bnc it chicago - customer acquisition 2.0

Jeff G. MolanderCEO

Molander & Associates Inc.jeff@molanderassoc.com

Jeff G. MolanderCEO

Molander & Associates Inc.jeff@molanderassoc.com

Customer Acquisition 2.0: Social Media & Consumer Empowerment

Customer Acquisition 2.0: Social Media & Consumer Empowerment

My ‘Personal’ Take-AwaysMy ‘Personal’ Take-Aways

• Use common sense – trust your instincts

• Create authentic, mutually respectful relationships

• Be fearless, experimental

• Build trust-centric models

• Embrace long-term thinking (sustainable business!)

• Let customers EXPERIENCE CHOICE!

• Use common sense – trust your instincts

• Create authentic, mutually respectful relationships

• Be fearless, experimental

• Build trust-centric models

• Embrace long-term thinking (sustainable business!)

• Let customers EXPERIENCE CHOICE!

and the biggie…

You Already Have the Answers

Marketers as Publishers

Experiential Marketing

Marketers as Publishers

Experiential Marketing

“To succeed, we need to stop standing between (consumers) and their content and actually be the content they want to see… With some exceptions, consumers do not want to watch content about your brand. But consumers will watch original programming that supports your brand, if it entertains.”

“To succeed, we need to stop standing between (consumers) and their content and actually be the content they want to see… With some exceptions, consumers do not want to watch content about your brand. But consumers will watch original programming that supports your brand, if it entertains.” Greg Verdino

Crayon

Or Not…Or Not…

Tom CoxFounder

Golfballs.com

Tom CoxFounder

Golfballs.com

“It’s just not that big a deal at this point. Your resources are better spent elsewhere…

Blogs are like the newsgroups of a decade ago -- they were there, but did they ever move the needle? No.”

GoalsGoals• Fundamentals

– Demystify & define: elements– Changes in customer behavior– Purchase influence

• Designing Experiences– Trust– Authenticity– B2B & B2C

• Fundamentals– Demystify & define: elements– Changes in customer behavior– Purchase influence

• Designing Experiences– Trust– Authenticity– B2B & B2C

Terms

• Social Media & Web 2.0

• Conversational Marketing

• Consumer Empowerment

• Word of Mouth & Buzz Marketing

• Alternate Reality

• Viral Narrative

• User Generated Content (UGC)

Elements of the Social WebElements of the Social Web

• Websites (text)– Blogging– Social networks (biz and personal)– Bookmarking (del.icio.us Ma.gnolia StumbleUpon)

• Multi-Media– Video

(amateur & pro, social networks, etc.)– Audio & podcasting

• Websites (text)– Blogging– Social networks (biz and personal)– Bookmarking (del.icio.us Ma.gnolia StumbleUpon)

• Multi-Media– Video

(amateur & pro, social networks, etc.)– Audio & podcasting

• Mobile– Opportunity is clear: 2.5

billion mobile phones – Less than 2/10 of a

percent of the total advertising spent worldwide

• Mobile– Opportunity is clear: 2.5

billion mobile phones – Less than 2/10 of a

percent of the total advertising spent worldwide

Source: Informa Telecoms & Media 2007Source: Informa Telecoms & Media 2007

Elements of the Social WebElements of the Social Web

• Collaborative– Shopping– Working

• Collaborative Narcissism – “Lifestreaming” & Micro-blogging– Multi-dimensional (mobile+Web)

• Collaborative– Shopping– Working

• Collaborative Narcissism – “Lifestreaming” & Micro-blogging– Multi-dimensional (mobile+Web)

Elements of the Social WebElements of the Social Web

Elements of the Social WebElements of the Social Web

R.S.S.R.S.S.

Elements of the Social WebElements of the Social Web

• Websites • Multi-Media• Collaborative

– Shopping– Working– Socializing

• Tech: RSS, Widgets, Java, Ajax

• Websites • Multi-Media• Collaborative

– Shopping– Working– Socializing

• Tech: RSS, Widgets, Java, Ajax

Experiential!Experiential!

What’s Changing?What’s Changing?

The New Reality

Dr. David WeinbergerAuthor, Speaker, Academic

“There is no marketfor your message.”

Social ‘Currency’Social ‘Currency’

Social ‘Currency’Social ‘Currency’• An alternate ‘Currency’ for the Web

– Consumer skepticism – Trust & authenticity– Word-of-mouth recommendations

• Influence• Challenges

– How to be trusted?– Authenticity requires transparency!– What are the tactics?

• An alternate ‘Currency’ for the Web– Consumer skepticism – Trust & authenticity– Word-of-mouth recommendations

• Influence• Challenges

– How to be trusted?– Authenticity requires transparency!– What are the tactics?

Trust as CurrencyTrust as Currency

Source: Nielsen 200726,486 internet users in 47 different countries

TrustTrust

TIMETIME

The New Reality

Jim StengelCMO

Proctor & Gamble

Jim StengelCMO

Proctor & Gamble

"Time is the most precious asset right now. If we can be worth their engagement, that's the highest benchmark for advertising."

ROI 4XTraditional Investments

ROI 4XTraditional Investments

Source: Forrester ResearchSource: Forrester Research

Time OnlineTime Online

Source: Online Publishers Association (Internet activity Index, January 2008)

• “Content” 43 %

• “Communications” 28.7 %

• “Commerce” 16.1 %

• “Community” 7.5 %

• “Search” 5.0 %

Content & Community Sites:Commercial Intent

Content & Community Sites:Commercial Intent

Source: Online Publishers Association (Internet activity Index, January 2008)

• “Content” + Community = 51 %

– Comparing

– Researching

– Gathering & sharing opinions

– CREATING & EXPERIENCING!

Designing ExperiencesDesigning

Experiences

Source: "Passionistas: The New Empowered Consumer" Conference September 2007

Source: "Passionistas: The New Empowered Consumer" Conference September 2007

Edwind WongDir. Customer Insights

Yahoo!

Edwind WongDir. Customer Insights

Yahoo!

"It is not (so much) about the consumer's trust in the brand, but rather… about building the brand out of the consumer's innate needs.”

"It is not (so much) about the consumer's trust in the brand, but rather… about building the brand out of the consumer's innate needs.”

Let’s Get RadicalLet’s Get Radical

Doc Searls

Co-author, The Cluetrain ManifestoFellow at Harvard’s Berkman Center for Internet & Society

Doc Searls

Co-author, The Cluetrain ManifestoFellow at Harvard’s Berkman Center for Internet & Society

“Advertising is about supply finding and ‘creating’ demand.

[There is] nothing wrong with that. At its best, it’s good and necessary stuff. But think about what will happen when demand can find and create supply.”

“Advertising is about supply finding and ‘creating’ demand.

[There is] nothing wrong with that. At its best, it’s good and necessary stuff. But think about what will happen when demand can find and create supply.”

Content + Community“Crowdsourcing”

Content + Community“Crowdsourcing”

$30,000,000 (2007)$30,000,000 (2007)

Secret Sauce of “Crowdsourcing?”Secret Sauce of

“Crowdsourcing?”

Emotions!Emotions!• Suppliers (who are customers)

– Approval of community– Financial rewards

• Community– Participatory– Cause-minded– Cool-minded

• Suppliers (who are customers)– Approval of community– Financial rewards

• Community– Participatory– Cause-minded– Cool-minded

What separates ‘content’ from ‘community’ when the community is

the content?

What separates customer & company when a community of customers IS

the company?

What separates ‘content’ from ‘community’ when the community is

the content?

What separates customer & company when a community of customers IS

the company?

Crowdsourcing!Crowdsourcing!

The world belongs to those companies that…

The world belongs to those companies that…

• Identify the right micro-verticals where customers engage deeply

• Activate new or existing customer communities that welcome advertiser participation

• Make the ‘network effect’ work for you through syndication & aggregation

• Think the way industrial designers think about ergonomics – for us, it’s form factors of media consumption

• Identify the right micro-verticals where customers engage deeply

• Activate new or existing customer communities that welcome advertiser participation

• Make the ‘network effect’ work for you through syndication & aggregation

• Think the way industrial designers think about ergonomics – for us, it’s form factors of media consumption

Jeffrey RayportFounder & Chairman

Marketspace LLC

Birds of a Feather…Birds of a Feather…

Examples ofContent/Community Sites

Examples ofContent/Community Sites

E-Commerce“Magalog” / Adver-cation

Exclusive Sponsorship

B2B Lead GenerationUsing RSS Publishing

B2B Lead GenerationB2B Lead Generation

• Publishing to – Existing customers hungry for content– Re-sellers

• RSS– Anyway customer wants it, when they want– Relevant content beyond products

• Delicately leveraging promotions

• Discovering ‘info consumption’ habits of customer segments

• Publishing to – Existing customers hungry for content– Re-sellers

• RSS– Anyway customer wants it, when they want– Relevant content beyond products

• Delicately leveraging promotions

• Discovering ‘info consumption’ habits of customer segments

Integrates with Lead GenProcess

Integrates with Lead GenProcess

Responders/Prospects

Responders/Prospects

Tele-qualification

Tele-qualification

QualifiedLead

QualifiedLead

Passed toReseller

Passed toReseller

MarketingMessage w/ CTA

MarketingMessage w/ CTA

RSS

Source: Jupiter Research, 2008 Source: Jupiter Research, 2008

• 25% of ALL Web shoppers are influenced

• 36% of ALL shoppers buy OFFLINE after being influenced by online communities

• 51% of Web shoppers age 18-24 are influenced to buy ONLINE

• 25% of ALL Web shoppers are influenced

• 36% of ALL shoppers buy OFFLINE after being influenced by online communities

• 51% of Web shoppers age 18-24 are influenced to buy ONLINE

Purchase Influence WithinWeb Communities

Purchase Influence WithinWeb Communities

What are They Doing?What are They Doing?

• CONTROLLING & EXPERIENCING

• Discovering

• Meeting

• Trading (barter, auctions, buying)

• Borrowing, cheating and stealing

• Sharing

• Creating!

• CONTROLLING & EXPERIENCING

• Discovering

• Meeting

• Trading (barter, auctions, buying)

• Borrowing, cheating and stealing

• Sharing

• Creating!

(using the Social Web)(using the Social Web)

“Passionistas”

• 43% spend 12 hours+ per week visiting sites related to their obsession

• 50% of consumers will consider buying if it’s associated with their passion

• 70% are making purchases based on experiences

• 43% spend 12 hours+ per week visiting sites related to their obsession

• 50% of consumers will consider buying if it’s associated with their passion

• 70% are making purchases based on experiences

Source: MediaVest, Yahoo and Conifer Research 2008Source: MediaVest, Yahoo and Conifer Research 2008

Allows them to feel different or

better about themselves

“You are interrupting their life. All advertising is unwanted.

So if you’re going to crash the party bring some Champagne with you.”

Bob ThackerOfficeMax Inc.

Jeff Molanderjeff@molanderassoc.com

Blog:jeffmolander.com

Jeff Molanderjeff@molanderassoc.com

Blog:jeffmolander.com