Understanding your consumers through social media analysis

Beyond Monitoring Understanding Your Consumers |through Social Media Analysis Featured Speaker: Janet Eden-Harris VP of Web Intelligence Research J.D. Power and Associates © 2008 J.D. Power and Associates, The McGraw-Hill Companies, Inc. 1 All Rights Reserved.

How JDPA helps you listen to the Voice of the Customer Expert Evaluation Traditional Survey Voice Research Social of the Media Customer Research Online Operational Survey Research Research © 2008 J.D. Power and Associates, The McGraw-Hill Companies, Inc. 2 All Rights Reserved.

What is social media? • Blogs • Microblogs Online applications, • Message boards platforms and media which aim • Chat rooms to facilitate • Opinion sites interaction, • Photo sharing collaboration, • Video sharing and sharing of • Podcasts content. • Online Communities © 2008 J.D. Power and Associates, Power to the People / Social Media Tracker / Wave 3 04/14/08 The McGraw-Hill Companies, Inc. 3 All Rights Reserved.

Moving to Marketing 2.0 Moving to Marketing 1.0 Marketing 2.0 Marketing 2.0 One way communication Complex communication Surveys Blogs, message boards Focus on big spenders Focus on big influencers Mainstream media Social media Share the brand Protect the brand CPM, reach, frequency Engagement metrics © 2008 J.D. Power and Associates, The McGraw-Hill Companies, Inc. 4 All Rights Reserved.

Blogging by the numbers million blogs WW of adults blog freq or occasionally % read blogs in US (73% WW) % of bloggers opine about products % bloggers older than 30 Technorati, Jan 2008 1 BIGresearch Simultaneous Media Survey, April 2008 2,3 Universal McCann Report Social Media Consumption, April 2008 4 Ad Age, October 2007 5 © 2008 J.D. Power and Associates, The McGraw-Hill Companies, Inc. 5 All Rights Reserved.

“I don’t want to miss the boat… let’s get going!” I need to… • Start blogging! • Seed those message boards! • Send some influencers my new products! • Find unhappy customers, make them feel better! • Get consumers to create my ads for me! … right!?! © 2008 J.D. Power and Associates, The McGraw-Hill Companies, Inc. 6 All Rights Reserved.

A better way to go: Listen First • Listen to the conversations • Understand your consumer • Learn how they use social media • Think about what you are prepared to do – Monitoring to keep tabs – Insights to inform strategic marketing decisions – Outreach to engage © 2008 J.D. Power and Associates, The McGraw-Hill Companies, Inc. 8 All Rights Reserved.

Social media can be used in a variety of ways Innovation Ideation Value-Add Customer Insight Industry Analysis Brand Insight Blogger Outreach Crisis Communication Data Provider Strategic Tactical © 2008 J.D. Power and Associates, The McGraw-Hill Companies, Inc. 9 All Rights Reserved.

What makes us unique Gender segmentation Age segmentation by generation algorithm accuracy: Natural Language Processing algorithms Tribe analysis: understanding bloggers with common interests Customer segmentation: user profiles Proprietary IP: seminal patent application on file algorithms and warehouse structure Clean data: de-spamming © 2008 J.D. Power and Associates, The McGraw-Hill Companies, Inc. 10 All Rights Reserved.

Natural Language Processing algorithms? Technology-powered analysis “OMG… I took my boyfriend shopping with me today. He hated the mall but he really digs me .” © 2008 J.D. Power and Associates, The McGraw-Hill Companies, Inc. 11 All Rights Reserved.

Deliverables • Brand analysis – What do consumers think about my products and brand? – What do they think about my competitors’ brands? • Market or trend analysis – What are emerging trends? – What is the response to a trend by demographic? • Consumer analysis – Who are my consumers? – What messages will resonate with my target audience? – Is there a consumer segment I’m overlooking? • Innovation – What consumer needs are unmet? – What features are consumers looking for? Do the features differ among different demographic segments? © 2008 J.D. Power and Associates, The McGraw-Hill Companies, Inc. 12 All Rights Reserved.

Tell me about my brand or campaign… Brand analysis Norwich Union How does their brand fare in the UK insurance market? Quarterly social media analysis gave them some surprising answers © 2008 J.D. Power and Associates, The McGraw-Hill Companies, Inc. 14 All Rights Reserved.

Focusing on customer service dropped negatives by 20% Brand analysis Invested in customer service and message board outreach to frustrated customers © 2008 J.D. Power and Associates, The McGraw-Hill Companies, Inc. 15 All Rights Reserved.

Surprising finding: younger customers a potential market Brand analysis Demographic Segment Index Boomer Female 100 Boomer Male 333 Gen X Female 49 Gen X Male 73 Gen Y Female 165 Gen Y Male 112 • Index = demographic segmentation distribution versus Blogosphere demographic make-up. • Their target, Boomer Males were 3X more likely to talk about Norwich • But younger females were a surprising finding; they wanted help with insurance choices, road side service and customer service © 2008 J.D. Power and Associates, The McGraw-Hill Companies, Inc. 16 All Rights Reserved.

Digging deeper, we found Norwich scored highest among females than their competition Brand analysis More than a third of discussion about Norwich Union was driven by females…they had a potential differentiator © 2008 J.D. Power and Associates, The McGraw-Hill Companies, Inc. 17 All Rights Reserved.

Resulting in a recommendation for action Brand analysis • RECOMMENDATION: Package and market products such as Roadside Assistance and insurance consulting specifically for women buyers © 2008 J.D. Power and Associates, The McGraw-Hill Companies, Inc. 18 All Rights Reserved.

Tell me about my industry: Online banking Trend analysis Major regional bank wanted to explore attitudes toward online banking prior to revamping website © 2008 J.D. Power and Associates, The McGraw-Hill Companies, Inc. 19 All Rights Reserved.

Clustered conversations to find key issues Trend analysis • Quickly learned that customers needed assurance about security and help with log-ins • But found these concerns were largely among more mature customers © 2008 J.D. Power and Associates, The McGraw-Hill Companies, Inc. 20 All Rights Reserved.

Recommendation: Messaging for new site critical Trend analysis • RECOMMENDATION: Highlight security improvements of new website especially toward Boomer customers Make log-ins as easy as possible © 2008 J.D. Power and Associates, The McGraw-Hill Companies, Inc. 21 All Rights Reserved.

Also learned that consumers view online banking as part of their lifestyle Trend analysis • The ease of automatic bill pay is beginning to shift perceptions from bill paying as a “chore” to an “enjoyable” experience • Some banks set up message boards so consumers could interact with one another • Consumers appreciate institutions that merge all aspects of their “financial life.” © 2008 J.D. Power and Associates, The McGraw-Hill Companies, Inc. 22 All Rights Reserved.

HSBC high net worth customers: Expats abroad Consumer analysis Engaging with and providing meaningful value to high net worth customers: UK Expats © 2008 J.D. Power and Associates, The McGraw-Hill Companies, Inc. 23 All Rights Reserved.

HSBC high net worth customers: Expats abroad Consumer analysis Learned that key issues were school services, childcare and reaching other Expats HSBC created web site to offer these services © 2008 J.D. Power and Associates, The McGraw-Hill Companies, Inc. 24 All Rights Reserved.

Consumer-driven analysis: Tribes UMBRIA 360°ANALYSIS WHO: Define the Consumer Travel Climate Segment 5% Change Health WHAT: 64% Wellness 24% Identify Topics of Conversation through Eating Out Clustering 78% Weekends HOW: 4% Measure Volume Determine Sentiment Positive Neutral Negative Consumer analysis © 2008 J.D. Power and Associates, The McGraw-Hill Companies, Inc. 26 All Rights Reserved.

Consumer segmentation Bargain Fit Self Label Style Seekers Dissenters Finders Expressives Whores Gurus 17% 6% 39% 19% 11% 8% c © 2008 J.D. Power and Associates, The McGraw-Hill Companies, Inc. 27 All Rights Reserved. Proprietary and Confidential

When to use J.D. Power’s social media analysis • When you need strategic input on a brand or market – Not daily alerts or reports • When you want to know more about your customers and what motivates them – Not who’s the most influential blogger so they can treat it like PR • When you want to get a recommendation on what it all means – Not a data-dump • When you need a deep dive analysis – Not just a dashboard tool © 2008 J.D. Power and Associates, The McGraw-Hill Companies, Inc. 29 All Rights Reserved.

When you need a solution that is: • better consumers, not respondents • faster weeks, not months • cheaper tens of thousands, not hundreds or millions © 2008 J.D. Power and Associates, The McGraw-Hill Companies, Inc. 30 All Rights Reserved.

Identity theft is of concern to consumers Incidents of Identity Theft Types of Identity Theft Among U.S. Adults* Among U.S. Adults 3.7% (8.3 million) * Source: Federal Trade Commission – 2006 Identity Theft Survey Report © 2008 J.D. Power and Associates, The McGraw-Hill Companies, Inc. 31 All Rights Reserved.

Coming in October: Syndicated Report on Identity Theft If interested, contact Todd Morin 303-217-8271 Todd Morin info@umbrialistens.com 303.217.8271 Steve Witten 805-418-8528 Steve.Witten@jdpa.com © 2008 J.D. Power and Associates, The McGraw-Hill Companies, Inc. 32 All Rights Reserved.

Understanding your consumers through social media analysis

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