ENERGIZING GROUNDSWELL
Allen CrottyAnna NemittananToya DartisWilliam Olaleye
WHAT IS ENERGIZING?
Energizing the groundswell means tapping into the power of word of mouth by connecting with, and turning on, your most committed customers.
When political candidates get their supporters riled up and spreading the word can be called, “Energizing the base”.
Spreading the word or word of mouth succeeds because: It’s believable It’s self-reinforcing It’s self-spreading
WHAT IS ENERGIZING? Energizing the base is a powerful way to
use the groundswell to boost your business. According to WORD OF MOUTH
ASSOCIATION (WOMMA) word of mouth “ is the most honest form of marketing, building upon people’s natural desire to share their experiences with family, friends, and colleagues.”
ENERGIZING THE BASE AND SOCIAL TECHNOGRAPHICS Energizing the base is based off 18 % of
online customers in the US being in the Creators group.
Creators Group consists of: Creators who are customers blogging, uploading
video, and maintaining Web sites. Critics who are commenting on blogs or posting
ratings and reviews. Spectators who are reading the blogs and
watching the videos.
WHAT’S THE VALUE OF AN ENERGIZED CUSTOMER The definitive answer comes from a book
titled The Ultimate Question: Driving Good Profits and True Growth, by Fred Reichheld
The ultimate question the book discusses is, “How likely is it that you would recommend a company name/product to a friend or colleague.”
TECHNIQUES FOR ENTHUSIASTS 1. Tap into customers’ enthusiasm with
ratings and reviews. 2. Create a community to energize your
customers. 3. Participate in and energize online
communities of your brand enthusiasts.
USING RATINGS AND REVIEWS TO ENERGIZE CUSTOMERS http://www.youtube.com/watch?v=y6-OmLq8
2eU
ROI Ratings and reviews Companies like Bazzarvoice, charge $25,000 a
year Its development cost is around $50,000.
Bazzarvoice is a company which specializes in rating systems for sites,
FIRST YEAR ANALYSIS Up front development cost = $50k
Yearly ongoing costs = $25k
Additional yearly costs = $125k
Average yearly cost = $200k.
PROFIT ANALYSIS Site Visitors = 10m Visitors seeing reviews = 2m Sales at typical 2.5% conversion= $5m
$100 per transaction Sales w/ratings or reviews = $6.6m
$110 per transaction Net additional sales because of ratings/reviews =
$1.6m Net additional profit = $400K
At 25% profit margin
Reasons ratings and reviews help:
Allows for instant customer feedback Help alert to defects Help company remove unwanted products quicker Generates referrals Helps other customers find your products Allows for leverage with suppliers
ENERGIZING BY COMMUNITY CREATION Connects consumers Answers questions Helps generate revenue
Constant Contact received an 88% jump between 2005 & 2006.
Helps businesses collect information Allows people to talk to each other about
products
What is the advantage of businesses like Constant Contact?
They connect businesses and help them to connect to their consumers better
They help businesses sort out problems they are having such as being seen as spammers
Communities like these help energize consumers to buy more and tell about the experiences they have had, thus increasing revenue
HOW MUCH DO YOU WANT YOUR CUSTOMER RELATIONSHIP TO CHANGE? By energizing your consumers you will
change the relationship with them By creating communities you will create
“Ambassadors” who will be the go between for the company and the community These often become the icons within the
community This changes the relationships within the
community so take care how you create them.
CONCLUSION Not all customers
are equal The Base: Most
enthusiastic customers EX: Lego Brand
Ambassador Program
EX: eBags and Jim Noble/Field Testers
UNHAPPY BASE Imperative to Listen Respond: Energized
customers wield power within the community of customers
When possible give customers what they desire most
WHAT THEY WANT Information: Present
and Future Products Evidence they are
making a difference To be engaged (No
layoffs)
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