Alan Ault Wave Metrix Ogilvy social media day

Online buzz research Listening. Mining insights to drive engagement 29th September 2009

Contents 1. Introduction 2. Why listen to consumer conversations? 3. The depth and range of consumer conversations 4. What business insights can I get from listening to consumer conversations? 5. Quantifying the impact of conversations 6. Where do I start? 7. Summary – three key takeaways Page 2 29th Sept 2009 Proprietary and confidential. All rights reserved

Introducing WaveMetrix • Founded in 2003, we work with many of the world’s leading brands and agencies • We are the only major social media monitoring company to not just capture buzz, but actually read it • We’ve run more than a 1,000 projects in over 30 countries in almost every category Page 4 29th Sept 2009 Proprietary and confidential. All rights reserved

Conversation: “The spoken exchange of thoughts, opinions and feelings” • “Engaging with consumers in a dialogue and being an effective listener is where the greatest innovations will come from.” “Consumers are in the midst of a conversation that isn’t ours. The race is on to grow ears to learn what they are saying” John Hayes, CMO, American Express Page 6 29th Sept 2009 Proprietary and confidential. All rights reserved

“Look before you leap” is now “listen before you engage” • A conversation means you need to listen before you engage: Ultimately, engagement builds stronger relationships, creating and strengthening customer advocacy • If you don't listen, you don’t hear the messages which your customers are hearing: How are your messages being debunked or reinforced by consumers? Unprompted advocacy has a powerful impact on the decision making process • It doesn’t matter whether you undertake social media activities - your customers are already talking in their own communities Page 7 29th Sept 2009 Proprietary and confidential. All rights reserved

Can I start with free tools? • Free tools are a great way to begin exploring • Help understand the challenges: Volume Consistency Coverage Depth and detail Interpretation – what is important? Language coverage Actionable insights • Time consuming; a brand should be focussed on putting insights into action: Free tools have their place, but a more sophisticated approach is needed Page 8 29th Sept 2009 Proprietary and confidential. All rights reserved

Technology attracts vibrant online discussion Discussion with Consumers 245 comments discuss their and 14,000 thoughts on page views new Spotify mobile service Page 10 29th Sept 2009 Proprietary and confidential. All rights reserved

Entire forum dedicated to discussion of BT Vision services Consumers offer and share support tips Discussion comparing the merits of BT Vision vs. Sky Discussion of specific service offerings Page 12 29th Sept 2009 Proprietary and confidential. All rights reserved

Not just techies...lifestyle sites attract thousands of posts and page views 23,000 posts and 220,000 page views of unprompted, consumer comments about beauty products 6,000 posts and 39,000 page views of consumer comments just about hair care More than half a million site members Page 13 29th Sept 2009 Proprietary and confidential. All rights reserved

Even niche topics like luxury goods have dedicated sites for consumer discussion Consumers share their purchase rationale and decision making process for luxury bags Page 14 29th Sept 2009 Proprietary and confidential. All rights reserved

Consumers eager to share good experiences as well as bad Consumers love to share travel experiences and are also as eager to share good stories as bad Page 20 29th Sept 2009 Proprietary and confidential. All rights reserved

Consumers share detailed experiences and personal information in their reviews Parent cites reasons for switching nappy brands Parent provides information on personal circumstances Page 21 29th Sept 2009 Proprietary and confidential. All rights reserved

On average, every consumer post is read 93.8 times Average ratio of views/posts by project Average ratio of views to New product posts is 92.8 launches, first feedback and engaging Interactive, brand news vibrant tend to be discussion well read, with more with less participants posts, but and less higher people who readership just listen Page 23 29th Sept 2009 Proprietary and confidential. All rights reserved

Deconstructing consumer discussion to reveal insights Trigger for ‘‘ II decided to upgrade my old TV to go with a newly decided to upgrade my old TV to go with a newly buying bought Playstation 3. So far II have very positive first bought Playstation 3. So far have very positive first Identified consideration impressions of my new machine. II was also eying up impressions of my new machine. was also eying up substitute the Sony, but in the end the aesthetics of this TV and the Sony, but in the end the aesthetics of this TV and considered the amazing price swung it for me. the amazing price swung it for me. Specific decision criteria The picture quality is superb. Games look better than II The picture quality is superb. Games look better than expected and the Freeview image is crystal-clear. This expected and the Freeview image is crystal-clear. This is not only a TV for video games or Blu-ray freaks: it's a is not only a TV for video games or Blu-ray freaks: it's a Recommended Three great all-rounder even for those without HD television use case great all-rounder even for those without HD television specific signals. signals. positive Negative opinion comments about materials The TV looks brilliant too, it does catch lots of dust so The TV looks brilliant too, it does catch lots of dust so attracting dust be prepared to clean often and the sound suffers be prepared to clean often and the sound suffers Positive because of the compact, built in speakers. because of the compact, built in speakers. Negative sound opinion quality opinion relating to Overall given the price, picture quality and great looks II Overall given the price, picture quality and great looks look/style thoroughly recommend this as a 5* TV purchase! ’’ thoroughly recommend this as a 5* TV purchase! Consumer discussing their new TV purchase Consumer discussing their new TV purchase Identified unprompted recommendation Page 25 29th Sept 2009 Proprietary and confidential. All rights reserved

Uncovering reasons for churn and purchase drivers Case study: Case study: Reason for Purchase Leading UK TV Leading UK TV UK consumer, forum post churn driver and telephony and telephony service provider service provider Insight 1: Insight 2: Identification of the The reason Countries: ‘ Well, I cancelled my service a few reason for consumer Countries: UK study UK study months back, mainly for cost purposes as consumer churn; purchased service; all these direct debits every month add up! the consumer felt he liked the Aims: Aims: Now I have re-joined because I can get cost was an issue combined package Indentify Indentify broadband, TV and phone calls all in for and justified his specific reasons specific reasons £27.00 a month including the £10.00 for purchase by for churn and for churn and recording. I have cancelled my BT line cancelling a BT uncover the uncover the which was costing £35.00 a month so I direct debit drivers which drivers which save and get my HDTV content back – attract churned attract churned sorted! ’ customers customers Outcome: Outcome: Identified key Identified key factors and factors and scenarios to scenarios to prevent churn prevent churn and attract new and attract new consumers consumers Page 26 29th Sept 2009 Proprietary and confidential. All rights reserved

Tracking unprompted recommendations key to understanding consumer advocacy Case study: Case study: Purchase Unprompted Leading Leading driver advocacy Italian consumer, review European European site beauty and beauty and Insight 1: Insight 2: cosmetics brand cosmetics brand Uncovered Identified the ‘ I chose [leading brand] because I was purchase driver; consumer as an Countries: Countries: consumer bought advocate - she has attracted by the super-colourful and Italy and UK Italy and UK brand due to recommended the cheerful package. I am extremely pleased colourful and brand; further with the end result. My hair stays so soft, analysis enables Aims: Aims: cheerful packaging the colour is great, the end result is great. identification of the Indentify Indentify unprompted It almost looks professional and the cost is reasons for the unprompted consumer consumer very reasonable. If you want an advocacy advocates advocates hairdresser-like result and are trying to save money, too, I highly recommend it; Outcome: Outcome: you won’t go wrong ’ Identified Identified unprompted unprompted consumer consumer references and references and authentic authentic consumer consumer stories leading stories leading to brand to brand advocacy advocacy Page 27 29th Sept 2009 Proprietary and confidential. All rights reserved

Uncovering the reasons for brand loyalty Case study: Case study: Brand Loyalty Customer Leading Leading drivers background French mother, discussion international international forum babycare brand babycare brand Insight 1: Insight 2: Identified the Human analysis Countries: Countries: ‘ As a new, first time mother, it is important reasons for brand uncovers France ,, UK and France UK and to know that [leading brand]’s products are loyalty; trust in the information about Germany Germany developed to minimize the risk of irritation brands the consumer and protect the natural development of hypoallergenic and background – they Aims: Aims: your baby's skin from birth. Personally, I quality credentials are a new, first- Identify specific Identify specific find that, for me, all these criteria make time mother reasons for reasons for [the brand] a brand of trust and quality. brand loyalty brand loyalty Their bath oil completely protects my son’s skin from drying out, soothes Outcome: Outcome: redness and calms itching ’ Identified Identified specific brand specific brand attributes cited attributes cited by consumers by consumers for their for their continuing continuing loyalty loyalty Page 28 29th Sept 2009 Proprietary and confidential. All rights reserved

Understanding how use cases impact consumer buying criteria Case study: Case study: Use case Customer Leading Leading buying criteria consumer consumer US consumer, review site Insight 1: electronics electronics Insight 2: Identified the brand brand Human analysis specific use case uncovers the ‘ I wanted a second TV for my den in the driving the Countries: Countries: specific criteria basement. Price was a big factor as it is consumers buying US, UK, US, UK, important to the not going to be for critical viewing criteria; he was Germany and Germany and consumers looking for a France France purposes. I am very impressed, it’s a nice individual use second TV for his design and the sound is really good. I am case; price, style den in the Aims: Aims: really impressed what this set does for and distance basement Identify how Identify how what I paid, this it makes for an viewing quality use cases use cases outstanding value. For 20 foot viewing it impact impact leaves nothing to be desired, looks consumer consumer attractive, and satisfies; that’s all that is buying criteria buying criteria needed! I'd recommend this set for both its performance and price! ’ Outcome: Outcome: Identified how Identified how secondary use secondary use cases drove a cases drove a different set of different set of buying criteria buying criteria to more general to more general use cases use cases Page 29 29th Sept 2009 Proprietary and confidential. All rights reserved

Quantifying discussion uncovers powerful insights • Quantifying consumer buzz delivers powerful insights: Uncovers key driving factors across categories Profiles the share of conversation for brands Allows brands to build messages that most reinforce unprompted word of mouth • Can be based on any aspect of discussion: Category Country Brand Product Product attribute Explicit recommendations Page 31 29th Sept 2009 Proprietary and confidential. All rights reserved

Analysing online conversations about online banking services Case study: Online banking - buzz by topic ‘ Online banking allows ‘ I just find that online you to do almost bank statements are everything you can at not very clear to read the bank without and I can never get to leaving your home ’ the transactions I want quickly and easily ’ ‘ You can transfer funds so quickly and easily between HSBC accounts and external ones ’ ‘ Paying-in facilities at the cash machines would be great ’ ‘ The online banking is really easy to use and encompasses other banks and even stuff like Tesco Clubcard points and airmiles ’ Page 32 29th Sept 2009 Proprietary and confidential. All rights reserved

Range of content, rather than zero cost the key driver of Spotify buzz Case study: Spotify music service - buzz by topic ‘ Spotify offers a wide range of choice of music which ‘ I have a very diverse expands on a daily basis! ’ taste in music, not all of which are available on Spotify ’ ‘ I highly recommend this programme to any music lover, its great for all occasions! ’ ‘ You have to suffer inane and annoying ‘ £9.99 isn't actually that much adverts in between each to ask if you compare it with song ’ what you would pay for CD’s and mp3 downloads ’ ‘ Tracks play, more or less instantaneously and no disheartening buffering ’ ‘ A tenner a month to use ‘ You can listen to all your this? Are you barking favourite music, and best of mad? I don't consider a all it’s free! ’ tenner cheap ’ Page 33 29th Sept 2009 Proprietary and confidential. All rights reserved

Diving deeper into conversations delivers focussed communication messaging Case study: Sony Vaio laptop, features buzz by sub-topic ‘ Simply put, it has one hell of a screen ’ ‘ This is a powerful and feature packed laptop ’ ‘ Sony bundled the OS with junk software. I don't think all that ‘ The hybrid video system is software is of any use ’ ideal ’ ‘ Biometrics work like a charm with a little getting used to ’ ‘ The built in web camera ‘ Ultra heavy/big power and mic, which work quite adapter brick. Its over a well are artfully integrated pound! ’ into the monitor bezel ’ Page 34 29th Sept 2009 Proprietary and confidential. All rights reserved

Initial audit the best place to being • Insights are only as good as their ability to be actioned: Pointless having weekly reporting if they can’t be actioned every week • Initial audit of the category and brand is ideal starting point: Best return on investment Allows for detailed action plan to be built before further action and investment is undertaken • Builds a knowledge map of consumer conversations, the first step to engagement Page 37 29th Sept 2009 Proprietary and confidential. All rights reserved

End of presentation • For more information, please contact us • Alan Ault, Managing Director: Email: alan.ault@wavemetrix.com Tel: +44 7976 649 456 • Or visit us at: www.wavemetrix.com info@wavemetrix.com Page 40 29th Sept 2009 Proprietary and confidential. All rights reserved

Alan Ault Wave Metrix Ogilvy social media day

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