A Holistic Measurement to Benchmark the Impact of Brand Advocacy

Today’s Confusing Landscape The explosion in social media has fundamentally changed how consumers buy products and services Ignoring this online discussion is dangerous; marketing decisions need to be based on both online discussion (i.e. social media) and offline survey data Social media presents enormous opportunities, but the data set is vast and confusing and finding actionable insights is challenging 2

Engineering The Brand Advocacy Quotient (BAQ) Proprietary Weighting Methodology Online Buzz BuzzMetrics Reviews Brand Advocacy Quotient Offline Survey Current | Prior | Non-owners 4Copyright 2011 NM Incite.

BAQ Case Study 6

Holistic View of Brand Advocacy Opportunity Sony asked NM Incite to measure online buzz and offline survey data for its TV brand relative to its competitors. The inclusion of both online and offline data was needed to provide a holistic view of Sony’s brand health. Methodology Offline surveys were conducted and buzz data from forums, blogs, social networks and product reviews were compiled. In both cases, Sony brand attributes (price, sound, quality, customer service, etc.) were compiled against their competitive set. Insight The advocacy scores differed significantly between online and offline data, as customers tended to be more candid in their online discussions. Blending the two inputs provided a more holistic perspective of customer intentions and experience and insights for Sony and its competitors. 7Copyright 2011 NM Incite.

Brand Advocacy Throughout the Decision Journey Mapping the Consumer Decision Journey NM Incite examined consumer advocacy taking place at each stage of the "Consumer Decision Journey" to identify opportunities and outages. NM Incite then isolated specific advocacy and detractor talk-drivers to find actionable insights for Sony marketing executives. Initial Active Moment of Post Purchase Loyalty Consideration Evaluation Purchase Experience Non-Owner’s Survey Buzz Data and Reviews Owner’s Survey 8Copyright 2011 NM Incite.

A Concise and Actionable Executive Scorecard NM Incite’s work with Sony was comprised of two waves of trended data. Sony Brand Advocacy Quotient – Wave 1 (Q2-2010) Overall BAQ by Pillar, Q2 2010 Sony Industry 0.6 Online Offline Net Buzz Survey sentiment Design 0.4 Price Quality 0.2 Trust 0 0 5 10 15 20 25 30 35 40 45 50 Share of buzz volume 9Copyright 2011 NM Incite.

BAQ Wave 1 Key Findings Highlight Reliability to Address Outages Sony lags its peer set on the attributes of price and trust, highlighting a potential opportunity for brand messaging to target its value proposition and strengths in reputation and reliability. Address Pricing Perceptions Online Sony has higher frequency of mention for design, quality, & trust, and much lower frequency for price. Consumers are especially sensitive to perceived gaps in Sony’s price and trust in buzz, a potential detractor from consumers who are exposed to buzz during active evaluation stage. 10Copyright 2011 NM Incite.

BAQ Offers Ongoing Value Over Time Sony’s overall BAQ remains relatively steady from Q2 to Q3. Panasonic jumped from the fourth position to the second. Overall BAQ Online-Buzz BAQ Offline-Survey BAQ 11Copyright 2011 NM Incite.

BAQ Wave 2 Key Findings Steady - But Price Remains a Danger Sony’s overall BAQ remains relatively steady from Q2 to Q3; however, a downward trend in brand health for Sony’s price is worth noting. Price Trumps Design and Quality Consumer expectations for deep discounts puts Sony in a vulnerable spot compared to some competitors who are willing to focus on value pricing. We see that price sensitivity may trump superior design and quality when consumers are in the active evaluation stage. Competitive Insight Panasonic had a disproportionately high share of buzz during Q3, driven by its focus on 3D TVs, 3D-capable Blu-ray player, and LED-backlit LCD TVs. During this time, Panasonic had several marketing initiatives and was named the exclusive launch partner for the 3D Blu-ray Disc release of Avatar. Moreover, Panasonic was the primary sponsor of DirecTVs new "n3D" channel & the channels 3D telecast of the 2010 U.S. Open tennis tournament. 13Copyright 2011 NM Incite.

BAQ Unpacks the Consumer Decision Journey Wave 1 Sony is the leader in non-owner sentiment, indicating Sony’s rank is high among owners and product reviewers, strong brand awareness during initial consideration. highlighting that people who own Sony TVs enjoy them. Sony’s low ranking in buzz indicates a perception gap between price and value during evaluation. Initial Active Moment of Post Purchase Loyalty Consideration Evaluation Purchase Experience Non-Owner’s Survey Buzz Data and Reviews Owner’s Survey Sony continues to be the leader in non-owner Sony’s rank has decreased slightly in Q3 Wave 2 sentiment, indicating strong brand awareness among owners and product reviewers, falling during initial consideration. behind Vizio and LG in positive experiences. Sony’s mid-rank in buzz indicates an improvement in perception during active evaluation, but a perception gap between price and value still exists. 14Copyright 2011 NM Incite.

Deeper Dive on Price Net sentiment and buzz volume, Q2 - Q3 2010 Sony Samsung Samsung Vizio Sharp Panasonic LG LG Price Net sentiment Vizio Panasonic Positive & Positive & Low Buzz High Buzz Sharp Sony = trend vs Q2 Negative & Negative & Negative & Negative & Low Buzz Low Buzz High Buzz High Buzz Relative to Competitors Share of Online Price Buzz 16Copyright 2011 NM Incite.

BAQ Proves Positive Buzz Drives Sales Percent difference in consideration between exposed and control Large increase in intent R² = 0.72 Panasonic Sharp Samsung No Sony increase LG in intent Online Net sentiment 17Copyright 2011 NM Incite.

“The value we see in the BAQ is that it demonstrates impact from a financial point of view – which is often difficult to measure in social media. BAQ lets Sony prove the value of social media and allows us to effectively integrate it into the marketing mix model. With the BAQ we can now go to the CMO and say here’s the work we are doing and here is how we are measuring it.” Christina Stahler Senior Manager, Consumer Insights at Sony Electronics 18Copyright 2011 NM Incite.

Thank You!Contact:Julie A. EnzweilerVP – Innovation & Channel Developmentjulie.enzweiler@nmincite.com(859) 905-4940 19

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A Holistic Measurement to Benchmark the Impact of Brand Advocacy

by Word of Mouth Marketing Association on Mar 18, 2011

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A Holistic Measurement to Benchmark the Impact of Brand Advocacy — Presentation Transcript