Webinar Moments Of Truth: The Power Of Emotion In Consumer Behavior, From A Multi-Methodology Research Approach Anjali Lai, Community Manager Kristopher Arcand, Community Manager September 9, 2014. Call in at 10:55 a.m. Eastern time

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Agenda Qualitative methodologies offer unique and crucial insight into human behavior and psychology. Qualitative insights capture the power of emotion in the heat of the moment. A 360-degree approach is required to understand customer experience in the age of the customer.

Agenda Qualitative methodologies offer unique and crucial insight into human behavior and psychology. Qualitative insights capture the power of emotion in the heat of the moment. A 360-degree approach is required to understand customer experience in the age of the customer.

Qualitative Research

Interactive activity Q: From where do you get your morning coffee? 1. Starbucks 2. Dunkin Donuts 3. Machine at Work 4. Other 5. I don’t drink coffee in the morning. Q: Why? In one word, what does your morning cup of coffee mean to you?

Through triangulation of data points, valuable insight emerges Quantitative and qualitative: two sides of the coin Source: About.com (http://www.about.com/)

Understanding overall behavioral trends across consumer segments

Understanding emotional drivers behind consumers’ behaviors and beliefs

Understanding what consumers say and what that says about consumers

Agenda Qualitative methodologies offer unique and crucial insight into human behavior and psychology. Qualitative insights capture the power of emotion in the heat of the moment. A 360-degree approach is required to understand customer experience in the age of the customer.

Identifying, capturing, evaluating emotion in moments that matter most ?

Case study: retail IDENTIFYING MOMENTS OF TRUTH Returning items through customer service post-purchase Interacting with sales people in apparel stores A linear regression shows that an easy return process and offline customer service are among the strongest drivers for repeat purchase at offline retail locations. Receiving online orders Source: Forrester’s ConsumerVoices Market Research Online Community, Q2 2014 (US and UK) and April 4, 2014, “Why Shoppers Buy At General Merchants” Forrester report

Case study: retail (cont.) IDENTIFYING MOMENTS OF TRUTH “I purchased a pair of Uggs for my granddaughter and after wearing them only a few times, they looked worn. I took them back to Nordstrom and without hesitation, the clerk exchanged them. I have shared this experience because happy customers spread the word about nice treatment.” Returning items through customer service post-purchase Interacting with sales people in apparel stores “The best experience I’ve ever had was buying my first suit. The salesman spent time with me, explaining a variety of suits, the differences, and made me feel like a VIP. I never forgot that, [and] I went back to that store as often as I could.” “I had great experiences with Victoria’s Secret when I ordered some apparel online. The items were delivered to my porch, [and] unfortunately someone stole my items. The store gladly resent me the items free of charge. It went from a bad experience to a great one.” Receiving online orders Source: Forrester’s ConsumerVoices Market Research Online Community, Q2 2014 (US and UK); NetBase Aggregated Social Listening Data, Q2 2014 (Global)

Case study: retail (cont.) CAPTURING VISCERAL REACTION DURING MOMENTS OF TRUTH Sentiment Emotions Overall 72% Explore 75% Excite, ideal, prefer Buy 76% Favorite, thankful, happy, excited Engage 64% Satisfy, success, thrilled, impressed Source: Forrester’s ConsumerVoices Market Research Online Community, Q2 2014 (US and UK); NetBase Aggregated Social Listening Data, Q2 2014 (Global)

Case study: retail (cont.) CAPTURING VISCERAL REACTION DURING MOMENTS OF TRUTH Sentiment Emotions Overall 44% Explore 62% Not fail, disappointed, dislike, abominable Buy 78% Great, sweet, rude, annoyed, problematic Engage Interesting, bored, terrible, joke, beyond ridiculous, disaster Source: Forrester’s ConsumerVoices Market Research Online Community, Q2 2014 (US and UK); NetBase Aggregated Social Listening Data, Q2 2014 (Global)

Case study: retail (cont.) EVALUATING THE ROLE OF EMOTION IN THE MOMENT Source: Forrester’s ConsumerVoices Market Research Online Community, Q2 2014 (US and UK); NetBase Aggregated Social Listening Data, Q2 2014 (Global)

Case study: digital media streaming IDENTIFYING MOMENTS OF TRUTH Exploring available content options for viewing 51% of consumers get annoyed when they have to watch an ad before watching an online clip. 50% of consumers would still find a way to watch their favorite TV show if it was suddenly only available online. Streaming content Subscribing or renewing Source: Forrester’s North American Consumer Technographics® Media And Advertising Online Benchmark Recontact Survey, 2014 and Forrester’s ConsumerVoices Market Research Online Community, Q2 2014 (US and UK)

Case study: digital media streaming (cont.) IDENTIFYING MOMENTS OF TRUTH “The only time when my expectations are not met is when a series disappears without warning. It would be really helpful if these subscriptions services would always advise on expiring shows.” Exploring available content options for viewing “When Netflix changed their pricing scheme for streaming and DVD, I was initially unhappy and was going to cancel the service, then they revamped the streaming prices, and I decided to stay because it was a great value.” Subscribing or renewing “My worst experience was free streaming from my cable company Cox because the download took forever, and many times the video paused or froze, and there were too many ads. It made me feel frustrated and more negative toward the company, and it didn't make me want to recommend their services.” Streaming content Source: Forrester’s ConsumerVoices Market Research Online Community, Q2 2014 (US and UK); NetBase Aggregated Social Listening Data, Q2 2014 (Global)

Case study: digital media streaming (cont.) CAPTURING VISCERAL REACTION DURING MOMENTS OF TRUTH Sentiment Emotions Overall 53% Explore 56% Good, addiction // disappointed Buy 72% Best, enjoy, thank, favorite // angry, hate, struggle, stupid Use 65% Best, love, thank // hate, disappointed Source: Forrester’s ConsumerVoices Market Research Online Community, Q2 2014 (US and UK); NetBase Aggregated Social Listening Data, Q2 2014 (Global)

Case study: digital media streaming (cont.) CAPTURING VISCERAL REACTION DURING MOMENTS OF TRUTH Sentiment Emotions Overall 46% Explore 44% Fun, love, look forward to, favorite Buy 51% Great, prefer, enjoy, thank, love, interest // hate Use 50% Thank, love, best, enjoy, favorite // hate Source: Forrester’s ConsumerVoices Market Research Online Community, Q2 2014 (US and UK); NetBase Aggregated Social Listening Data, Q2 2014 (Global)

Case study: digital media streaming (cont.) EVALUATING THE ROLE OF EMOTION IN THE MOMENT Source: Forrester’s ConsumerVoices Market Research Online Community, Q2 2014 (US and UK); NetBase Aggregated Social Listening Data, Q2 2014 (Global)

Case study: finance 19% of consumers who have received unhelpful finance management guidance have switched banking providers. 10% of consumers who have received helpful financial management guidance have bought additional products from their provider. IDENTIFYING MOMENTS OF TRUTH Receiving proactive guidance about security and financial management Fixing errors or waiving fees Executing banking transactions Source: Forrester’s ConsumerVoices Market Research Online Community, Q2 2014 (US and UK) and Forrester’s European Technographics® Financial Services Online Survey

Case study: finance (cont.) IDENTIFYING MOMENTS OF TRUTH “Our banker goes out of her way to greet us by name and suggests services I had not thought of. This bank always exceeded my expectations, but this is above and beyond. I feel like they care about us and want to help us make smarter choices.” Receiving guidance about security and financial management Fixing errors or waiving fees “I made quite a large purchase, and my bank let the charge go through five times. I was so upset. I lost all faith in my bank during that time. I used to recommend this bank, and now I hate it.” “I recently went to my Flagstar bank and had a couple of transactions done very easily. To top it off, my teller gave me a gift package for being a great customer! I will stay with this bank a long time!” Executing banking transactions Source: Forrester’s ConsumerVoices Market Research Online Community, Q2 2014 (US and UK); NetBase Aggregated Social Listening Data, Q2 2014 (Global)

Case study: finance (cont.) CAPTURING VISCERAL REACTION DURING MOMENTS OF TRUTH Sentiment Emotions Overall 30% Engage 44% Best, proud, impressed, wonderful, helpful, pleasant, treasured, enjoy Source: Forrester’s ConsumerVoices Market Research Online Community, Q2 2014 (US and UK); NetBase Aggregated Social Listening Data, Q2 2014 (Global)

Case study: finance (cont.) CAPTURING VISCERAL REACTION DURING MOMENTS OF TRUTH Sentiment Emotions Overall 23% Engage 20% Good, concern, hate, complain, useless, scared, annoyed, stupid, joke, frustrated Source: Forrester’s ConsumerVoices Market Research Online Community, Q2 2014 (US and UK); NetBase Aggregated Social Listening Data, Q2 2014 (Global)

Case study: finance (cont.) EVALUATING THE ROLE OF EMOTION IN THE MOMENT Source: Forrester’s ConsumerVoices Market Research Online Community, Q2 2014 (US and UK); NetBase Aggregated Social Listening Data, Q2 2014 (Global)

Agenda Qualitative methodologies offer unique and crucial insight into human behavior and psychology. Qualitative insights capture the power of emotion in the heat of the moment. A 360-degree approach is required to understand customer experience in the age of the customer.

“The whole is greater than the sum of its parts.” — Aristotle

What it means In the age of the customer, qualitative research creates unique and crucial insight that is essential to understanding consumer behavior. Creative and cutting-edge research techniques are paving the way for more refined insight into customer emotion, especially in those moments that matter most. The more points of exploration the better – using a 360- degree research approach allows for quantitative and qualitative to complement each other and achieve the most telling insights, allowing us to understand the consumer best.

Technographics 360o Technographics survey data Who are they? What do they say they do? Technographics behavioral data What, where, and when are they doing things? Technographics qualitative data Why are they doing it? Why are they saying it? Technographics social listening data What are they talking about? How are they talking about it?

Anjali Lai +1 617.613.6515 alai@forrester.com Kris Arcand +1 617.613.6136 karcand@forrester.com