Brand Engagement Index: most engaged brands

The Brand Engagement Index® BEI ®

The Brand Engagement Index ® BEI ® Prepared by: Dennis Claus, Director Brands & Conversations, InSites Consulting Isabelle Stevens, Research Manager, InSites Consulting For: ENGAGE BBDO© ENGAGE BBDO Stephan Smets T +32 2 4213035 | M +32 486 259279 Daniel Schots T +32 2 4213023 | M +32 475 485389 Michelle Stas T +32 2 4213014 | M +32 486 139140© InSites Consulting October, 2010 Brand Engagement Index 2

Report overview   Background   Management & research objectives   Methodology   Executive summary   Meaning of brands   Measuring Engagement   The four I’s   Media exposure© ENGAGE BBDO   Category results© InSites Consulting Brand Engagement Index 3

Background: Engagement marketing© ENGAGE BBDO© InSites Consulting Brand Engagement Index 4

Engagement marketing •  Engagement marketing is a marketing strategy that directly engages consumers and invites and encourages them to participate in the evolution of a brand. Rather than looking at consumers as passive receivers of messages, engagement marketers believe that consumers should be actively involved in the production and co-creation of marketing programs. •  Engagement marketing is about being where your customers are, have a cross channel vision on sales & marketing, customer centricity, social marketing & creating valuable & authentic content & conversations •  Engagement marketing is build up and measured on it’s 4 parameters: the 4 I’s : involvement, interaction, intimacy and influence© ENGAGE BBDO© InSites Consulting Brand Engagement Index 5

Management and research objectives© ENGAGE BBDO© InSites Consulting Brand Engagement Index 6

Research objectives Validate the model that involvement, influence, intimacy and interaction are important and predictive dimensions that measure brand Engagement Develop a research tool to measure Brand Engagement and the related I’s. Rank 50 brands based on their Brand Engagement score amongst Belgian consumers. •  ENGAGE BBDO’s mission is to increase sales and reinforce brand positioning by creating Engagement between brands and their customers, and by activating them via emotional, unique and effective brand experiences. Consumers are involved and engaged as much as possible to really experience the brand and create an impact on brand awareness or specific sales. •  The outcome of this project will be threefold: •  Master survey that measures Brand Engagement •  Model that shows the relationship between the four I’s, Brand Engagement and business KPI’s© ENGAGE BBDO •  Ranking of 50 brands based on their Engagement performance© InSites Consulting Brand Engagement Index 7

Methodology© ENGAGE BBDO© InSites Consulting Brand Engagement Index 8

Methodological specifications •  Panel-based self-reported CAWI approach •  Invitation to fill out questionnaire via e-mail to members of online research panel corresponding to the profile requested •  Survey details •  Fieldwork: 6th August 2010 – 22nd August 2010 •  Mean survey length: 17 minutes •  Incidence rate: 65% •  Sample composition •  General population (N respondents = 1.296, N brand evaluations = 5.465)© ENGAGE BBDO© InSites Consulting Brand Engagement Index 9

Sample specifications •  Sample composition •  General population (N respondents = 1.296, N brand evaluations = 5.465) Sample description (weighed) % Gender Male 50% Female 50% Language French 40% Dutch 60% M F Age 6,5% 6,3% 18-24 yrs 10,8% 10,6% 25-34 yrs 12,6% 12,2% 35-45 yrs Source: Eurostat 2008© ENGAGE BBDO© InSites Consulting Brand Engagement Index 10

Executive summary© ENGAGE BBDO© InSites Consulting Brand Engagement Index 11

Executive summary •  We have strong statistical confirmation that involvement, influence, intimacy and interaction are important and predictive dimensions that measure Brand Engagement. •  The Brand Engagement Index® (BEI®) integrates the scores on each of these four dimensions and can be maximum 100. •  There are very strong correlations between BEI and all business KPI’s. •  Media exposure drives Brand Engagement. Especially brand presence on social media and websites offer opportunities since Brand Engagement scores are higher for people who mention that they are exposed to brands on social media. The actual brand exposure rates through these channels are very low, which leads to the possibility to discover and exploit these new channels for interaction •  The highest Engagement scores overall can be allocated to brands in the telecom category, followed by brands in the cell phone and automotive category •  Some brands with high scores on the Brand Engagement Index:© ENGAGE BBDO© InSites Consulting Brand Engagement Index 12

Other learnings •  People mainly associate the “brand” concept with products that have high value for money. Besides this, most people agree that brands need the input of their consumers, they have to involve their consumers. This is a strong argument to create and implement brand Engagement programmes, since the results indicate that people expect two way interactive communication between brands and their consumers. •  The main reasons why people feel engaged to a brand relate to the fact that people have built a relationship with the brand because brands are used because of tradition (family), which makes brand usage a habit and give people the feeling that they are very familiar with these brands. •  We do find significant higher Brand Engagement scores with people who are more exposed to advertising (both above and below the line), so there is a strong relationship between media presence and Brand Engagement. •  We can conclude that experience and familiarity are key drivers for Brand Engagement, but brand managers can leverage involvement, interaction, intimacy and influence to increase Brand Engagement ans improve their KPI scores.© ENGAGE BBDO© InSites Consulting Brand Engagement Index 13

Meaning of brands© ENGAGE BBDO© InSites Consulting Brand Engagement Index 14

Associations Q:To what extent do you agree with the following statements?. People primarily associate the “brand” concept to value for money. People also expect brands to involve their consumers. Women find brands more attractive and men especially take into account the reliability and personal relevance of brands, that make them feel more confident. TOP 2 94% 79% 74% 71% 63% 55% 51% 50% 48% 42% 39%© ENGAGE BBDO 33% 27%© InSites Consulting N =1296 Brand Engagement Index 15

Measuring Engagement© ENGAGE BBDO© InSites Consulting Brand Engagement Index 16

The model Statistics and validation I feel involved with this brand I feel involved in the actions this brand undertakes Involvement This brand involves me in its communication efforts α = 0.88 The buzz (because of campaigns, events, etc.) about this brand triggers me to recommend it to my peers I would recommend the brand to others because it puts a lot of efforts in its consumers I have recently spoken about this brand to someone Influence The brand has triggered me to talk about it to others The brand allowed me to recommend it to others The brand has triggered me to join conversations about itself α = 0.92 This brand is present in places that I frequently visit This brand is very much present in my daily life Intimacy This brand succeeds in reaching me as it is present at the right place and at the right moment α = 0.82 This brand stimulates conversations about itself This brand stimulates interaction with its users by organizing things that fit to their consumer’s lifestyles Interaction By evoking buzz (campaigns, events, etc) this brand induces a dialogue between© ENGAGE BBDO consumers α = 0.85© InSites Consulting N =5465 (brands evaluated) α = cronbach’s alpha value = measurement of internal reliability of the scale, extent to what the items measure the same concept (α has to exceed 0.65) Brand Engagement Index 17

The model Statistics and validation Brand Engagement can be explained for 60% by the four factors: involvement, influence, intimacy and interaction. Involvement is the best predictor of Engagement; followed by influence, intimacy and interaction. They all have a strong, significant positive relationship with Engagement. The remaining 40% can be explained by environmental factors (personal or context related), e.g. experience, habit, tradition... see slide 17) Involvement r² = 0,54 Influence r² = 0,51 Brand r² = 0,60 Engagement r² = 0,49 Intimacy To what extent do you feel engaged to this brand? r² = 0,39© ENGAGE BBDO Interaction© InSites Consulting N =5465 (brands evaluated) r² = explained variance Brand Engagement Index 18

The model Influence on KPI’s There are very strong correlations between brand Engagement and all KPI’s. Brand Engagement can predict 31% to 42% of the KPI’s. Likeability and loyalty can be best predicted by Engagement, uniqueness is somewhat less predictable by Engagement towards the brand Likeability r² = 0,42 Involvement r = 0,65 Loyalty r² = 0,41 Influence r = 0,64 Brand Engagement r = 0,63 Consideration r² = 0,39 Index Intimacy r = 0,60 Purchase r² = 0,36 intention The BEI (Brand r = 0,55© ENGAGE BBDO Interaction Engagement Index) is a score on 100, consisting of the scores on the four dimensions of Engagement Uniqueness r² = 0,31© InSites Consulting Brand Engagement Index 19

Media exposure© ENGAGE BBDO© InSites Consulting Brand Engagement Index 20

Media exposure & brand engagement Q:On which of the following occoasions did you encounter the brands that are listed below? For all types of communication, people who had moderate or high exposure rates also have significantly higher engagement scores. So media exposure has a positive impact on brand engagement. We also notice that high exposure to brands on social media and also in interpersonal conversations leads to the highest engagement scores. This also accounts for exposure to websites, so we can conclude that online communication efforts pay lead to increased brand engagement. As exposure rates in these channels were very low, we can identify a large opportunity for brands to create and implement an online branding strategy, using social media and branded websites to increase awareness and engagement. BEI scores© ENGAGE BBDO© InSites Consulting = significantly higher (95% confidence level) Brand Engagement Index 21

Category results© ENGAGE BBDO© InSites Consulting Brand Engagement Index 22

Category results BEI Category level Users Non users Total 57,5 46,4 55,1 Categories Users Non users Total 63,3 48,9 54,4 63,7 48,4 61,1 53,7 45,2 53,4 51,6 43,2 51,3 55,2 44,9 54,4 54,5 35,6 52,7 Beste overall results for brand Engagement scores can be allocated to brands in the Telecom industry, followed by brands in the cell phone and 57,4 41,8 54,4 automotive category© ENGAGE BBDO 63,2 44,4 56,6 64,4 51,6 62,0© InSites Consulting 55,9 44,7 50,9 Higher than overall mean Lower than overall mean Brand Engagement Index 23

The four I’s© ENGAGE BBDO© InSites Consulting Cell Salty Financial Chocolate Telecom Beers Cola’s Automotive Butters Energy phones snacks institutions snacks Brand Engagement Index 24

NTIMACY Brands in the telecom category have the highest scores for intimacy (three statements) TOP 2 % rather-totally agree This brand is present in places that I frequently visit This brand is very much present in my daily life© ENGAGE BBDO This brand succeeds in reaching me as it is present at the right place and at the right moment© InSites Consulting Brand Engagement Index 25

NTERACTION People rate brands in the cell phone and telecom category as most interactive. TOP 2 % rather-totally agree This brand stimulates conversations about itself This brand stimulates interaction with its users by organizing things that fit to their consumer’s lifestyles© ENGAGE BBDO By evoking buzz (campaigns, events, etc) this brand induces a dialogue between consumers© InSites Consulting Brand Engagement Index 26

NVOLVEMENT People feel most involved with brands in the telecom and financial institution category. TOP 2 % rather-totally agree I feel involved with this brand I feel involved in the actions this brand undertakes© ENGAGE BBDO This brand involves me in its communication efforts© InSites Consulting Brand Engagement Index 27

NFLUENCE Brands in the cell phone and telecom category have the highest scores on influence statements, that mostly relate to the extent to which people talk to others about the brands and recommend the brands in conversations. TOP 2 % rather-totally agree The buzz (because of campaigns, events, etc.) about this brand triggers me to recommend it to my peers I would recommend the brand to others because it puts a lot of efforts in its consumers© ENGAGE BBDO I have recently spoken about this brand to someone© InSites Consulting Brand Engagement Index 28

NFLUENCE The brand has triggered me to talk about it to others The brand allowed me to recommend it to others The brand has triggered me to join conversations© ENGAGE BBDO about itself© InSites Consulting Brand Engagement Index 29

Example of 4 I’s score for a particular category INTIMACY 70% 60% 50% 40% 30% 20% 10% INFLUENCE 0% INVOLVEMENT© ENGAGE BBDO© InSites Consulting INTERACTION Brand A – Brand B – Brand C – Brand D Brand Engagement Index 31

Category results Example of category X Overall scores across brands Mean BEI overall = 55,1 Mean BEI users = 57,5 Mean BEI non users = 46,4 BRAND B BEI BRAND A Category level Users Non users Total BRAND C 63,7 48,4 61,1 Brand level Users Non users Total BRAND A 68,6 52,1 63,2 BRAND B 64,5 54,4 64,2 BRAND C 61,3 45,4 59,8 Top 3 amoung users 1.  Brand A© ENGAGE BBDO BRAND D 60,9 43,5 56,8 2.  Brand B 3.  Brand C© InSites Consulting Higher than group average Lower than group average Brand Engagement Index 32

For more informa+on    Daniel Schots Managing director ENGAGE BBDO Daniel.schots@engage.bbdo.be Tel. +32 2 421 30 23 Mobile +32 475 485 389   ENGAGE BBDO Scheldestraat 122 B-1180 Brussels Belgium info@engage.bbdo.be www.engage.bbdo.be© ENGAGE BBDO© InSites Consulting Brand Engagement Index 33

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Brand Engagement Index: most engaged brands

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