Creating a new generation of data to solve social problems.
Many consider randomized control trials, or RCTs, to be the “gold standard” for evidence. Randomization provides a high degree of proof for a very narrow set of facts: a particular program, under a particular set of conditions, for a particular population of people, at a particular time, made a difference. But while the specificity of RCTs can make them very credible, their precision also creates a number of critical limitations. There might be another way.
My Mission Measurement colleague, Sue Tobias, and I were struck by a recent BCG report entitled "An Imperative for Consumer Companies to Go Green." This report highlights the increasing consumer preference for "organic, natural, ecological, fair trade" and other socially responsible products.
As a CMO myself, I'm experiencing firsthand the profound changes in the marketplace and in how we provide value for clients, consumers or customers. Amidst these changes, one of the developments my colleague, Leeatt Rothschild, and I are most excited about is the growing importance of social value drivers for consumers.
Every day, thousands of Americans apply for new credit cards, loans, and mortgages. In the decision-making process, banks use one number to review a person’s financial history and assess their likelihood to pay off debt: a credit score. Similarly, other industries are striving to mimic this approach by using algorithm-based data to predict future outcomes in various settings. Enter Mission Measurement, the social impact consulting firm attempting to change the way corporations, government agencies, foundations, and non-profits invest in philanthropic causes by using data to forecast social impact program outcomes.
In July’s edition of the Journal of Sustainable Finance & Banking John Hoeppner, Mission Measurement's Head of Investment Research, outlines why a deep understanding of consumer decision-making is essential to investment analysis.