WoM: The Latte Lite BzzCampaign - Measuring WOM in a Test/Control Environment

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By Matt McGlinn, BzzAgent

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Microsoft PowerPoint - WOMMA_BzzAgent_dunkin.ppt

(c) 2006 Word of Mouth Marketing Association. You may share this presentation if it is not altered in any way.

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Learn more about WOMMA and how we can help you improve your word of mouth marketing program at www.womma.org.

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 BzzCampaignAverage (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 launch2. Increase awareness and trial3. Isolate behavioral

differences in Dunkin Donuts segments

4. Understand how WOMaffects 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

18-2421%

25-3444%

35-4427%

45-548%

Segment A27%

Segment B32%

Segment C18%

Segment D10%

Segment E13%

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

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160

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200

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Rep

orted

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ceiv

ers

(BzzR

epo

rts)

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

W e e k

0W e e k

2W e e k

4W e e k

6W e e k

8W e e k

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Rep

orted

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rs (B

zzRep

orts)

Test Market Sales Control Market Sales Receivers

25% lift in sales

8.9% lift in sales

Slide 15

Summary

Weve 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