brand engagement index: most engaged brands

The Brand Engagement Index®

BEI®

2 Brand Engagement Index © In

Site

s C

onsu

lting

©

EN

GA

GE

BB

DO

Prepared by: Dennis Claus, Director Brands & Conversations, InSites Consulting Isabelle Stevens, Research Manager, InSites Consulting

For: 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

October, 2010

The Brand Engagement Index®

BEI®


Site

s C

onsu

lting

©

EN

GA

GE

BB

DO

  Background

  Management & research objectives

  Methodology

  Executive summary

  Meaning of brands

  Measuring Engagement

  The four I’s

  Media exposure

  Category results

Report overview


Site

s C

onsu

lting

©

EN

GA

GE

BB

DO

Background: Engagement marketing


Site

s C

onsu

lting

©

EN

GA

GE

BB

DO

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


Site

s C

onsu

lting

©

EN

GA

GE

BB

DO

Management and research objectives


Site

s C

onsu

lting

©

EN

GA

GE

BB

DO

Research objectives

•  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

•  Ranking of 50 brands based on their Engagement performance

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.


Site

s C

onsu

lting

©

EN

GA

GE

BB

DO

Methodology


Site

s C

onsu

lting

©

EN

GA

GE

BB

DO

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)


Site

s C

onsu

lting

©

EN

GA

GE

BB

DO

Sample specifications

•  Sample composition

•  General population (N respondents = 1.296, N brand evaluations = 5.465)

Sample description (weighed) %

Gender Male Female

50% 50%

Language French Dutch

40% 60%

Age 18-24 yrs 25-34 yrs 35-45 yrs

M 6,5%

10,8% 12,6%

F 6,3%

10,6% 12,2%

Source: Eurostat 2008


Site

s C

onsu

lting

©

EN

GA

GE

BB

DO

Executive summary


Site

s C

onsu

lting

©

EN

GA

GE

BB

DO

•  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:

Executive summary


Site

s C

onsu

lting

©

EN

GA

GE

BB

DO

•  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.

Other learnings


Site

s C

onsu

lting

©

EN

GA

GE

BB

DO

Meaning of brands


Site

s C

onsu

lting

©

EN

GA

GE

BB

DO

Associations

94%

79%

74%

71%

63%

55%

51%

50%

48%

42%

39%

33%

27%

TOP 2

N =1296

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.

Q:To what extent do you agree with the following statements?.


Site

s C

onsu

lting

©

EN

GA

GE

BB

DO

Measuring Engagement


Site

s C

onsu

lting

©

EN

GA

GE

BB

DO

The model Statistics and validation

This brand is present in places that I frequently visit This brand is very much present in my daily life This brand succeeds in reaching me as it is present at the right place and at the right moment α = 0.82

I feel involved with this brand I feel involved in the actions this brand undertakes This brand involves me in its communication efforts α = 0.88

This brand stimulates conversations about itself This brand stimulates interaction with its users by organizing things that fit to their consumer’s lifestyles By evoking buzz (campaigns, events, etc) this brand induces a dialogue between consumers α = 0.85

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 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

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)

N =5465 (brands evaluated)

Involvement

Influence

Intimacy

Interaction


Site

s C

onsu

lting

©

EN

GA

GE

BB

DO

The model Statistics and validation

Involvement

Influence

Intimacy

Interaction

Brand Engagement

r² = 0,60

r² = 0,54

r² = 0,51

r² = 0,49

r² = 0,39

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)

To what extent do you feel engaged to this brand?

r² = explained variance

N =5465 (brands evaluated)


Site

s C

onsu

lting

©

EN

GA

GE

BB

DO

The model Influence on KPI’s

Intimacy

Involvement

Interaction

Influence

Brand Engagement

Index

Likeability

Loyalty

Purchase intention

Consideration

Uniqueness

r² = 0,42

r = 0,65

r = 0,64

r = 0,63

r = 0,60

r = 0,55

r² = 0,41

r² = 0,39

r² = 0,36

r² = 0,31

The BEI (Brand Engagement Index) is a score on 100, consisting of the scores on the four dimensions of Engagement

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


Site

s C

onsu

lting

©

EN

GA

GE

BB

DO

Media exposure


Site

s C

onsu

lting

©

EN

GA

GE

BB

DO

Media exposure & brand engagement

= significantly higher (95% confidence level)

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.

Q:On which of the following occoasions did you encounter the brands that are listed below?

BEI scores


Site

s C

onsu

lting

©

EN

GA

GE

BB

DO

Category results


Site

s C

onsu

lting

©

EN

GA

GE

BB

DO

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

57,4 41,8 54,4

63,2 44,4 56,6

64,4 51,6 62,0

55,9 44,7 50,9 Higher than overall mean Lower than overall mean

Beste overall results for brand Engagement scores can be allocated to brands in the Telecom industry, followed by brands in the cell phone and automotive category


Site

s C

onsu

lting

©

EN

GA

GE

BB

DO

The four I’s

Telecom Beers Cell

phones Cola’s Salty

snacks Financial

institutions Automotive Chocolate snacks Butters Energy


Site

s C

onsu

lting

©

EN

GA

GE

BB

DO

NTIMACY

This brand is present in places that I frequently visit

This brand is very much present in my daily life

This brand succeeds in reaching me as it is present at the right place and at the right moment

Brands in the telecom category have the highest scores for intimacy (three statements)

TOP 2 % rather-totally agree


Site

s C

onsu

lting

©

EN

GA

GE

BB

DO

NTERACTION

This brand stimulates conversations about itself

This brand stimulates interaction with its users by organizing things that fit to their consumer’s lifestyles

By evoking buzz (campaigns, events, etc) this brand induces a dialogue between consumers


People rate brands in the cell phone and telecom category as most interactive.


Site

s C

onsu

lting

©

EN

GA

GE

BB

DO

NVOLVEMENT

I feel involved with this brand

I feel involved in the actions this brand undertakes

This brand involves me in its communication efforts


People feel most involved with brands in the telecom and financial institution category.


Site

s C

onsu

lting

©

EN

GA

GE

BB

DO

NFLUENCE

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


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.


Site

s C

onsu

lting

©

EN

GA

GE

BB

DO

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 about itself


Site

s C

onsu

lting

©

EN

GA

GE

BB

DO

Example of 4 I’s score for a particular category

0%

10%

20%

30%

40%

50%

60%

70%

Brand A – Brand B – Brand C – Brand D

INFLUENCE

INTERACTION

INTIMACY

INVOLVEMENT


Site

s C

onsu

lting

©

EN

GA

GE

BB

DO

Category results Example of category X

BEI Category level

Users Non users Total

63,7 48,4 61,1

Brand level Users Non users Total

68,6 52,1 63,2

64,5 54,4 64,2

61,3 45,4 59,8

60,9 43,5 56,8

Top 3 amoung users 1.  Brand A 2.  Brand B 3.  Brand C

Higher than group average Lower than group average

Overall scores across brands Mean BEI overall = 55,1 Mean BEI users = 57,5 Mean BEI non users = 46,4

BRAND B

BRAND A BRAND C

BRAND A

BRAND B

BRAND C

BRAND D


Site

s C

onsu

lting

©

EN

GA

GE

BB

DO

  Daniel Schots

Managing director ENGAGE BBDO [email protected] Tel. +32 2 421 30 23 Mobile +32 475 485 389

  ENGAGE BBDO

Scheldestraat 122 B-1180 Brussels Belgium

[email protected] www.engage.bbdo.be

Formoreinforma+on

brand engagement index: most engaged brands

Business