© Synovate 2008

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Converging Influences Impacting Supplier Innovation…

How Technology is Advancing the Art and Science of

Customer Panels

March, 2008Presented by Mark BerryCMAG

© Synovate 2008

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Influences Impacting Supplier Innovation & Technology Development

ConvergingInfluences An Industry

Questioning the Basics

What Clients Need

Strategic Collapse of the

Middle

What Large Suppliers Have Focused on…

Respondent Engagement

The Pace of Change in Marketing

© Synovate 2008

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Low Cost/Speed

Specialization/Focus

When the strategic middle collapses value migrates to the extremes. Companies are rewarded for focus and specialization on the one end and low costs and efficiency on the other…Companies most at risk are those

caught in the middle…

The Strategic Collapse of the MiddleValue Migrates to the Extremes

Client & Client & Shareholder Shareholder

ValueValue

© Synovate 2008

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What Have Large Players Been Focusing On?

• Acquisitions

• Global Integration

• Operational Efficiencies

© Synovate 2008

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An Industry Questioning the Basics…

© Synovate 2008

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Burke Panel Quality R&D (35%)

Number of Online Surveys Taken In Past 30 Days – Percent Claiming 10 or More Online Surveys

Source: Burke R&D, 2006 & 2007

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• Claimed product usage- Blood Glucose Monitors – 13%- Pet Health Insurance – 7.8%- Both – 2.5%

• 13% took the survey in 12 minutes or less

• Failure rate of the “select 2” test was 21%

Incidence of undesirables was 14%

Burke Panel Quality R&D

© Synovate 2008

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How Did We Get Here? Change…

• Tremendous amount of validation done inthe beginning…

• Changes from 5 years ago– Mass recruiting– Consumers expect to be rewarded!– The advent of incentives– Lots of companies doing it– Financial pressures– Clients have changed too– Little done after initial few

years of validation

© Synovate 2008

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Industry Initiatives

• ARF On-line Research Quality Council (ORQC)

• CASRO

• ESOMAR

• ISO 20252 Standards

• Endless Other Conferences

• Client Validations

*ISO – International Organization for Standards*CASRO – Council for American Survey Research Organizations

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On-line Research Quality Council (ORQC)

• Client Advisory Board

– Shell – P&G

– Allstate – ESPN

– Pfizer – Coca-Cola

– Capitol One – Bank of America

– CitiBrands – Kraft

• Council Steering Committee

– TNS – Harris Interactive

– Synovate – comScore

– IPSOS – The ARF

– NPD

© Synovate 2008

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Optimus™ is a filtering system for market research that uses new patent-pending technology to digitally fingerprint and manage respondents.

Operating System for the Panel Industry?

© Synovate 2008

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Influences Impacting Supplier Innovation & Technology Development

ConvergingInfluences An Industry

Questioning the Basics

What Clients Need

Strategic Collapse of the

Middle

What Large Suppliers Have Focused on…

Respondent Engagement

The Pace of Change in Marketing

© Synovate 2008

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‘70s DirectMail

Surveys

‘80s Mall

Surveys

‘50s Personal

Interviews

‘60s TelephoneInterviews

‘00s Online

Surveys

Future of Data Collection – Respondent Engagement

‘90sAutomated

Phone Interviews

© Synovate 2008

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Respondent Engagement Will Be Crucial

We will shift away from using traditional data collection methodologies in isolation and provide respondents with options for engagement that suite their requirements and individual environments.

© Synovate 2008

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What Clients Need…

ClientValue

Marketing EfficiencyLow Impact High Impact

- Episodic- Routine- Commoditized- Componentized

To grow profits the market research industry will be challenged tomigrate its core assets to the high impact/high efficiency space…

DataEconomics

DataEconomics

InformationTransfer

InformationTransfer

- Ongoing- Integrated- Strategic at many levels- Includes performance measurement

Faster, better decisions!

© Synovate 2008

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The Dramatic Changes in Marketing Will Drive Innovation & Technology in Research…

• TV

• Phone

• Traditional Internet

• Mobile

• Instant Messaging

• Social Networks

• Location Based

• Etc.

© Synovate 2008

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Proprietary Panels – Present & Future

1. Using Standard Interactive Panel Conventions

2. Panels Reinvented

3. The Future – Integrated “Research & Marketing Performance” Systems

© Synovate 2008

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Why Should Panels be Reinvented?

Consumers…• Are harder to reach

• Changing faster

• Are increasingly situational

• Demanding more

• Moving to different communicaiton, socialization & advertising platforms

Clients Want…• Answers faster - globally

• Integration with other data sources

• Unique insights

• To innovate more & faster

© Synovate 2008

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Successful consumer-driven innovations and breakthrough insights rarely come in the form of “the big idea”…

Rather, they come by driving a constant and incremental improvement in understanding of what creates value for the consumer

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The Premise…

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A proprietary system for flexible, continuous and immediate consumer interactions – primarily qualitative

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IMMEDIATE RESPONSEMMS/SMS SURVEYS & TASKS

DIGITAL ETHNOGRAPHYIN-HOME WEBCAM INTERVIEWS

QUICK QUALONLINE FOCUS GROUPS

QUICK DECISIONSONLINE SURVEYS AND TESTS

GIANT FOCUS GROUPSMODERATED BULLETIN BOARD DISCUSSIONS

GETTING DEEPERCREATIVE & INSIGHT WORKSHOPS

TRACKINGDIARIES, PROCESS & MARKET TRACKING

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PROJECTPROCESS

Research should be dynamic,changing along with consumers

QUESTIONSCONVERSATIONS

You need a true dialougue over time in order to gain insight and understanding.

FIXEDFLEXIBLE

Let your insight needs decide methodology. Speed, flexibility, cost efficiency, borderless

and time-saving.

FROM TO

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What’s the effect of innovation and new features in driving category interest?

How do our customers talk

about our brands with

friends?

How involved are people with

our products over time?

Can I truly involve consumers in the innovation

process as co-creators?

What can I learn from the core

customers of my competitiors?

© Synovate 2008

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Information & Research From Three Directions

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ConsumerPeer-to-peer

(Word-of-mouth)

Consumer

Initiated by you (Research)

You

Consumer-Initiated(Feedback, ideas,

market intelligence)

Consumer insight

Early warning on trends and competitors

Voice of the consumer in Innovation

Word-of-mouth

Testlab

© Synovate 2008

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A Wide Range of Research Objectives and Business Applications Can Be Addressed

Product usageNeeds and benefits

Product usageNeeds and benefits

Productdevelopment

Category driversPreferences and decisions

Category driversPreferences and decisions

CommunicationPerception and position

CommunicationPerception and position

Unmet needsUnsolved problems and

new opportunities

Unmet needsUnsolved problems and

new opportunities

Marketing Retail

Market making

© Synovate 2008

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Benefits of Proprietary Interactive Panels

• To Clients: Truly global: Set up panel anywhere anytime and bring them all together at

your desktop

Fast and flexible…no methodological limitations.

Cost effective: Less expensive than doing large-scale work

Always on

Current…guarantees fresh insight at all times

You can get closer by visiting consumers in their home or talking to them as decisions are made

• To Respondents Participate on their own terms, own time, from home – in a fun way

A sense of actually being listened to, being important

Get feedback on results

Rewards and incentives26

© Synovate 2008

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Three Kinds of Proprietary Panels

1. Using Standard Interactive Panel Conventions

2. Panels Reinvented

3. The Future – Integrated “Marketing Performance Systems”

© Synovate 2008

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Retail Shopping Experience & Loyalty

What People BuyAll-Channel

Purchasing

Shopper Experience

Customer Experience

ConsumerConnection

“Optimized” Industry Panel for Custom Research

Proprietary IndustryPlatform Components

Manufacturer “Product” Experience

© Synovate 2008

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Shift from Claimed to Actual Usage or Purchasing Behavior

Loyalty cards

Memory cards

Smart cards

Embedded payment technology in phones

Etc.

© Synovate 2008

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Today, Most Companies Are Ill-equipped to Transform Customer Data into a Consistent Consumer Profile…

Purchasing/VolumeAnalysis

AttitudinalSegmentation

Customer or ProductSatisfaction

Touch Point Experience

AdvertisingOptimization

GeodemographicSegmentation

BrandEquity

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What’s Required?An On-going, Integrated Platform That Delivers:

What consumers thinkTheir defining values & needs How they behaveHow to reach themHow you are performing

against them

Behave &React

Think & Experience

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Attitudinal – Behavioral Segmentation Platform

-Category Product Usage-Shopping Styles-Experience/Loyalty

Attitudes(Survey Execution)

How Might This Work?Creation of a Digital Consumer Nerve Center

CustomerFile

Behavioral Data

ProprietaryPanel

Customers &Non-Customers

Digital Consumer Nerve Center

Marketing Events

CRMSystems

© Synovate 2008

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View of the Customer is Multi-Dimensional Including Behaviors, Attitudes/Needs & Demographics

Attitudes/Needs

TechnophileTechno FollowerTechno AspirantTech Challenged

Behaviors

Lifetime ValueUsage & SatisfactionCategory BehaviorAdvertising PreferencesCategory Purchases

DemographicsIncome ~ Age ~Children

Attitudinal – Behavioral Segmentation Platform

Digital Consumer Nerve Center

81928792Techno-follower

8511710099Techno-phile

93123105135Techno-wannabe

35 – 54no kids

35 – 54w/kids

18-34no kids

18 – 34w/kids

© Synovate 2008

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A Behavioral/Attitudinal Platform Becomes the Filter Through Which the Consumer is Viewed

Execution

Performance Assessment

Strategy & Target Development

© Synovate 2008

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The Future Generation of Panel Services Will…

• Be less episodic• Integrate previously disparate

components• Include behavioral or usage data• Be more fully integrated into on-going

marketing and performance systems• Deliver a much deeper understanding of

consumer targets • Lead to great efficiency gains

Thank You!