How t

1. Demonstrating the value of Social
Co-Innovation
At 6 months, cumulative revenue attributed to BIX
members was $120,000 or 58% of program cost
1

2. How Well Has Bose Idea Exchange Met
Our Business Objectives? A review:
Q1
Objectives
• Improve advocacy, loyalty and brand
perception
• Improve Bose customer experience through
direct consumer feedback
• Drive increased sales of existing Bose
products
• Pursue new market opportunities; new target
consumers
• Eliminate ‘non valued-added’ costs
2

3. Over 60% of respondents cite improvement of
Bose perception because of participation in BIX
We asked As a result of your experience as a member of the Bose idea
Advocacy/Perception Exchange, how has your perception of Bose changed, if at all?
They voted
“Thanks for writing in
to me for my
inputs. Your keen
interest in
receiving new
ideas is a tribute
to what a great
firm you have
built over so
many years. This
is deeply
appreciated.”
Product Owner
3

4. Bose BIX Automotive Customers Cite Even Higher
Advocacy
We asked How likely are you to recommend the brand of premium audio
Advocacy/Perception you have in your vehicle?
(0=Very Unlikely – 10=Very Likely)
They voted Bose Automotive Owners are twice as
likely to recommend the Bose sound
BIX value to Bose system than other premium audio owners
product
marketing?
•Opened
channel to end
users
•Confirmed high
advocacy and
perception
•Created tool to
leverage future
auto programs
4

5. BIX member ideas were a key lever to improve car
Advocacy/ manufacturer leverage.
Perception
4.6
Very Satisfied
with Bose
We asked
4.5 If you were to describe the
4.4 sound quality of your Bose
system to a friend, what
4.3
Not as good as expected would you say?
4.2 Base: Bose Automotive
4.1 Owner
4.0
3.9
Always buy
3.8 Bose
Be able to upgrade
3.7 Bose system
Members gave
Importance
3.6
Wants MP3 or iPod their own answers.
3.5 capability
3.4
Want Bose aftermarket
3.3
3.2
16% 26% 36% 46% 56% 66% 76%
Popular sentiments
5

6. BIX Member Headphone Concerns
Improve Customer Experience Drove Vendor Fix.
Members said Value to Headphone BU?
Hard time getting reliable hard data
•“Currently have Triport headphones.
from the field (on failure rates) …
…Great sound…Hate the construction starting to rely on data from the
and durability. Many people say they community.
break easily --(check reviews
I can get a strong sense for how
“Circuitcity.com). Cord too thin.” many customers out there are
pointing out ‘weak’ headbands on
•“After half a year of airline usage, BIX
cable/wire between headphones and
Quality will include hard data and
amp unit broke --- huge problem metrics related to BIX members.
which amuses other business class
passengers. Very disappointing… Used data to advocate for 3 year
extended warranty
cheap wire and Bose.”
Product GM
6

7. Member email out-performed traditional
Increase sales marketing
Product Audience Members Bought Members Taught Bose
1 •BIX Email 77% very/extremely valuable
900 Upgrades
•Increasingly difficult to isolate web connected
markets
2 13,500 1,400 DVDs requested •Members valued upgrades
•Members appreciated ‘preferential’
communication; 81% very/extremely valuable
•Members expected discount or trade-in loyalty
15,000 program
3 Units
•Concern about remote-only strategy and alarm
clock capability
•75% choose ‘too expensive’
•Upgrade price range was 600 – 1,000$
4 1,300 Units •Benefits of [new product] not received
•40% chose ‘Thanks for opportunity’
7

8. “Reduced risk. Accelerated deliver of
next gen product”
Eliminate NV Costs
“We had a hypothesis that 6 features would
be high priority
– 3 were validated. More important,
3 were refuted.
– Avoided spending development
resources on low priority features,
– Redeployed to get product to
market sooner.
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