From the Lips of Consumers: Uncovering Emotional Experiences to Build Better Marketing Strategies

October 18, 2016

Elliot SavitzkyNavneet Virk

2

The Problem:

Emotion provides the energy behind

virtually every behavior we

engage in, every day of our lives.

3

We all agree. Emotions are important.

Emotions of motivation…

Drive decision-making…

Fulfilling these needs….

Drives strong brand loyalty.

The problem with market research is that people don’t…• Think what they feel, • Say what they think and• Do what they say.

- David Ogilvy

“”

5

The Problem: Asking people about their emotions doesn’t work

WON’T SAY CAN’T SAY

6

Our Model of Emotional Experiences

7

The Problem:We have a limited window of opportunity to capture emotions

¾ seconds

recognition reaction reflection

¼ seconds >1 seconds

The Emotional Discovery Window

8

Capturing Emotions in the Moment with MindSight® Mobile

Camera

Video Playback

Bluetooth

Microphone

Push Notifications

GPS

Cached Surveys

Speaker

• Panel of Engaged Mobile Consumers• Geo-Fencing Technology• Push Surveys• Engage in Tasks• Disrupt behaviors before, during and after

9

“Using ChapStick makes me feel ______.”

Capturing Emotions in the Moment with MindSight® Mobile

¾ seconds

reaction

OPT

IMIS

M

CONFIDENCE

FREEDOM

ENGAGEMENT

JOY

CARING

ESTEEM

TRU

ST

GRATITUDE

EXPERIENCEEMOTIONS

ANTICIPATION

EMO

TIONSSO

CIAL

EM

OTI

ONS

GRATITUDE

TRU

STRESPECT

PRID

E

SYMPATHY

AFFECTION

INTIMACY-FAMILIAL

INTIMACY-

SENSUALITY

INTIMACY-

ROMANTIC

FORTUNATE

SERENITY

TRIU

MPH

ELAT

ION

ABSORPTIONINDULGENT

ENTHUSIASM

SUR

PRISE

WO

ND

ER

NO

STA

LGIA

LIBERATION

ADVENTUROUS

REJUVENATION

CERT

AINT

Y

COURAGE

SECURITY

HO

PE

INSP

IRAT

ION

exposure platform

10

The difference in energy levels was obvious

basic premium

11

The Application: Emotions span the Wheel.

OPT

IMIS

M

CONFIDENCE

FREEDOM

ENGAGEMENTJO

Y

CARING

ESTEEM

TRU

ST

GRATITUDE

EXPERIENCEEMOTIONS

ANTICIPATION

EMOTIONSSO

CIAL

EM

OTIO

NS

GRATITUDE

TRU

STRESPECT

PRIDE

SYMPATHYAFFECTION

FAMILIALINTIMACY

SENSUAL

INTIMACY

ROMANTIC

INTIMACY

FORTUNATESERENITY

TRIU

MPH

ELAT

ION

ABSORPTIONINDULGENTENTHUSIASM

SURPRISE

WO

NDER

NO

STALG

IA

LIBERATION

ADVENTUROUS

REJUVENATION

CERT

AINT

YCOURAGE

SECURITY

HO

PE

INSP

IRAT

ION

Delight

12

The Application: Emotions span the Wheel.

OPT

IMIS

M

CONFIDENCE

FREEDOM

ENGAGEMENTJO

Y

CARING

ESTEEM

TRU

ST

GRATITUDE

EXPERIENCEEMOTIONS

ANTICIPATION

EMOTIONSSO

CIAL

EM

OTIO

NS

GRATITUDE

TRU

STRESPECT

PRIDE

SYMPATHYAFFECTION

FAMILIALINTIMACY

SENSUAL

INTIMACY

ROMANTIC

INTIMACY

FORTUNATESERENITY

TRIU

MPH

ELAT

ION

ABSORPTIONINDULGENTENTHUSIASM

SURPRISE

WO

NDER

NO

STALG

IA

LIBERATION

ADVENTUROUS

REJUVENATION

CERT

AINT

YCOURAGE

SECURITY

HO

PE

INSP

IRAT

ION

Enhance

13

The Application: Emotions span the Wheel.

OPT

IMIS

M

CONFIDENCE

FREEDOM

ENGAGEMENTJO

Y

CARING

ESTEEM

TRU

ST

GRATITUDE

EXPERIENCEEMOTIONS

ANTICIPATION

EMOTIONSSO

CIAL

EM

OTIO

NS

GRATITUDE

TRU

STRESPECT

PRIDE

SYMPATHYAFFECTION

FAMILIALINTIMACY

SENSUAL

INTIMACY

ROMANTIC

INTIMACY

FORTUNATESERENITY

TRIU

MPH

ELAT

ION

ABSORPTIONINDULGENTENTHUSIASM

SURPRISE

WO

NDER

NO

STALG

IA

LIBERATION

ADVENTUROUS

REJUVENATION

CERT

AINT

YCOURAGE

SECURITY

HO

PE

INSP

IRAT

ION

Protect

14

The Application: The Core Emotions provide a “Security Blanket” for the user.

OPT

IMIS

M

CONFIDENCE

FREEDOM

ENGAGEMENT

JOY

CARING

ESTEEM

TRU

ST

GRATITUDE

EXPERIENCEEMOTIONS

ANTICIPATION

EMOTIONSSOCI

AL

EMOT

IONS

GRATITUDE

TRU

STRESPECT

PRIDE

SYMPATHYAFFECTION

FAMILIALINTIMACY

SENSUAL

INTIMACY

ROMANTIC

INTIMACY

FORTUNATE

SERENITYTR

IUM

PH

ELAT

ION

ABSORPTIONINDULGENT

ENTHUSIASM

SURPRISE

WO

NDER

NO

STALG

IA

LIBERATION

ADVENTUROUS

REJUVENATION

CERT

AINT

YCOURAGE

SECURITY

HO

PE

INSP

IRAT

ION

Protect Lips from the Environment

35-49Skewed female

Protect ChapStick Personas

“It's a product that you can never go wrong with. The cake batter flavor is my favorite because it smells like vanilla cupcakes. It makes them super kissable. I usually buy 5 at a time cause I'm afraid they'll get discontinued.”

Busy days with work and family

Value and Utility are Critical

What their friends think is important

16

The Application: Users are highly engaged.

OPT

IMIS

M

CONFIDENCE

FREEDOM

ENGAGEMENT

JOY

CARING

ESTEEM

TRU

ST

GRATITUDE

EXPERIENCEEMOTIONS

ANTICIPATION

EMOTIONSSOCI

AL

EMOT

IONS

GRATITUDE

TRU

STRESPECT

PRIDE

SYMPATHYAFFECTION

FAMILIALINTIMACY

SENSUAL

INTIMACY

ROMANTIC

INTIMACY

FORTUNATE

SERENITYTR

IUM

PH

ELAT

ION

ABSORPTIONINDULGENT

ENTHUSIASM

SURPRISE

WO

NDER

NO

STALG

IA

LIBERATION

ADVENTUROUS

REJUVENATION

CERT

AINT

YCOURAGE

SECURITY

HO

PE

INSP

IRAT

ION

ChapStick Personas

Fun & Flavorful

25-34Skews Female “I usually buy ChapStick products because after trying multiple

other types of lip moisturizer I like the way this one feels on my lips the best.”

Delight

Frequent Travelers

Exotic Tastes

Digitally Active

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The Application: It becomes part of their social persona.

OPT

IMIS

M

CONFIDENCE

FREEDOM

ENGAGEMENT

JOY

CARINGESTEEM

TRU

ST

GRATITUDE

EXPERIENCEEMOTIONS

ANTICIPATION

EMOTIONSSOCI

AL

EMOT

IONS

GRATITUDE

TRU

STRESPECT

PRIDE

SYMPATHYAFFECTION

FAMILIALINTIMACY

SENSUAL

INTIMACY

ROMANTIC

INTIMACY

FORTUNATE

SERENITYTR

IUM

PH

ELAT

ION

ABSORPTIONINDULGENT

ENTHUSIASM

SURPRISE

WO

NDER

NO

STALG

IA

LIBERATION

ADVENTUROUS

REJUVENATION

CERT

AINT

YCOURAGE

SECURITY

HO

PE

INSP

IRAT

ION

ChapStick Personas

Maintain Lip Health & Appearance

18-25Equal Male and

Female“Being hydrated is really important to me. It's part of my regular skin regimen to moisturize my face. This is similar to my face lotions, I have one for daytime and one for nighttime, so I liked that it matched my skincare priorities/preferences.”

Enhance

Appearance Conscious

Frequent Online Presence

Multitasking as an Art

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Personas allow us to segment the Portfolio of 35+ sku’s

35 items and growing

125 years ago we were just…

The Foundational Years

1800’sEureka!Charles Browne Fleet

1910’sThe EntrepreneurJohn Morton

1930’sEpic MakeoverFrank Wright, Jr.

1960’sSmooth MoveA.H. Robbins Company

1970’sScandalousExhibit A: Watergate break-in.

Evolution of the Advertising

Very Functional• Guard your lips• Sunburned lips…

Quick relief• Make lips feel great• Relieve dry-lips fast

Building a PersonalityFunctional, Active & Fun:

1980’s Call her Suzy ChapStick

1990’s Picabo!

Today’s ChapStick becomes skincare for lips

Getting More Social – ChapStick is in songs, in pockets, in drawers, in purses, in movies, on TV, on your lips

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Activation – The Evolution of the Brand

ProtectProtect Lips from the

Environment

Classic & Medicated

Delight

Fun & Flavorful

Fun Flavors

EnhanceMaintain Lip Health &

Appearance

Premium Skin Care Benefits

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Activation — Delivering on the insights in real time

Understand Organize Activate Optimize

Conduct market research and define segments, personas and journeys to understand the core use cases that can be applied to target, engage, convert and service the core audiences.

Identify and organize the data from 1st, 2nd and 3rd party sources that maps the use cases and enhances segmentation. Setup a centralized data management platform to facilitate activation of high value use cases.

2nd Party (partners,

exchanges etc.)

1st Party (CRM, Site Analytics,

POS, Loyalty etc.)

3rd Party (Experian, payment

processer etc.)

Activate core use cases and segments across high value channels (paid and owned). Phased approach to activation is recommended in terms of data as well as channels.

Search

Display

Email

.COM

Data Management Platform

(DMP)

Optimization Cycle

Identify

Plan

DesignDevelop

Analyze

Iterate

Deploy capabilities and resources to continuously implement new segments and experiences. Cross-disciplinary team with representation from all departments but clear ownership and metrics.

Activating segmentation within the digital ecosystem is a process that relies on organizing data into a centralized source and creating a program that allows iterative testing and optimization of all aspects of the user experience (segmentation, data, landing and conversion experiences).

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PROTECT—Security, Rejuvenation, Liberation, Courage

They value utility & ease. They’re preparing for the day early. They also need social validation.

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PROTECT

UV ray sensitive packaging that demonstrates when more protection is needed.

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PROTECT

Geolocated text reminders of the UV index or wind speed & reminders to reapply

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DELIGHT—Indulgent, Enthusiasm, Elation

Savvy content consumers who appreciate the exotic. Social travelers who value digital experiences.

33

DELIGHT

Interactive flavor quiz, featured on Hulu’s pre-roll experience.

34

DELIGHT

Integration with Spotify mood data to correlate flavors with ads & include real-time graph of “America's mood”

35

ENHANCE—Trust, Sensual/Intimacy, Pride

They care about appearances & are heavy content consumers. Value multitasking and online streaming.

36

ENHANCE

Augmented TV or Magazine experience (hold phone to TV & see the change in character’s lips with Chapstick) – perhaps as a result of a weblink

37

ENHANCE

Before & After Instagram posts where users have to zoom in to see the benefits of the product after (there’s a new feature where user can zoom in on a post)

38

Impact of activating the insights

• Leading audio electronics company delivered 7% increase in conversion rate and 12% increase in average order value.

• Occasion and weather specific vehicle recommendations resulted in 36% increase in average order value for a major car rental company.

• Disease and stage specific content and experience delivered 21% increase in visit-to-actionable lead conversion rate for a national hospital network.

Activating and delivering relevant experiences deliver significant impact on digital ecosystem ROI -

Thank You

October 18, 2016

Elliot Savitzky : Elliot.savitzki@isobar.comNavneet Virk : Navneet.virk@isobar.com