BRAND ADVOCACYUNLOCKING THE POTENTIAL OF WEB 2.0

clickadvisorinsight for innovationpaul.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 PLATFORMHELP ME, ENTERTAIN ME AND OR MAKE ME FEEL GOOD (EMOTIONAL VALUE)

INSTANT GRATIFICATION

WEB 2.0 AS VALUE-DELIVERY PLATFORMHELP ME, ENTERTAIN ME AND OR MAKE ME FEEL GOOD (EMOTIONAL VALUE)

INSTANT GRATIFICATIONSIMPLIFICATION

WEB 2.0 AS VALUE-DELIVERY PLATFORMHELP ME, ENTERTAIN ME AND OR MAKE ME FEEL GOOD (EMOTIONAL VALUE)

INSTANT GRATIFICATIONSIMPLIFICATION

COGITO CONSOLANS

WEB 2.0 AS VALUE-DELIVERY PLATFORMHELP ME, ENTERTAIN ME AND OR MAKE ME FEEL GOOD (EMOTIONAL 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 PLATFORMBREWTOPIA: BUILDING 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: WHAT’S NEXT?

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/research enquiries: paul.marsden@clickadvisor.com +44 777 95 77 248

clickadvisorinsight for innovation

clickadvisorinsight for innovation

About Clickadvisor★ Hello, we’re Clickadvisor, a new digital insight agency that uses crowdsourcing

technology to help brands do market-led innovation

★ Instead of running traditional groups and interviews, we uncover needs, opportunities and solutions using online idea and design contests

★ Innovation Idea Contests

★ Trendspotting Contests

★ Brand Naming Contests

★ Pack/Cover Design Contests

★ Our idea and design contests help brands do collaborative innovation, delivering creative insight fast and cost-effectively

clickadvisorinsight for innovation

About the SpeakerPaul Marsden is director at clickadvisor.com, a digital insight agency specialising in innovation

An experienced market researcher, career highlights to date include:

★ Product management, sales and market research at Astra Zeneca★ PhD in social psychology (social influence) - 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 innovation research projects for BBC, LVMH, Nokia, Economist, and Unilever

★ Co-founded two successful digital marketing agencies (Spheeris (online communication) and Brainjuicer (online research))

★ Co-authored popular business book ‘Connected Marketing’

Paul’s latest venture, clickadvisor.com, helps brands do collaborative innovation through brand-sponsored idea and design contests

clickadvisorinsight for innovation

FlipsideA reformed bodybuilder, Paul is a diving fanatic and a qualified divemaster