Videoconferencing, streaming and on-demand video all play a part in boosting employee productivity, increasing revenues and reducing expenses. As the market for these enterprise video tools matures and investment in these platforms grows, there is a pressing requirement to find new and more meaningful ways to measure its effectiveness.
Agreeing upon a set of measurements is key to demonstrating the benefits of enterprise video and justifying the IT department’s investment. In a 2014 survey conducted by Wainhouse Research, more than 90 per cent of respondents from companies spending more than $100,000 per year on video streaming technologies describe ROI as having an important influence on their purchase decision process. So far, so good. But the research also showed that there was very little consensus on just how to gauge video’s effectiveness.
Furthermore, a 2015 Gartner report entitled Video Projects Demand Special Planning Because of Scope, Project Goals and Technologies found that: “most organisations do not know whether video is delivering the benefits they got it for. Videoconferencing, streaming or on-demand value goes unmeasured, thus its champions are vulnerable to charges that it is not useful.”
Kaltura, together with Wainhouse Research, have been evaluating the best approaches to measuring video ROI in the workplace. The obvious starting point, albeit one which is often overlooked, is to establish baseline metrics when rolling out the technology. Here are our suggestions:
Start with a compelling vision
Adoption of new technologies particularly in the communication space fail not because of the best intentions but because of lack of well communicated and clear purpose. It is also essential to establish baseline metrics - the scope and phases of your video solution roll out - ahead of selection and execution. Additionally, the challenge of unplanned project creep can be avoided by putting someone in charge of creating and maintaining capabilities and measurements.
If employees are given from the outset the best video tools for the task, they will be less inclined to go ‘off piste’, potentially damaging their own video experience early on - and ultimately affecting the ROI stats.
Map your vision to specific business goals
Task-specific metrics can help businesses account for the value that video contributes to its operations. This calculates the business value of task-specific video deployments – for example, a more streamlined recruitment process - and compares it to the cost of video technology implementation.
In the case of recruitment, HR teams can use video interviews to screen candidates and share videos of the best applicants with executives, saving executive time and speeding the recruitment process. After all, a short clip of a video interview brings the candidate to life in a way that a CV and written comments from HR cannot.
The ROI can be calculated by comparing how much time used to be wasted in interviewing candidates who would have been rejected in the first round and tallying the value of executive time saved.
Just-in-time training is another area where the value of video can be measured. Giving employees the flexibility to access video tutorials on demand, rather than waiting for a training session, is a more effective approach.
One way to measure its effectiveness is to calculate the value of contracts closed in the period after a sales representative has watched a product training video, for example.
Don’t avoid outcome-related measurements
Outcome-related measurements may be harder to set up and monitor, but they are critical as long-term indicators of effectiveness. By establishing objectives before deployment, it is possible to evaluate use cases against a specific outcome.
For example, if your customer service team uses online video clips to showcase products to prospective customers, you can add touch points to measure criteria such as which videos are viewed and how long they are viewed for. This data can then be correlated with sales and customer service call data to assess its value in satisfying customers’ needs, driving sales, and reducing customer service calls.
A different example, from the Gartner study, relates to an organisation that uses internal video applications, instead of traditional text-based reporting, to improve status updates between geographically dispersed development team members. The results were clear: "Our metric was the reduction of development waste by revealing it as early as possible. Video did this far better than paper."
Video can be used to capture valuable and potentially life-saving information about factory floor practices, information that is stored in employees’ heads and hopefully cascaded down from older workers to trainees. When institutional knowledge is distributed to a wider employee base, it is like adding an extra layer of insurance. To measure the ROI from preserving this knowledge, you could apportion the part of your insurance bill related to mitigating the cost of a catastrophic event against the cost of the technology deployment.
Use a blend of measurements
It is surprising how few organisations use a blend of metrics. Look at putting in place simple usage meters – including extended usage - as well as in-video requests for feedback, which can provide valuable qualitative and quantitative information.
Gather some qualitative data too
Consider doing a workplace survey after about 12 months to establish employees’ perceptions on how video is enhancing their working lives, using a mix of qualitative and quantitative questions.
Keep refining the metrics and evolving the use cases
Usage metrics are always important but it’s important to continue refining them over time. In the short term, the goal is to capture adoption rates, while longer term metrics are a good way to measure how frequently video is being viewed and shared by internal or external audiences.
Once, publishing the video was the end of the process. Now we can analyse metrics and change content based on the results as we experiment with video length, format and content and uncover new areas where video can add value.
Every organisation will have its own set of business goals and KPIs in relation to video applications, but by reviewing a number of different measurement options and adopting a blend of different metrics it is easier to demonstrate the value to the business.
Some of the results may even lead to new use cases and innovations that encourage the greater use of video as a powerful tool for boosting productivity, sales and collaboration.
Mike Copinger, Director UK & Ireland, Kaltura