2015 stima holaba

The Recommender Revolu/on. STIMA. 2015/Q1

Am I a recommender?


I am a recommender!


Only a few consumers are recommenders. 10.000 visitors – 5 reviews. (Tripadvisor = 4.968.000 new reviews/month >< 315.000.000 UV/month)


11 InteresLng staLsLcs: Who Influences Gen Y Smartphone Purchase?

1.  10% of the market account for 88% of all positive brand recommendations 2.  Gen Y super-influencers recommend 3 times as many brands on a daily basis

than average customers 3.  75% of 18-21 year olds said best friends influenced them to choose their

smartphone 4.  Word of mouth is #1 factor of influence point of purchase for 18-29 year olds 5.  18-29 year olds are 50x more likely to recommend a product based on good

experience than on incentives or rewards 6.  Gen Y recommend brands 15 times more offline than they do online 7.  Face to face is the #1 most trusted source of recommendation for Gen Y 8.  90% of brand-related conversations happen at home 9.  Youth are twice as likely to choose a handset if they saw someone else using it

than seeing it on TV or in an ad 10.  72% of Gen Y smartphone buyers visit a store with 2 or more clear choices in

mind 11.  67% of Gen Y share their phone purchase with friends

http://www.totalyouthresearch.com - 11/2014


No detail is small.


Is Cool Blue the next Amazon?


Spar, de woensdagmarkt in Vilvoorde en Makro. (Delhaize?)

Bio Planet, Makro, CoolBlue (Delhaize?)

The Butterfly Effect


Are we car-recommenders too?


Recommenders directly influence 20-‐50% of all purchase decisions.

X6 X3


Whoelse or whatelse influences consumers?


Ads in paid media. But they are not the most trusted, nor the ones that push consumers into acLon. But you sLll need them.


“Consumer opinions posted online”


Earned media have most influence, are more trusted and generate

more ac4on

Paid media generate more touch points,

hence they are strong in building awareness. Their “Opportunity To Be Seen” is bigger.

Paid media cost more than earned and owned media. Brands plan to invest less in

paid media in the coming years.

“Paid media” take a big bite of a brand’s markeLng budget. “Earned media” cost less. Brands have to find day acer day the best mix.


PenetraLon & Loyalty


Promiscuous behavior of consumers is a big opportunity for deeper penetraLon i.e. daLng real prospects.

“Companies need to invest to re-earn penetration over and over again. Winners accept that it’s a game of constant recruitment. That’s why they invest on an ongoing basis to acquire more new consumers every year than they lose. (Bain - 2014)


Extra-‐contacts generated : brands reach consumers through media, but since not all consumers are created equal, some become “human media” and some not.

Brands

Media

“Human media” “Just humans” “Just humans”

Brands can influence these influencers by running off-‐ & online ads in the media these influencers engage with. (Paid Media).


The Media Influencer Index – (for the near future)


Recency, frequency, monetary value (RFM) of clients were decisive for investment in marke:ng communica:on. Therefore lots of money spent (wasted) in this group of heavy and recent buyers

RFM -‐ axis

Light and non frequent buyers are oCen “neglected”

As for your “owned” media: past sales don’t predict future sales. They don’t express your customers’ intenLon to buy, nor the recommendaLon power.

From RFM to RecommendersRFM to decide about what % of marcom

budget to invest where.


Recommenda4on axis

+RFM & -‐ REC

-‐ RFM & -‐ REC

+RFM & + REC

-‐ RFM & + REC

RFM -‐ axis

Does not mean they all give posiLve recommendaLons

Frequency and intensity of recommendaLon.

The recommendaLon power of clients becomes the decisive tool to decide on marcom-‐investments.


The Holaba – way ☺


58,1% of the scores are 9 or 10 38,1% of all scores are in between 0 and 6 included. SUM OF 9 & 10 SCORES SUM OF ALL OF ALL 0 TO 6 SCORES

58,1 -‐ 38,1 = +20

10 9 8 7 6 5 4 3 2 1 0

How likely is it that you will recommend this brand?

NPS-‐score & Holaba-‐score are indicators of recommendaLon power. In this case the score is +20

The One QuesLon Holaba asks always and everywhere.

The calculaLon of the recommendaLon score based on 1000’s of consumer scores.

A NPS score is a number in between -‐100 and +100 +100 -‐100 Benchmarking to find out where

your compeLtors are on this scale.

Net Promoter System was launched in 2003 by Mr. Reichheld of Bain. It measures the recommenda4on power of brands. And consumers.

How do we treat the scores consumers give to your brand? We apply the Reichheldian formula.

What is NPS*?

* Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld.


Holaba’s triple play through One QuesLon.

me

1.nps

2. Benchmarking

3. Identification and continuous data enrichment of individual profies with

their recommended and non-recommended brands


This is how we (@holaba) conLnuously measure & benchmark. ParLcipants select a survey to start with.


When they’ve chosen one of many surveys the click on the brands they want to review. Brands they know, they bought, they have, they could buy.


Next – by clicking and gliding -‐ they answer 3 quesLons: their experience, their score, their buying intenLon. It’s all done in 40 seconds. For 5 brands.


They can also write reviews, if they want to let you know *why* they gave the score they gave.


These are (some) of the data our clients will get. Raw data.


Scores 9 -‐10

Scores9-‐10

Scores 9-‐10

Scores9-‐10

Scores9-‐10 Scores

9-‐10

Scores9-‐10

Scores9-‐10

Scores9-‐10

Scores9-‐10

Scores9-‐10 Scores

9-‐10

Scores 0-‐6

Scores 0-‐6

Scores 0-‐6

Scores 0-‐6

Scores 0-‐6

Scores 0-‐6

Scores 0-‐6

Scores 0-‐6

Scores 0-‐6 Scores

0-‐6

Scores 0-‐6

Scores 0-‐6

The brands these boys & girls also recommend

Brand Profile of boys & girls 18-‐25 yrs old, who all give a very high 9 & 10 recommendaLon score to brand X.

The brands they don’t recommend at all.

Scores 0-‐6

When 1000’s of consumers do give scores every now and then, they build unique profiles for themselves and several segments with their peers

Enrich your database with these

new & relevant data about brands.


Confusion!


(ING? Non Holaba-‐data)


(Argenta? Non Holaba-‐data)


(Keytrade? Non Holaba-‐data)


Big data about customers

Wise data about customers and the market. These data re-evaluate the big data.

Sales Which brand do they come from? Sales history Do they recommend us? Sales growth/decline Which other brands do they recommend? Lifetime How strong is the intention to move to these brands? Frequency of purchase Which brands do they recommend in other industries? Volume (#articles) Loyalty Profitability

Big data & Wise data


5 Takeaways

1.  Your identified brand recommenders are the most important asset in your database. Chances are you have identified only a small portion.

2.  If however you identify them all and convince them to become your influencer… you will win plenty of battles. Enrich your database!

3.  You can identify them while measuring your recommendation power and benchmarking your competitors. All in one move.

4.  Go for both a “non-customer centric” and a “customer centric” approach. Stop navel-gazing.

Your customers are promiscuous.

5. Move on from RFM (Recency Frequency Monetary Value) to RRFM (Recommendation+RFM)


Appendix


Recommenders directly influence 20-‐50% of all purchase decisions. Do you know who is recommending your brand?

“

“


How do we find recommenders? These are some banners in online media to auract them.


EIS - monitoring: Experience/ Intention/Score Your clients

Your ex-clients

Your registered prospects Your staff The public

1. Net Promoter Score (NPS) EIS EIS EIS EIS EIS Your Brand

2. Competing brands in your industry / benchmarking Brand 1 EIS EIS EIS EIS EIS

Brand 2 EIS EIS EIS EIS EIS





3. Consumer data enrichment in other consumer industries Industry 1 EIS EIS EIS EIS EIS

Industry 2 EIS EIS EIS EIS EIS






Customer & Staff Centric

Non-Customer Centric

Always use the data to develop retenLon & penetraLon strategies.


Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Month 13 Month 14

No Campaign

No Campaign

No Campaign

No Campaign Campaign Campaign Campaign

No Campaign

No Campaign Campaign Campaign Campaign

No Campaign

No Campaign

1. Measure conintuously NPS of your brand and Holaba-benchmarking scores on the publisher’s site

2. Compare continuously the scores on the publisher’s site and the public Holaba-site

3. Compariing evolution of both parameters in correlation with advertising spendings on publisher’s site speciifically and other marketing-communication tools.

ConLnuous measurement of NPS and Holaba-‐score to gauge impact of all forms of adverLsing on publisher’s site.

4. Measure the results of clients, ex-clients and prospects appearing on the public site and the publisher’s site.


Look (less) or (not only) in the mirror and more through the window. There’s the market. There are all the voters. The influencers. The buyers.

Very bad ranking for “You “

Excellent ranking for “You”

More or less ok ranking for “You”

1 Competitor 1.You (+20) 1 Competitor

2 Competitor 2 Competitor 2 Competitor



5 Competitor 5 Competitor 5.You (+20)





10.You (+20) 10 Competitor 10 Competitor


And since more and more consumers use online channels during the pre-‐sales phase don’t overlook them. Benchmarking = Omnichannel acLvity.

1.  All above 2.  All below 3.  All offline 4.  All online 5.  Mail 6.  E-mail 7.  SMS 8.  CRM 9.  Shop 10. Event 11.   Cart 12. Delivery 13.  Internal com

Use …


Which scores do these different segments give to your brand? In all segments there will be inflluencers. Do not only rely on your clients.

All consumers interested in the category of your brand (e.g.cars)

All consumers who “once” leV behind their (email)-‐address

All former clients

All registered suspects’ inten/on to buy

All iden/fied hot prospects

All clients

All engaged, loyal clients

All top influencers

-‐33

+3

-‐2

+6

+12

+7

+24

+45

Holaba scores in # segments measured by The One QuesLon.

On walled garden VIP plaxorm = the usual NPS-‐measurement is done at this level.

On public Holaba plaxorm (recruiLng done by Holaba).

On privately held Holaba plaxorm, invited by mail, sms through brand.


Syndicated surveys by a trusted 3rd party (Holaba) as a benchmarking tool.

Brands invite monthly a random selecLon of clients & non-‐clients to parLcipate in Holaba Syndicated Industry Survey

Brand 1 Brand 2 Brand 3 Brand 4 Brand X …..

Individual scores shared with each brand separately

Overall ranking shared publicly among subscribers

Brand 1 Brand 2 Brand 3 Brand 4 Brand X …..

• Seeding • Scoring

• Ranking

• ReporLng


Several levels at the same Lme.


•Mainly benchmarking of recommendation power •Measure brands

•Measuring in context with other brands •Mirroring real life evaluation & pre-purchase-process of a customer

•Measure individual human beings •In the end we try to understand the influencers •We want to be representative for the recommenders

•100 surveys at the same time •Participants can freely go from one to the other - they can invite friends to also join •Participants can change scores and reviews whenever they want

•Large part is public •Some additional questions only for (extra-) paying brands to be seen. •Social media variant of the traditional research •Non classical product review site

•Permanently accessible •Always open for all participants and new participants •Reachable through web, phone, tablet

•Real people •Not a one night stand with anonymous respondents. •Compare our results with your real own clients. •Participants = more engagement than samples. •Enrich your own existing profiles. •Close the loop. Enhanced survey & databasemarketing-platform

•Identify •Ask Questions •Build the Relation - recontact them - ask additional questions •Build loyalty •Let them become clients - influence them •Improve what you’re told to improve … and tell them

•Complex = adding more and more building blocks •Extension to shop •Extension to media usage/touchpoints •Extension to your own clients (RFM) •Extension to enrich database with your own clients

•Actionable •Concrete & detailed results. Brand profiles of participants (and segments) •Let the people talk •Different levels •Fast set up + Easy data analytics

All takeaways


Close the loop? Not only with customers. With all consumers who are willing to.

2015 stima holaba

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