SheSpeaks Viral Marketing Cosmetics Case Study

Copyright © 2008 SheSpeaks, Incorporated

OPI’s Nic’s SticksOPI’s Nic’s SticksWord-of-Mouth Word-of-Mouth Program ResultsProgram Results

September 2008

Copyright © 2008 SheSpeaks, Incorporated

SheSpeaks

•SheSpeaks is the leading women’s insights and word-of-mouth network. There are over 100,000 women with a common desire to be heard and share their views who have signed up to be part of the SheSpeaks Network/experience, sharing personal information and interests.

SheSpeaks taps into this powerful community of women to deliver word-of-mouth and insights for major brands

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3Copyright © 2008 SheSpeaks, Incorporated

SheSpeaks’ Services

• SheSpeaks functions as a multi-platform media network offering clients the opportunity to directly engage with their target in order to build word-of-mouth recommendations, consumer insight and brand advocates.

• Direct engagement with members allows our clients to:

• Stimulate interest in their brands

• Build viral recommendations about products and services

• Refine products and services

• Create effective marketing campaigns

Copyright © 2008 SheSpeaks, Incorporated

SheSpeaks’ Expertise is recognized

• Award winning network, recognized as experts on women insights and consumer advocacy, and presenting at leading industry events: Forbes Leadership Conferences, AdTech, Columbia University and The Economist CMO Conference

• Works with recognized and respected brands across industries and categories:

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55Copyright © 2007 SheSpeaks, Incorporated

Who Are The Women?

• Moms- 74% have children

• Varied Ages: 75% are 25-49 years old

• Education: 74% have at least some college

• Married/in partnered relationship: 71%

• Connectors: 71% have more than 10 interactions with others per day

• Refer Products: 99% will refer a product they like to others.

• Create Content: 30% have their own blog and an additional 51% read/comment on blogs

SheSpeaks Members Spread the WordSheSpeaks Members Spread the Word

6Copyright © 2008 SheSpeaks, Incorporated

Over 30% of SheSpeaks members have blogs and they use this as a tool to spread the wordIS IT STILL 30%?

Nic’s Sticks???

I just got one of these in the mail yesterday….It ROCKS!! Supposedly you can get them at Target and Walmart.

(link to nicolebyopi.com)

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SharedPurpose

Connection

Impact Recognition

How do Brands Build Advocacy?How do Brands Build Advocacy?

SheSpeaks Metrics Tracking

Tracking and Measurement WOM:

• Online survey responses and private community

• Coupon or promotional code redemption tracks sales

• SheSpeaks Email Facility

• Online Blogs- blog entries

• Online Communities

• Word of Mouth Measurement Reporting Firm i.e., ChatThreads, BuzzMetrics

Tracking and Measurement

Insights/Research:

• Quantitative Research: via online surveys

• Qualitative Research: private online discussion communities

• Direct Engagement with consumer

• Analysis and reporting

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OPI Objectives for Nic’s SticksOPI Objectives for Nic’s Sticks

9Copyright © 2008 SheSpeaks, Incorporated

Raise Awareness and

Excitement

Gather Consumer

Insight

DriveSales

Measure Returnon Investment

• Communicate availability, features and benefits• Get target customer to use the product• Build Word of Mouth

• Capture qualitative customer feedback• Capture quantitative survey data

• Build awareness of retail distribution• Create WOM referrals with product offers

• Track product sales attributable to SheSpeaks network

• Compare against other channels

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Member Invitationemail

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Pre-Test SurveySheSpeaks.com

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Product DeliveryCustom Insert, Pass AlongCoupons, Test instructions

Targeting & Qualification Member Sampling & Engagement

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Member EngagementSheSpeaks.com

Discussion Forums,Download coupons, Custom

Content

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Post-Test SurveySheSpeaks.com

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Thank You & OfferEmail

Pass Along Offer

Measurement & Thank You

SheSpeaks OPI Program Overview

Study questions: how much, how, and why?

• shespeaks about the product: how much?– What is the effectiveness of the shespeaks campaign as compared to

other traditional media?

• shespeaks about the product: how?– How much do members talk online versus offline?– How do online and offline conversations complement / substitute each

other?

• shespeaks about the product: who?– Is it possible to identify the members that will drive the success of the

campaign before the campaign starts? What are their characteristics?– Are the members that drive the success in one campaign likely to

drive the success in other campaigns?

Findings in Snapshot

• shespeaks about the product: how much?– Word-of-mouth plays an important role in the marketing mix-

raising awareness, driving trial and sales for brands

• shespeaks about the product: how?– Online activities must be supplemented with offline viral tools in

order to take full advantage of its effects

• shespeaks about the product: who?– “Influencers” can readily be identified and activated in groups of

consumers

Research questions: how much, how, and why?

• shespeaks about the product: how much?– What is the effectiveness of the shespeaks campaign as compared to

other traditional media?

• shespeaks about the product: how?– How much do members talk online versus offline?– How do online and offline conversations complement / substitute each

other?

• shespeaks about the product: who?– Is it possible to identify the members that will drive the success of the

campaign before the campaign starts? What are their characteristics?– Are the members that drive the success in one campaign likely to

drive the success in other campaigns?

How much does shespeaks about the product?

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Copyright © 2008 SheSpeaks, Incorporated

Full Page Ad with Coupon

Free Standing Insert (FSI)/Coupon

(1,200%)

(1,200%)

SheSpeaks program coupon redemption performed 1,200% better than both a full page magazine ad with coupon and newspaper coupon

Coupon Redemption RateVs. SheSpeaks ResultChannel

SheSpeaks Network

.9%

.7%

12% 1,200% better than Magazine

1,200% better than FSI

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Copyright © 2008 SheSpeaks, Incorporated

OPI Nic’s Sticks Program Results

Indicator

Sales per member

Result

Net Promoter Score

Conversations Generated

Total Sales

13 sales per member

220% increase

790,000

120,000 units

Total Incremental Revenue

$1,000,000

ROI 28%

Research questions: how much, how, and why?

• shespeaks about the product: how much?– What is the effectiveness of the shespeaks campaign as compared to

other traditional media?

• shespeaks about the product: how?– How much do members talk online versus offline?– How do online and offline conversations complement / substitute each

other?

• shespeaks about the product: who?– Is it possible to identify the members that will drive the success of the

campaign before the campaign starts? What are their characteristics?– Are the members that drive the success in one campaign likely to

drive the success in other campaigns?

How does shespeaks? Summary

• Most of the conversations happen offline

• Most members use multiple communication channels

• Online conversations are an “extension” of offline conversations

Although SheSpeaks members are highly online savvy and the program engagement is heavily focused on online, nothing trumps the in person

conversation

Most of the conversations happen online

Most members used multiple communication channels

• “How did you communicate with about Nic's Sticks?”– In person (90%)– Let them use my Nic’s Stick to see what they thought (48%)– Gave them Nic's Sticks coupons directly (47%)– Over the phone (43%)– Shespeaks discussion board (27%)– Sent a personal email to others (24%)– Another discussion board (13%)– Left coupons where people would see them/pick them up (11%)– Sent an email to a friend via SheSpeaks tell-a-friend tool (9%)– Wrote an entry in my blog (8%)– On a social networking site i.e. Facebook (8%)– Posted comment on a shopping website (i.e., beauty.com) (6%)

• Average: 3.32 different means of communication per member

Judged as MOST effective

Judged as LEAST effective

Online conversations are an extension of offline conversations

• Offline conversations happen no matter what…– 94% of the members used at least one offline mean of

communication

• … and may extend online– 54% of those who talk offline also talk online

• The more shespeaks offline, the more shespeaks online– Out of members who use only 1 offline mean of communication, 25%

talk online– This goes up to 48% for members who use 2 offline means of

communication, 64% for those who use 3, 78% for those who use 4, and 82% for those who use 5

• The most vocal members write entries on blog or post comments on shopping websites

– The members who posted an entry on their blog used an average of 5.7 additional means of communication, versus 3.0 for those who did not

– The members who posted a comment on a shopping website used an average of 6.3 additional means of communication, versus 3.1 for those who did not

Research questions: how much, how, and why?

• shespeaks about the product: how much?– What is the effectiveness of the shespeaks campaign as compared to

other traditional media?

• shespeaks about the product: how?– How much do members talk online versus offline?– How do online and offline conversations complement / substitute each

other?

• shespeaks about the product: who?– Is it possible to identify the members that will drive the success of the

campaign before the campaign starts? What are their characteristics?– Are the members that drive the success in one campaign likely to

drive the success in other campaigns?

Who speaks? Summary

• It is possible to identify some of the most active members before the start of the campaign

• The best predictors are the “social characteristics” of the members– Independent of the specific product and common across campaigns– “Social score” to predict activity across campaigns

• Product-specific characteristics (e.g., attitude towards the brand, nail polish usage) are not as good predictors of involvement.

Members’ social characteristics (collected when they join shespeaks)

About how many people do you talk to on a daily basis?Which best describes you socially? (very social , outgoing, somewhat social, independent)What did you do last time you found a product that you liked/hated? When you recommend products or services to friends, what do people usually do?In which of the following activities have you been involved in the past 12 months?

Attended a trade show or conferenceJoined a clubJoined an online user groupViewed an online news forumVolunteered my timeAttended a public meeting on town/school affairsWrote or called a politician at local/state/national levelServed on a committee of a local organizationWrote a letter to an editorAttended a political rally or speechForwarded a news article to someone elsePosted a product review online (e.g., Amazon.com etc)

Sent an email to a company regarding their product or service

Level of activity in the campaign is well predicted by social characteristics

• Measure activity by the number of coupons given to others

• Profile of the most active members:– Large number of social interactions– “very social” or “outgoing”– Call others to let them know about a product or post a product review online

if like a product (note: actions if hate a product do not predict behavior)– Recently sent an email or letter to a company or joined a club

• How large is the effect of social characteristics on the level of activity?

• Are these the largest drivers of involvement?

• How can we identify the most active members before the start of the campaign?

Assigning a “social score” to each member

• Regress number of coupons given to others on social characteristics

• Use regression coefficients to compute a score for each member

• Separate “top” members (score is in top 10%) from the rest

• Top members gave on average 3.7 coupons to others (out of 5), versus 2.7 for the other 90%

Who speaks more?

The most social members?

About how many people do you talk to on a daily basis?Which best describes you socially? (very social , outgoing, somewhat social, independent)What did you do last time you found a product that you liked/hated? When you recommend products or services to friends, what do people usually do?In which of the following activities have you been involved in the past 12 months?

The members that best “fit” the product?

How often to you wear nail polish?Have you ever used coupons from the following sources when purchasing nail polish?How familiar are you with the nail polish brand OPI?What is your opinion of OPI nail polish?How familiar are you with Nic's sticks from OPI?How likely are you to purchase Nic's sticks?How likely are you to recommend Nic's sticks?

OR

Assigning a “product score” to each member

• Same methodology as “social score”

• “Top” members” gave on average 3.3 coupons to others (out of 5)

• Compare to 3.7 coupons given by members with top “social scores”

• “Social” characteristics are better predictors than product-specific characteristics

Who speaks more?

The most social members?

About how many people do you talk to on a daily basis?Which best describes you socially? (very social , outgoing, somewhat social, independent)What did you do last time you found a product that you liked/hated? When you recommend products or services to friends, what do people usually do?In which of the following activities have you been involved in the past 12 months?

The members that best “fit” the product?

How often to you wear nail polish?Have you ever used coupons from the following sources when purchasing nail polish?How familiar are you with the nail polish brand OPI?What is your opinion of OPI nail polish?How familiar are you with Nic's sticks from OPI?How likely are you to purchase Nic's sticks?How likely are you to recommend Nic's sticks?

OR

What about other measures of activity?

Impact of being in top 10% in…

social score product score

Coupon given by member to others

+1.03 coupons +0.53 coupons

What about other measures of activity?

Impact of being in top 10% in…

social score product score

Coupon given by member to others

+1.03 coupons +0.53 coupons

Number of conversations about product

+13.14 conversations +6.71 conversations

What about other measures of activity?

Impact of being in top 10% in…

social score product score

Coupon given by member to others

+1.03 coupons +0.53 coupons

Number of conversations about product

+13.14 conversations +6.71 conversations

Number of forum posts +0.64 posts +0.39 posts

What about other measures of activity?

Impact of being in top 10% in…

social score product score

Coupon given by member to others

+1.03 coupons +0.53 coupons

Number of conversations about product

+13.14 conversations +6.71 conversations

Number of forum posts +0.64 posts +0.39 posts

Coupons used by member for herself

+0.18 coupons +0.44 coupons

Take-aways

• Viral marketing appears much more efficient than magazine advertising and FSI

• Most of the conversations about the product happen offline

• Online conversations are an “extension” of offline conversations

• It is possible to identify some of the most active members before the start of the campaign

• The best predictors are the “social characteristics” of the members– Independent of the specific product and common across campaigns– “Social score” to predict activity across campaigns

34Copyright © 2007 SheSpeaks, Incorporated

WOM & Brand AmbassadorsWOM & Brand Ambassadors

Targeted and Known Populations

Opt-In – Permission Based Marketing

Brand Engagement Builds Goodwill

Why Does it Work?

For More Information:josh@shespeaks.com

212-830-9883

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