Measuring the ‘Return on Investment’ of a creative decision is complicated. You only realize this as you break down the various layers of ROI to get to what’s truly important as well as practical, when it comes to evaluating creative output. We’ve been in the weeds of this problem for over four years at PPD, and seen multiple clients grapple with the same issues.
Most are familiar with measuring ROI on a company-wide level. You have a certain amount of capital that you invest to produce a return and you’re either in the black or red. Typically you can drill down into the ROI equation, looking at specific business units, categories, regions, or go even further and see how individual sales people and products perform.
But what about measuring the return on the color of your new company logo? Or the open-space office plan in the new building? The new Herman Miller chairs? Or the PR around the latest product recall? Measuring both the ‘investment’ and/or the ‘return’ of these things is either difficult or not practically possible for most businesses.
The reason is these things contribute to business return in a partial sense – they’re not responsible for x number of units sold, only a portion of each unit that is. They aren’t divisible by product unit or dollars – there is no meaningful way to physically put to one side the ‘revenue’ they helped you earn or retain
We believe that measuring ROI on your in-store display program poses a lot the same challenges as measuring other creative decisions. In-store displays are, after all, a form of advertising – you want to understand if image A or Image B is best? Or does header size matter? Or is the copy persuasive or not? Can you measure all of these design permutations and figure out the returns they generate? Yes, but only in a highly complex, controlled, time consuming and costly test scenario. For most businesses this simply isn’t close to practical (we haven’t come across a client yet who thinks it is!).
So what do you do? At PPD we decided to use other other science and data (decision science, psychology, industry experts, etc.) to help optimize creative decisions before they go to market. We call this approach measuring PROI – Probability of Return on Investment.
Maximizing PROI is about ensuring decisions made in the absence of a ‘sales data feedback loop’ are the best possible.
POPtimizer optimizes creative decisions. POPtimizer uses established science around creative evaluation and decision making to ensure display designs you take to market are optimizing PROI. It helps you learn what works and what doesn’t when it comes to your Shoppers. And it lets you build an internal knowledge base as a reference point for future decisions.
POPtimizer is about making better decisions.
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