The Power of Loyalty & Advocacy - Overview

© 2015 AZBlue | www.AZblueinc.com

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THE POWER OF LOYALTY & ADVOCACY

OVERVIEW

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THE POWER OF ADVOCACY

The World Today…


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THE CONSUMER WORLD IS CHANGING!

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Consumers now have more choices,

More channels than ever to engage

and are able to speak their minds!

Advocates have become madvocates

less time,

Minimal attention span to view and consume information


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…AS ARE THEIR BEHAVIORS IN BRAND ENGAGEMENT!

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Traditional Behaviors New Behaviors

Like

Call

Pin

CommentWrite a Review

Add to Cart

Fill OutProfile

Email

Direct MailFax

Face 2 Face

Engagement has evolved from personal interaction…to the click of a mouse!

Text


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BECOMING A “SOCIAL BRAND”

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A social brand is any company, product, or individual that uses social technologies to communicate with social customers, their partners and constituencies, or the general public

Social media marketing programs usually center on efforts to create content that attracts attention and encourages readers to share it with their social networks.

Human

Technology

Social Media Brands – Activity driven brand uses social media to… • measure traffic and sentiment• craft social tactics around user generated

actions (channels, clicks, sentiment)• determine success metrics thru

quantitative analysis

Social Marketing Brands – Data driven brand uses social media to… • create, grow and manage user communities• support paid media investment through content calendars• measure marketing results thru actions (clicks, likes, follows, shares)• respond to issues that impact brand perception (Care & PR)

Social Brands – Highly interactive and engaged brand uses social media to… • connect with consumers & customers by anticipating their needs (based on previous) actions

taken on a continuous basis• drives conversations with constant questions and engaging content• empower the consumer to speak• provide a long-term platform to inspire advocacy and reward loyalty• highlight the personality of the brand thru people & relationships (vs. corporations)• connect consumer interaction to brand KPI’s/ROI

No Risk/Reward - Safe

Low Risk/Reward –Utilitarian

High Risk/Reward –Interactive & Intuitive


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SOCIAL BRANDS HAVE AN ENTERPRISE STRATEGY @ THE CORE

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Store Management

Supply Chain

Human Resources

PR

R&D

Marketing

Communications

Product Development

What: Create a fully-formed social business strategy (not a social media strategy)

Why: To directly connect social strategy to business outcomes

How: Integration across the enterprise, with cross-departmental participation and coordinated execution


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THE EVOLUTION TO A “PASSION BRAND”

• Typically brands look at their fans as a collective number of “Likes” or email addresses, used to continuously engage via social marketing campaigns.

• Once those fans are identified there is little action taken to cultivate and nurture those fans into Advocacy Fans and ultimately Passionate Fans

– Advocate Fans – Regularly check in with the brand, participate and share

– Passionate Fans – Engage at a high rate with tracked keywords alluding to personal beliefs and preferences (e.g. “I love,” “the best,” can’t live without,” etc.)

• [Social] Word of Mouth has one of the highest impacts on the buying decisions of consumers who listen to friends, peers and recommendations when making choices.

• Focus – Identify, cultivate and activate the core LG “Passionate Fans” as ambassadors to drive higher consideration and engagement in social.

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THE POWER OF ADVOCACY & PASSION

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* 2013 study by Ogilvy on the power of passionate brands

The percentage of advocacy comments as a percentage of total brand conversations

Skin Care Ranks Highest!


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THE POWER OF ADVOCACY & PASSION

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* 2013 study by Ogilvy on the power of passionate brands


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WHAT PASSIONATE BRANDS LOOK LIKE

Social Brands in the CPG/ Health & Beauty space include L’Oreal and Dove:

• L’Oreal

– High number of Likes

– Daily conversations with Fans

– High PTAT rates

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• Dove

– Very high PTAT rates

– Continues to engage with Customers to grow Likes 4 years after they launched on Facebook


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Passion

ALIGNING A SOCIAL STRATEGY TO THE CLIENT’S KPI’S

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Acquisition

Like/Share

Retention

Loyalty

Consideration

Advocacy

Awareness

Provide consumers with information to know brand value

Help consumers make buy decisions thru peer support

Facilitate purchase

Provide a platform to grow Retention

Build loyalty (Advocacy) by allowing consumers to interact with the Client and build relationships

Cultivate the most passionate fans to speak as brand ambassadors

Recycle content back to community for continued awareness…


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ALIGNING A SOCIAL STRATEGY TO THE CLIENT KPI’S

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Acquisition

Like/Share

Retention

Loyalty

Consideration

Advocacy

Awareness

Current Investment in Social

Where social media marketing loses traction = low ROI

The path between advocates and new fans is disconnected

Passion

X


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WHAT DOES THIS MEAN FOR THE CLIENT?

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A NEW SOCIAL ROADMAP

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• What are consumers doing today in social and why is it different from 2 years ago?

• Who are they?• Where are they?• What are their social

habits?

• Who are the influencers?

• What motivates them?• How broad is their

social graph?

• What makes them consume and share content?

• What motivates them to actively participate?

• What is the right mix of POE investment to maximize Reach and ROI?

Social InsightsRedefining the

Target Audience(s)

Identifyingthe Influencers/

Advocates

Focusing Optimized Content &

Engagement to Increase loyalty

Driving Long-term Advocacy to Increase ROI

Key step…once you’ve found them how so you incentivize them to stay?


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REDEFINING A SOCIAL STRATEGY THAT ENHANCES THE CLIENT

KEY BUSINESS GOALS

• The explosive growth and use of social by consumers requires the Client to refocus their communications/marketing efforts at the “lower end” of the funnel to maximize the ROI

• Quantitative measurement (number of Fans/Likes) no longer translates to shares, conversions and sales

• Focus now needs to be on cultivating the most active fans/ loyalists to:

– nurture them through a long-term, ongoing relationship

– turn them into active voices/faces of the brand

– Utilize UGC as a key component to experiential marketing plan

– create an ongoing process to develop fans from “Potentials to Supers”

– activate influentials as brand ambassadors/advocates

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THE GROWTH & DEVELOPMENT OF A FAN

• The key to Fan Development is:– the ability to identify and activate based

on the product need, campaign and KPI’s– cultivating each type by their needs,

characteristics and habits– Deliver the right mix of content and

rewards to gain their long term attention, participation and advocacy

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Potential Fan – A non-fan in the Social Graph of an existing fan.

Engaged Fan – Someone who “likes” a brand

Advocate Fan – Has shared content about a brand and increased likes and/or positive comments.

Purchasing Fan – Has given a brand their basic data permissions and has purchased products.

Passionate Fan – A purchasing Fan who has led other fans to buy from a brand.

Leve

l of E

ng

age

me

nt


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WHERE THE CLIENTS TRUE ADVOCATES LIE

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General Fans/Visitors40-60%

Regular Fans20-30%

Loyalists15-20%

Advocates5-10%


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WHAT IS THE VALUE OF A FAN?

• According to a recent study by Syncapse, Facebook fans are:

– 80 percent more likely than non-fans to be users of a brand

– Spend 43 percent more than non-fans in respective categories

– 11 percent more likely to continue using the brand than non-fans (loyal consumers)

– 85 percent more likely to recommend your brand compared with 60 percent of non-fans

• And that consumers like brand pages for two reasons:

– Coupons, discounts, and rewards

– Showing support for brands or receiving regular updates

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UNDERSTANDING SOCIAL HABITS*

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• Publish own blog or web page• Upload personally created video/audio/music• Write and post articles or stories

• Social Librarians• Categorize info by bookmarking and tagging with specific keywords• Shelve information for others to find, consume & share

• Maintain profiles on & visit social networking sites• Participate by connecting, submitting, commenting and consuming

•Primarily consume information and play a passive role• Read blogs, online forums & customer ratings/reviews• Watch videos & listen to podcasts

• None of the Above

• Vocal, Passionate & Opinionated (Positive & Negative)• Post ratings or reviews of products and services; comment on blogs• Contribute to online forums or articles in a wiki

* Forrester Technographics approach to the Social Habits of people today


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Health Focus Personal Development

Busy Family

CriticCreator

Collector

JoinerCollector

ConversationalistSpectator

CreatorConversationalistSpectatorCritic

CreatorCriticCollector

Engage via brand advocacy, blogs, social networks

Reach on social networks and forums Online Moms

Applying the Social Habits to the Clients Target Customers


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EMPOWERING ADVOCACY IS THE LONG-TERM GOAL

• The Advocate is: – Aligned with the Client core mission and authority– Engaged in the product discussion– Looking for content that speaks to the practical & emotional benefits of product usage

• This group is the most likely to take action during periods of advocacy and education on key issues– This audience is more likely to interact with the Client because they have found a resource that

differentiates the product from competition

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Positive Experience

RelationshipDifferentiation


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CREATING ADVOCACY USING HIGH-VALUED CONTENT

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Objective: Long-term relationship with Product Users

For the relationship to be long-term, content must consistently:

Come from a source with an authoritative voice on the

subject

Align with the core values of the

Client

Meet the consumers intent


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THE CONSUMER JOURNEY

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Awareness Consideration Reassurance

Collecting info

Talk to friends

Talk to friends

Narrow choice Avoiding a

mistake

Final check

PURCHASEPURCHASE

Purchase Loyalty

Excitement

Use

Advocacy

Feeling more confident

Obtain a visual baseline


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THE CONSUMER JOURNEY

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Awareness Consideration Reassurance

Collecting info

Talk to friends

Talk to friends

Narrow choice Avoiding a

mistake

Final check

PURCHASEPURCHASE

Purchase Loyalty

Excitement

Use

Advocacy

Feeling more confident

Obtain a visual baseline

facebook

Email

PinterestPinterest

Mobile

In-storeSearch In-store Search

Reviews MobileReviewsMobile

Pinterest


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PROGRAMS/TACTICS FOR CONSIDERATION

• Social Loyalty Program/Gamification to drive more registered users and increase long-term engagement (FF Mile model)

• Paid media to drive consumer reviews of products

• Redefine messaging to focus “ownable” space = dermatological superiority vs. beauty

– Use content and experiential marketing (UGC) to differentiate

– Consider heavy push in Pinterest or Instagram

– Vine videos to make it more creative and social (GE Science Project)

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THE POWER OF SOCIAL LOYALTY PROGRAMS


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INVESTMENT IN DIGITAL IS NOT ENOUGH!

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16%

28%

Low Adoption

Customers who see Facebook brand updates

Visitors actually login to sites they visit

3%

65%

Low Conversions

Average online conversion rates from consideration to purchase

Abandon shopping carts

25%

55%

Limited Loyalty

Customers swayed by a brand to make a purchase decision

Customers inactive in loyalty programs

Sources: Gartner, FMC, Forrester, Colloquy, Statista


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WHAT ARE SOCIAL LOYALTY PROGRAMS?

Social loyalty programs are platforms that allow brands/employers to connect with users through social, to incentivize deeper relationships using behavioral and game mechanics to reward participation and increased engagement.

What’s in it for the customer?• The ability to earn social currency (points and status) through deeper engagement that

can be translated to discounts, insider access and an elevated voice within the community.

What’s in it for the brand?• The ability to build longer term relationships with customers and increase sales

opportunities along the customer journey, by incentivizing them to continue through each stage. Through the process, the brand also gains access to increased levels of valuable customer insights from specific behavioral actions taken.

What’s in it for the employers?• The ability to provide a platform to motivate/reward employees to participate and

engage internally and externally, improve job performance and maximize job satisfaction.

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THE POWER OF LOYALTY

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Members of social loyalty programs in general, tend to…


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BEHAVIORS CAN BE ENCOURAGED/ REWARDED

• Game & behavioral mechanics tap into users emotional needs and interests to reward specific actions through recognition and status.

– Points are given to customers for interactions that can vary from posts, reviews, polls, shares etc. More in-depth activities increase the value of the rewards to purchase.

– Points can be given to employees for supporting peers, contributing to solutions, connecting to the corporate network and providing assistance to clients.

• The process awards with social currency and provides recognition to the broader community to incentivize competition.

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Engagement

Re

ven

ue

Op

po

rtu

nit

ies

Net Impact – rewarding engagement increases revenue

opportunities!


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WHY SOCIAL LOYALTY PROGRAMS (SLPS)?

The Situation• Most traditional loyalty programs are not highly effective beyond the campaign level –points, coupons

& freebies are great for gaining initial interest, but long-term promotions do not compensate for an uninspiring customer experience.

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• Social platforms give brands the ability to identify and interact with their most active loyalists/influencers, driving consideration within their networks

– Rewarding consumers for engagement motivates them to share their experience more often with friends.

• The basis of SLP platforms today is to provide a game environment to connect with users and reward specific desired actions (e.g. engagement, loyalty and employee service) through points, status and rewards to continue – the frequent flyer mileage model:

– Earning/accruing points or status motivates consumers to maintain brand stronger & longer relationships.

• Many brands are reluctant to consider SLPs, however, fearing that such programs are too expensive, difficult to manage or “gimmicky.”


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NEXT STEPS…


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THE CONGRUENCE OF MARKETING & STRATEGY

• The Concept – A platform & process to capture live, social consumer interaction around brands to create real-time brand opportunities based on…– Resolution of actionable issues publicly (Care & PR) to build consumer advocacy/relationships– Center of Excellence Marketing capabilities to provide consumers with valued content and

engagement– Learning from their past history to anticipate what their future needs– Drive and manage campaign effectiveness

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– Optimize marketing spend by using best-in-class tools to deliver to highest ROI targets

– Drive down marketing & operational costs by reducing redundancy and expanding reach


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NEXT STEPS…

• The Evolution of a social brand is based upon the concept of creating a “platform” (an integrated set of technologies, resources and management processes) that enables the brand to connect to consumers continuously and in real-time.

• The platform is focused on

– Listening to what consumers say

– Asking them what want

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– Learning from their past history to anticipate what their future needs

• Build a strategic roadmap to consolidate and optimize the brands assets, resources, processes, budget & technology/tools

• First & Foremost – Optimize around your existing assets (technology, resources & management processes!


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FOUR STEPS TO SOCIAL MEDIA OPTIMIZATION

• The evolution from a social media user (technology) to a Social Brand (human) has a four step process:

1. Organizational [Re] Alignment/Plan – Internal alignment of Business Units/Lines of Business to move forward

2. Design – Creating the ability to utilize Social Media as a core function of the business across all BUs, focused on:• Resources (People)• Process (Management)• Technology (Tools)

3. Build – Putting the pieces in place to create and run a social platform4. Manage – Day 1+ of running the daily operations of the social platform

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Reactive ProactivePlan

Listening

Design

Engaging

Build

Interacting

Manage

Anticipating


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FOUR STEPS TO SOCIAL MEDIA OPTIMIZATION

• The evolution from a social media user (technology) to a Social Brand (human) has a four step process:

1. Organizational [Re] Alignment/Plan – Internal alignment of Business Units/Lines of Business to move forward

2. Design – Creating the ability to utilize Social Media as a core function of the business across all BUs, focused on:• Resources (People)• Process (Management)• Technology (Tools)

3. Build – Putting the pieces in place to create and run a SIC4. Manage – Day 1+ of running the daily operations of the SIC

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Additional Slides


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ON FACEBOOK, A HOLISTIC VIEW OF SOCIAL ENGAGEMENT

• With more than half of all U.S. home owners engaging on Facebook, this channel will play a primary role in daily engagement, extended reach and advocacy, encompassing all core client/brand goals.

• Key Metrics:

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Awareness

Total Page Views

Unique Page Views

Total Impressions

Virality

Unique users by frequency

Expansion of audience within target

categories

Engagement

Increased online conversations

conversations within topic areas

Engaged Users/Reach

Talking About This

Likes

Comments

Shares

Loyalty

Increase in repeat monthly visits

Referral Traffic To Site with bounce rate

Increase in PTAT

Sentiment

Advocacy

Key Metrics on advocacy content

Actions taken

Referral to email database


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ON TWITTER, A FOCUS ON ACTION

• The Twitter platform is primarily for news, information and influencer engagement particularly with advocates and will play a role in advocacy efforts. Click-thrus are important, but referrals will be more important during actual advocacy periods.

• Key Metrics:

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Awareness

Tweet and content reach

Engagement

Retweets

Mentions

Click throughs

Conversations within topic areas

Loyalty

Referrals to site with bounce rate

Sentiment

Followers

Advocacy

Key Metrics on advocacy content

Actions taken during advocacy periods

Referral to email database


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ON PINTEREST, A FOCUS ON GROWTH WITHIN A NARROWER

CONTENT CATEGORY

• Pinterest is the home for lighter content. Follower growth will be the key measurement. A secondary statistic will be referrals to the site (and the bounce rate of those referrals), which will indicate if the growth is focused on followers who may relate to the clients/brands core mission.

• Key Metrics:

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Awareness

Increased followers

Views

Engagement

Pins

Pin Likes

Comments

Repins

Average interactions per post

Loyalty

Referral traffic to site with bounce

rate


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ON YOUTUBE, DEEPENING THE CONNECTION WITH THE

BRANDS MISSION

• The YouTube is a content engine, and will help drive paid media, search, and video promotion. YouTube bridges the gap between with the advocacy page. Key metrics include shares and social actions.

• Key Metrics:

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Awareness

Views

Followers

Engagement

Likes

Shares

Comments

Advocacy

Key metrics with advocacy content

Actions taken


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ADVOCACY: MEASURING ACTIONS TAKEN

Advocacy benchmarks: Measuring action• During activations, we measure traditional online actions (likes, shares) taken in relation to advocacy

content across all platforms, and additionally measure:– Signatures collected– Emails sent – Petition Signatures– Actions taken through email– Click-to-Call– Engagement with influencers– Increased share of voice relative to like-minded and detractors organizations and topics

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TRANSLATING KPIS INTO DIGITAL BENCHMARKS

• While it is important to measure performance over time across a wide cross-section of in-depth metrics, measuring the health and wellness of the brands website within the context of relevant content producers and organizations requires a dynamic benchmark that covers the digital ecosystem at a macro level

• These digital and social benchmark indexes will be based on the most important overall organizational objectives and key KPIs

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Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat – General Sun Tzu

azurite blue inc. - we are a consulting firm that has the

experience and ability to help clients articulate their needs

with regards to “all things social,” and create an operational

roadmap to get there!

More importantly, we help design strategies that are based upon executable

tactics and tactics that support achievable strategies!

Contact: Jim Clark – 908-305-8475

[email protected]

www.linkedin.com/in/azblue/

mailto:[email protected]

http://www.linkedin.com/in/azblue/