1. Exploring Word of Mouth

2. An overwhelming amount of brand messaging is fighting for the eyes and ears of consumers Therefore, ways for brands to both cut-through in terms of spending time with key consumers, and also reaching the right consumers to pass on positive brand stories is more essential than ever This presentation has taken recent research from the US regarding Word of Mouth and combined this with TGI and Advantage Study data to explore whether customer magazines help generate Word of Mouth (WOM) WOM is vital in today's world ‘Consumers increasingly rely on friends, family, neighbours and an informal network of virtual strangers to help guide their everyday choices’ Source: COLLIQUY

3. Who drives WOM Research conducted in the US by COLLOQUY outlines 2 key groups when analysing word of mouth Advocates : --- Those extremely likely to recommend a product or service (56% of the US population) Connectors: --- A wider range of contacts and communications, but less likely to recommend (41% of US population) Source: COLLOQUY

4. Connectors Advocates + Connectors = WOM Champions Mixing together Advocates (those extremely likely to recommend) with Connectors (those with a wide network of friends and family) creates: WOM Champions --- (36% of the US population) Source: COLLOQUY Advocates

5. Face to face still best way to recommend Communication methods used to recommend / discuss products and services Source: COLLOQUY

6. TGI data shows that readers of customer magazines in the UK are more likely to recommend products and services than non-readers as the indexes show below: Where do customer magazines fit in? Source: TGI - Very Likely to convince others about products/services Index of recent customer magazine readers v non-readers

7. Those most loyal most often recommend Consumers that are members of loyalty programmes are 3 times more likely to be WOM champions than non-members Loyalty members: 39% Non-members: 13% % who are WOM champions Source: COLLOQUY

8. Source :TGI We know magazines drive spend on top of loyalty programmes Main shopper / Loyalty card owner Main shopper / Loyalty card owner / Recent Magazine reader Weekly shopping expenditure Reading a customer magazine increases the weekly spend +7% compared to all loyalty card owners

9. The super-champions Source: COLLOQUY / TGI An individual who is an Advocate and a Connector is best placed to deliver WOM recommendations to a wide network of contacts Customer magazine readers in the UK are more likely to recommend goods and services than non-readers Loyalty programme members are 3 times more likely to recommend than non- members Loyalty programme members for leading supermarkets who also read the respective customer magazine spend 7% more What do we know? What can we assume? --- Customer magazine readers are more likely to be WOM champions

10. What does this mean for a brand? A way to spend time with your key customers An average of 25 minutes spent reading each issue of a magazine They provide multiple reasons to recommend On average, a reader has an average of 34 reading occasions per year They feel even more positive about your brand 1 in 3 customer magazine readers believe the title has a positive effect upon their feeling towards a brand Customer Magazines help nurture your WOM Champions

11. Exploring Word of Mouth