BRAND ADVOCACYUNLOCKING 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)?

BRAND ADVOCACY + WEB 2.0 = MATCH MADE IN HEAVEN

WEB 2.0

Brand Advocacy♡

Cults Sea Squirts

Lake Wobegon Brainwashing

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

2009?

?

YOUR SALARY

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?

RECOMMENDATION RATES ARE LINKED TO GROWTH

2003

“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”

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

Likelihood you’d recommend...

0 1 2 3 4 5 6 7 8 9 10

PromoterPassiveDetractor

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

“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

BECAUSE DIGITAL MAKES A SMALL WORLD SMALLER

IT’S A SMALL WORLD

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

AND ADS DON’T MAKE RECOMMENDATIONS

2% proportion of recommendations prompted by advertising

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

THE KEY TO DRIVING RECOMMENDATION: BEATING EXPECTATIONS

70% proportion of recommendations prompted by expectation-beating product experience

RECOMMENDATION FORMULA = EXPERIENCE/EXPECTATION

RECOMMENDATIONS DRIVEN BY REMARKABLE PRODUCT EXPERIENCE

“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

LAKE WOBEGON SYNDROME

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

LAKE WOBEGON SYNDROME

LAKE WOBEGON SYNDROME

...8% of their customers agree

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

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

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

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

WEB 2.0 AS INNOVATION PLATFORMCROWDSOURCING (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

BRANDED UTILITY

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

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

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

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

WEB 2.0 AS VALUE-DELIVERY PLATFORMDELIVERING EMOTIONAL AS WELL AS PRACTICAL/ENTERTAINMENT VALUE

INSTANT GRATIFICATION

WEB 2.0 AS VALUE-DELIVERY PLATFORMDELIVERING EMOTIONAL AS WELL AS PRACTICAL/ENTERTAINMENT VALUE

INSTANT GRATIFICATIONSIMPLIFICATION

WEB 2.0 AS VALUE-DELIVERY PLATFORMDELIVERING EMOTIONAL AS WELL AS PRACTICAL/ENTERTAINMENT VALUE

INSTANT GRATIFICATIONSIMPLIFICATION

COGITO CONSOLANS

WEB 2.0 AS VALUE-DELIVERY PLATFORMDELIVERING EMOTIONAL AS WELL AS PRACTICAL/ENTERTAINMENT VALUE

WEB 2.0 AS VALUE-DELIVERY PLATFORMTHE RISE OF BRANDED MARKETPLACES?

3. WEB 2.0 AS ENGAGEMENT PLATFORM

WEB 2.0 AS ENGAGEMENT PLATFORMDIALOGUE NOT MONOLOGUE

WEB 2.0 AS ENGAGEMENT PLATFORMBRAND ADVISORY BOARDS

Sneak Peek VIP Vote Inside Scoop+ +

WEB 2.0 AS ENGAGEMENT PLATFORMBRAND ADVISORY BOARDS

WEB 2.0 AS ENGAGEMENT PLATFORMDIALOGUE DRIVES ADVOCACY

WEB 2.0 AS ENGAGEMENT PLATFORMTHE HAWTHORNE EFFECT

WEB 2.0 AS ENGAGEMENT PLATFORMBUILDING A BRAND ON ENGAGEMENT

WEB 2.0 AS ENGAGEMENT PLATFORMIGNITING RECOMMENDATIONS THROUGH ENGAGEMENT

WEB 2.0

Propensity to Recommend (NPS)

WEB 2.0 AS ENGAGEMENT PLATFORMIGNITING 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 COMMSWEB 2.0 AS A PLATFORM

INNOVATIONVALUE DELIVERY

ENGAGEMENT

Cults Sea Squirts

Lake Wobegon Brainwashing

IF YOU REMEMBER JUST ONE THING...

IF YOU REMEMBER JUST ONE THING...

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

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

CO-CREATINGBRAND FUTURES

clickadvisor

Paul MarsdenPaul 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

AcknowledgementsPhotos - 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