Beyond Web2.0yShaping The Future Of Your Company Using Online Research Communities

February 27th 2009Peter HarrisPeter HarrisNational President AMSRS, Managing Director Colmar Brunton

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Wh i What is a market research market research

online community

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“It’s research Jim but not as we know it ”

Well said.

but not as we know it.

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Private, branded, online space , where 100’s or 1000’s of invitedconsumers or prospects regularly spend time generating ideas, offering p p g y p g g , gadvice to you and to one another, sharing experiences and feelings, discussing trends, and helping you figure out your marketing and business issues.

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Simply Put....

“Ongoing dialogue with the people that will help you shape the people future of your company”Forrester Research

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All departments from A private branded online it i di l f d Your communities ti ithyour company can engage and benefit from the community community is a dialogue focused on improving your offering conversations with your brand

Marketing InnovationResearch Retail BrandBrand

Sales Strategic Planning CommunityCustomer Service HR

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What are the featuresmarket research market research

online community

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Member Qualification

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Branded

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Discussions

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Polls

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Surveys

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Activities

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Online Focus Groups

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Analysis & Reporting

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WhWhymarket research market research

online community

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MROC can lead to new ideas, better products and more relevant messagesmore relevant messages

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Dells IdeaStorm Community

Community results at a glanceCommunity results at a glance• 1 Customer has saved Dell $1million in support costs• 9,000 ideas contributed• 4 000 comments

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• 4,000 comments• 120 ideas put into practice

http://au.youtube.com/watch?v=Y0SOXW_K56w

Starbucks

Community results at a glance• 50 000 ideas submitted in first 4 months

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50,000 ideas submitted in first 4 months• Thousands of blog posts and customer conversations about the brand

Mini-USA

Community results at a glance• 75% of mini owners in the US are part of the online community.• 50% of all sales leads are generated through the social media marketing.• Cost per lead on site is $15‐20; in the showroom it’s closer to $800

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• Cost per lead on site is $15‐20; in the showroom it s closer to $800.• In 2003 the site generated 12,000 qualified leads (target through all avenues was 25,000).• 53% of the growth in consumer advocacy was realised in growth in revenue from sales.

Obama

Community results at a glance• 500 million blog postings mentioned Obama vs. 150 million mentioning McCain

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500 million blog postings mentioned Obama vs. 150 million mentioning McCain• Obama had 844, 927 MySpace friends vs. McCain’s 219,404• Obama gained over 10,000 new MySpace ‘friends’ in the 24 hours leading up to election day.

Case Study: Easy JetEurope’s 4th largest airlineLow cost + customer advocacy proposition165 aircraft / 400 routes / 28 countries / 38m+28 countries / 38m+ passengers (2007) / 1,050+ daily departuresVi i T b th b t lVision ‐To be the best low fares airline in the world

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“Our whole brand is created out of customer contact and the experience customers have with us therefore our success isexperience customers have with us – therefore our success is based on listening to them”

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- Stelios Haji-Ioannou, EasyJet founder and Serial Entrepreneur

SituationInsights to innovate more rapidly and keep up with the fast evolving airline market placeHarness customer intelligence to inform better decision makingLow cost / efficient / real time tool required to supportLow cost / efficient / real time tool required to support business model

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ActionsDeveloped private brand community2,000 participants p pCustomers who have flown easyJet in the last 12 monthsNew Topics introduced each week90 i i l 6 h90 topics in last 6 monthsRecent topics include:

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Example Topic: Boarding Processes

Challenge: easyJet had seen year on year improvements across the majority of key customer satisfaction measuresacross the majority of key customer satisfaction measures with exception of the boarding process.

There was a need to understand customer perceptions of the boarding process in more detail, what is preventing improvement and how should easyJet be addressing these.

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Example Topic: Boarding Processes

Discussion Online post in community

Analysis & reportfeedbackprototype

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ConclusionsBlueprint for ongoing dialogue with easyJet customersCost benefits of approach ‐ re‐assessment of research ppplanning process More opportunity for research coverage/dialogue Indication of how we will talk to customers in the futureIndication of how we will talk to customers in the future It has further highlighted the need for client and agency research teams to work differently.

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Operating in a silo without customer input can leadto problemsto problems

31Adapted from Forrester Research presentation ‘Customer Collaboration’

Marketers today still do not collaborate enough withconsumers throughout innovation processesconsumers throughout innovation processes

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But wait! Consumers don’t know what they want!

“H d I k d d t ll“Had I asked end customers, all they would have said is that they need a faster horse.”Henry Ford

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Marketers have a variety of tools and techniquesbeyond simply asking a questionbeyond simply asking a question

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Consumers are willing to participate in online company communities company communities

Of online adults say they areOf online adults say they are willing to participate company online communities to develop products & services p

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Your Source; Australians 18+; online users

Willingness spans a variety of areas

Getting a behind‐the scenes look atHaving a direct impact on the company

58%

Interacting with other community members48% the‐scenes look at the company

61%58%

Interacting with d i i48%

Previewing/Input on new product's/servicesGiving input on advertising/marketincompany decision makers

49%What would be

of interest if you joined a brand

community? new product s/services before anyone else84%

g/g campaigns68%Other

4%

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Your Source; Australians 18+; online users; say they are willing to participate in company online communities

MROC Pays Off

Customer Better products

& services• Understanding More efficient

innovation / NPD• Testing ideas li i hCustomer

engagement, advocacy & loyalty• Showing loyal h

Customer

acquisition• Learning why customer challenges, needs, and ideas• Gaining new perspectives onearlier in the development process to get cheaper and more real‐time

customers that their opinions matter• Empower people through thenon‐customers aren’t buying from you• Engaging new target segmentsperspectives on the overall experience real time feedback• Understanding interest levels to prioritize new

through the ability to impact decisions through ownership in the processtarget segments early to transition them to future buyerspinnovation initiatives p

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How does it compare to other forms of to other forms of

market research

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• More research, for less (rule of thumb: twice the research at half the cost)F t• Faster responses• Reduced surveying costs• Richer quality of responses• More brand contact with marketing partners / stakeholders• Refocus and realign the organisation around the customer

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Focus Group Online CommunityMedium In person OnlineParticipant Size 8‐12 100s‐1000spRespondent Bias Medium LowTime Frame 2 hours YearsTurnaround Time Weeks‐Months Hours‐DaysGeography Metro WorldwideCost Variable FixedCost per Response High LowM h d l Q li i Q li i &Methodology Qualitative Qualitative & Quantitative40

What Works

1. Clear communication2 Active company participation2. Active company participation3. Engaging content – rich media4. Showing impact of participation4. Showing impact of participation5. Ceding some control of the agenda6. Regular contact – weekly or fortnightlyg g7. Using a variety of tools8. Company wide involvement & partner support9. Rewarding the community – discounts, invitation to special events41

What Doesn't

1. Not having clear objectives2 Being absent You must show‐up2. Being absent. You must show‐up3. Not recognising contributions 4. Not being conversational4. Not being conversational5. Not being transparent6. Not demonstrating actiong7. Treating people as respondents to research8. Not having the Your Community platform and team in your corner

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Research communities offer fresh insights for accelerated innovationaccelerated innovation. At the end of the day, it should connect you with your communityy y

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Your Community

Join the Conversation

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