KPI Xplorer

''We conduct brand tracking surveys every month at a high cost. However, we have no idea which of 25 questions we should concentrate on to increase our sales or which one we need to use to judge whether our marketing communication activities of the current term paid off.''

This case was a request from a client dealing with FMCG. The product of analysis object was launched a long time ago and has been popular for a long time. They knew that it had already built sufficient awareness, and desired to know what came after awareness. What we have done is an analysis as follows with provided data from the past few years to set the KPI (Key Performance Indicator) for this product.

First of all, we conducted a covariance structure analysis with a 12 item selection related to communication from TV GRP volume, sales data and brand tracking data.

What kind of consumers' mental communication via TVCF would change to end up in purchase? We specified the model on right chart based on several assumptions after a process of trial and error. (Variables in squares are available data; variables in circles are assumptions we set and are nonexistent as data)

From this chart, we can see the flow as TVCF creates ''the condition in which the brand is easily recalled'' (Brand Activation) in the consumer mind, and then raises the ''Purchase Decision'' which means preference of the brand over others at the store, and finally leads to purchase (Total Sales). Furthermore, it shows that TVCF contributes to ''Brand Activation'', though ''Brand Awareness'' is not greatly influenced by TVCF (TV GRP) because this brand has already been established.

From the results of this analysis, we recommended 2 items, ''Most favorable TVCF'' which has a great influence on sales and ''Unaided TVCF recall'' as marketing communication KPIs for this brand. Put simply, the result was creating a TVCF that could make a favorable and strong impression work for sales.

The results seem obvious, but a TVCF has various tones and feelings, and influential items vary according to the product categories. The KPI was related to the creative this time, so we conducted an analysis on ''Creatives with high ratings in which items of creative tests have an effect on sales'' with data provided by creative testing. Specification of what kind of TVCF is effective based on actual data like this was also a significant achievement in creative development.

In addition to that, we made our suggestions not only based on the qualitative aspects as described above, but also based on the quantitative aspects such as ''How much TV GRP volume is necessary to achieve the KPI goal'' by analyzing the consequences of the relationship between KPI and TV GRP volume.

Conducting effective and efficient communication activities in qualitative and quantitative aspect raises the above KPI, and the rate of the rise can determine communication activities.

We believe that clarifying the facts one by one as to the vague effects of marketing communication obtained from actual data makes the most sense for decision making and strategy development.

Written by SPI

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