Offline Word of Mouth: Industry’s Greatest Examples Ed Keller, The Keller Fay Group Moderator

A terrific panel to share the secrets of how (and why) they tap the power of offline WOM David Witt, General Mills Manager, Brand Public Relations Angela Proctor, Boston Market Senior Director of Communications and Field Marketing Jeffrey Graham, The New York Times Executive Director, Customer Insight

David Witt, General Mills

Manager, Brand Public Relations

Angela Proctor, Boston Market

Senior Director of Communications and Field Marketing

Jeffrey Graham, The New York Times

Executive Director, Customer Insight

What We Know About Offline Word of Mouth There’s a lot of it The vast majority of word of mouth takes place offline The dynamics of offline word of mouth are different More positive than online More credible, positive and likely to inspire purchase The trajectory of offline WOM is often quite different than online Smart WOM marketers are focused on offline strategies As well as online Selected data follow . . .

There’s a lot of it

The vast majority of word of mouth takes place offline

The dynamics of offline word of mouth are different

More positive than online

More credible, positive and likely to inspire purchase

The trajectory of offline WOM is often quite different than online

Smart WOM marketers are focused on offline strategies

As well as online

Online – 7% Source: OMD/Keller Fay Group proprietary report based on TalkTrack®, June 5 th 2006 through February 3, 2008 90% of WOM Occurs Offline

Total Online: 19% Total Online: 8% Total Online: 6% Total Online: 4% Total Online: 3% Source: OMD/Keller Fay Group proprietary report based on TalkTrack®, June 5 th 2006 through February 3, 2008 Offline Predominant Across Age Groups

Offline WOM More Credible, More Positive & More Likely to Inspire Purchase (% rating WOM highly credible/likely to inspire action, “9” or “10” on 0-10 scale) Base : Brand mentions where someone else provided advice (Total Public, Offline n=89,889; Total Public Online, n=5,672) Source: TalkTrack®, January through December 2007 Figures Represent Those Scoring “9” or “10” on a 0-10 scale (Among All Brand Mentions)

Online/Offline Trends: Same or Different? Base: Offline/Online Conversations (2006: Jun., n=13,612 / 1,337; Jul., n=17,158 / 1,589; Aug., n=17,289 / 1,222; Sep., n=17,324 / 1,355; Oct., n=13,715 / 923; Nov., n=16,783 / 1,272; Dec., n=16,872 / 1,379; 2007: Jan., n=21,282 / 1,698; Feb., n=20,701 / 1,526; Mar., n=24,067 / 2,029; Apr., n=14,805 / 1,395; May, n=17,563 / 1,300; Jun., n=20,219 / 1,947; Jul., n=13,132 / 1,263; Aug., n=14,955 / 1,110; Sep., n=12,368 / 811; Oct., n=14,228 / 1,1013) Source: TalkTrack®, June 5 th 2006 through October 28 th 2007 Sometimes Similar % offline/online WOM about new video game Sometimes Different % offline/online WOM about national retailer

Offline WOM at General Mills David Witt Manager, Brand Public Relations

Why Offline WOM? New Products (primarily) Look for all levers to help new product launches succeed WOM works Progresso Light Weight Watchers POINTS Value of Zero Fiber One Chewy Bars Yoplait Kids Several Iconic Brands Significant consumer interest

Why Offline WOM?

New Products (primarily)

Look for all levers to help new product launches succeed

WOM works

Progresso Light

Weight Watchers POINTS Value of Zero

Fiber One Chewy Bars

Yoplait Kids

Several Iconic Brands

Significant consumer interest

How Using WOM? Our own property Populated with consumers specifically interested in food and new food products Newly created, with many of the current members recruited from our own database Other Agencies TALK Marketing

How Using WOM?

Our own property

Populated with consumers specifically interested in food

and new food products

Newly created, with many of the current members recruited

from our own database

Other Agencies

TALK Marketing

Website Welcome Page

Individual Web Page

Members Blogging about our Brands Members blogging within a day of receiving products.

Members blogging within a day of receiving products.

Consumer-Influencers Drive Brand Advocacy Build advocacy for all brands; not a transactional relationship Lots of interesting content to share.

Build advocacy for all brands; not a transactional relationship

Lots of interesting content to share.

How WOM has Worked for General Mills Our Pilot Program Showed Great Results Good levels of WOM generated Number of conversations Coupon redemption Consumers loved the program and asked for it to continue Some Products More Talkable than Others Offline and Online WOM Work Together Provide online tools along with the offline outreach

How WOM has Worked for General Mills

Our Pilot Program Showed Great Results

Good levels of WOM generated

Number of conversations

Coupon redemption

Consumers loved the program and asked for it to continue

Some Products More Talkable than Others

Offline and Online WOM Work Together

Provide online tools along with the offline outreach

Offline WOM Industries Greatest Examples Angela Proctor Boston Market

Why Offline WOM? INFLUENCE Face-to-face conversations remain critically influential. REACH WOM engages specific customers that other media may not reach. RELEVANCE Food is one of the most talked about topics of conversation. Brand mentions are extremely high in food related topics.

INFLUENCE

Face-to-face conversations remain critically influential.

REACH

WOM engages specific customers that other media may not reach.

RELEVANCE

Food is one of the most talked about topics of conversation.

Brand mentions are extremely high in food related topics.

How are you engaged with it? Influencing the Masses The first WOM media channel. Allowing agencies and clients to develop and execute their own WOM campaigns through our community of trained Agents. 500,000 Agents in our growing, international network of volunteers 500 WOM programs under our belt Influencing the Influencers Working through the individuals who have the greatest impact on the audience’s decisions. Professionals who have a vested interest in the target audience, such as community leaders, nurses, fitness instructors, teachers, and coaches. A network of Community Organizers located in more than 100 cities throughout the U.S. Two specific tests; Two agency partners

Influencing the Masses

The first WOM media channel.

Allowing agencies and clients to develop and execute their own WOM campaigns through our community of trained Agents.

500,000 Agents in our growing, international network of volunteers

500 WOM programs under our belt

Influencing the Influencers

Working through the individuals who have the greatest impact on the audience’s decisions.

Professionals who have a vested interest in the target audience, such as community leaders, nurses, fitness instructors, teachers, and coaches.

A network of Community Organizers located in more than 100 cities throughout the U.S.

Fleishman-Hillard Grassroots Fleishman-Hillard (FH) Leveraging network of community organizers (COs). Targeting seniors in three markets. Providing information about the brand to customers via live presentations.

Fleishman-Hillard (FH)

Leveraging network of community organizers (COs).

Targeting seniors in three markets.

Providing information about the brand to customers via live presentations.

How has FH worked? SALES Tracking use of a specific offer. Gaining contact information from each event. REACH and INFLUENCE Quantifiable attendance at meetings . INSIGHTS Summarized bi-weekly reports that include customer responses.

SALES

Tracking use of a specific offer.

Gaining contact information from each event.

REACH and INFLUENCE

Quantifiable attendance at meetings .

INSIGHTS

Summarized bi-weekly reports that include customer responses.

BzzAgent Programs Two specific tests this year Focused on two different parts of our business – Catering sales and Restaurant traffic. Targeting busy moms and administrative professionals in specific markets. Providing buzz worthy information about the brand Providing incentives to visit the restaurant.

Two specific tests this year

Focused on two different parts of our business – Catering sales and Restaurant traffic.

Targeting busy moms and administrative professionals in specific markets.

Providing buzz worthy information about the brand

Providing incentives to visit the restaurant.

Program Objectives 199,320 communications Reach Generate Brand Awareness 2.5 BzzRecipients/Agent visit Boston market Increase likelihood of future visits Influence a positive shift in NPS with a final score of 35% Reported visits Purchase Intent Net Promoter ® Score Drive Sales Stimulate trial and transactions Increased frequency Build advocates Objective Metric Goal Gain Consumer Insights BzzReport trends Post-Campaign Survey Results Gather consumer feedback to Boston Market and it’s offerings What key messages are most compelling to women? What would encourage them to visit, and visit more often?

Total Reach: 262,621 * Relay Rate of 4.14 individuals sourced Measuring the Ripple: Creating the G2X Relay Rate and an Industry Standard Methodology to Measure the Spread of Word-of-Mouth Conversations and Marketing-Relevant Outcomes, Measuring Word of Mouth vol. 3 , WOMMA Program Reach BzzAgent Generation 0 4,000 Relay Rate = 12.6 individuals 50,315 Generation 1 Relay Rate = 4.14 individuals* 208,306 Generation 2

Shifting Brand Perceptions Engagement and education helped positively shift perceptions of Boston Market Which words/attributes do you associate with Boston Market? (check all that apply)

Engagement and education helped positively shift perceptions of Boston Market

Purchase Intent The Campaign dramatically increased purchase intent How likely are you to visit a Boston Market Restaurant in the future? 28% -> 80%

The Campaign dramatically increased purchase intent

MARKET IMPACT Agents bring people to Boston Market with them Agent-Reported visits by G1s 4.1 Visited with Agent 3.5 Visited on their own 2.25 likely visited (BzzAgent adjusts intent by -50%) 9.85 G1s visited

Agents bring people to Boston Market with them

WOM and Jeffrey Graham Executive Director, Customer Insight The New York Times

Marketing to users/readers…

… and to advertisers

Valuing our audience Source: Keller Fay TalkTrack

Brand Mentions: Leading Telecom Provider Source: Keller Fay TalkTrack Changing the dialogue about objectives….

Brand Mentions: Leading Telecom Provider

..and about results Percentage of Consumers Reporting Word of Mouth About Luxury Brand “X” In mid-February, a large brand campaign began in NY Times , both in print and online Source: Keller Fay TalkTrack

Influence = ROI Automotive Example Media Buy A Reach = 10MM consumers 10% are multipliers Potential = 32MM Recommendations Media Buy B Reach = 10MM consumers 40% are multipliers Potential = 68MM Recommendations Auto non-Multipliers speak to 2 people Auto Multipliers speak to 14 people Source: New York Times Customer Insight Group Research

Thank you