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