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

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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