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Customers, online
What do people do online?
How do customers research purchases online?
Online opinions are credible
Online opinions matter
Companies see online communities as valuable
But they don’t know how to measure it
An example of how dangerous
the tech imperative is!
(Online) Customer engagement
!“Repeated, satisfied
(online) interactions that
strengthen the emotional
connection a customer has
with the brand”
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Radical reduction in search costs
Reduction in barriers to entry
Lower effectiveness of advertising
Need for emotional involvement with the brand
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Levels of engagement
Adoption
Bookmarking, tagging, ‘Digging’
Collaborative filtering
Rating, voting,
commenting
Content creation
Mashups, blogging fan media
Social expansion
Networking,
making communities
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Levels of engagement
Adoption
Bookmarking, tagging, ‘Digging’
Collaborative filtering
Rating, voting,
commenting
Content creation
Mashups, blogging fan media
Social expansion
Networking,
making communities
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Levels of engagement
Adoption
Bookmarking, tagging, ‘Digging’
Collaborative filtering
Rating, voting,
commenting
Content creation
Mashups, blogging fan media
Social expansion
Networking,
making communities
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Levels of engagement
Adoption
Bookmarking, tagging, ‘Digging’
Collaborative filtering
Rating, voting,
commenting
Content creation
Mashups, blogging fan media
Social expansion
Networking,
making communities
20
Online Customer Engament matters...
Amazon recently re-branded into ‘serving the world’s largest engaged online community’
Nielsen Media Research, IAG Research and Simmons Research are also all in the process of developing a CE definition and metric.
Time to think...
You are the marketing trainee of a large supermarket chain. Your boss asked you for three ideas to increase online customer engagement, but she wants those ideas to bring more revenue.
Beyond cutomers: Crowdsourcing
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Crowd sourcing is...
...Outsourcing a task traditionally performed by the organization to an open group of people, in the form of an open call.
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What is innocentive?
Open online community
120,000 scientists
Working on multiple problems: NPD, Biotech, Oil spills, Business, Engineering
For a 10K to 100K cash award
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58 challenges solved:
Better method to fill in toothpaste, Better ways to control an oil spill, NPD for Corona
Solvers are an open network of scientists from the US, Europe, Russia, China, India and South America
Hunch.com
Hunch.com
500 questions at the start of beta testing
3 months and 30,000 beta testers later the site was ready for
launch with nearly 7 million questions.
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Advantages
Cheaper
High yedd rates (35% > 11%success)
More creative and effective solutions
The 9-9-1 Challenge
The 90-9-1 Challenge
167,113 of Amazon’s book reviews were contributed by just a few “top-100! reviewers.
• Over 50% of all the Wikipedia edits are done by just .7% of the users … 524 people.
• In December 20, 2007 on the!MSDN Community site, 1866 edits out of 10851 total edits were made by the top five contributors (three of whom are Microsoft employees).
• Just 0.16% of all visitors to YouTube upload videos to it, and 0.2% of visitors to Flickr upload photos
The longitude problem:
problem considered so intractable that the British Parliament offered what was at the time a huge fortune for a solution (£20,000, roughly "12 million in 2007 terms)
Solved by a clock maker
How to compare local time with a time at a given place (eg. noon)
Experts: Astronomical methods of time reckoning
Harrison: Build a better clock
Clock proved to be the best
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