Vendor Profile - Wisdom by MicroStrategy

1. Vendor Profile - Wisdom by MicroStrategy Vendor Profile  Consumer Insights with Facebook:Wisdom Professional by MicroStrategyOctober 2012© 2012 Demand Metric Research Corporation. All Rights Reserved.

2. EXECUTIVE SUMMARYIn July 2012, MicroStrategy, a provider of business intelligence solutions, announced general availability of itsWisdom Professional social intelligence application.A SaaS solution, Wisdom Professional exploits Facebook – arguably the largest database in the world – toprovide a powerful way to quickly gain consumer insights that are either impossible or very expensive to derivethrough other means.Wisdom Professional has the ability to streamline the B2C market research process while improving the quality ofthe insights gained through that process. The service is available through an annual subscription.Vendor Profile EXECUTIVE SUMMARYIn July 2012, MicroStrategy, a provider of business intelligence solutions, announced general availability of itsWisdom Professional social intelligence application.A SaaS solution, Wisdom Professional exploits Facebook – arguably the largest database in the world – toprovide a powerful way to quickly gain consumer insights that are either impossible or very expensive to derivethrough other means.Wisdom Professional has the ability to streamline the B2C market research process while improving the quality ofthe insights gained through that process. The service is available through an annual subscription.Vendor Profile

3. TABLE OF CONTENTSVendor Profile  Executive Summary 2Solution Overview 4How it Works 8Analyst Bottom Line 12About Demand Metric 13 TABLE OF CONTENTSVendor Profile  Executive Summary 2Solution Overview 4How it Works 8Analyst Bottom Line 12About Demand Metric 13

4. SOLUTION OVERVIEWB2C marketers frequently seek answers to these types of questions: §  What things, products, pastimes or entertainment are of greatest interest to our target market?§  What events provide us with the greatest opportunity to promote our products or services?§  What businesses, restaurants, bars, coffee shops or other gathering places are our target customers mostlikely to frequent?§  What celebrity does our target market identify with most, making them an ideal product spokesperson?§  What affinities exist between our target market and any of their product preferences, tastes or interests?While the answers are important, obtaining precise responses on which you are willing to make mission-criticalbusiness decisions is difficult if not cost prohibitive. Surveys and focus groups have been the methods on whichmany B2C firms rely to some kind of direction, even if only a vague one.Vendor Profile SOLUTION OVERVIEWB2C marketers frequently seek answers to these types of questions: §  What things, products, pastimes or entertainment are of greatest interest to our target market?§  What events provide us with the greatest opportunity to promote our products or services?§  What businesses, restaurants, bars, coffee shops or other gathering places are our target customers mostlikely to frequent?§  What celebrity does our target market identify with most, making them an ideal product spokesperson?§  What affinities exist between our target market and any of their product preferences, tastes or interests?While the answers are important, obtaining precise responses on which you are willing to make mission-criticalbusiness decisions is difficult if not cost prohibitive. Surveys and focus groups have been the methods on whichmany B2C firms rely to some kind of direction, even if only a vague one.Vendor Profile

5. SOLUTION OVERVIEWMost marketers view Facebook as a free marketing channel to their best supporters. Few of them realize that it isthe largest single database of consumer preferences in the world, because they’ve never been able to accessthe data. Facebook users have voluntarily identified “Likes” and preferences to their favorite companies, brandsand products.Companies have a Facebook presence to exploit its value as a marketing channel, but until now, that presencehasn’t provided much in the way of actionable business intelligence. Having a Facebook page offers virtually no information about your fans’ “Likes” other than that they like you.Wisdom Professional provides a way to find out the likes and activities of your fans, and any other demographicinformation represented in Facebook.This solution functions as a virtual focus group, available on demand to which you can ask an unlimited numberof questions and get immediate responses.Vendor Profile SOLUTION OVERVIEWMost marketers view Facebook as a free marketing channel to their best supporters. Few of them realize that it isthe largest single database of consumer preferences in the world, because they’ve never been able to accessthe data. Facebook users have voluntarily identified “Likes” and preferences to their favorite companies, brandsand products.Companies have a Facebook presence to exploit its value as a marketing channel, but until now, that presencehasn’t provided much in the way of actionable business intelligence. Having a Facebook page offers virtually no information about your fans’ “Likes” other than that they like you.Wisdom Professional provides a way to find out the likes and activities of your fans, and any other demographicinformation represented in Facebook.This solution functions as a virtual focus group, available on demand to which you can ask an unlimited numberof questions and get immediate responses.Vendor Profile

6. SOLUTION OVERVIEWWisdom Professional at a macro level has two key components: 1.  A business intelligence/analytics platform and user interface. There are actually two versions of Wisdomoffered – Wisdom Public and Wisdom Professional:§  Wisdom Public – the “Lite” version of the solution for consumers. It is free and provides analytics onyour personal Facebook network. It gives you a dashboard and reporting to, for example, let you seewhere all your Facebook friends are hanging out, checking in, what they “Like” most and otheranalytics. It also provides limited access to some of the high-level reports on the entire Wisdomcommunity.§  Wisdom Professional – the full bells & whistles version of the solution, accessible via an annual,$25,000 subscription (list price). This version provides access to all the functionality and querycapability into the full Wisdom community. The remainder of this research will focus on WisdomProfessional.2.  The Wisdom community. This is where the value is derived for Wisdom users. This community is a subsetof the full Facebook community, and it’s the database into which Wisdom users query.Vendor Profile SOLUTION OVERVIEWWisdom Professional at a macro level has two key components: 1.  A business intelligence/analytics platform and user interface. There are actually two versions of Wisdomoffered – Wisdom Public and Wisdom Professional:§  Wisdom Public – the “Lite” version of the solution for consumers. It is free and provides analytics onyour personal Facebook network. It gives you a dashboard and reporting to, for example, let you seewhere all your Facebook friends are hanging out, checking in, what they “Like” most and otheranalytics. It also provides limited access to some of the high-level reports on the entire Wisdomcommunity.§  Wisdom Professional – the full bells & whistles version of the solution, accessible via an annual,$25,000 subscription (list price). This version provides access to all the functionality and querycapability into the full Wisdom community. The remainder of this research will focus on WisdomProfessional.2.  The Wisdom community. This is where the value is derived for Wisdom users. This community is a subsetof the full Facebook community, and it’s the database into which Wisdom users query.Vendor Profile

7. SOLUTION OVERVIEWSubscribers can currently access Wisdom Professional as an iPad or Facebook application. It is not difficult tolearn or use, and MicroStrategy has several helpful video tutorials on its website. While this analyst wasn’tbriefed on future release plans, it’s pretty clear that MicroStrategy has invested heavily in Wisdom and willcontinue to develop its functionality.One of the first questions a new Wisdom user is likely to ask about is, “how does it have access to all thatFacebook data?” When ticking through the possible ways this could happen, one quickly realizes that privacymight be a concern.Is Wisdom creeping the profiles of approximately 1 billion Facebook users? Actually no, Facebook users opt-in toWisdom, and the ability to access Wisdom Public is the draw.It appears the strategy is working, as at the time of publication, Wisdom has over 15.6 million Facebook users inits community. In less than a year, Wisdom has achieved exceptional community growth and is currently adding200,000 new members each week.Vendor Profile SOLUTION OVERVIEWSubscribers can currently access Wisdom Professional as an iPad or Facebook application. It is not difficult tolearn or use, and MicroStrategy has several helpful video tutorials on its website. While this analyst wasn’tbriefed on future release plans, it’s pretty clear that MicroStrategy has invested heavily in Wisdom and willcontinue to develop its functionality.One of the first questions a new Wisdom user is likely to ask about is, “how does it have access to all thatFacebook data?” When ticking through the possible ways this could happen, one quickly realizes that privacymight be a concern.Is Wisdom creeping the profiles of approximately 1 billion Facebook users? Actually no, Facebook users opt-in toWisdom, and the ability to access Wisdom Public is the draw.It appears the strategy is working, as at the time of publication, Wisdom has over 15.6 million Facebook users inits community. In less than a year, Wisdom has achieved exceptional community growth and is currently adding200,000 new members each week.Vendor Profile

8. HOW IT WORKSAfter logging in to Wisdom Professional, you enter a query. In this example, I’m using the Facebook applicationand my query is for “Sonic Drive-in”. Wisdom runs the query and presents this dashboard view:Vendor Profile HOW IT WORKSAfter logging in to Wisdom Professional, you enter a query. In this example, I’m using the Facebook applicationand my query is for “Sonic Drive-in”. Wisdom runs the query and presents this dashboard view:Vendor Profile

9. HOW IT WORKSHere’s a close-up view of just the Wisdom dashboard data resulting from the “Sonic Drive-in” query:Vendor Profile HOW IT WORKSHere’s a close-up view of just the Wisdom dashboard data resulting from the “Sonic Drive-in” query:Vendor Profile

10. . HOW IT WORKSJust a few of the conclusions one could draw from this data include: §  Based on the gender mix, marketing and advertising directed specifically to women is probably a goodinvestment.§  A good candidate for celebrity spokesperson is Dale Earnhardt, Jr.§  If Sonic does not have an option to include Cheez-Its as an entree, it should consider doing so. These conclusions just scratch the surface of the insights available through Wisdom – much deeper analysis ispossible, that yields less obvious but equally important insights. In this example, the query is looking at the 54,000+ Facebook users who have “Liked” the Sonic Drive-inFacebook fan page. This is a huge virtual focus group where the sheer size of the group eliminates concernsabout statistical significance. But does that concern exist at another level?Vendor Profile

11. . HOW IT WORKSFrom discussions with the Wisdom product management team, achieving and ensuring statistical significance is agoal for the solution. The size of the Wisdom community is currently between one and two percent of the totalFacebook population, which, from a statistical perspective, provides reassurance. The goal for Wisdom is toachieve statistical significance at three levels:1.  Globally. At the global level, Wisdom is still approaching statistical significance, but it has already achievedit in the United State.2.  For the Facebook population. Wisdom has achieved statistical significance at this level.3.  Within specific segments. For example, 17-28 year old females in Argentina. Some segments havestatistical significance, while others do not. Users should keep this in mind as they structure segment-specific queries in Wisdom.Vendor Profile

12. . ANALYST BOTTOM LINEWisdom Professional is a powerful tool that should gain a following with B2C product marketing managers, brandmanagers, market researchers and anyone needing insight into consumer preferences.The data Wisdom provides access to is expensive and difficult to capture in other ways, but in Facebook, it isvoluntarily reported. Wisdom unlocks that data, helping marketers make precise strategic decisions withconfidence.About the Analyst:Jerry Rackley is Chief Analyst at Demand Metric. His 29-year marketing career began at IBM, and includesexperience in the technology and financial services sectors. He has worked with companies ranging in size fromstartups to members of the global 1000, performing marketing, marketing communication, public relations andproduct management work.Vendor Profile

13. . ABOUT DEMAND METRICDemand Metric is a marketing advisory firm serving a membership community of over 30,000 marketingprofessionals and consultants in 75 countries with consulting methodologies, advisory services, and a library of500+ premium marketing tools and templates.These tools allow Demand Metric members to plan more efficiently and effectively, and answer the difficultquestions about their work with authority and conviction. Demand Metric tools enable members to completemarketing projects more quickly and with greater confidence, boosting the respect of the marketing team andmaking it easier to justify resources the team needs to succeed.To learn more about Demand Metric, please visit: www.demandmetric.comVendor Profile

14. . Vendor Profile  To get a Vendor Profile for your solutioncontact us at : info@demandmetric.comDemand Metric Research Corporation#300 – 1275 West 6th Avenue, Vancouver, BC CANADA V6H 1A6© 2012 Demand Metric Research Corporation. All Rights Reserved.