content & cash: cidm edition

CASHContent &

Photo: © 1984 Betty Weinaug

Melissa Rach @melissarach

DialogStudios.com

“I am two people. Johnny is the nice one. Cash causes all the trouble. —Johnny Cash

2

Business expectations To make an investment, funders expect: • To know exactly what content will do for

the organization • Proof of competency/quality • Exactly how much it will cost • Provable value and ROI

Hard numbers. Right now.

3

yikes.

We can do it

• We know content work is valuable• We know content is a benefit (necessity)

for businesses• And the organizations are catching on,

too

5

Today

• Selling and scoping• Estimating value/ROI• Measurement

6

But first…some anger management

1.It’s not (always) about disrespect or even money.

©2014 Abbey Hambright

Etsy.com/shop/abbeychristine

“Economics is making the best out of life.

—Gary Becker

9

Decision making is scaryInvesting in content:• Means NOT investing in other things • Might result in loss of:

• Money • Time• Other opportunities• Professional reputation • Emotional anguish

10

And hard…

People: • Are limited by what they know • Latch on to things that are familiar • Choose the safest option • And then immediately start worrying that

they’ve made the wrong decision

11

2. Content is a harder decision than most

Photo: ©1980 Betty Weinaug

Content breaks all the economic rules • Things of value are usually• Exclusive• Transparent • Hard to replicate

• Endless supply AND endless demand

13

Content work is a service• “New” industry • Very diverse • No obvious accreditation • Doesn’t fit nicely into a traditional

business

14

3.Numbers don’t need to be exact.

Photo: ©1980 Betty Weinaug

“As far as the laws of mathematics refer to reality, they are not certain; and as far as they are certain, they do not refer to reality.

—Albert Einstein

16

Measurement is…

A set of observations that reduce uncertainty where the results are expressed as a quantity.

17

Numbers are a communication tool Numbers reduce uncertainty: • Approximate values • Shortcuts for the brain • Common vocabulary

18

Selling and scoping(building a relationship)


The goal:

Make a confident decision that’s beneficial to everyone.

20

1. Define the need

What is the need? What are you offering?• New or updated content • Cleaned up content/fixed mistakes • More efficient, happier workplace • Unifying strategy• Ongoing service

How does this work benefit the business? How do (will you) you know?

21

2. Understand the process Get all the information you can, find out: • What is the decision?• What impacts that decision? • Who impacts the decision? • What experience do stakeholders have

with content work? • Is there a budget?

22

3. Make connections

23


4. Understand all benefits and costs

24

Type Benefits Costs

Monetary Profit or savings Cost of creation

Sensory Get satisfaction/alleviate pain

Endure extra pain or reduce satisfaction

Temporal Save time Lose time

Opportunity-based Gain advantages Eliminate possibilities

Psychological Reduce anxiety Add anxiety

Social Increase stature Blamed for problems

Convenience-based Makes things easier Makes things more difficult

5. Tell a hopeful story

Create a story that highlights key benefits, such as:• We can serve users better• We can be more efficient• We can beat the competitors• We can be more accurate

25

6. Eliminate fear

26

• Discuss the details • Answer questions • Address concerns • Start small or do some proof of concept

work • Provide references (services) or samples

(goods)• Be patient

Estimating value and ROI(the magic formula)


Value = Benefits-Costs

Value of what?

Strategy or Service

Content as product

Content as influence

Efficiency tool

29

Strategy or Service

Content as product


Efficiency tool

Value of what?

30

Content as product

What is the content product worth?• Benefit: Profit from the sale of the

product • Cost: Cost to create the product

31

Strategy or Service

Content as product


Efficiency tool

Value of what?

33


What is the piece of content worth?• Benefit: Increased profit as the result of

an end-user behavior change• Cost: Cost to create the content

34

Estimates, not exacts Figure out what you know; fill in the blanks with assumptions • The average Johnny Cash t-shirt costs $20

• Analytics show that 50 people start the process of purchasing a t-shirt online every day, but only 10 finish the process

• User research shows that the instructions on the purchase pages are very confusing

• We assume 5-10 people leave the purchasing process because of something unrelated to the site, and 5-10 leave the process when they see the shipping costs

• We assume the remaining 20-30 people would complete the purchasing process if the instructions were more helpful

• Therefore, the value of the instructional content is likely around $144,000-216,000 per year ($20 x 20-30 people x 30 days X12)

• The cost of fixing the content is approximately $5,000

35

Strategy or Service

Content as product


Efficiency tool

Value of what?

37

Efficiency tool

What is the tool worth?• Benefit: Cost savings as the result of

employee behavior change (or happiness)

• Cost: Cost to create/maintain the tool and train people to use it

38

Strategy or Service

Content as product


Efficiency tool

Value of what?

39

Strategy (or service) What is the strategy worth?• Benefit: Combination of: • Savings/profit from:

• Content as product• Content as influence• Tools • Sub-services

• Value of non-monetary benefits• Cost: Cost to create/implement the

strategy

40

Estimating resultsBEFORE

work starts

Max Gain x % Success = Risk if denied

Max Loss x % Failure = Risk if approved

Estimating probable resultsBasic project information: • Maximum gain: $216,000• Maximum loss: $5,000• Chance for success: 70%

Expected opportunity loss: • Risk of approved: $5,000 X 30% =

$1,500• Risk if rejected: $216,000 X 70% =

$151,200

43

44

Pricing basics

• Look for comparables • Give ballpark estimates early• Estimate on time, price on value• Aim for a consumer surplus• Always provide numbers in person

“Price is like setting a screw. A little resistance is a good sign.

—Harry Beckwith

45

“There are a lot of good economists, but there is only one Roger Clemens.

— Robert Solow (1987 Nobel laureate)

46

Measurement(being well-rounded)


Our friend, Johnny…Stats 50+ million albums sold

Created:96 studio albums 63 compilation albums 153 singles

Honors17 Grammy Awards

9 CMA Awards

Rock and Roll Hall of Fame Rockabilly Hall of Fame

Songwriters Hall of Fame Gospel Music Hall of Fame

Country Music Hall of Fame Nashville Songwriters Hall of

Fame

Kennedy Center HonorsNational Medal of Arts

Hollywood Walk of Fame

48

Variety of measurements

• Analytics • Qualitative assessments• User research and usability • External expert review • Internal expert review • Efficiency measurements

50

Measure often, expect long-term results • Establish a baseline • Measure consistently over time • Use different timelines for different types

of content

Score!

Section score:

88 out of 100↑ 15% since April

It’s about

decisions not

disrespect

It’s NOT

us-against-them it’s about

building relationships

It’s about

reaching understanding and

reducing uncertainty

It’s about

estimatesnot

exacts

It’s not

traditional but it’s

achievable

Go prove it.

Your work is valuable.

Thanks!SLIDES: bit.ly/CIDMCash

@[email protected]

60


http://www.dialogstudios.com/

http://www.contentstrategy.com/book.html

Want to know more? Content Strategy for the Web (second edition)

Check out chapter 10

By Kristina Halvorson and Melissa Rach

How to Measure Anything

by Douglas W. Hubbard

Marketing Professional Services

by Philip Kotler, Thomas Hayes, Paul N. Bloom

Naked Economics: Undressing the Dismal Science

by Charles Wheelan

61

content & cash: cidm edition

Marketing

betty weinaug

updated content

instructional content

content product worth

piece of content worth

cost savings

product cost

provable value