1. GUIDE TO PRIVATE ONLINE COMMUNITIES A Publication of Riedel Marketing Group 2014 Riedel Marketing Group 1

2. Guide To Private Online Communities A.J. Riedel is Senior Partner and Founder of Riedel Marketing Group, providing housewares companies with the market intelligence and consumer insight they need to make informed decisions. A.J. has extensive experience with online surveys, product concept tests, market and competitive assessments, and home-use tests and has been managing the HomeTrend Influentials Panel (HIP) since it’s inception in 2004. A.J. Riedel is Senior Partner and Founder of Riedel Marketing Group, providing housewares companies with the market intelligence and consumer insight they need to make informed decisions. A.J. has extensive experience with online surveys, product concept tests, market and competitive assessments, and home-use tests and has been managing the HomeTrend Influentials Panel (HIP) since it’s inception in 2004. 602-840-4948 ajr@4rmg.com www.4rmg.com www.twitter.com/AJRat4RMG http://www.linkedin.com/company/riedel-marketing-group 602-840-4948 ajr@4rmg.com www.4rmg.com www.twitter.com/AJRat4RMG http://www.linkedin.com/company/riedel-marketing-group 2014 Riedel Marketing Group 2 By A.J. Riedel

3.  Anyone who is involved in the marketing or development of housewares products: Product managers Product Developers and Designers Marketing Managers and Directors Vice Presidents of Marketing and Product Development CMO’s Entrepreneurs Inventors  Anyone who wants to gain a better understanding of what consumers are thinking, doing, and buying. 2014 Riedel Marketing Group 3 Who Should Read This Guide

4.  If your company is consumer-centric (or wants to transition from product-centric to consumer-centric), a private online community must be part of your marketing, social media, and product development strategy. 2014 Riedel Marketing Group 4 Why You Should Read This Guide

5.  If your company is consumer-centric (or wants to transition from product-centric to consumer-centric), a private online community must be part of your marketing, social media, and product development strategy.  This guide will introduce you to Private Online Communities: what they are, what they can be used for, the benefits of establishing and using a POC, the advantages of POC’s over traditional ad hoc market research, and what you need to know about the nuts and bolts of building and managing a POC. 2014 Riedel Marketing Group 5 Why You Should Read This Guide

6. Why Are Private Online Communities So Important? 7 What Are Private Online Communities?11 What Are Private Online Communities Used For?19 What Are the Benefits of Private Online Communities?26 Why Use Private Online Communities Instead Of Doing Ad Hoc Market Research Studies?37 Why Are Private Online Communities Such A Powerful Tool?42 How To Get The Most Out Of Your Private Online Community56 Summary 69 How to Get Started76 2014 Riedel Marketing Group 6 Table of Contents

7. WHY ARE PRIVATE ONLINE COMMUNITIES SO IMPORTANT? 2014 Riedel Marketing Group 7

8. The dramatic growth in use of technology and social media by consumers has led to a corresponding increase in the use of Private Online Communities (POC’s) and their acceptance as a valid research tool. Why Are Private Online Communities So Important? 2014 Riedel Marketing Group 8

9. The dramatic growth in use of technology and social media by consumers has led to a corresponding increase in the use of Private Online Communities (POC’s) and their acceptance as a valid research tool. These Communities create the potential for genuine dialogue and relationship building with the people who buy and use your products. Why Are Private Online Communities So Important? 2014 Riedel Marketing Group 9

10. The dramatic growth in use of technology and social media by consumers has led to a corresponding increase in the use of Private Online Communities (POC’s) and their acceptance as a valid research tool. These Communities create the potential for genuine dialogue and relationship building with the people who buy and use your products. Why Are Private Online Communities So Important? Companies who own and use Private Online Communities develop better products and have marketing programs and packaging that are more effective. 2014 Riedel Marketing Group 10

11. WHAT ARE PRIVATE ONLINE COMMUNITIES? 2014 Riedel Marketing Group 11

12. Pre-recruited groups of people who participate in market research projects and other online activities on an on-going basis. What Are Private Online Communities? 2014 Riedel Marketing Group 12

13. Pre-recruited groups of people who participate in market research projects and other online activities on an on-going basis. What Are Private Online Communities? Built & managed for use by a single company. 2014 Riedel Marketing Group 13

14. Pre-recruited groups of people who participate in market research projects and other online activities on an on-going basis. 50 to 500 members. What Are Private Online Communities? Built & managed for use by a single company. 2014 Riedel Marketing Group 14

15. Pre-recruited groups of people who participate in market research projects and other online activities on an on-going basis. Interactive; Two-way communication between panel members and company. 50 to 500 members. What Are Private Online Communities? Built & managed for use by a single company. 2014 Riedel Marketing Group 15

16. Pre-recruited groups of people who participate in market research projects and other online activities on an on-going basis. Interactive; Two-way communication between panel members and company. 50 to 500 members. What Are Private Online Communities? Built & managed for use by a single company. Highly engaged community members. 2014 Riedel Marketing Group 16

17. Pre-recruited groups of people who participate in market research projects and other online activities on an on-going basis. Interactive; Two-way communication between panel members and company. 50 to 500 members. What Are Private Online Communities? Built & managed for use by a single company. Highly engaged community members. Not just for market research; community members participate a variety of activities. 2014 Riedel Marketing Group 17

18. Chats groups, bulletin board discussions & forums Chats groups, bulletin board discussions & forums Product reviews eDiaries Product testing Mini Polls What Types Of Activities Do Members Participate In? Online surveys Contests 2014 Riedel Marketing Group 18

19. WHAT CAN PRIVATE ONLINE COMMUNITIES BE USED FOR? 2014 Riedel Marketing Group 19

20. What Can Private Online Communities Be Used For? UNDERSTAND YOUR CONSUMER  Learn about consumer habits and practices  Discover unmet needs and unsolved problems  Find out how consumers shop and make purchase decisions  Track customer satisfaction 2014 Riedel Marketing Group 20

21. UNDERSTAND YOUR CONSUMER  Learn about consumer habits and practices  Discover unmet needs and unsolved problems  Find out how consumers shop and make purchase decisions  Track customer satisfaction OPTIMIZE ADVERTISING & PROMOTION  Test taglines  Get feedback on packaging & advertising copy  Develop marketing plans  Get ideas for social media campaigns  Measure advertising impact  Test alternative ad and promo campaigns  Track brand awareness and perceptions  Get testimonials for ad campaigns What Can Private Online Communities Be Used For? 2014 Riedel Marketing Group 21

22. NEW PRODUCT DEVELOPMENT  Brainstorm new product ideas  inspire new features and products  Get feedback on new product ideas  Find out how to improve existing products  Get feedback throughout the development process  Test new product concepts, prototypes, and finished products  Determine volume potential UNDERSTAND YOUR CONSUMER  Learn about consumer habits and practices  Discover unmet needs and unsolved problems  Find out how consumers shop and make purchase decisions  Track customer satisfaction OPTIMIZE ADVERTISING & PROMOTION  Test taglines  Get feedback on packaging & advertising copy  Develop marketing plans  Get ideas for social media campaigns  Measure advertising impact  Test alternative ad and promo campaigns  Track brand awareness and perceptions  Get testimonials for ad campaigns What Can Private Online Communities Be Used For? 2014 Riedel Marketing Group 22

23. UNDERSTAND YOUR CONSUMER  Learn about consumer habits and practices  Discover unmet needs and unsolved problems  Find out how consumers shop and make purchase decisions  Track customer satisfaction OPTIMIZE ADVERTISING & PROMOTION  Test taglines  Get feedback on packaging & advertising copy  Develop marketing plans  Get ideas for social media campaigns  Measure advertising impact  Test alternative ad and promo campaigns  Track brand awareness and perceptions  Get testimonials for ad campaigns OPTIMIZE PACKAGING  Identify most compelling consumer benefit  Test taglines  Get feedback on copy and graphics  Determine best package design NEW PRODUCT DEVELOPMENT  Brainstorm new product ideas  inspire new features and products  Get feedback on new product ideas  Find out how to improve existing products  Get feedback throughout the development process  Test new product concepts, prototypes, and finished products  Determine volume potential What Can Private Online Communities Be Used For? 2014 Riedel Marketing Group 23

24. Quantitative surveys If you need to survey a representative sample of all adults, then the private panel is of limited value since it most likely contains only your customers or those interested in your brand. Quantitative surveys If you need to survey a representative sample of all adults, then the private panel is of limited value since it most likely contains only your customers or those interested in your brand. What Can’t Private Online Communities Be Used For? 2014 Riedel Marketing Group 24

25. Quantitative surveys If you need to survey a representative sample of all adults, then the private panel is of limited value since it most likely contains only your customers or those interested in your brand. Quantitative surveys If you need to survey a representative sample of all adults, then the private panel is of limited value since it most likely contains only your customers or those interested in your brand. Many studies, however, can be conducted with the community; it’s not a perfect sample, but often it is good enough to provide you with the insight you need to make informed decisions. What Can’t Private Online Communities Be Used For? 2014 Riedel Marketing Group 25

26. WHAT ARE THE BENEFITS OF PRIVATE ONLINE COMMUNITIES? 2014 Riedel Marketing Group 26

27. You get closer to your consumers… You’ll Develop Better Products 2014 Riedel Marketing Group 27

28. You get closer to your consumers… Which gives you a better understanding of their unmet needs, unsolved problems, and biggest frustrations… You’ll Develop Better Products 2014 Riedel Marketing Group 28

29. You get closer to your consumers… Which gives you a better understanding of their unmet needs, unsolved problems, and biggest frustrations… You’ll Develop Better Products Which leads you to develop new products that meet the needs of the people who will be buying and using the products… 2014 Riedel Marketing Group 29

30. You get closer to your consumers… Which gives you a better understanding of their unmet needs, unsolved problems, and biggest frustrations… Which leads to new product success! You’ll Develop Better Products Which leads you to develop new products that meet the needs of the people who will be buying and using the products… 2014 Riedel Marketing Group 30

31. You get collaborate with people who will be buying the product. You’ll Develop More Effective Marketing Programs And Packaging 2014 Riedel Marketing Group 31

32. You’ll get to collaborate with people who will be buying the product. Which leads to marketing programs and packaging that resonate with consumers and get them to buy the product You’ll Develop More Effective Marketing Programs And Packaging 2014 Riedel Marketing Group 32

33. Ask Learn Probe deeper You’ll Make Better Decisions Come to the right decision Ask more Learn more 2014 Riedel Marketing Group 33

34. You’ll Make Money and Save Money When you engage deeply with your consumers and delve intensely into what they are doing, thinking, and feeling… 2014 Riedel Marketing Group 34

35. You’ll Make Money and Save Money When you engage deeply with your consumers and delve intensely into what they are doing, thinking, and feeling… …You make sounder, more strategic business decisions… 2014 Riedel Marketing Group 35

36. You’ll Make Money and Save Money When you engage deeply with your consumers and delve intensely into what they are doing, thinking, and feeling… …You make sounder, more strategic business decisions… …Decisions that make money and save money. 2014 Riedel Marketing Group 36

37. WHY USE PRIVATE ONLINE COMMUNITIES INSTEAD OF DOING AD HOC MARKET RESEARCH STUDIES? 2014 Riedel Marketing Group 37

38. Cheaper Than Ad Hoc Research You only pay for sample once when you recruit the community members for the first time and then you can use them as many times as you want for as long as they remain members. 2014 Riedel Marketing Group 38

39. Cheaper Than Ad Hoc Research You only pay for sample once when you recruit the community members for the first time and then you can use them as many times as you want for as long as they remain members. You’ll save 25–35% versus the price of traditional online surveys. 2014 Riedel Marketing Group 39

40. Faster Than Ad Hoc Research Traditional ad hoc research typically takes 4 to 8 weeks to go from inception to results. 2014 Riedel Marketing Group 40

41. Faster Than Ad Hoc Research Traditional ad hoc research typically takes 4 to 8 weeks to go from inception to results. With an online consumer community, you can get results within days. 2014 Riedel Marketing Group 41

42. WHY ARE PRIVATE ONLINE COMMUNITIES SUCH A POWERFUL TOOL? 2014 Riedel Marketing Group 42

43. People join online communities because they like to feel involved in shaping companies and products for the future and make a difference. Thoughtful and Honest Feedback 2014 Riedel Marketing Group 43

44. People join online communities because they like to feel involved in shaping companies and products for the future and make a difference. They feel privileged to be on the panel and are willing and anxious to participate. Thoughtful and Honest Feedback 2014 Riedel Marketing Group 44

45. People join online communities because they like to feel involved in shaping companies and products for the future and make a difference. They feel privileged to be on the panel and are willing and anxious to participate. Because it’s their chance to make their mark, respondents offer thoughtful and honest feedback. Thoughtful and Honest Feedback 2014 Riedel Marketing Group 45

46. You can use a variety of techniques that enable you to get closer to your consumers and understand them better. Rich Deep Insight 2014 Riedel Marketing Group 46

47. You can use a variety of techniques that enable you to get closer to your consumers and understand them better. Rich Deep Insight You can ask questions in new and engaging ways which provide you with more meaningful findings. 2014 Riedel Marketing Group 47

48. You can use a variety of techniques that enable you to get closer to your consumers and understand them better. Rich Deep Insight You can ask questions in new and engaging ways which provide you with more meaningful findings. You can identify problems that traditional research might not uncover. 2014 Riedel Marketing Group 48

49. Enables Iterative Testing Unlike traditional ad hoc consumer studies that are conducted with a sample purchased from an online consumer panel supplier… 2014 Riedel Marketing Group 49

50. Enables Iterative Testing Unlike traditional ad hoc consumer studies that are conducted with a sample purchased from an online consumer panel supplier… …you can conduct iterative research studies with the same participants. 2014 Riedel Marketing Group 50

51. A “pre-quant” online discussion board or chat can generate very helpful directions for designing your qualitative survey. Drives More Thorough Quantitative Research Studies 2014 Riedel Marketing Group 51

52. A “pre-quant” online discussion board or chat can generate very helpful directions for designing your qualitative survey. You can test the questionnaire before fielding the quantitative survey. Drives More Thorough Quantitative Research Studies 2014 Riedel Marketing Group 52

53. A “pre-quant” online discussion board or chat can generate very helpful directions for designing your qualitative survey. You can test the questionnaire before fielding the quantitative survey. Drives More Thorough Quantitative Research Studies You can conduct a post-quant survey to uncover the why behind the numbers. 2014 Riedel Marketing Group 53

54. Builds Brand Advocacy “Communities create potential for genuine dialogue and relationship building…if run correctly, these communities will develop into a powerful resource that also builds brand advocacy. ” Michalis Michael, DigitalMR CEO “Communities create potential for genuine dialogue and relationship building…if run correctly, these communities will develop into a powerful resource that also builds brand advocacy. ” Michalis Michael, DigitalMR CEO 2014 Riedel Marketing Group 54

55. Builds Brand Advocacy “Communities create potential for genuine dialogue and relationship building…if run correctly, these communities will develop into a powerful resource that also builds brand advocacy. ” Michalis Michael, DigitalMR CEO “Communities create potential for genuine dialogue and relationship building…if run correctly, these communities will develop into a powerful resource that also builds brand advocacy. ” Michalis Michael, DigitalMR CEO “Consumers have appreciation for the brands that want their opinion.” Leah Spokojny, Online Research Strategist at GutCheck “Consumers have appreciation for the brands that want their opinion.” Leah Spokojny, Online Research Strategist at GutCheck 2014 Riedel Marketing Group 55

56. HOW TO GET THE MOST OUT OF YOUR PRIVATE ONLINE COMMUNITY 2014 Riedel Marketing Group 56

57. The key to having a vibrant community that yields meaningful insights is keeping members engaged. Keep Community Members Engaged 2014 Riedel Marketing Group 57

58. The key to having a vibrant community that yields meaningful insights is keeping members engaged. Keeping them engaged saves you time and money, so it deserves a structured approach. Keep Community Members Engaged 2014 Riedel Marketing Group 58

59. The key to having a vibrant community that yields meaningful insights is keeping members engaged. Keeping them engaged saves you time and money, so it deserves a structured approach. Keeping members engaged begins with a defined plan for touchpoints each month. Keep Community Members Engaged 2014 Riedel Marketing Group 59

60. You will typically get better participation and better information if participants are fairly compensated… Compensate Participants Fairly 2014 Riedel Marketing Group 60

61. You will typically get better participation and better information if participants are fairly compensated… …But it doesn’t have to be cash. Compensate Participants Fairly 2014 Riedel Marketing Group 61

62. You will typically get better participation and better information if participants are fairly compensated… …But it doesn’t have to be cash. It can be products, contests, sweepstakes, gift cards, etc. Compensate Participants Fairly 2014 Riedel Marketing Group 62

63. Tell Community Members What to Expect At the outset, members need to know what they’ve signed up for – how often you’ll engage with them, what topics you’ll discuss and so on. 2014 Riedel Marketing Group 63

64. Encourage Active Participation Encourage members to post comments to discussion boards, engage with other members while on- site, chat with moderators directly, use Webcams, upload photos and videos and more. 2014 Riedel Marketing Group 64

65. Make It Easy to Launch an Activity Simplify the approval process so that a group or brand team can launch a survey or other activity with minimum paperwork. 2014 Riedel Marketing Group 65

66. Standardize Standardize often-repeated types of studies so that the organization learns over time what the answers mean. 2014 Riedel Marketing Group 66

67. Create a Database Create a database of normative data for the standardized studies so that results have greater value and meaning. 2014 Riedel Marketing Group 67

68. Charge The Private Panel’s Cost To A Central Marketing Budget Individual brands or groups should not be charged for using the community. If the studies are “free,” brands are eager to do as many studies as possible (and thereby make better decisions). 2014 Riedel Marketing Group 68

69. 2014 Riedel Marketing Group 69 SUMMARY

70. Summary  Private Online Communities are extremely valuable tools for marketers and product developers. 2014 Riedel Marketing Group 70

71. Summary  Private Online Communities are extremely valuable tools for marketers and product developers.  POC’s are typically cheaper and faster than conducting ad hoc research studies. 2014 Riedel Marketing Group 71

72. Summary  Private Online Communities are extremely valuable tools for marketers and product developers.  POC’s are typically cheaper and faster than conducting ad hoc research studies.  A POC can be a long-term resource for valuable actionable consumer insight that will help your company develop better products and more effective marketing programs and packaging, make better decisions, make money, and save money. 2014 Riedel Marketing Group 72

73. Summary  Private Online Communities are extremely valuable tools for marketers and product developers.  POC’s are typically cheaper and faster than conducting ad hoc research studies.  A POC can be a long-term resource for valuable actionable consumer insight that will help your company develop better products and more effective marketing programs and packaging, make better decisions, make money, and save money.  If your company is consumer-centric (or wants to transition from product-centric to consumer-centric), a private online community must be part of your marketing, social media, and product development strategy. 2014 Riedel Marketing Group 73

74. Summary POC’s can be used to:  Gain a deeper more thorough understanding of your consumer  Optimize advertising and promotional programs to maximize their effectiveness  Develop new products that have a higher likelihood of marketplace success  Optimize package copy and graphics so that they grab shoppers’ attention and make them want to buy the product. 2014 Riedel Marketing Group 74

75. Summary Private Online Communities are a powerful consumer insight tool because:  You get thoughtful and honest feedback  You’ll gain rich deep insight  You are able to do iterative testing  You will be able to do more thorough quantitative research studies  You build brand advocacy. 2014 Riedel Marketing Group 75

76. 2014 Riedel Marketing Group 76 HOW TO GET STARTED

77. How to Get Started  Before you move forward with building a Private Online Community, you need to answer two important questions. 2014 Riedel Marketing Group 77

78. Is it mainly for the creation and enhancements of your products or communications? Or is it for more traditional marketing needs such as customer segmentation, pricing research, and purchase habits, usage and attitudes? What Do You Want To Use The Community For ? 2014 Riedel Marketing Group 78

79. Is it mainly for the creation and enhancements of your products or communications? Or is it for more traditional marketing needs such as customer segmentation, pricing research, and purchase habits, usage and attitudes? What are the specific objectives? What Do You Want To Use The Community For? 2014 Riedel Marketing Group 79

80. Is it mainly for the creation and enhancements of your products or communications? Or is it for more traditional marketing needs such as customer segmentation, pricing research, and purchase habits, usage and attitudes? What is the scope in terms of duration, geography, size, profile of participants? What are the specific objectives? What Do You Want To Use The Community For? 2014 Riedel Marketing Group 80

81. If you plan to do less than 100 projects a year, you should probably outsource to a research company with expertise in private panel development and management. Should You Build And Manage Your POC Internally Or Outsource? 2014 Riedel Marketing Group 81

82. If you plan to do less than 100 projects a year, you should probably outsource to a research company with expertise in private panel development and management. If you plan to do more than 100 projects a year, then building a professional internal staff might make sense. Should You Build And Manage Your POC Internally Or Outsource? 2014 Riedel Marketing Group 82

83. Sure you can do it yourself, but do you really have the time or the right people? Considerations if You Decide to Do It Yourself 2014 Riedel Marketing Group 83

84. Sure you can do it yourself, but do you really have the time or the right people? You will need to hire people who really understand the nuts and bolts of panel management, sampling, questionnaire design, coding, tabulation, quality assurance, data security, and email deliverability. Considerations if You Decide to Do It Yourself 2014 Riedel Marketing Group 84

85. Sure you can do it yourself, but do you really have the time or the right people? You will need to hire people who really understand the nuts and bolts of panel management, sampling, questionnaire design, coding, tabulation, quality assurance, data security, and email deliverability. You will need to invest in panel management and survey software. Considerations if You Decide to Do It Yourself 2014 Riedel Marketing Group 85

86. Sure you can do it yourself, but do you really have the time or the right people? You will need to hire people who really understand the nuts and bolts of panel management, sampling, questionnaire design, coding, tabulation, quality assurance, data security, and email deliverability. You will need to invest in panel management and survey software. Considerations if You Decide to Do It Yourself You will need to assign one person to be responsible for scheduling, expediting, and coordinating with internal groups or brand teams to keep research projects moving ahead. 2014 Riedel Marketing Group 86

87. Purchasing a turnkey private panel service frees you up to be the research consultant within your organization, rather than the research mechanic. Benefits of Outsourcing 2014 Riedel Marketing Group 87

88. Purchasing a turnkey private panel service frees you up to be the research consultant within your organization, rather than the research mechanic. You can operate with minimal staff, since most of the work is performed by your private-panel partner. Benefits of Outsourcing 2014 Riedel Marketing Group 88

89. Let Riedel Marketing Group build and maintain your private online community. If You Decide to Outsource… 2014 Riedel Marketing Group 89

90. Let Riedel Marketing Group build and maintain your private online community. We’ll take care of the nuts and bolts of panel management, member recruitment and retention, sampling, questionnaire design, tabulation, and analysis. If You Decide to Outsource… 2014 Riedel Marketing Group 90

91. Let Riedel Marketing Group build and maintain your private online community. We’ll take care of the nuts and bolts of panel management, member recruitment and retention, sampling, questionnaire design, tabulation, and analysis. We’ll work closely and collaboratively with you to make sure the community yields the information and insight you need. If You Decide to Outsource… 2014 Riedel Marketing Group 91

92. Let Riedel Marketing Group build and maintain your private online community. We’ll take care of the nuts and bolts of panel management, member recruitment and retention, sampling, questionnaire design, tabulation, and analysis. We’ll work closely and collaboratively with you to make sure the community yields the information and insight you need. If You Decide to Outsource… We have more than ten years of panel management experience. 2014 Riedel Marketing Group 92

93. Let Riedel Marketing Group build and maintain your private online community. We’ll take care of the nuts and bolts of panel management, member recruitment and retention, sampling, questionnaire design, tabulation, and analysis. We’ll work closely and collaboratively with you to make sure the community yields the information and insight you need. If You Decide to Outsource… We have more than ten years of panel management experience. 2014 Riedel Marketing Group 93 Call or e-mail to get started today! 602-840-4948 ajr@4rmg.com Call or e-mail to get started today! 602-840-4948 ajr@4rmg.com