3 Responses to "ROI – Where next?"
June 14, 2011 at 11:33 am
Attempting to find the value of PR based on empirical research will be very hard. Even with a huge research budget, it is impossible to come to any serious conclusion.
If wealth is based on relationships (an historical truth), the idea of ‘investment’ needs the element of relationship measurement. The accountants have not got any where near this which is why ROI in commerce is still not very good at predicting outcomes.
In PR (using the normal accounting conventions for identifying ROI) we have a description of ROI which can be described as (Gain from Relationships minus Cost of Relationships) divided by (Cost of Relationships).
Here is a view of ROI based on Bruno’s research: (Gain from Nexus of Values minus Cost of Nexus of Values) divided by (Cost of Nexus of Values). Where nexus of values represents the actors within what some might call a ‘public’; stakeholder group; market segment etc.
The value of PR is in its ability to lever positive value (convergence) from a nexus of values.
There is not a $ sign to be seen anywhere and so CPRF will come up with, at best, a fudge.
prdepiction1
FiftyOneZeroOne 
June 14, 2011 at 10:58 am
Hi Tom, I thought that I might give it a try. ROI, in my submission is a deeply relationship based measure.
It may come as a surprise to the accountants.
It may also come as a surprise to AMEC.
The answer is much more complicated that either might imagine and it may also offer a new way of thinking about public relations (in all its many manifestations).
June 14, 2011 at 11:04 am
David: CPRF in the US wants to announce an answer to a 40-year-old conundrum by year’s end, so you’ll have to be quick!