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Measuring WOM in a Test/Control Environment

Matt McGlinn, Director Campaign AnalyticsBzzAgent

The Latte Lite BzzCampaign

Slide 2

Overview

• About BzzAgent

• Case Study: The Latte Lite BzzCampaign• Objectives

• Methodology

• Results

• Summary

Slide 3

About BzzAgent

• BzzAgent is the leading word-of-mouth media company that enables clients to organize and manage honest, real-world communications between everyday consumers.

• 240,000 volunteer agents

• Over 8,000,000 communications

• 260 programs for 150 companies

Penguin Group USA

Slide 4

The BzzCampaign Process

• Data analyzed

• Objectives measured

• WOM insights delivered

Measurement

& Analytics

36.9

53.7

16

37

-42.8

-60

-40

-20

0

20

40

60

Latte Lite (Pre-

Campaign)

Latte Lite (Post-

Campaign)

Dunkin' Donuts®

(Post-Campaign)

National Median BzzCampaign

Average (Past

Campaigns)

+

• Opinions created

• Conversations occur

• BzzReports submitted

Two-way Dialogue

+

• BzzAgents Profiled

• Invited to join BzzCamaign

Segmentation

• Experience

• Education

• Training & Support

+

Trial & Training

Slide 5

The Latte Lite BzzCampaign:Goals and Objectives

1. Generate WOM about Latte Lite launch

2. Increase awareness and trial

3. Isolate behavioral differences in Dunkin

Donuts’ segments

4. Understand how WOM

affects sales

Slide 6

The Latte Lite BzzCampaign: Methodology

• 3,000 BzzAgents -- 12 Week BzzCampaign

• 6 “Be My Guest Cards” – Good for (1) Latte Lite

• BzzGuide & on-line training

ChicagoDetroit (7%)

AtlantaCleveland (5%)

HartfordBoston (41%)

PhiladelphiaNew York City (48%)

CONTROL MARKETTEST MARKET

Slide 7

The Latte Lite BzzCampaign: Participants

18-24

21%

25-34

44%

35-44

27%

45-54

8%

Segment A

27%

Segment B

32%

Segment C

18%

Segment D

10%

Segment E

13%

Age Breakdown Consumer Segments

Slide 8

The Latte Lite BzzCampaign: Conversation Measurement

• 3,000 BzzAgents

• 111,272 Communications

• 5,004 Reported WOM Actions (BzzReports)

• Over 8,000 ‘Be My Guest’ cards utilized

• 58% of Reported WOM Actions mention a purchase of a Latte Lite

Slide 9

The Latte Lite BzzCampaign: Sample BzzReport

Was hanging out with my friends Laura and Kimberly, and after many-a-

shopping stops we were ready for a break. I convinced them to come try

a new drink at Dunkin' Donuts. They both heard me talk about Bzzagent

so they new exactly what it was all about. Kimberly (26) likes sweet

coffee drinks like the frapuccino, so she was happy with her latte lite.

Laura (39) likes strong coffee and doesn't take sugar so she found it too

milky, but once they added an extra shot of espresso she was happy with

it. This time around I chose an iced latte lite with hazelnut and toasted

almonds, knowing that it was like a treat but only 100 calories was great.

Kimberly told me she has continued to get this drink and even got a

bunch of her friends to try it. So far this product is a success and Dunkin

Donuts coffee in general is a HUGE hit!

They both heard me talk about BzzAgentThey both heard me talk about BzzAgent……

Kimberly (26) likes sweet coffee drinksKimberly (26) likes sweet coffee drinks……....

……like a treat but only 100 calories was great.like a treat but only 100 calories was great.

Kimberly told me she has continued to get this Kimberly told me she has continued to get this

drink and even got a bunch of her friends to try it.drink and even got a bunch of her friends to try it.

“

”

Slide 10

The Latte Lite BzzCampaign: Conversation Measurement

• 30% of Reported WOM Actions took place at work

• Work-located WOM Action reports comprised 35% of Recipients reached

• 29% of Recipients were documented as friends and 15% were relatives

Slide 11

The Latte Lite BzzCampaign: Net Promoter® Score

Pre- and Post-Campaign Net Promoter® Scores

-43

37

-50

-35

-20

-5

10

25

40

Pre-Campaign Post-Campaign

Slide 12

The Latte Lite BzzCampaign: Net Promoter® Score

33 3436

39

47

0

10

20

30

40

50

Segment A Segment D Segment B Segment C Segment E

Post-Campaign Net Promoter® Score by Segment

Slide 13

WOM vs. Sales

100

120

140

160

180

200

Week 0Week 2

Week 4Week 6

Week 8Week 10

Be

vera

ge

Ca

teg

ory

Sa

les

0

400

800

1200

1600

2000

Re

po

rted

Re

ce

ivers

(BzzR

ep

orts

)

Test Market Sales Receivers

The Latte Lite BzzCampaign: Conversations vs. Sales

35% of all

Receivers 25% lift

in sales

Slide 14

The Latte Lite BzzCampaign: Conversations vs. Sales

25% lift

in sales

35% of all

Receivers

WOM vs. Sales

100

120

140

160

180

200

Week 0Week 2

Week 4Week 6

Week 8Week 10

Be

ve

rag

e C

ate

go

ry S

ale

s

0

400

800

1200

1600

2000

Re

po

rted

Re

ce

ive

rs (B

zzR

ep

orts

)

Test Market Sales Control Market Sales Receivers

25% lift

in sales

8.9% lift

in sales

Slide 15

Summary

• We’ve made great progress

• Delivering ROI: You can isolate WOM

• The WOM industry has challenges• More willing partners

• Deeper understanding of WOM impact

• Sales

• Other media

• Universal metrics

• How big is WOM?

• What is the value of a recommendation?

Measuring WOM in a Test/Control Environment

Matt McGlinn, Director Campaign AnalyticsBzzAgent

The Latte Lite BzzCampaign