Emotion IntelligenceWhat Really Moves Us?

C H I C A G O • D E T R O I T • F R A N K F U R T • S H A N G H A I • B E I J I N G

Epic discoveries run deep.

Martec relentlessly discovers and decodes market intelligence to unearth insights

that power strategic business decisions.

The sands were pristine above King Tut’s tomb.

The Martec Group

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Experienced – founded in 1984

Global – offices worldwide

Creative – customized “tool box” of proven methodologies

Invested – end-to-end engagement by veteran staff

Innovative – next gen research tools such as Emotion Intelligence

Agile – rapid response and execution of research

Core Competencies

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Martec generates insights from five core intelligence perspectives…

Our Intelligence Solutions

Market: We unearth opportunities to swiftly enter, acquire or gain share of desirable markets and segments.

Customer: Unrestricted voice of the customer reach – no matter who you need, even Fortune 500 executives, we’ll bring them to the table.

Emotional: Discover what really moves customers – extract deeper, nonconscious connections people have with your brand, product and more.

Competitive: Expert CI analysts mine the difficult questions you cannot ask to uncover information about your competitive space.

Product: Identify needs, prioritize benefits, test concepts, track success and more.

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Understanding Emotions

Emotions Drive Our Experiences

The brain has two systems of thinking:

◦ System 1: Fast, automatic, frequent, emotional, stereotypic, nonconscious

◦ System 2: Slow, effortful, infrequent, logical, calculating, conscious

Most customer experiences are System 1 … Experts say 95% of cognitive activity is System 1.

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Cashing In On EmotionsGreat CEOs empathize with customers.◦ Why customers will pay the premium for an

Apple product◦ The experience they have walking into a

Starbucks

How can Emotion Intelligence amplify leadership intuition?

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Successful Emotional Intelligence

Scientific – rooted in physiological, psychological, linguistic and neuroscience techniques

Scalable – ability to work with large (quantitative) and/or small (qualitative) sample sizes/projects

Seamless – plugs into traditional qual and quant research methods

Simple – to execute (respondents) and understand (clients)

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Measuring Emotions

Measuring Emotions – Current Methods

fMRI Biometric Reaction TimeSmall samples Small samples Small samples

Emotion Intelligence

Implications

Interpretation

Physiological Psychological

Faces Images LanguageSmall or large samples Small samples Small samples

Language is the most scalable method

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Language requires the least amount of interpretation

Emotions Are Expressed With Words

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Emotion Intelligence discovers the emotions hidden in our words.

◦ The tool includes a dictionary with over 10,000 emotion words

◦ Utilizes web-based data collection and patented*algorithms

Starts with a simple topic.

◦ “How does ______ make you feel?”

◦ Tons of options for how a <topic> makes you feel: brand, product feature, market trend, competitor, problem, etc.

*Patent #4,931,934 Method and System for Measuring Clarified Intensity of EmotionsPatent #8,562,355 System and Method for Guiding Next Step Adaptive Behavior

“Community” ContentExisting Research

Capturing Language – Our EI Products

Survey-Based

Emotion Detecting Emotion Discovery Emotion Monitoring

Identify topics that arebeing talked about onlinevia social media, productreview websites, captivewebsites, blogs, etc.

Content captured viaexisting research verbatimsand transcripts (frompreviously executed focusgroups, IDIs, surveys, etc.)

Utilizes existing or stand-alone survey methodologiesto uncover conscious andnonconscious emotionalconnections to the topic

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Words Are Mapped Into Four Emotion Channel Properties

Enjoyment

OutwardPleasant

Interest Commitment Passion

Unpleasant Inward

Active

Passive Mild (Mundane < Common)

Intense (Extreme < Sublime)

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Words recognized by the dictionary are mapped to a specific emotion channel.

Each channel represents a type of emotion, based on a combination of four properties.

Provides a framework for positioning brands, products, experiences, messages, etc.

Emotion Channels

Standard and Customized Deliverables

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LOYALTY METRICS

EMOTION ANALYSIS EMOTION CHANNELS ENGAGEMENT METRICS

WORD CLOUD VERBATIM REPORT

Results People Can Digest

Nonconsciousintensity in gold

Consciousintensity in grey

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How does BUYING INSURANCE make you feel?

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What respondents say

Sample Deliverable

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In this example consumers consciously identify mostly pleasant emotions; however, this landscape reveals many unpleasant emotions

that must be addressed.

Where Do You Want to Be?Determine the ideal “emotion state” for your market.

Establish the emotion territory where you and your primary competition currently reside.

Dive into analytics and verbatim commentary to discover positioning strategies that will move you into a leadership position.

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Understand Your Most Valuable Customers, Convert Your Least

HostagesLess satisfied, but likely to purchase again. May be locked into a contract or feel that

no other viable alternatives exist.

LoyalistsHighly satisfied customers who are highly

likely to buy from you again.

Defectors

Not satisfied and have a low likelihood of repurchase; may have left or be poised to

reduce/stop spending with you.

MercenariesSatisfied customers who are not highly loyal (not likely to repurchase). More likely to be price sensitive and switch

suppliers.

ApostlesExtremely loyal/repeat customers

with an emotional connection.

AntagonistsMost likely to inflict damage

via word of mouth, etc.

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Go Beyond Net Promoter Scores

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Net Emotion Score

CLIENT is competitive in terms of Net Promoter Score (NPS), but is behind in terms of “Net Emotion Score” (NES).

The gap between signals opportunity to transform highly satisfied into fully connected and further strengthen the customer relationship.

◦ High spenders commit a higher share of wallet to brands with which they have emotional connections

Firm A

Firm DFirm B

Firm C

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Results

Case Study – Messaging

Problem: Coke losing Market Share to Pepsi…the younger generation

Solution:Coke was messaging emotions which consumers attributed to Pepsi, therefore Coke’s campaign was essentially selling Pepsi; campaign was repositioned to leverage emotions which consumers attributed to Coke

Result:Coke regained 1.5% market share = $130M in 3 months

“This unique research approach helped our marketing and advertising people successfully reposition our brand.”

Senior Brand Manager

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Case Study – CXProblem: Financial planner turnover was costing $50M/year in training/ development costs…planner competency was being questioned

Solution:Surveyed planners and buyers of financial services and identified the strong negative/unpleasant emotions that each constituency associated with the process

Result:Ameriprise initiated emotional competency training…achieved 15% increase in sales within 2 years and significant reduction in turnover

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“This is the first time we’ve seen the whole picture. Other studies completely missed this.”

EVP Retail Advice

Case Study – SegmentationProblem: Need to increase share of Lexus among lightly penetrated target market segments

Solution:Distinct emotional territories were identified across specific demographic segments (including race and gender) for Lexus vs. the targeted competition (Mercedes-Benz and BMW)

Result:Concept, message, keyword analysis led to a change in execution to better address target audience needs

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“This breakthrough research technique helped us turn concept into reality.”

Senior Account Director, Advertising Agency

Jim DurkinPartner/PresidentDirect: 312-606-9690jim.durkin@martecgroup.comQuestions?

Chuck BeanPartner/CMODirect: 248-327-8005chuck.bean@martecgroup.com