Brand Advocacy

BRAND ADVOCACY

UNLOCKING THE POTENTIAL OF WEB 2.0



Paul Marsden PhD paul.marsden@clickadvisor.com



WEB 2.0 - THE DATABASE-BACKED SOCIAL WEB. SO WHAT (FOR BRANDS)?



WEB 2.0



Brand Advocacy



BRAND ADVOCACY + WEB 2.0 = MATCH MADE IN HEAVEN



Cults



Sea Squirts



Lake Wobegon



Brainwashing



YOUR 2009 ? SALARY

BUT FIRST, LET’S TALK ABOUT YOUR SALARY: WILL IT GO UP NEXT YEAR?



?



YOU COULD TALK TO A CLAIRVOYANT



OR TALK TO YOUR BOSS (“TALK” IS A GREAT EUPHEMISM, ISN’T IT?)



OR YOU COULD ASK YOUR CLIENTS ONE SIMPLE QUESTION



WOULD YOU RECOMMEND US?

WOULD THEY RECOMMEND YOU?



2003



RECOMMENDATION RATES ARE LINKED TO GROWTH



“The most recommended company in its category grows 2.5x category average”



SO WHAT YOUR CLIENTS SAY ABOUT YOU DRIVES YOUR SALARY



NOT JUST BECAUSE CLIENTS WHO RECOMMEND YOU CREATE NEW CLIENTS...



BUT BECAUSE RECOMMENDING CLIENTS BUY MORE, MORE OFTEN, FOR MORE



“Personal recommendations are rated #1 influence on purchase decisions across B2B and B2C sectors”



NPS (Net Promoter Score) = Promoters (%) - Detractors (%)



Likelihood you’d recommend... 0 1 2 3 4 5 6 7 8 9 10



Detractor



Passive



Promoter



THERE’S EVEN A VALIDATED RECOMMENDATION METRIC LINKED TO GROWTH IN OVER 40 SECTORS



“A 12% increase in NPS correlates to a doubling of growth” (US)



“A 7 point increase in NPS correlates to a 1% increase in growth” (UK)



NPS: THE CFO-FRIENDLY RECOMMENDATION METRIC IS SPREADING FAST



“Two-thirds of the economy influenced by personal recommendations”



“1 in 3 people come to a brand through personal recommendation”



DIGITAL DRIVES RECOMMENDATIONS FASTER AND FURTHER



IT’S A SMALL WORLD



BECAUSE DIGITAL MAKES A SMALL WORLD SMALLER



RECOMMENDATIONS FLOW THOUGH SOCIAL NETWORKS CONNECTING EVERYBODY TO EVERYBODY BY SIX DEGREES



THIS IS NOT A SOCIAL NETWORK (IT’S A SOCIAL NETWORKING PLATFORM)



SOCIAL NETWORKS ARE PEOPLE NETWORKS AND MAKE UP MARKETING’S MOST POWERFUL MEDIA: RECOMMENDATION MEDIA



WEB 2.0 STRATEGY: IGNITE RECOMMENDATIONS



HOW?



NOTHING TO DO WITH VIRALS



2%



proportion of recommendations prompted by advertising



AND ADS DON’T MAKE RECOMMENDATIONS



BROCHUREWARE IS NOT THE ANSWER



NOTHING TO DO WITH ASTROTURFING (FAKE GRASSROOTS)



SO HOW DOES WEB 2.0 IGNITE RECOMMENDATION MEDIA?



1. WEB 2.0 AS INNOVATION PLATFORM



70%



proportion of recommendations prompted by expectation-beating product experience



THE KEY TO DRIVING RECOMMENDATION: BEATING EXPECTATIONS



RECOMMENDATION FORMULA = EXPERIENCE/EXPECTATION



“Something remarkable is worth talking about. Worth noticing. Exceptional. New. Interesting. It’s a Purple Cow. Boring stuff is invisible. It’s a brown cow. … Remarkable marketing is the art of building things worth noticing right into your product or service.” Seth Godin



RECOMMENDATIONS DRIVEN BY REMARKABLE PRODUCT EXPERIENCE



80% of CEOs think their brand offers a superior experience...



LAKE WOBEGON SYNDROME



LAKE WOBEGON SYNDROME



...8% of their customers agree



LAKE WOBEGON SYNDROME



WEB 2.0 AS INNOVATION PLATFORM CROWDSOURCING (INNOVATING WITH INSTEAD OF ‘FOR’ YOUR MARKET)



WEB 2.0 AS INNOVATION PLATFORM CROWDSOURCING (INNOVATING WITH INSTEAD OF ‘FOR’ YOUR MARKET)



WEB 2.0 AS INNOVATION PLATFORM CROWDSOURCING (INNOVATING WITH INSTEAD OF ‘FOR’ YOUR MARKET)



WEB 2.0 AS INNOVATION PLATFORM CROWDSOURCING (INNOVATING WITH INSTEAD OF ‘FOR’ YOUR MARKET)



WEB 2.0 AS INNOVATION PLATFORM CROWDSOURCING (INNOVATING WITH INSTEAD OF ‘FOR’ YOUR MARKET)



E-COMMERCE ENABLED INNOVATION PLATFORMS



BRAND AS INNOVATION/CUSTOMISATION PLATFORM



2. WEB 2.0 AS VALUE DELIVERY PLATFORM



BR



DED AN



ITY TIL U



WEB 2.0 AS VALUE-DELIVERY PLATFORM BRANDED UTILITY: DIGITAL SERVICES AND PRODUCTS



“[Nike+] is not an advertising idea, it's a technology idea. We are delivering a product, an application.” Nick Law CCO R/GA



WEB 2.0 AS VALUE-DELIVERY PLATFORM BRANDED UTILITY: DIGITAL SERVICES AND PRODUCTS



WEB 2.0 AS VALUE-DELIVERY PLATFORM BRANDED UTILITY: DIGITAL SERVICES AND PRODUCTS



WEB 2.0 AS VALUE-DELIVERY PLATFORM THE SEA SQUIRT IMPERATIVE (SOLVE A PROBLEM OR EAT YOUR BRAIN)



WEB 2.0 AS VALUE-DELIVERY PLATFORM BRANDED UTILITY: DIGITAL SERVICES AND PRODUCTS



WEB 2.0 AS VALUE-DELIVERY PLATFORM DELIVERING EMOTIONAL AS WELL AS PRACTICAL/ENTERTAINMENT VALUE



INSTANT GRATIFICATION



WEB 2.0 AS VALUE-DELIVERY PLATFORM DELIVERING EMOTIONAL AS WELL AS PRACTICAL/ENTERTAINMENT VALUE



INSTANT GRATIFICATION SIMPLIFICATION



WEB 2.0 AS VALUE-DELIVERY PLATFORM DELIVERING EMOTIONAL AS WELL AS PRACTICAL/ENTERTAINMENT VALUE



INSTANT GRATIFICATION SIMPLIFICATION COGITO CONSOLANS



WEB 2.0 AS VALUE-DELIVERY PLATFORM DELIVERING EMOTIONAL AS WELL AS PRACTICAL/ENTERTAINMENT VALUE



WEB 2.0 AS VALUE-DELIVERY PLATFORM THE RISE OF BRANDED MARKETPLACES?



3. WEB 2.0 AS ENGAGEMENT PLATFORM



WEB 2.0 AS ENGAGEMENT PLATFORM DIALOGUE NOT MONOLOGUE



WEB 2.0 AS ENGAGEMENT PLATFORM BRAND ADVISORY BOARDS



Sneak Peek



+



VIP Vote



+



Inside Scoop



WEB 2.0 AS ENGAGEMENT PLATFORM BRAND ADVISORY BOARDS



WEB 2.0 AS ENGAGEMENT PLATFORM DIALOGUE DRIVES ADVOCACY



WEB 2.0 AS ENGAGEMENT PLATFORM THE HAWTHORNE EFFECT



WEB 2.0 AS ENGAGEMENT PLATFORM BUILDING A BRAND ON ENGAGEMENT



WEB 2.0



WEB 2.0 AS ENGAGEMENT PLATFORM IGNITING RECOMMENDATIONS THROUGH ENGAGEMENT



Propensity to Recommend (NPS)



WEB 2.0 AS ENGAGEMENT PLATFORM IGNITING RECOMMENDATIONS THROUGH ENGAGEMENT



WEB 2.0 AS ENGAGEMENT PLATFORM: THE NEXT STEP



ENGAGEMENT ADVERTISING?



ENGAGEMENT ADVERTISING?



SUMMARY



RECOMMENDATION RATES DRIVE GROWTH



EXPECTATION-BEATING PRODUCT EXPERIENCES DRIVE RECOMMENDATIONS



WEB 2.0 CAN HELP BRANDS DELIVER EXPECTATION-BEATING PRODUCT EXPERIENCES



BEYOND COMMS WEB 2.0 AS A PLATFORM INNOVATION VALUE DELIVERY ENGAGEMENT



Cults



Sea Squirts



Lake Wobegon



Brainwashing



IF YOU REMEMBER JUST ONE THING...



WHATEVER YOU DO, MAKE SURE IT’S WORTH TALKING ABOUT

IF YOU REMEMBER JUST ONE THING...



CO-CREATING BRAND FUTURES



FOR REPRINTS/ENQUIRIES - PAUL.MARSDEN@CLICKADVISOR.COM - T: +44 777 95 77 248



Paul Marsden

Paul Marsden, a market researcher specializing in brand advocacy and innovation, is a director at online brainstorming agency clickadvisor. Career highlights to date



‣ Product management, sales and market research at Astra Zeneca ‣ PhD in psychology (social influence -how people influence people),

development of online research tool featured in The New Scientist ‣ Led London School of Economics team validating the link between brand advocacy and sales growth - worked on brand advocacy projects for BBC, LVMH, Nokia, Economist, and Unilever ‣ Co-founded two successful digital marketing agencies (Spheeris (online PR) and Brainjuicer (online research)) ‣ Co-authored popular business book ‘Connected Marketing’ Paul’s latest venture, clickadvisor.com, is an online brainstorming site that helps brands do collaborative innovation with consumers.



clickadvisor



Paul Marsden (Flipside)

A reformed bodybuilder, Paul is a diving fanatic and a qualified divemaster.



clickadvisor



Acknowledgements

Photos - iStockphoto http://www.slideshare.net/ Except front page Web 2.0 from flickr - Flynn Burhoe - http://www.flickr.com/photos/oceanflynn/ 315385916/ And “If people talked to you the way advertisers talked to you, they’d hit you in the face” cartoon by Hugh Macleod http://www.gapingvoid.com/Moveable_Type/archives/002843.html



clickadvisor