How to Value Spend on Community Relations

We get this question a lot, and we wish there was an easier off the shelf answer. How do we value our spend on community relations and event marketing. The short answer is, return on investment (ROI) for community relations & event marketing should be measured by long-term impact versus return on ad spend (ROAS) because it's impossible to measure revenue generated by each dollar spent building relationships and goodwill in a community. Instead we look at the long-term effects of being present - or "showing up" - in a community, how the brand impressions and direct engagements we make impact customer loyalty and brand equity and how that drives brand preference, while also considering the effects (or consequences) of NOT being present, especially when there is real or perceived controversy/political divide related to the product/service.

Instead, ROI should be measured by evaluating specific campaign objectives and KPIs that have been set - see list of a few below - all of which have long term impacts on revenue. Lastly, we must consider how community relations, and the trust we build through our in-person consumer interactions, improves the effectiveness of ALL other marketing strategies - e.g., direct mail is more likely to be read and digital ads are more likely to be clicked by consumers who've had a personalized, direct interaction with the brand beforehand.

Value & Campaign Objectives:

• Brand Awareness

• Direct Engagements*

• Lead Generation*

• Customer Loyalty*

• Brand Equity* (e.g., customers' perceived value/quality of brand)

• Brand Preference* (e.g., for a utility, this could mean customers preferring gas over electric)

• Customer Feedback*

• Content Generation (e.g., to be amplified via social media)

• Earned Media/PR

  
  

*Objectives that are particularly effective with community relations/event marketing when compared to digital/traditional marketing strategies