Slide 1
of TRUST
in a03.12.11
Social Age
The Crisis
It is safe?Watch this clip from the movie Marathon Man (1976)
SOCIAL MEDIA CONTINUES ITS METEORIC RISE248 MMUNIQUE MONTHLY VISITORS TO TOP 8 SNS SITES61%INTERNET USERS WITH AN SNS PROFILE23%ALL INTERNET TIME SPENT ON SNS41%YAG48%YAG50%YAG
Source: Nielsen NetView - June 2009-June 2010
CONSUMER DECISION MAKING IS BECOMING INCREASINGLY SOCIAL
I LIKE ITDo I look good? I really love this dress. I dont think pictures do it justice.
84%LIKE IT
I HATE ITPhoto Credit: Kris Krg
TRUST IN THE PEOPLE WE KNOW HAS ERODEDCREDIBILITY OF INFORMATION SOURCES ABOUT COMPANIESTV NEWSRADIO NEWSNEWSPAPERSFRIENDS/PEERS0%10%20%30%40%50%
20082010
Source: Edelman Trust Barometer, 2010
60% OF PEOPLE REPORT NEEDING TO HEAR SOMETHING ABOUT A SPECIFIC COMPANY 3-5X TO BELIEVE IT IS TRUEAND WE REQUIRE MORE PROOFSource: Edelman Trust Barometer, 2010
TRUST AND SOCIAL MEDIA OPINIONS ONLINEMORE OPINIONS AND TRUST LESSMORE OPINIONS AND TRUST MORE40%18%UNSURE ABOUT THE NUMBER OF OPINIONS BUT ITS GETTING HARDER TO TELL41%Source: Sapient Global Trust Survey March 2011
THREE POSSIBILITIES
ROCK THE VOTE!TWEET 1, 2 OR 3 TO #quest4trust NOW1NOT A PROBLEM:TRUST IS NOT AS IMPORTANT AS IT USED TO BE2MAYBE A PROBLEM3YES, ITS A PROBLEM:TRUST HAS ERODED - QUESTION IS WHY & WHAT TO DOITS TOO EARLY TO TELL
THE AUDIENCE HAS SPOKEN!SOURCE: COMPILATION OF AUDIENCE VOTES VIA LIVE TWEETS DURING THE PRESENTATION 1NOT A PROBLEM:TRUST IS NOT AS IMPORTANT AS IT USED TO BE2MAYBE A PROBLEM3YES, ITS A PROBLEM:TRUST HAS ERODED - QUESTION IS WHY & WHAT TO DOITS TOO EARLY TO TELL6%38%56%
WHAT IS TRUST?
CONFIDENCE IN THE FUTURE IN RELATION
TO SOMETHING OF VALUE
WHY DOES TRUST EXIST?
TO COMMUNE.TO LIVE.TO PROTECT WHATS VALUABLE.
RISK SHAPES TRUST
SELF-ACTUALIZATION:achieving ones full potential including creative activitiesESTEEM NEEDS:prestige and feeling of accomplishmentBELONGINGNESS AND LOVE NEEDS:intimate relationships, friendsSAFETY NEEDS:security, safetyPHYSIOLOGICAL NEEDS:food, water, warmth, restSELF-FULFILLMENT NEEDSPSYCHOLOGICAL NEEDSBASIC NEEDS
Source: A Theory of Human Motivation, 1943 - A. Maslow
THE MOB RULES
TRUST IS AN AGGREGATECOMPANY
CONSUMER
EXPECTATIONSPRODUCTPLACESERVICEPRICEPROMOTIONCONNECTIONBRANDPRADVERTISINGFRIENDSSOCIAL MEDIAEMOTIONALRATIONALPSYCHOLOGICALPHYSICAL
REPUTATIONBELIEFSASSOCIATIONSEXPERIENCESHOPPINGCONSUMPTION
HOW TRUST WORKSOWNERSHIP /EXPERIENCEEXPECTATION
TRUSTPUT IN
$$$PHYSICALPSYCHICGET OUT
RATIONALEMOTIONAL
IT FRAMES THE VALUE PROPOSITIONBENEFITSCOSTS VALUE = VS.PUT IN
GET OUTTRUST
FUTURE PROOF IS A TRUST PLAYBENEFITSCOSTS VALUE = VS.PUT IN
GET OUTTRUST
TRUST ISFEELING GOOD.Photo Credits: Heinrich Klaffs
AN ECONOMIC GALE OF DARWINIAN PROPORTIONSECONOMIC RISK EVER-PRESENT DESPITE BEST EFFORTS TO MANAGE IT.STANDING ON GUARD.ERA OF READINESSRISK THOUGHT TO BE MANAGEABLE WITH HIGH-TECH MACRO-ECONOMIC TOOLS.INDULGING RISKERA OF INDULGENCERISK ABRUPTLY RETURNS UNEXPECTEDLY CREATING UNCERTAINTY,REASSESSING EXTERNALITIESERA OF CONSEQUENCES
WW II ENDSMID 1980s2008
Source: A Darwinian Gale - The Futures Group 2010
The new consumer psychology on the rise around the world is one of networks and prioritization, of explicitly pricing in consequences and of giving more than lip service to being resourceful and and vigilant to downside risks This is the global zeitgeist now aborning. WELCOME TO THE ERA OF CONSEQUENCESSource: A Darwinian Gale - The Futures Group 2010
OTHER MACRO FORCES ADD TO THE CONSEQUENCE UNDERCURRENT
ECOLI IN FOOD SUPPLYTOXIC DOG FOODLED PAINT IN TOYSOBESITYCONSUMPTIONLAID OFF OR WORK SCALED BACKHOMES WORTH LESS THAN DEBTRETIREMENT FUNDS DECIMATEDECONOMICSEVERE WEATHER AND DAMAGEBIRD FLU, SWINE FLUGLOBAL WARMING9/11ENVIRONMENTMORTGAGE COLLAPSEINVESTMENT MELTDOWNAUTO INDUSTRY BAILOUTSINSTITUTIONS
EFFECTS ON CONSUMER BEHAVIORThe decision calculus of consumer choice will be different. The process of arriving at decisions will be different, even when the outcomes are the same.
Consumers are redefining what value means to them.
Source: A Darwinian Gale - The Futures Group 2010
PUT INHAS EVOLVED THE VALUE PROPOSITIONBENEFITSCOSTS VALUE = VS.
GET OUTTRUST
HAS EVOLVED THE VALUE PROPOSITIONINGREDIENTSPROCESSINGFOOTPRINTHOW ITS MADEBENEFITSCOSTS VALUE = VS.
GET OUTTRUST
TAKENAWAY
PUT IN
SOCIAL MEDIA HAS A CHARACTER ISSUE
SKEWED CONTRIBUTIONS
NEGATIVEPOSITIVENEUTRALMOTIVATION / VOLUME OF COMMENTSSENTIMENT CHARACTER
OPAQUE INTEGRITY
NEGATIVEPOSITIVESENTIMENT CHARACTERNEUTRALMOTIVATION / VOLUME OF COMMENTS
TALK
ISCHEAP
REFERRAL MODERATED BY REPUTATIONAL RISK
TRUST IN SOCIAL MEDIA OPINIONS: MANY DRIVERS, CONTEXT SPECIFICAGGREGATE CONSENSUSSOURCE FAMILIARITY
EXPERTISEINDEPENDENCEOPINION ORIGIN
Source: Sapient Global Trust Survey March 2011
AGGREGATE CONSENSUSSOURCE FAMILIARITY
EXPERTISEINDEPENDENCEOPINION ORIGINSOMEONE YOU KNOW?
SOMEONE YOU DONT KNOWVSTRUST IN SOCIAL MEDIA OPINIONS: MANY DRIVERS, CONTEXT SPECIFIC
Source: Sapient Global Trust Survey March 2011
AGGREGATE CONSENSUSSOURCE FAMILIARITY
EXPERTISEINDEPENDENCEOPINION ORIGIN
SOMEONE YOU KNOW?
SOMEONE YOU DONT KNOWVSTRUST IN SOCIAL MEDIA OPINIONS: MANY DRIVERS, CONTEXT SPECIFICEXPERIENCE?
WHAT SOMEONE HAS SEEN OR HEARD?VSSource: Sapient Global Trust Survey March 2011
WHICH RECOMMENDATION DO YOU TRUST MOST WHEN CHOOSING A HOTEL IN A NEW CITY?71%CLOSEST FRIENDS OR FAMILY BASED ON WHAT THEYVE HEARD 29%A HIGH SCHOOL FRIEND ON FACEBOOK YOU HAVENT SEEN IN A WHILE, WHOS STAYED THERE
Source: Sapient Global Trust Survey March 2011
SALIENCE IS SHAPED BY A CONTEXT THATS UNCLEAR
FAMILIARITYUNDERSTANDINGEXPERT/AUTHORITY
PEOPLE WHO UNDERSTAND MEPEOPLEI LIKEWHAT LOTSOF PEOPLE LIKEPEOPLE LIKE ME41%ITS GETTING HARDER TO TELL WHICH OPINIONS ARE RELIABLE AND WHICH ONES ARENT.Source: Sapient Global Trust Survey March 2011
BRAND BEHAVIOR IN THE AGE OF PRISMATIC DISTORTION
OLD PARADIGM
41
NEW PARADIGM
BRAND RESIDUE
CUMULATIVE EFFECT?TRUST OR MISTRUST
WHY NOT AFFINITY / LACK THEREOF?RESONANCE / DEAFNESS?LOVE / HATE / INDIFFERENCE?
TRUST IS THE PRIME
WHAT TO DO?
GEAR UP BRAND COWBOYS(AND EMBRACE THE UNCERTAINTY)
BEHAVIOR VS WORDS DISINTERMEDIATION VS INTERMEDIATIONUSERS VS SPECULATORSOVER TIME VS POINT SPEND LESS ON SUPERBOWL ADS
MORE ON SUPERBAD SUPPORTAND
BEHAVIOR WORDS
VS
DISINTERMEDIATION
INTERMEDIATIONAND( ARE THE CROWDS REALLY ALL THAT WISE? )
TAKE ONE-TO-ONE TO THE NEXT LEVEL(DIRECT RESPONSE TO DIRECT FEEDBACK)
WHERES THE TWITTER ENTERPRISE DASHBOARD?
USERS SPECULATORS
VS
LIFETIME CUSTOMER CONVERSATIONS INCREASE LIFETIME CUSTOMER VALUEOVER TIME POINT IN TIMEVS
ONLINE REVIEWS AND BRAND FEEDBACK FIXED IN TIME
YOU RECENTLY PURCHASED / USED / VISITED
FEEDBACK HAS TO BE DIRECTLY SOLICITED AND INCENTED OVER LIFETIME OF RELATIONSHIP
HOW DO YOU FEEL NOW?OWNERSHIP / EXPERIENCE BASED SATISFACTION
People are finding social media opinion less reliable
Trust depends on a interrelationship of contextual factors which determine contents value
Marketers have an opportunity to forge a true one-to-one connection to build lasting value and earn trust
CHEERS!#quest4trust#kmacwithcheese
