x ROMI = Net Payback/Campaign Cost x

14. Slide 14 Student Safety Example* Assumptions: 100% of the reduction in incidents attributable to the campaign Cost of crime figures based on 2004 report from the Home Office Prices adjusted to 2010 levels *BASED ONLY ON FIRST MONTHS DATA! AWAITING END OF YEAR DATA. Every £1 spent on the campaign “saved” £7 in victim/CJS costs Reduction in Burglary Incidents Attributable to Campaignx Money Saved Per Incident: £ x Total Saved as a Result of Campaign:-£ x Reduction in Robbery Incidents Attributable to Campaignx Money Saved Per Incident: £ x Total Saved as a Result of Campaign: £ x Reduction in TFMV Incidents Attributable to Campaignx Money Saved Per Incident: £ x Total Saved as a Result of Campaign: £ x Reduction in SSO Incidents Attributable to Campaignx Money Saved Per Incident: £ x Total Saved as a Result of Campaign: £ x Total Saved as a Result of Campaign: £ x Payback £ x Campaign Cost £ x Net Payback (Payback-Campaign Cost) £ x ROMI = Net Payback/Campaign Cost x