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September 22, 2003

Finding Your InfluentialsWhat We’ve Learned, What You Can Do

The iMedia Brand Summit

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RoperASW’s Platform The Influentials (Free Press, Jan. 2003)

Six decades research on influence Flagship: the Influential Americans®

By definition…the most involved• 3 activities or more in past year: go to meeting, write/call politician,

officer of org, on committee

• 10% of population (21 million Americans) Window onto a mind-set of creating change

• “bellwether, thought leader, trendsetter group” 16 surveys per year, plus Influentials online panel, focus

groups, corporate reputation, database scoring, media, global, teens,

Custom studies in tech, Internet, media, auto, packaged goods, public policy, financial svcs

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Word-Of-Mouth

A Powerful Force In Marketplace

Tech… Networking? Convergence? Videoconferencing? Plasma screens?

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Roper Trend Research Shows

Decisions Are Conversation Today

67%

1977

93%

2001

Aggregate % of total public ranking friends, family, others among best sources of information and ideas

averaged for eight trended purchases

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Rising Power Of Word-Of-Mouth

A Revolution In The Marketplace

Restaurants (133 aggregate, +28 from 1977)

Places to visit (107, +20 from 1977)

Movies to see (87, +34 from 1977)

Merits of new cars (85, +23 from 1977)

Improving health (84, +28 from 1992)

Where to find best buys (81, +19 from 1992)

Ways to save, invest (80, +17 from 1977)

Home appearance (69, +25 from 1977)

Computer equipment (56, +14 from 1995)

Aggregate % of public ranking word-of-mouth among best sources of ideas, info

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Certain People Have Lot Of Impact% of Influentials recommending item in past year

27

28

32

32

37

38

54

67

54

85%

0 20 40 60 80 100

Web site

Magazine

Store

TV show

Movie

Point Difference From Total Public

+26

+19

+30

+17

+16

+18

+16

+16

+16

+13

Vacation

Restaurant

Car

Hotel

Software

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Their Influence Adds UpEstimated 600 million+ recommendations per year

Restaurants 84

Movies 76

Vacation destinations 53

TV shows 53

Retail stores 33

Web sites 32

Cars 31

Hotels 28

Computer software 26

Magazines 25

Clothing 23

Investments 18

Computer hardware 18

Insurance 16

Long distance service 16

Consumer electronics 15

Beer, wine, liquor 14

Office equipment 12

Airlines 11

Cosmetics 10

MillionsMillions

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Methods We’ve Used

How Do You Find Influentials? Roper Influentials: Leadership behaviors

Show up (meetings, events), make opinions known (speak out, write letters/articles, phone), take charge (on committees, head of organization, elected office)

Drilling deeper: Leadership plus filters Demographics (men, women, affluent, parent Influentials) Product or brand usage

Alternative: “Read about it, talk about it” models

• Make a point to read articles or ads on subject and frequently talk about subject with others

Self-identification models• “My friends turn to me for advice and opinion on subject”

Larry Lee Jr.

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Identifying The Influentials

Four Key Themes Person is actively engaged

Shows leadership characteristics Highly involved in subject

• …in fact, passionate about many things

Wants to learn more Reads about subject, talks about subject Usually a learning orientation (Influentials 2x as educated)

Connected to many people Resource to get ideas and test opinions Network to spread word-of-mouth

• Avg Influential connected to 7 groups (avg American: 3) Track record of impact & leadership

Ability to create change…& change how others think

Leonard Pitt: “Friends cannot

NOT know…”

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They’re Probably Coming To You E-mail, Web sites In person & by phone

40% of Influentials have had a recent problem with a product or service (+16 points total public)

Almost all did something about itComplained in person (23%, +12), wrote or called place where bought product (18%, +11), returned product to store (18%, +11), complained to manager about poor service (16%, +8), wrote or called manufacturer or corporate headquarters (11%, +7), complained via email or company Web site (7%, +5), returned product to manufacturer (4%, +2), contacted media (2%, *)

15% told friends, relatives not to buy product or service

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They’re Certainly Talking About You

“I love those big screen plasma TVs.”

“I’m not techno-riffic, but I’m obsessed with having the newest features on my cell phone. They’re turning into mini-PCs.”

“I just purchased a remastered SACD of one of the Rolling Stones’ early albums and can actually understand Mick’s lyrics. How cool is that?”

“It would be cool to have a computer in my dashboard with GPS and Internet access.”

“I hope soon to have my laptop where I can use it virtually anywhere through wireless. I can’t help my customers if I’m out of touch.”

Roper Influential TrendWhyssm

study, early 2003

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They’re Seeking Information On You

80% of Influentials are interested in technology (+20 points from total public)

Most find new technology “exciting” and “use it as much as I can” (40%, +12 points from total public) or feel they have to “stay up to date” (39%, +7)

84% of Influentials have Internet access (+27 total public) 83% home PC penetration (+26 points) 1/3 have broadband at home, 6/10 work/home/other

Twice as likely as average to research products online (51% of Influentials done so in past 30 days)

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What Should Companies Do?

Marketing To Influentials Open a conversation

Ads, previews, samples, events, causes Speak their language

Key values: Relationships, Integrity, Exploration Break down the walls

When critics knock, invite them in Make it an ongoing conversation

One of greatest values to Roper clients is new product work• “Like a focus group on steroids”

Be like them Find passion; build relationships; keep learning; have impact

Be willing to listen

The value of integrity

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Why Listen To Influentials?

‘An Amazing Time’ The home network

Broadband, wireless setting stage for new applications

New applications On upswing: PC banking, e-commerce, photography, music Market gap: Personal/medical record-keeping

Home robotics The computerized kitchen: 4 in 10 Influentials want one Roomba-plus: 4 in 10 would like a household robot

Beyond the PC Health: Most desired futuristic technologies: medical smart card,

portable health monitor (56% of Influentials want) Automotive: Hybrids, GPS, Internet access, Internet radio

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Internet Increasingly At CenterStudy of 3,073 Washingtonpost.com Influentials

These Influentials turn to Internet to... learn more about topics of interest to them

• 87%, Internet is leading medium research places to visit

• 86%, Internet is leading medium keep abreast of current events

• 82%, Internet is leading medium research what to buy

• 82%, Internet is leading medium research whom to vote for

• 57%, second to print newspapers share views and opinions

• 51%, Internet is leading medium

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For Internet Marketers,

A Time Of Opportunity Net is integrated in Influential purchase process

Internet marketing is expected 56% of Washingtpost.com Influentials say that if they were planning an ad

campaign to reach someone like them, they would “definitely” include Internet (56% newspapers, 42% TV)

54% of Influential Americans think some or most online ads are useful & informative (+15 total public)

Growth path: better marketing “Is clear” (informative, smart, creative, links to more information,

empowering, accurate, real)• Expect...More creative use of medium (starting with films) Links

to more and better consumer information More access to brands’ stars (e.g. car designers) More Influential involvement in products