1. 2009 Market Research Dynamics Lessons from Across the Industry December 3, 2009

2. About Our Speakers Jeffrey Henning Founder & VP Strategy Co-founder of Perseus, which was combined with WebSurveyorto form Vovici in 2006. Earlier roles as a market researcher at BIS. Brian KomaVP Research Founder of Stratagem Marketing, acquired in 2004. Earlier, in charge of global enterprise-systems marketing at Legent Corporation.

3. About Vovici SELECTED CUSTOMERS 60% Of the Fortune 500 2,000 Customers in over 47 countries 150 Million completed surveys in more than 115 different languages. 16 Years of industry experience, leadership and innovation KEY PARTNERS

4. Conferences Gartner CRM, AMA MRC, ESOMAR ORC, MRA FOC, CASRO DC

5. Your Webinar Requirements

6. Topics You Want Covered Affordable/DIY B2B Qual/Quant Quality Survey

7. Agenda Trends

8. Three Categories of Insights to Research Human Insights Universal “Unchanging” Lifestages Psychology Ergonomics Cultural Insights Vary by culture Change slowly Lifestyles Values Macro trends Marketing Insights Vary by market Change rapidly Product category Consumer Channel Source: Coca-Cola

9. Aging Population Changing Physiology Consumer Is King Rising Power of Women Ethical Consumption Top 10 Macro Trends Crisis of Confidence Careful Consumption Safety & Security Information Addiction Information Overload Source: Ford

10. Trends in Quantitative Research Source: Transition Strategic Corp.

11. Net Organizations Increasing Use of Mode in 2010 Please indicate the usage you anticipate for your business in 2010 compared to 2009: Increase, No Change, Decrease n=512 Source: Rockhopper Research

12. Customer Relationship Management “CRM is the most fruitful innovation opportunity for your company and your customers.” – Kathy Harris, Gartner VP Source: Gartner

13. Customer Experience Initiatives Beyond the Survey Source: Gartner

14. State of EFM - 2009 What? Feedback hubs, central survey repositories Why? Oversurveying & mis-surveying Who? Vovici & ConfirmIt then 60-70 other vendors When? Now! “Your competitors are getting better at this!” Where? By department and across the organization. In online communities. Source: Gartner

15. Agenda Online Communities

16. Engage Partners in Innovation Source: Gartner

17. Crowdsourcing Innovation Jams Idea Marketplaces “If you don't engage your customers in innovation, someone else will.”– Kathy Harris, Gartner VP Source: Gartner

18. Communities: Open vs. Closed, 1 Client vs. Many Source: BrainJuicer

19. From Standing Community to Project Communities “We have a mandate at General Mills to move as much of our qualitative research online as possible.” As a result of 22 community projects: Focus on Discovery Smaller communities Shorter duration communities Larger incentives Geographically centered

21. Yields quick feedback on insights and attitudes

22. “Spontaneity allows for flexibility”

23. Targeted research

24. Viral marketing

26. Leaks of sensitive material to the entertainment blogs and press

27. Piracy of episodes posted

28. Requires ongoing investment of time and money to recruit new members

29. Qualitative data is voluminous and time consuming to analyze

30. During off-production times need to keep members engaged

32. MROC Suppliers Range from Full Service to Technology Only Internal Bandwidth Out of Pocket Cost Source: DRI

33. MROC Member Activities beyond Discussions Static ethnography Representational images Idea banks Insight games Cartoon captions Personal diaries Collages Fun polls and quizzes Team activities Source: DRI

35. 108 gemsVote and comment on one another’s designs Over 1300 configurations submitted Extensive quantitative analysis of gems and components used Source: HYVE AG

36. Australian Consumers’ Perspective on Research Methods n=1,082 Source: Colmar Brunton

37. Web 1.0 Surveys vs. Web 2.0 Surveys Rich media buttons vs. radio buttons took 20% longer to complete Questions in 2.0 survey were 2x times more likely not to be read 36% variance between results from slide vs. from radio buttons Source: element54

38. Agenda Social Media

39. The Screen Age

41. Limited response options

42. Can’t get the story behind the story

44. Provide the Story behind the story

45. Can’t extrapolate to a larger audienceQuantitative Research

46. Blog Content Analysis Gartner sees marginal to no ROI from its clients’ investments in blog content analysis “It’s eye candy: management likes to see it.” Gartner sees no strategic value in connecting customers to their social networks In terms of concrete ROI, instead learn the language of the Voice of the Customer: Ask more open-ended questions in surveys and use text mining on them Use text mining on the keywords customers use in your web site’s search box Source: Gartner

47. Guidelines to Using Blogs in Market Research Caveat: Online persona does not always reflect offline persona Remember bloggers’ motivations and concerns about privacy and security Recognize impact of the audience and interaction on what the blogger shares Process Engage by acquiring bloggers as sample Eavesdrop to analyze online statements Connect in order to understand context of what is being shared and to authenticate identity Source: Gfk NOP

48. Surveys to Social Media: Apples to Orange Juice Social media's impact is disproportionate to the level of activity The data is dirty Brands with unique names are easier to research Topics are not always organized to answer our questions Social media is not representative, only directional Price Premium OJ Ingredients Confusion New Design Reversion

49. Survey Research Steps, with Social Media Study Design: Use social media to frame hypothesis Sample Selection: Identify potential respondents Questionnaire Design: Learn language of respondents; develop choice lists Fielding the Survey: Invite respondents by Twitter Analysis: Add tweets for color commentary Source: Vovici

50. Surveys and Biometrics MTV Networks researched ad awareness Used biometric vests and eye tracking Follow-up survey for brand recall Focused attention: 30% for TV commercials, 80% for TV programming, >95% for videogames 15-second preroll commercials had double the recall of 30-second commercials Prerolls more effective before action games rather than cognitive games Strategically integrating branding into the game resulted in 80% recall Source: Innerscope Research

51. Agenda Analysis & Communications

52. 7 Principles for Researchers to Collaborate with Executives Be clear on the Essential Question Lead a hypothesis flip-chart session Practice smoke-jumping Reveal the surprises Steer clear of the squiggly-line syndrome Avoid the “Alice in Wonderland” meeting Make your bottom-line your top line Source: Chris Frank

53. 8 Principles for Researchers to Become “Deviant” Leaders Plan: Know the company’s strategy Position doesn’t matter Eliminate Project mentality Profit: seek ways to improve the bottom line Accelerate the Pace of change Don’t succumb to the Pressure Develop Partnerships Perfection: Forget it Source: YRC Worldwide

54. Overcoming Objections to B2B Research “We already know that.” “They just won’t get it.” “It’s too complex.” “It’s too small.” “You’ll never find them.” “They’ll never tell us that!” “It’s way too expensive.” Source: Strategic Spark

55. Juggling Key Performance Indicators Gartner client had 137 “key” indicators As practical matter, she concentrated on 7 Unfortunately her manager cared about a different 7 No manager should have more 5-9 KPIs Can’t keep too many “balls in the air” World record for juggling measured in hours for a few items, in catches for many items Select KPIs with care Performance indicators are often tracked because they can be, not because they should be Focus on metrics that drive Life-Time Value Source: Gartner

56. Agenda Quality

57. Survey Research: Internet v. Telephone Probability-sample Internet surveys more accurate than RDD Probability-sample Internet surveys contain less random error Internet-survey respondents are less susceptible to social desirability bias than telephone respondents Internet-survey respondents are less susceptible to satisficing Response rates are essentially uncorrelated with the accuracy of probability-sampled surveys Opt-in Internet surveys are consistently less accurate than probability-sampled surveys Accuracy of results of opt-in Internet surveys vary considerably across surveys and within surveys Accuracy of results of opt-in Internet surveys vary considerably across panels Source: Jon Krosnick

58. Microsoft CMRI Embracing Six Sigma For its research on research, the Microsoft Central Market Research Insights team has adopted Six Sigma “We are reducing the number of defects study by study by study.” “We averaged 12 defects per final report in a six-month period to 3 the next period down to 2 most recently." “We spend millions of dollars that affects hundreds of millions of dollars in marketing spend that affects billions of dollars in revenue. We have to get it right.” Source: Microsoft

60. “We have to create a culture of auditing the decisions.”

61. Identify ways to make better decisions in the futureΔ Presence in Success – Presence in Failure % Satisfactory Projects With Best Practice Source: McKinsey Source: Gartner

62. Quality Initiatives ISO 20252 Standard Survey research quality All stages All mode ISO 26362 Standard Access panel Quality Enhancement Process Panel level Sample level Survey level ESOMAR Code 8 key principles 1948 E26 Panel purchase FAQ

63. Why Your Management Doesn’t Listen to You With careful planning and research, challenge executives’ sacred cows “Appointment viewing” believed by TV execs but even Sopranos viewers only watched 3.7 of 10 episodes (the high) Elephant in the room: Consumers often lack true awareness of their actions Bad research perpetuates myth of consumer self-awareness Integrate behavioral metrics into your research Source: Jack Wakshlag, Time/Warner

64. Agenda Q&A

65. Our Presenters Welcome Your Questions Jeffrey Henning Founder & VP Strategy @jhenning jhenning@vovici.com 1-800-787-8755 x 550 To request a demo or to talk with a sales advisor: sales@vovici.com 1-800-787-8755 Brian KomaVP Research @bkoma 1-800-787-8755 x 551

66. Check Out Our Blog http://blog.vovici.com

67. About Vovici Customer Momentum Value Proposition Software 500 Top 10 in 2009 for growth Existing customers drive half our growth Over 2,000 customers, and 60% of the Fortune 500 Responses have increased 500% in the past 18 months Consistent Double-Digit Growth SaaS revenue growth

68. Vovici Offers a Complete Feedback Application