Archive for category CSR Measurement

Marketing Metrics: The Emperor Has No Clothes!

Clip books, impression numbers, web hits: who believes them? Maybe no one, according to a study reported on by AdAge. Such metrics are commonly used as indicators of ROI, but, according to survey findings, “the problem is that CFOs don’t seem to buy the CMOs’ claims” and meanwhile, “marketers don’t believe their numbers either.”

One example: “Only one in 10 marketer respondents said they could forecast the effect of a 10% cut in spending.” Why? Most approach marketing as an art, rather than a science. Sure, who wouldn’t want to know the relative value of a radio spot vs. a TV campaign vs. a guerrilla marketing effort. But, there are so many variables: how to separate out the power of the message itself, the state of the economy, or the impacts of other campaigns running at the same time? Hard stuff. As a result, many simply default to familiar strategies and metrics, making adjustments around the edges based on logic or intuition.

Indeed, “perfect” ROI evaluations can be demanding and costly. But opportunities abound for “good enough” approaches that are practical to implement, more likely to earn respect from executive management, and actually provide useful marketing insights. A few examples:

  • Simple tracking. Charting discrete marketing efforts against contemporaneous sales can, over time, reveal valuable trend information to guide decisionmaking and estimation.
  • Replace “reach” with “customer value.” When considering a marketing investment, weigh the cost against the value of the desired sales outcome. Even if this requires highly speculative assumptions about response rates, engaging in “what-if” scenarios can be a powerful tool for revealing weaknesses of traditional strategies.
  • Targeted testing. Tracking trends and modeling what-if scenarios will often reveal key questions worth spending some additional resources on answering. Designing “surgical strike” pilot studies or sampling efforts will limit their cost and complement your tracking and modeling efforts
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Farron Levy is President of True Impact (www.true-impact.com), which provides web-based software, and consulting services, to help organizations quantify the social, financial, and environmental return on investment (ROI) of their corporate citizenship activities.

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The real CSR debate: why aren’t we helping practitioners?

Economist Edward Glaeser’s recent New York Times blog posting on “how ethical should businesses be?” is yet another example of the disconnection between public debate and what companies really need: help with implementation.

While briefly surveying arguments for and against CSR, Glaeser allows that “Even the harshest critics of corporate social responsibility are not advocates of sacrificing long-term profits by acting unethically today,” but quickly moves on to the “hard problems” of defining corporate roles beyond profit-maximization, as if companies already had the win-win items covered.

Not so fast.  According to recent research by Boston College’s Center for Corporate Citizenship, most corporations have not yet integrated CSR with their sales, marketing, HR, government affairs, or other core functional areas.  Corporate citizenship practitioners remain siloed and under-resourced, and still struggle to operationalize the classic CSR win-win.  As usual, implementation is more easily said than done.

What’s needed – at least until sustainability and corporate responsibility become part of mainstream corporate culture and decisionmaking – is greater cross-functional interaction, so CSR managers can tap and guide the expertise within their companies to identify and operationalize opportunities.

Identification is important because there is no “one size fits all” list of strategic CSR programs: a volunteer program may develop new, relevant skills for one type of company and not another; a ride-sharing or telecommuting policy may significantly increase productivity and reduce environmental impact for one type of industry and not another; a cause-marketing program may give a significant boost to one type of product but not another.

Simply getting the relevant functional managers at the table to review or brainstorm ideas can be a surprisingly easy way to identify truly relevant and impactful opportunities (often involving only minor adjustment or coordination of existing activities).  And if these opportunities are truly a win-win, then everyone will be motivated to help operationalize them.

For CSR managers struggling to make progress within their companies, try one step at a time.  Develop a relationship with the recruiting department and see if any of your community engagement activities or sponsorships can be designed to attract the attention of potential recruits, or create opportunities to interact with and better vet current candidates.  The results (and ROI) of any program you agree on can usually be monitored and measured through minor adjustments to existing application tracking systems or new-hire interviews.

Or start with marketing, or professional development, or any other department that your programs might be able to help.

Meanwhile, don’t get too distracted by public “debates” over CSR.  They may be intellectually interesting, but often they offer little assistance in creating real value: that is, actually implementing this stuff.

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Farron Levy is President of True Impact (www.true-impact.com), which provides web-based software, and consulting services, to help organizations quantify the social, financial, and environmental return on investment (ROI) of their corporate citizenship activities.

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