“Empowering Consumers with Experiences That Drive Profits” Jeff Molander at Loyola University...

SuddenlySuddenlySocialSocial

Jeffrey G. Molander

Molander & Associates Inc.

jeff@molanderassoc.com

Jeffrey G. Molander

Molander & Associates Inc.

jeff@molanderassoc.com

What Should Concern YouWhat Should Concern You

• Pre-crisis focus– Short-term revenue: Advertising – Reliance on old (media) model for wealth – Social engineering posing as innovation

• Search & affiliate marketing• Spam, adware -- the stuff that REALLY works

– Endorsed & supported by marketers who could afford it!

• Pre-crisis focus– Short-term revenue: Advertising – Reliance on old (media) model for wealth – Social engineering posing as innovation

• Search & affiliate marketing• Spam, adware -- the stuff that REALLY works

– Endorsed & supported by marketers who could afford it!

The OpportunitiesThe Opportunities

Kill advertising as we know it & make something better!

Kill advertising as we know it & make something better!

Doc SearlsCo-author, The Cluetrain Manifesto

Fellow at Harvard’s Berkman Center for Internet & Society

Doc SearlsCo-author, The Cluetrain Manifesto

Fellow 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.”

The OpportunitiesThe Opportunities

Content + Community“Crowdsourcing”

Content + Community“Crowdsourcing”

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

“It was never about the computers. It was never about the applications. It was never about the sales channels. The Internet was always about the people, which is why email, IM, multi-player gaming and similar developments have always been the ‘killer apps’ of the social Web.”

Brian ClarkGMD Studios

Content MarketingContent 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 VerdinoCrayon

Greg VerdinoCrayon

Look Familiar?Look Familiar?

Look Familiar?Look Familiar?

Look Threatening?Look Threatening?

FundamentalsFundamentals

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

Elements of the Social WebElements of the Social Web

• Mobile– Opportunity is clear: 2.5

billion mobile phones – Less than 2/10ths of a

percent of the total advertising spent worldwide

• Mobile– Opportunity is clear: 2.5

billion mobile phones – Less than 2/10ths of a

percent of the total advertising spent worldwide

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

• 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?

(really)

What’s Changing?

(really)

The New Reality

Dr. David WeinbergerAuthor, Speaker, Academic

Marketers:“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

Consumers’ Time OnlineConsumers’ Time 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

Prime Time is ANYtime

Sling is THE Thing

New York – Philadelphia TrainNew York – Philadelphia Train

Address ChangePublish!

Address ChangePublish!

Customers• Don’t want to be “sold to” and distrust• Distracted (discovering, communicating)• Consuming & creating content

ON THEIR SCHEDULE

Customers• Don’t want to be “sold to” and distrust• Distracted (discovering, communicating)• Consuming & creating content

ON THEIR SCHEDULE

How to Publish& Drive Sales

(getting invited to the party)

How to Publish& Drive Sales

(getting invited to the party)

“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.

GoalsGoals• Where to Party

• Making Champagne

• Who to Invite

• Risk Management

• Where to Party

• Making Champagne

• Who to Invite

• Risk Management

Where?Where?

Exclusive Sponsorship

The Party!

Who’s at the Party?

EvangelistsEvangelists

“Bringing the good news" “Bringing the good news"

Influencing… Influencing…

Story Telling “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

What are they Doing at the Party?What are they Doing at the Party?

• CONTROLLING & EXPERIENCING

• Discovering

• Meeting

• Trading (barter, auctions, buying)

• Borrowing, cheating and stealing

• Sharing stories

• Creating!

• CONTROLLING & EXPERIENCING

• Discovering

• Meeting

• Trading (barter, auctions, buying)

• Borrowing, cheating and stealing

• Sharing stories

• Creating!

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

Party PlanningParty Planning

MakingChampagneMakingChampagne

3 Types of Story Telling Participants

Bradley HorowitzYahoo!

Tools of Production are Affordable

Accessible

Tools of Production are Affordable

Accessible

Rise of The ProSumerRise of The ProSumer

Anyone with a…Anyone with a… Can be a…

Publisher

Photo Journalist

Radio Host

Author

Can be a…

Publisher

Photo Journalist

Radio Host

Author

Rise of StoryCurators & Filters

Rise of StoryCurators & Filters

The Business Goal ofSocial Web CompaniesThe Business Goal of

Social Web Companies

Make EVERYONE a creator!100% - creators

100% - synthesizers100% - consumers

Try to make it EASIER for everyone to participate in all roles.

Make EVERYONE a creator!100% - creators

100% - synthesizers100% - consumers

Try to make it EASIER for everyone to participate in all roles.

YOUR GoalYOUR Goal

Make everyone an EVANGELIST

On your turf

Make everyone an EVANGELIST

On your turf

Party PlanningParty PlanningCustomer Reviews&Word of Mouth

Customer Reviews&Word of Mouth

The Recommendation AgeThe Recommendation Age

Customer-GeneratedReviews & Recommendations

Customer-GeneratedReviews & Recommendations

Why?Why?

AuthenticTrust is Implicit

Authoritative*Reputation-based

AuthenticTrust is Implicit

Authoritative*Reputation-based

The Winner Is…

Runner Up…Runner Up…

Where to Apply Where to Apply

Product Pages

(descriptions)

ProductPages

(catalogs)

Where to ListenWhere to Listen

“Fan Mail” Product Reviews Contests

Product Designs Suggestions

Community SitesEnthusiast Commercialsor Mock Commercials

RecommendationsRecommendations

Source: Keller Fay Group 2008Source: Keller Fay Group 2008

• Americans have 3.5 billion brand-related conversations per day

• 80% trust recommendations (STORIES) from friends, family and “trusted” sources over any form of advertising

• The average American engages in over 10 per day, 8 of which are more influential than any advertisement or paid sponsorship

• Americans have 3.5 billion brand-related conversations per day

• 80% trust recommendations (STORIES) from friends, family and “trusted” sources over any form of advertising

• The average American engages in over 10 per day, 8 of which are more influential than any advertisement or paid sponsorship

Do Product Reviews Have Impact?Do Product Reviews Have Impact?

Source: The eTail Group 2008Source: The eTail Group 2008

Web-Video-Print Story Telling Integration

Web-Video-Print Story Telling Integration

The RisksThe Risks

Threats to BrandsThreats to Brands

–Customer Complaints (Damage Control)• No barrier to entry• No truth / validity filter• Exposure = credibility

–Monitor• Watchdog Sites (ripoffreport.com)• Web Communities• Custom Sites (wakeupwalmart.com)• YouTube

–Customer Complaints (Damage Control)• No barrier to entry• No truth / validity filter• Exposure = credibility

–Monitor• Watchdog Sites (ripoffreport.com)• Web Communities• Custom Sites (wakeupwalmart.com)• YouTube

WHO You Invite MattersWHO You Invite Matters

“It’s moving slowly now for us, but we’re seeing growth and see it as a huge opportunity for users to build hundreds of thousands of ‘commercials’ for [PETCO products].”

John LazarchicPetco

John LazarchicPetco

Designing Experiences

Designing 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.”

$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

Crowdsourcing!Crowdsourcing!

Building a RoadmapBuilding a Roadmap

Jeff’s Golden Rules… Jeff’s Golden Rules… 1. Identify the right micro-verticals where

consumers engage deeply2. Activate new or existing consumer

communities that welcome advertiser participation

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

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

1. Identify the right micro-verticals where consumers engage deeply

2. Activate new or existing consumer communities that welcome advertiser participation

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

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

Case Studies

Best Practices

Case Studies

Best Practices

Best Practice:Marketers as

Publishers

Best Practice:Marketers as

Publishers

It’s SOCIAL!It’s SOCIAL!

Qualified Un-Qualified

List size 10,000 100,000

Cost per e-mail 1 0.15

Total cost 10,000 15,000

Conversion rate 10% 2.50%

Customers 1,000 2,500

Cost per order 10 6

Revenues $100,000 $250,000

The OpportunityThe Opportunity

• “Editorial bribes”• 3 per month• Targeted by gender • Click to long form content• Prone to sharing

• Blatant Call to Action• 1 Campaign/mo (with 3 f/u’s)

The SecretThe Secret

Editorial Bribes Keep ‘em Involved(and Campaigns Sell)

E-mail CTR vs Order ValueDormeo E-mail Campaign Data

0

2 0 0

4 0 0

6 0 0

8 0 0

1 0 0 0

1 2 0 0

1 4 0 0

1 6 0 0

1 8 0 0

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

0

1 0 0 0

2 0 0 0

3 0 0 0

4 0 0 0

5 0 0 0

6 0 0 0

7 0 0 0

8 0 0 0

CTR Order Value

Take HomeTake Home

• Trust your instincts and act boldly• Stop all tactical activities that don’t have a

hope of nailing a STRATEGIC objective• Create authentic, honest relationships w/

customers and give them choice• Be fearless, experimental • Build trust-centric models that INFLUENCE

and PROMPT behaviors• Embrace long-term thinking and METRICS!

• Trust your instincts and act boldly• Stop all tactical activities that don’t have a

hope of nailing a STRATEGIC objective• Create authentic, honest relationships w/

customers and give them choice• Be fearless, experimental • Build trust-centric models that INFLUENCE

and PROMPT behaviors• Embrace long-term thinking and METRICS!

Resources• People

– Joe Pulizzi Junta42.com – Dave Chaffey (davechaffey.com)– Chris Kenton (chriskenton.com)– Ben Edelman (benedelman.org)

• Books– Branding Only Works on Cattle

(Jonathan Salem Baskin)– Open Brands (Kelly Mooney)– Convergence Culture (Henry Jenkins, MIT)– The Big Switch (Nick Carr) – Cluetrain Manifesto, 1999 (Searls, Locke, Weinberger)

Resources• Blogs

– MarketingVox (Digital Media News Filter)– Avinash Kaushik (Analytics)– APML.org (Attention Economy)– Adotas.com and ClickZ (Ad Industry News)– SEOBook.com (Search & Digital Economy)– ThoughtShapers.com (Leading eBiz Minds)– Web Analytics Association

(webanalyticsassociation.org)

Jeff Molanderjeff@jeffmolander.com

Blog:

JeffMolander.comSlides at

JeffMolander.com/luc