the friendship model™

FRIENDSHIP

MODEL

HOW TO BUILD BRAND ADVOCACY IN A CONSUMER-DRIVEN WORLDTHE

A SELF-GUIDED ORIENTATION BY BRANDON MURPHY

A new business tool?

A positioning for the agency?

A belief about marketing?

A philosophy for how we work?

A measure of our success?

SO, WHAT IS IT?

YES

YESThank you

J/K

Let’s start with the first question...

why did we create it?

Let’s start with the first question...

why did we create it?

[BECAUSE WE HAD TO]

In case you haven’t heard, we have a bit of a sordid past...

GOT IT ?

Well, boiled down:

we were a divided culture

split between two o!ces

with no united perspective

and no common method for doing what we do

(+)

we were falling o" the grid

cast as a regional agency

who specialized in retail

...NOT who we wanted to be.

and...We were trying to change the way we do business....just like every other ad agency who existed before web 2.0

But the real problem...

Source: Microsoft Digital Advertising Solutions

Click to watch video

She’s a consumer.He’s an advertiser.All she wants is genuine a!ection.All he gives is loyalty reduction.

Source: Microsoft Digital Advertising Solutions

People want brands that...

...more like friends than salespeople

ACT

And when brands DO, people talk:

Brands perceived to act on their customers’ behalf have 44% more advocates*[ ]

*22squared Friendship Model Research

So we need to help brandsDO

To get people talking...

BUT...

... we needed to create

relationships worth talking about.

We needed to turn our original way of marketing on it’s head...

Literally

AWARENESS

PURCHASE

[OLD]

PREFERENCE

ADVOCACY

PURCHASES

RELATIONSHIPS

[NOW]

does an agency create relationships worth talking about?

HOW

that good brands are like people.

REALIZE,

ARE THE SAME

The actions that make people great friends

that cause people to advocate for brands

[“you can make more friends in 2 months by being interested in other people than in 2 years by making other people interested in you.”

- Dale Carnegie

]

Think about it...

...what do friends do?

H AV E C H E M I S T R Y

REMAIN AUTHENTIC

ACT TRANSPARENT

A R E E M P A T H E T I C

SUPPORT EACH OTHER

SPEND QUALITY TIME

S H A R E A P O V

GIVE MORE THAN GET

S T A Y I N T O U C H

INSPIRE EACH OTHER

FRIENDSFRIENDS

Makes sense, right?

But how do we put that theory in action?

FRIENDSHIP

State of being a friend

Someone you know and trust

A member of the same group/nation

Allied in a struggle, cause or movement

MODEL

FRIENDSHIP

State of being a friend

Someone you know and trust

A member of the same group/nation

Allied in a struggle, cause or movement

An example of a behavior; a philosophy lived out

Statistical method for accomplishing something

A compass that points you in the right direction

A belief that never lets you down++

[OUR PURPOSE]

Increase the number of advocates

[OUR PURPOSE]

BIGGER

SHAREHOLDER

EVANGELISTRECOMMENDER

MARGINALCUSTOMER

DISSATISFIEDCUSTOMER ACTIVELY

AGAINST

REPEAT SATISFIED

ADVOCATES BUYERS CRITICS

Here’s how we size up advocacy:

% of brand’s customers who are...

TA = A - C

TRUE ADVOCACY

TA = A - CADVOCATES CRITICS

TA = A - C

NOTE: We’ve done lots of research on this...on 180 brands with over 40,000 people

TA = A - C

TA = A - C

Are advocates worth more than other customers?$

YES(THE SHORT ANSWER)

44

TA = A - C

Buy more

Talk and share more

Recommend more

WHAT THEY DO

Spend levels

Conversation rates

Recommendation rates

WHAT WE MEASUREADVOCATES

When advocates talk, brands growFACT :

GROWTH

TRUE ADVOCACY

seriously, check it out...

*Growth index combines revenue growth, profit margins and operating income growth over a three-year period, from 05 - 07

SOURCE: 22squared Apparel Retail White Paper

APPAREL RETAILERS

Average annual growth rate from 05 - 07

SOURCE: 22squared Wireless Provider White Paper, 2008

WIRELESSPROVIDERS

Average annual passenger revenue growth rate from 05-07

SOURCE: 22squared Airline White Paper, 2009

AIRLINES

does the Friendship Model help us grow advocacy for brands?

Play a more meaningful role in their life

Create momentum, get people talking more and moving toward the brand

Identify the actions the brand must take to increase advocates

1) 2) 3)

HOWROLES ACTIONS MOMENTUM

Play a more meaningful role in their life

1)

ROLES

The better friend you are, the more customers talk

Understand the role a brand play’s in the life of the customer and deepen it.[ ]

FACT :

SOUL MATE

CLOSE FRIEND

NICHE FRIEND

NEW FRIEND

ACQUAINTANCE

FAMILY FRIEND

DEFAULT

FLING

FORCED

351 Index

A unique connection; a brand you can’t live without

SOUL MATE

CLOSE FRIEND

NICHE FRIEND

NEW FRIEND

ACQUAINTANCE

FAMILY FRIEND

DEFAULT

FLING

FORCED

Inner-circle, depend on, always there.

351 Index

A unique connection; a brand you can’t live without

SOUL MATE

CLOSE FRIEND

NICHE FRIEND

NEW FRIEND

ACQUAINTANCE

FAMILY FRIEND

DEFAULT

FLING

FORCED

Familiar, in a narrow context, but in a restrictive way.

143 Index

A unique connection; a brand you can’t live without

Inner-circle, depend on, always there

SOUL MATE

CLOSE FRIEND

NICHE FRIEND

NEW FRIEND

ACQUAINTANCE

FAMILY FRIEND

DEFAULT

FLING

FORCED

Still new, but on the road to becoming closer

320 Index

A unique connection; a brand you can’t live without

Inner-circle, depend on, always there

Familiar, in a narrow context

SOUL MATE

CLOSE FRIEND

NICHE FRIEND

NEW FRIEND

ACQUAINTANCE

FAMILY FRIEND

DEFAULT

FLING

FORCED

Ambivalent, no expectations and little reward

143 Index

A unique connection; a brand you can’t live without

Inner-circle, depend on, always there

Familiar, in a narrow context

On the road to becoming closer

SOUL MATE

CLOSE FRIEND

NICHE FRIEND

NEW FRIEND

ACQUAINTANCE

FAMILY FRIEND

DEFAULT

FLING

FORCED

By association or inheritance, not solely your choice

286 Index

A unique connection; a brand you can’t live without

Inner-circle, depend on, always there

Familiar, in a narrow context

On the road to becoming closer

Ambivalent, no expectations

SOUL MATE

CLOSE FRIEND

NICHE FRIEND

NEW FRIEND

ACQUAINTANCE

FAMILY FRIEND

DEFAULT

FLING

FORCED

A short-time experiment, likely to happen only once

177 Index

A unique connection; a brand you can’t live without

Inner-circle, depend on, always there

Familiar, in a narrow context

On the road to becoming closer

Ambivalent, no expectations

By association or inheritance

SOUL MATE

CLOSE FRIEND

NICHE FRIEND

NEW FRIEND

ACQUAINTANCE

FAMILY FRIEND

DEFAULT

FLING

FORCED

Lack of options, out of proximity or avoidance.

210 Index

A unique connection; a brand you can’t live without

Inner-circle, depend on, always there

Familiar, in a narrow context

On the road to becoming closer

Ambivalent, no expectations

By association or inheritance

Short-time experiment

SOUL MATE

CLOSE FRIEND

NICHE FRIEND

NEW FRIEND

ACQUAINTANCE

FAMILY FRIEND

DEFAULT

FLING

FORCED

No choice, feel trapped and want to escape.

231 Index

A unique connection; a brand you can’t live without

Inner-circle, depend on, always there

Familiar, in a narrow context

On the road to becoming closer

Ambivalent, no expectations

By association or inheritance

Short-time experiment

Lack of options, proximity or avoidance

Remember...

...it’s about BEHAVING like a friend.

IT’S NOT ABOUT BEING FRIENDLY

Identify the actions the brand must take to increase advocates

2)

ACTIONS

The more brands behave like friends, the more customers return the favor

Brands that are perceived to act on their customer’s behalf have 44% more advocates than brands that do not.*[ ]

FACT :

*22squared Friendship Model Research

H AV E C H E M I S T R Y

REMAIN AUTHENTIC

ACT TRANSPARENT

A R E E M P A T H E T I C

SUPPORT EACH OTHER

SPEND QUALITY TIME

S H A R E A P O V

GIVE MORE THAN GET

S T A Y I N T O U C H

INSPIRE EACH OTHER

FRIENDSFRIENDS

H AV E C H E M I S T R Y

REMAIN AUTHENTIC

ACT TRANSPARENT

A R E E M P A T H E T I C

SUPPORT EACH OTHER

FRIENDSSPEND QUALITY TIME

S H A R E A P O V

GIVE MORE THAN GET

S T A Y I N T O U C H

INSPIRE EACH OTHER

HAVE CHEMISTRYcreate a visceral spark or a gut reaction

FIREWORKS FORCED

H AV E C H E M I S T R Y

REMAIN AUTHENTIC

ACT TRANSPARENT

A R E E M P A T H E T I C

SUPPORT EACH OTHER

SPEND QUALITY TIME

S H A R E A P O V

GIVE MORE THAN GET

S T A Y I N T O U C H

INSPIRE EACH OTHER

REMAIN AUTHENTIC

FRIENDS

Original, real and distinctly meaningful

FOR REAL FOR NOT

H AV E C H E M I S T R Y

REMAIN AUTHENTIC

ACT TRANSPARENT

A R E E M P A T H E T I C

SUPPORT EACH OTHER

SPEND QUALITY TIME

S H A R E A P O V

GIVE MORE THAN GET

S T A Y I N T O U C H

INSPIRE EACH OTHER

FRIENDS

ACT TRANSPARENT

FRIENDS

Be honest and have clear intentions

CLEAR HIDDEN

H AV E C H E M I S T R Y

REMAIN AUTHENTIC

ACT TRANSPARENT

A R E E M P A T H E T I C

SUPPORT EACH OTHER

SPEND QUALITY TIME

S H A R E A P O V

GIVE MORE THAN GET

S T A Y I N T O U C H

INSPIRE EACH OTHER

FRIENDSARE EMPATHETIC

FRIENDSFRIENDS

Understand their needs desires and lives

GETS ME HASSLES ME

H AV E C H E M I S T R Y

REMAIN AUTHENTIC

ACT TRANSPARENT

A R E E M P A T H E T I C

SUPPORT EACH OTHER

SPEND QUALITY TIME

S H A R E A P O V

GIVE MORE THAN GET

S T A Y I N T O U C H

INSPIRE EACH OTHER

FRIENDSSUPPORT EACH OTHER

FRIENDSFRIENDSFRIENDSBe helpful, useful act on their behalf

THERE FOR PEOPLE THEY’RE PEOPLE?

SPEND QUALITY TIME

S H A R E A P O V

GIVE MORE THAN GET

S T A Y I N T O U C H

INSPIRE EACH OTHER

Provide talk-worthy immersive experiences

H AV E C H E M I S T R Y

REMAIN AUTHENTIC

ACT TRANSPARENT

A R E E M P A T H E T I C

SUPPORT EACH OTHER

FRIENDSSPEND QUALITY TIME

FRIENDSFRIENDSFRIENDSFRIENDSALWAYS CLEAR NEVER HEAR

SPEND QUALITY TIME

S H A R E A P O V

GIVE MORE THAN GET

S T A Y I N T O U C H

INSPIRE EACH OTHER

Common lifestyle belief system or attitude

H AV E C H E M I S T R Y

REMAIN AUTHENTIC

ACT TRANSPARENT

A R E E M P A T H E T I C

SUPPORT EACH OTHER

SHARE A POV

FRIENDSFRIENDSFRIENDSFRIENDSFRIENDSBELIEVE USE

SPEND QUALITY TIME

S H A R E A P O V

GIVE MORE THAN GET

S T A Y I N T O U C H

INSPIRE EACH OTHER

Provide value and meaning beyond the money spent

FRIENDSFRIENDSFRIENDSFRIENDS

H AV E C H E M I S T R Y

REMAIN AUTHENTIC

ACT TRANSPARENT

A R E E M P A T H E T I C

SUPPORT EACH OTHER

GIVE MORE THAN GET

A DEFINING EXPERIENCE A VACATION

FRIENDSSPEND QUALITY TIME

S H A R E A P O V

GIVE MORE THAN GET

S T A Y I N T O U C H

INSPIRE EACH OTHER

H AV E C H E M I S T R Y

REMAIN AUTHENTIC

ACT TRANSPARENT

A R E E M P A T H E T I C

SUPPORT EACH OTHER

Build anticipation, add value & communicateSTAY IN TOUCH

CARD CARRYING MEMBER ON THE SHELF

H AV E C H E M I S T R Y

REMAIN AUTHENTIC

ACT TRANSPARENT

A R E E M P A T H E T I C

SUPPORT EACH OTHER

SPEND QUALITY TIME

S H A R E A P O V

GIVE MORE THAN GET

S T A Y I N T O U C H

INSPIRE EACH OTHER

FRIENDS

Motivates you to be di!erent or betterINSPIRE EACH OTHER

BE DIFFERENT BE NORMAL

Tran

spar

ency

Authe

ntici

tySu

ppor

ts m

eEm

path

y

Qua

lity

time

Shar

ed P

OVCh

emist

ry

Insp

ires m

eGet

mor

e th

an I

give

Stay

s in

touc

h

-10

-5-4

-2

-10

-3

-7-8

0

-11

2)

ACTIONS AT&T IMPROVED THESE ACTIONS?

Category Mean

PERFORMANCE

WHAT IF...

2)

ACTIONS WOW, THIS...

advocacy increase

(07 customer count of 70MM)

(based on 3 per week)

(based on 10% conversion of 33.6MM)new customers a month

Average customer revenue: $606.00

conversations/week

incremental advocates

4%

2.8mil l ion

8.4

3.4

mil l ion

mil l ion

BIGTHOSE ARE

NUMBERS.

Create momentum, get people talking more and moving toward the brand

3)

MOMENTUM

STOPPED TALKING TO BORED TO TALK TALKING

3)

MOMENTUM

FADING STABLE GROWING

STOPPED TALKING TO BORED TO TALK TALKING

Hawaii

Costa RicaVirgin Islands

Florida Keys

Mexico

Jamaica

Belize14

45

242118

-6

-18

3)

MOMENTUM

FADING STABLE GROWING

119

189

52

63

90

Costa Rica social media volume compared with 6 competitors

HAVE ADVOCATES THAT AREN’T LOUD ENOUGH...COSTA RICA:

GROW REVIEWS/POSTS

: :

NOW POTENTIAL

3)COSTA RICA COULD INCREASE THE INFLUENCE OF THEIR ADVOCATES?WHAT IF...MOMENTUM

1 Visitor influences 1 future visit 1 Visitor influences 1.5 future visits

350,000

: :

NOW POTENTIAL

$1,000 $350MMIncremental Visitors

Based on estimated 700,000 US citizens/year

Source: US State Dept.

Estimated from 2007 int’l travel visitors and receipts

Source: UNWTO

Estimated from 2007 int’l travel visitors and receipts

Source: UNWTO

X =Avg. Rev./Person Incremental Rev.

3)small increase = BIG gainsMOMENTUM

BIGAGAIN...THOSE ARE

NUMBERS.

TAKE A BREATH

Let’s get back to the second half of our purpose.

Increase the number of advocatesBIGGER

[OUR PURPOSE]

WE JUST COVERED THIS

Magnify their voice and increase their impact

[OUR PURPOSE]

NOW LET’S TALK ABOUT THIS:

LOUDER

3Imperatives for LOUDNESS

BE OF SERVICE

PROPAGATE

ENGAGE

Actions speak louder than words

Light the fuse

Engage: Right time, right place, right context

2)

1)

3)

BE OF SERVICE1)

Purpose (over positioning)

Content (that builds and spreads)

Experiences (that spark advocacy)

Utilities (be useful)

Actions (do more and do good)

Participation (power of social connection)

Actions speak louder than words

Have a purpose that’s bigger than your product or service.

Entertain and provide content that people can use, influence,

adopt and adapt.

Create experiences worthy of participation and word of mouth.

Alternative Reality Game: Find the new ad. Win a solid gold dice.

Facebook Group for hints.

>

Marketing is the product: create things people can use and make

their lives better.

Hear your run. See your run. Connect with runners.

90% reco rate

>

Do things for consumers, and enable consumers to do

things for others.

Give customers a role in helping the brand succeed, allow them to participate

and they will advocate

PROPAGATELight the fuse

2)

PROPAGATION PLANNING

Plan not for the people we reach, but for the people that they reach

Early Majority Early AdoptersInnovators Late Majority Laggards

Broadcast Media: targets the majority

Early Majority Early AdoptersInnovators Late Majority Laggards

Broadcast Media: targets the majority

Propagation:Spreadable content

CREATIVESTIMULUS

1)

ImagesAudio AssetsVideo Assets

ProductBrand

What can we share that is interesting?

Plan for the content you don’t have.

Propagation Process

CREATIVESTIMULUS

MARKETINTELLIGENCE

Identify Fan CulturesUncover Connection

& Dialogue Points

1) 2)

ImagesAudio AssetsVideo Assets

ProductBrand

What can we share that is interesting?

Plan for the content you don’t have.

What innovator/ earlyadopter tribe can we

connect with?

Propagation Process

CREATIVESTIMULUS

MARKETINTELLIGENCE

Identify Fan CulturesUncover Connection

& Dialogue Points

1) 2) 3)

IDEAPROPAGATION

Blogger OutreachTribe MobilizationPublic Relations

ImagesAudio AssetsVideo Assets

ProductBrand

What can we share that is interesting?

Plan for the content you don’t have.

What innovator/ earlyadopter tribe can we

connect with?

How do we share the idea?

How do we get fans to work for us?

Propagation Process

CREATIVESTIMULUS

MARKETINTELLIGENCE

Identify Fan CulturesUncover Connection

& Dialogue Points

1) 2) 3) 4)

IDEAPROPAGATION

Blogger OutreachTribe MobilizationPublic Relations

PARTICIPATORYPLATFORM

YouTube UploadsWebsiteMobileBlog

ImagesAudio AssetsVideo Assets

ProductBrand

What can we share that is interesting?

Plan for the content you don’t have.

What innovator/ earlyadopter tribe can we

connect with?

How do we share the idea?

How do we get fans to work for us?

Build the platformand feed it with

interesting content.

Propagation Process

CREATIVESTIMULUS

MARKETINTELLIGENCE

Identify Fan CulturesUncover Connection

& Dialogue Points

FEEDBACKPOINTS

Email AccountsVoicemailFacebookMySpace

1) 2) 3) 4) 5)

IDEAPROPAGATION

Blogger OutreachTribe MobilizationPublic Relations

PARTICIPATORYPLATFORM

YouTube UploadsWebsiteMobileBlog

ImagesAudio AssetsVideo Assets

ProductBrand

What can we share that is interesting?

Plan for the content you don’t have.

What innovator/ earlyadopter tribe can we

connect with?

How do we share the idea?

How do we get fans to work for us?

Build the platformand feed it with

interesting content.

Monitor thefeedback andparticipation.

AdSpace Pioneers (Reworked)

Propagation Process

A QUICK EXAMPLE: BWW

EXTENDING THE USE OF OUR ADVERTISEMENT

EXTENDING THE USE OF OUR ADVERTISEMENT

Bu!alo CircleExclusive Email EXCLUSIVITY IS SOCIAL CURRENCY

Give our fans a sneak peekSomething to share to their friends

EXTENDING THE USE OF OUR ADVERTISEMENT

EXCLUSIVITY IS SOCIAL CURRENCYGive our fans a sneak peekSomething to share to their friends

USE FOOTAGE ON THE EDITING FLOORNow we have a platform to leverage additional content that the client paid a lot of money to get

EXTENDING THE USE OF OUR ADVERTISEMENT

EXCLUSIVITY IS SOCIAL CURRENCYGive our fans a sneak peekSomething to share to their friends

USE FOOTAGE ON THE EDITING FLOORNow we have a platform to leverage additional content that the client paid a lot of money to get

EXISTING CULTUREPeople like to share Bad Calls on YouTube

Point our audience to these existing videos

EXTENDING THE USE OF OUR ADVERTISEMENT

Prior to Broadcast

“Bad Calls” shared by others that we neither

claim nor deny involvement

7 Days

Prior to Broadcast

3 Days

UGC Tie-in

SHARING TIMELINE

Upon Broadcast

ENGAGEEngage: Right time, right place, right context

3)

Define your target and their best relationship with the brand

Find the best times to engage with them

Determine the value the brand can add to their life during that time

Determine the ultimate action the brand will take

OOH/SMS

MobileInstant Messaging

Rich Media

Paid Search

Gaming

Social Networks

WAP

Social ToolsSocial Networks

Applications

SweepstakesWidgetsGames

Quizzes

Bracket Challenge

BehavioralTargeting

Social Media

O"ers+CouponsEmail

Rich MediaSocial Networks

Event Alerts

WidgetsDisplay Ads

Social Networks

Mobile Twitter

E-Cards OOH/SMS

Blogging

IM

Free WiFiVideoEvents In-Game

CalendarIn-Store Digital Messaging

Digital/Social Media

Focus

Identify the best channels

Tactics

Featured Drinks

Takeout

Boneless Thursdays

Night Hunger

Beer of the Month

Featured Foods

Sauce Posters

Wing Tuesdays

Website Games

WT Get Here Early Campaign

Website Boss Button

Local Lunch Programs

B2B Local

TV/Radio

WT/BT Messaging Campaigns

Touchtunes

Spring/HolidayGift Card

Cable Added ValueCBS PartnershipLocal TV/Radio

ESPN PartnershipNFL RadioLSM Sports Sponsorships

Football Pick ‘Em

Fantasy Football

Competition Ideas

Bracket ChallengeBuzztime

Local Sports Partnerships

Golden Tee, Silver Strike, Etc.

BWW Film SchoolBlazin’ Challenge

Creatively use the channel to make a connection and encourage conversation

So this is how we use the Friendship Model

Increase the number of advocatesBIGGER

So this is how we use the Friendship Model

Increase the number of advocatesBIGGER

So this is how we use the Friendship Model

LOUDERMagnify their voice and increase their impact

WE BELIEVEin it so much, that we changed our name...

like getting a tattoo only better.

86

137

169

206

244

274

317

352378

403

Accumulation of Friends Over Time

6 to 17 25 to 29 30 to 34 35 to 39 40 to 44 45 to 49 50 to 54 55 to 59 60 to 64 65 to 7318 to 24

Age Group

Source: June 2007 National Consumer Panel Study Among Census-Weighted SampleSample size = 1,168 (Answers are accurate to +/- 2.5% at 90% confidence level)

Our research told us that people make an average of 484 friends in their lifetime.[ ] 484

THE SQUARE ROOT OF FRIENDSHIP

THANK YOU