Using the Rossiter-Percy Grid to Identify KPIs

Effectiveness of Advertising
"Using the Rossiter-Percy Grid to Identify KPIs"
Article No. 7 (by Hideaki Koizumi)

In my previous article, I introduced a technique called, 'Structural Equation Modeling' which allows us to determine KPIs (Key Performance Indicators) that are key to measuring the effectiveness of advertising. This time, for those of you who are not good at quantitative analysis, I'll introduce another approach to identify KPIs in a more logical way.

Firstly, the most important thing to do is to deeply understand your brands/products. In other words, you need to think about the process mechanisms for the consumer purchase attitude; from the initial awareness of the brand to the moment they decide to purchase the brand. Consumers will probably buy some products such as drinks and confections at convenience store without much deep consideration. But for durable consumer goods such as automobiles, consumers will buy them with some pre-actions, like gathering product brochures, or asking a friend for information, and even taking a test drive.

The FCB planning model, which was developed some 20 years ago, offers one way of sorting out these differences by using a matrix. And it is the 'Rossiter-Percy grid' that I want to recommend to you in particular. The general format of the grid is to have two main communication objectives: brand awareness (2 cells - two types of brand awareness; brand recognition and brand recall) and brand attitude (4 cells - four types of brand attitude strategies, represented by the divisions between low and high involvement purchase decisions and informational and transformational purchase motivations). This analysis is useful in devising an advertising strategy. But I think it is also very helpful for us to identify KPIs.

First, allow me to explain the two parts to 'brand awareness', which is very important index that could be a KPI; brand recognition and brand recall. Actually, the idea of 'how consumers recognize a brand' will be totally different depending on the product or category. Brand recognition is when people can recognize the brand when they see the package in a store. Brand recall is when people can think of the brand name even without seeing the package.

Second, I'll explain 'brand attitude', particularly informational/transformational products with low involvement. 'Informational products' are things that offer to help you to cope with some incomplete satisfaction or problem removal, such as a detergent that eliminates mold. On the other hand, 'transformational products' are things that offer some sensory gratification, such as a premium ice cream or confection.

Then what could be KPIs for informational and transformational products with low involvement? The point of informational products is 'the problem can be removed by the product'. In other words, by communicating a few benefits/claims of the product, how much can targeted consumers memorize and understand of those benefits? 'CM preference' could be a KPI for many occasions. But it can not be for informational products as they have no need to have a 'favorable image' of the advertising. Instead, 'understanding brand benefits' can be identified as one KPI for these products. For transformational products, emotional messages in which the expression should be unique and with sincere words is more effective than a functional message. So, 'CM preference' has an important role. Therefore, 'believability of the CM', 'there is a link between the CM and the brand' and 'CM preference' tend to be the KPIs for transformational products.

I can not explain everything about the Rossiter-Percy Grid here as space is limited. So, I'd like to recommend a book translated into Japanese called, "Theory and Actual Brand Communications" issued by the Tokyu Agency's Publication Department for your reference. In this article, I've discussed low involvement products. So, in my next article, I will cover informational/transformational products with high involvement.

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