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The Friendship Model™

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22squared
22squared

The document discusses how to build brand advocacy in a consumer-driven world using a "Friendship Model". It introduces the model as a way to view the relationship between brands and customers as friendships. The key aspects of the model are playing a meaningful role in customers' lives, identifying actions to increase advocates, and creating momentum to get customers talking about and engaging with the brand. The document argues that treating customers like friends can significantly increase brand advocacy.

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HOW TO BUILD BRAND ADVOCACY THE IN A CONSUMER-DRIVEN WORLD FRIENDSHIP MODEL
A SELF-GUIDED ORIENTATION BY BRANDON MURPHY
SO, WHAT IS IT? A new business tool? A positioning for the agency? A belief about marketing? A philosophy for how we work? A measure of our success?
YES
YES Thank you
J/K
Let’s start with the first question... why did we create it?
Let’s start with the first question... [BECAUSE WE HAD TO] why did we create it?
In case you haven’t heard, we have a bit of a sordid past...
The Friendship Model™
GOT IT ?
Well, boiled down: we were a divided culture split between two o ces with no united perspective and no common method for doing what we do
(+) we were falling o the grid cast as a regional agency who specialized in retail ...NOT who we wanted to be.
and... We were trying to change the way we do business.... just like every other ad agency who existed before web 2.0
But the real problem...
She’s a consumer. He’s an advertiser. All she wants is genuine a ection. All he gives is loyalty reduction. Click to watch video Source: Microsoft Digital Advertising Solutions
Source: Microsoft Digital Advertising Solutions
ACT People want brands that... ...more like friends than salespeople
And when brands DO, people talk: [ Brands perceived to act on ] their customers’ behalf have 44% more advocates* *22squared Friendship Model Research
So we need to help brands DO
BUT ... To get people talking...
... we needed to create relationships worth talking about.
We needed to turn our original way of marketing on it’s head...
Literally
[OLD] AWARENESS PREFERENCE PURCHASE
[NOW] RELATIONSHIPS PURCHASES ADVOCACY
HOW does an agency create relationships worth talking about?
REALIZE, that good brands are like people.
ARE THE SAME The actions that make people great friends that cause people to advocate for brands
[ “you can make more friends in 2 ] months by being interested in other people than in 2 years by making other people interested in you.” - Dale Carnegie
Think about it... ...what do friends do?
H AV E C H E M I S T R Y REM AIN AUT HENT IC A C T T R A N S PA R E N T A R E E M PAT H E T I C FRIENDS SUPPORT EACH OTHER SPEND QUALITY TIME S H A R E A P O V GIVE MORE THAN GET S TAY I N TO U C H INSPIRE EACH OTHER
Makes sense, right?
But how do we put that theory in action?
FRIEND SHIP State of being a friend Someone you know and trust A member of the same group/nation Allied in a struggle, cause or movement
FRIEND SHIP + MODEL State of being a friend Someone you know and trust An example of a behavior; a philosophy lived out Statistical method for accomplishing something A member of the same group/nation A compass that points you in the right direction Allied in a struggle, cause or movement A belief that never lets you down
[OUR PURPOSE]
BIGGER Increase the number of advocates [OUR PURPOSE]
Here’s how we size up advocacy: % of brand’s customers who are... SHAREHOLDER EVANGELIST RECOMMENDER REPEAT SATISFIED ADVOCATES BUYERS CRITICS MARGINAL CUSTOMER DISSATISFIED CUSTOMER ACTIVELY AGAINST
TA = A - C TRUE ADVOCACY ADVOCATES CRITICS
TA = A - C NOTE: We’ve done lots of research on this... on 180 brands with over 40,000 people
$ Are advocates worth more than other customers?
YES (THE SHORT ANSWER)
WHAT THEY DO ADVOCATES WHAT WE MEASURE Buy more Spend levels Talk and share more Conversation rates Recommend more Recommendation rates 44
FACT : When advocates talk, brands grow
seriously, check it out... GROWTH TRUE ADVOCACY
APPAREL RETAILERS *Growth index combines revenue growth, profit margins and operating income growth over a three-year period, from 05 - 07 SOURCE: 22squared Apparel Retail White Paper
WIRELESS PROVIDERS Average annual growth rate from 05 - 07 SOURCE: 22squared Wireless Provider White Paper, 2008
AIRLINES Average annual passenger revenue growth rate from 05-07 SOURCE: 22squared Airline White Paper, 2009
HOW 1) ROLES ACTIONS 2) does the Friendship Model help us grow advocacy for brands? 3) MOMENTUM Play a more Identify the actions the Create momentum, get people meaningful role brand must take to talking more and moving in their life increase advocates toward the brand
ROLES 1) Play a more meaningful role in their life
FACT : The better friend you are, the more customers talk [ ] Understand the role a brand play’s in the life of the customer and deepen it.
SOUL MATE CLOSE FRIEND NICHE FRIEND NEW FRIEND ACQUAINTANCE FAMILY FRIEND FLING 351 Index A unique connection; a DEFAULT brand you can’t live without FORCED
A unique connection; a SOUL MATE brand you can’t live without CLOSE FRIEND NICHE FRIEND NEW FRIEND ACQUAINTANCE FAMILY FRIEND FLING 351 Index DEFAULT Inner-circle, depend on, always there. FORCED
A unique connection; a SOUL MATE brand you can’t live without Inner-circle, depend on, always there CLOSE FRIEND NICHE FRIEND NEW FRIEND ACQUAINTANCE FAMILY FRIEND FLING 143 Index DEFAULT Familiar, in a narrow context, but in a restrictive way. FORCED
A unique connection; a SOUL MATE brand you can’t live without Inner-circle, depend on, always there CLOSE FRIEND Familiar, in a narrow context NICHE FRIEND NEW FRIEND ACQUAINTANCE FAMILY FRIEND FLING 320 Index DEFAULT Still new, but on the road to becoming closer FORCED
A unique connection; a SOUL MATE brand you can’t live without Inner-circle, depend on, always there CLOSE FRIEND Familiar, in a narrow context NICHE FRIEND On the road to becoming closer NEW FRIEND ACQUAINTANCE FAMILY FRIEND FLING 143 Index DEFAULT Ambivalent, no expectations and little reward FORCED
A unique connection; a SOUL MATE brand you can’t live without Inner-circle, depend on, always there CLOSE FRIEND Familiar, in a narrow context NICHE FRIEND On the road to becoming closer NEW FRIEND Ambivalent, no expectations ACQUAINTANCE FAMILY FRIEND FLING 286 Index DEFAULT By association or inheritance, not solely your choice FORCED
A unique connection; a SOUL MATE brand you can’t live without Inner-circle, depend on, always there CLOSE FRIEND Familiar, in a narrow context NICHE FRIEND On the road to becoming closer NEW FRIEND Ambivalent, no 177 Index expectations ACQUAINTANCE By association or inheritance FAMILY FRIEND FLING A short-time experiment, likely DEFAULT to happen only once FORCED
A unique connection; a SOUL MATE brand you can’t live without Inner-circle, depend on, always there CLOSE FRIEND Familiar, in a narrow context NICHE FRIEND On the road to becoming closer NEW FRIEND Ambivalent, no expectations ACQUAINTANCE By association or inheritance FAMILY FRIEND Short-time experiment FLING 210 Index DEFAULT Lack of options, out of proximity or avoidance. FORCED
A unique connection; a SOUL MATE brand you can’t live without Inner-circle, depend on, always there CLOSE FRIEND Familiar, in a narrow context NICHE FRIEND On the road to becoming closer NEW FRIEND Ambivalent, no expectations ACQUAINTANCE By association or inheritance FAMILY FRIEND Short-time experiment FLING Lack of options, 231 Index proximity or avoidance DEFAULT No choice, feel trapped and FORCED want to escape.
Remember... IT’S NOT ABOUT BEING FRIENDLY ...it’s about BEHAVING like a friend.
ACTIONS 2) Identify the actions the brand must take to increase advocates
FACT : The more brands behave like friends, the more customers return the favor [Brands that are perceived to act on their customer’s behalf have 44% more advocates than brands that do not.* ] *22squared Friendship Model Research
H AV E C H E M I S T R Y REM AIN AUT HENTIC A C T T R A N S PA R E N T A R E E M PAT H E T I C FRIENDS SUPPORT EACH OTHER SPEND QUALITY TIME S H A R E A P O V GIVE MORE THAN GET S TAY I N TO U C H INSPIRE EACH OTHER
create a visceral spark HAVE H A V E CHEMISTRY CHEMISTRY or a gut reaction REM AIN AUT HENTIC A C T T R A N S PA R E N T A R E E M PAT H E T I C SUPPORT EACH OTHER FRIENDS FIREWORKS FORCED SPEND QUALITY TIME S H A R E A P O V GIVE MORE THAN GET S TAY I N TO U C H INSPIRE EACH OTHER
H AV E C H E M I S T R Y Original, real and REMAIN AUTHENTIC REM AIN AUT HENTIC distinctly meaningful A C T T R A N S PA R E N T A R E E M PAT H E T I C SUPPORT EACH OTHER FRIENDS FOR REAL FOR NOT SPEND QUALITY TIME S H A R E A P O V GIVE MORE THAN GET S TAY I N TO U C H INSPIRE EACH OTHER
H AV E C H E M I S T R Y REM AIN AUT HENTIC Be honest and ACT TRANSPARENT A C T T R A N S PA R E N T have clear intentions A R E E M PAT H E T I C FRIENDS SUPPORT EACH OTHER CLEAR HIDDEN SPEND QUALITY TIME S H A R E A P O V GIVE MORE THAN GET S TAY I N TO U C H INSPIRE EACH OTHER
H AV E C H E M I S T R Y REM AIN AUT HENTIC A C T T R A N S PA R E N T Understand their needs ARE EMPATHETIC A R E E M PAT H E T I C desires and lives FRIENDS SUPPORT EACH OTHER GETS ME SPEND QUALITY TIME HASSLES ME S H A R E A P O V GIVE MORE THAN GET S TAY I N TO U C H INSPIRE EACH OTHER
H AV E C H E M I S T R Y REM AIN AUT HENTIC A C T T R A N S PA R E N T A R E E M PAT H E T I C SUPPORT EACH OTHER FRIENDS Be helpful, useful SUPPORT EACH OTHER act on their behalf SPEND QUALITY TIME THERE FOR PEOPLE S H A R E A P O V THEY’RE PEOPLE? GIVE MORE THAN GET S TAY I N TO U C H INSPIRE EACH OTHER
H AV E C H E M I S T R Y REM AIN AUT HENTIC A C T T R A N S PA R E N T A R E E M PAT H E T I C FRIENDS SUPPORT EACH OTHER ALWAYS CLEAR NEVER HEAR SPEND QUALITY TIME Provide talk-worthy SPEND QUALITY TIME immersive experiences S H A R E A P O V GIVE MORE THAN GET S TAY I N TO U C H INSPIRE EACH OTHER
H AV E C H E M I S T R Y REM AIN AUT HENTIC A C T T R A N S PA R E N T A R E E M PAT H E T I C FRIENDS SUPPORT EACH OTHER BELIEVE USE SPEND QUALITY TIME Common lifestyle SHARE A POV S H A R E A P O V belief system or attitude GIVE MORE THAN GET S TAY I N TO U C H INSPIRE EACH OTHER
H AV E C H E M I S T R Y REM AIN AUT HENTIC A C T T R A N S PA R E N T A R E E M PAT H E T I C FRIENDS SUPPORT EACH OTHER SPEND QUALITY TIME A DEFINING EXPERIENCE A VACATION S H A R E A P O V Provide value and meaning GIVE MORE THAN GET GIVE MORE THAN GET beyond the money spent S TAY I N TO U C H INSPIRE EACH OTHER
H AV E C H E M I S T R Y REM AIN AUT HENTIC A C T T R A N S PA R E N T A R E E M PAT H E T I C SUPPORT EACH OTHER FRIENDS SPEND QUALITY TIME S H A R E A P O V CARD CARRYING MEMBER ON THE SHELF GIVE MORE THAN GET Build anticipation, add STAY S T A Y IN TOUCH IN TOUCH value & communicate INSPIRE EACH OTHER
H AV E C H E M I S T R Y REM AIN AUT HENTIC A C T T R A N S PA R E N T A R E E M PAT H E T I C SUPPORT EACH OTHER FRIENDS SPEND QUALITY TIME S H A R E A P O V GIVE MORE THAN GET BE DIFFERENT BE NORMAL S TAY I N TO U C H Motivates you to be INSPIRE EACH OTHER INSPIRE EACH OTHER di erent or better
2) Category Mean PERFORMANCE Tr -11 ACTIONS an sp ar en cy Au -10 th en tic ity -5 Su pp or ts m e Em -4 pa th y Q -2 ua lit y tim e WHAT IF Sh -10 ar ed ... PO V 0 Ch em ist ry -3 In sp ire sm e Ge -7 tm or e th an St Ig -8 ay ive si n to uc h AT&T IMPROVED THESE ACTIONS?
ACTIONS 2) WOW, THIS... 4% advocacy increase 2.8 incremental advocates million (07 customer count of 70MM) 8.4 conversations/week million (based on 3 per week) 3.4 new customers a month million (based on 10% conversion of 33.6MM) Average customer revenue: $606.00
BIG THOSE ARE NUMBERS.
MOMENTUM 3) Create momentum, get people talking more and moving toward the brand
MOMENTUM 3) FADING STABLE GROWING STOPPED TALKING TO BORED TO TALK TALKING
MOMENTUM 3) Hawaii 45 24 18 21 Costa Rica 14 Belize Florida Mexico Virgin -6 Keys Islands -18 Jamaica FADING STABLE GROWING STOPPED TALKING TO BORED TO TALK TALKING
HAVE ADVOCATES THAT AREN’T LOUD ENOUGH... COSTA RICA: Costa Rica social media volume compared with 6 competitors 119 189 52 GROW 63 REVIEWS/POSTS 90
MOMENTUM 3) WHAT IF... COSTA RICA COULD INCREASE THE INFLUENCE OF THEIR ADVOCATES? NOW POTENTIAL 1 Visitor influences 1 future visit 1 Visitor influences 1.5 future visits : :
MOMENTUM = BIG gains 3) small increase NOW POTENTIAL : : 350,000 X $1,000 = $350MM Incremental Visitors Avg. Rev./Person Incremental Rev. Based on estimated 700,000 US Estimated from 2007 int’l travel Estimated from 2007 int’l travel citizens/year visitors and receipts visitors and receipts Source: US State Dept. Source: UNWTO Source: UNWTO
BIG AGAIN...THOSE ARE NUMBERS.
TAKE A BREATH Let’s get back to the second half of our purpose.
BIGGER Increase the number of advocates [OUR PURPOSE] WE JUST COVERED THIS
NOW LET’S TALK ABOUT THIS: [OUR PURPOSE] LOUDER Magnify their voice and increase their impact
3 Imperatives for LOUDNESS
1) BE OF SERVICE Actions speak louder than words 2) PROPAGATE Light the fuse 3) ENGAGE Engage: Right time, right place, right context
1) BE OF SERVICE Actions speak louder than words Purpose (over positioning) Content (that builds and spreads) Experiences (that spark advocacy) Utilities (be useful) Actions (do more and do good) Participation (power of social connection)
Have a purpose that’s bigger than your product or service.
Entertain and provide content that people can use, influence, adopt and adapt.
Create experiences worthy of participation and word of mouth. > Alternative Reality Game: Find the new ad. Win a solid gold dice. Facebook Group for hints.
Marketing is the product: create things people can use and make their lives better. > Hear your run. See your run. Connect with runners. 90% reco rate
Do things for consumers, and enable consumers to do things for others.
Give customers a role in helping the brand succeed, allow them to participate and they will advocate
2) PROPAGATE Light the fuse
PROPAGATION PLANNING Plan not for the people we reach, but for the people that they reach
Broadcast Media: targets the majority Innovators Early Adopters Early Majority Late Majority Laggards
Broadcast Media: targets the majority Propagation: Spreadable content Innovators Early Adopters Early Majority Late Majority Laggards
Propagation Process 1) CREATIVE STIMULUS Images Audio Assets Video Assets Product Brand What can we share that is interesting? Plan for the content you don’t have.
Propagation Process 1) 2) CREATIVE MARKET STIMULUS INTELLIGENCE Images Audio Assets Identify Fan Cultures Video Assets Uncover Connection Product & Dialogue Points Brand What can we share that is interesting? What innovator/ early adopter tribe can we Plan for the content connect with? you don’t have.
Propagation Process 1) 2) 3) CREATIVE MARKET IDEA STIMULUS INTELLIGENCE PROPAGATION Images Audio Assets Identify Fan Cultures Blogger Outreach Video Assets Uncover Connection Tribe Mobilization Product & Dialogue Points Public Relations Brand What can we share How do we share that is interesting? What innovator/ early the idea? adopter tribe can we Plan for the content connect with? How do we get fans you don’t have. to work for us?
Propagation Process 1) 2) 3) 4) CREATIVE MARKET IDEA PARTICIPATORY STIMULUS INTELLIGENCE PROPAGATION PLATFORM Images YouTube Uploads Audio Assets Identify Fan Cultures Blogger Outreach Website Video Assets Uncover Connection Tribe Mobilization Mobile Product & Dialogue Points Public Relations Blog Brand What can we share How do we share that is interesting? What innovator/ early the idea? Build the platform adopter tribe can we and feed it with Plan for the content connect with? How do we get fans interesting content. you don’t have. to work for us?
Propagation Process 1) 2) 3) 4) 5) CREATIVE MARKET IDEA PARTICIPATORY FEEDBACK STIMULUS INTELLIGENCE PROPAGATION PLATFORM POINTS Images YouTube Uploads Email Accounts Audio Assets Identify Fan Cultures Blogger Outreach Voicemail Website Video Assets Uncover Connection Tribe Mobilization Facebook Mobile Product & Dialogue Points Public Relations MySpace Blog Brand What can we share How do we share that is interesting? What innovator/ early the idea? Build the platform Monitor the adopter tribe can we and feed it with feedback and Plan for the content connect with? How do we get fans interesting content. participation. you don’t have. to work for us? AdSpace Pioneers (Reworked)
A QUICK EXAMPLE: BWW
EXTENDING THE USE OF OUR ADVERTISEMENT
EXTENDING THE USE OF OUR ADVERTISEMENT EXCLUSIVITY IS SOCIAL CURRENCY Give our fans a sneak peek Something to share to their friends
EXTENDING THE USE OF OUR ADVERTISEMENT EXCLUSIVITY IS SOCIAL CURRENCY Give our fans a sneak peek Something to share to their friends USE FOOTAGE ON THE EDITING FLOOR Now we have a platform to leverage additional content that the client paid a lot of money to get
EXTENDING THE USE OF OUR ADVERTISEMENT EXCLUSIVITY IS SOCIAL CURRENCY Give our fans a sneak peek Something to share to their friends USE FOOTAGE ON THE EDITING FLOOR Now we have a platform to leverage additional content that the client paid a lot of money to get EXISTING CULTURE People like to share Bad Calls on YouTube Point our audience to these existing videos
EXTENDING THE USE OF OUR ADVERTISEMENT SHARING TIMELINE 7 Days Prior to Broadcast 3 Days Prior to Broadcast UGC Tie-in Upon Broadcast “Bad Calls” shared by others that we neither claim nor deny involvement
3) ENGAGE Engage: Right time, right place, right context
Define your target and their best relationship with the brand
Find the best times to engage with them
Determine the value the brand can add to their life during that time
Determine the ultimate action the brand will take
Gaming Bracket Challenge WAP Identify the best channels OOH/SMS Games Widgets Sweepstakes Rich Media Social Networks Quizzes Paid Search Mobile Social Tools Instant Messaging Applications Social Networks Digital/Social Media Focus Rich Media Social Networks E-Cards IM OOH/SMS Mobile Twitter Blogging Event Alerts Social Media Behavioral Social Networks Free WiFi Targeting Email Events Video In-Game In-Store Digital Messaging Calendar O ers+Coupons Display Ads Widgets
Blazin’ Challenge BWW Film School Featured Foods Creatively use the channel to Golden Tee, Silver make a connection and Strike, Etc. encouragethe Month Beer of conversation Boneless Thursdays Local Sports Fantasy Football Partnerships Takeout Night Hunger Featured Drinks Football Pick ‘Em Wing Tuesdays Competition Ideas Sauce Posters Buzztime Bracket Challenge Tactics Touchtunes WT/BT Messaging Website Games Campaigns Spring/Holiday B2B Local Gift Card Website Boss Button TV/Radio Cable Added Value CBS Partnership Local Lunch Programs WT Get Here Early Local TV/Radio Campaign NFL Radio ESPN Partnership LSM Sports Sponsorships
So this is how we use the Friendship Model
BIGGER Increase the number of advocates So this is how we use the Friendship Model
BIGGER Increase the number of advocates So this is how we use the Friendship Model LOUDER Magnify their voice and increase their impact
WE BELIEVE in it so much, that we changed our name... like getting a tattoo only better.
[ Our research told us that people make an average of 484 friends in their lifetime. ] 403 484 378 352 317 274 244 Accumulation 206 of Friends Over Time 169 137 86 6 to 17 18 to 24 25 to 29 30 to 34 35 to 39 40 to 44 45 to 49 50 to 54 55 to 59 60 to 64 65 to 73 Age Group Source: June 2007 National Consumer Panel Study Among Census-Weighted Sample Sample size = 1,168 (Answers are accurate to +/- 2.5% at 90% confidence level)
THE SQUARE ROOT OF FRIENDSHIP
THANK YOU

More Related Content

The Friendship Model™

  • 1. HOW TO BUILD BRAND ADVOCACY THE IN A CONSUMER-DRIVEN WORLD FRIENDSHIP MODEL
  • 2. A SELF-GUIDED ORIENTATION BY BRANDON MURPHY
  • 3. SO, WHAT IS IT? A new business tool? A positioning for the agency? A belief about marketing? A philosophy for how we work? A measure of our success?
  • 4. YES
  • 5. YES Thank you
  • 6. J/K
  • 7. Let’s start with the first question... why did we create it?
  • 8. Let’s start with the first question... [BECAUSE WE HAD TO] why did we create it?
  • 9. In case you haven’t heard, we have a bit of a sordid past...
  • 12. Well, boiled down: we were a divided culture split between two o ces with no united perspective and no common method for doing what we do
  • 13. (+) we were falling o the grid cast as a regional agency who specialized in retail ...NOT who we wanted to be.
  • 14. and... We were trying to change the way we do business.... just like every other ad agency who existed before web 2.0
  • 15. But the real problem...
  • 16. She’s a consumer. He’s an advertiser. All she wants is genuine a ection. All he gives is loyalty reduction. Click to watch video Source: Microsoft Digital Advertising Solutions
  • 17. Source: Microsoft Digital Advertising Solutions
  • 18. ACT People want brands that... ...more like friends than salespeople
  • 19. And when brands DO, people talk: [ Brands perceived to act on ] their customers’ behalf have 44% more advocates* *22squared Friendship Model Research
  • 20. So we need to help brands DO
  • 21. BUT ... To get people talking...
  • 22. ... we needed to create relationships worth talking about.
  • 23. We needed to turn our original way of marketing on it’s head...
  • 27. HOW does an agency create relationships worth talking about?
  • 28. REALIZE, that good brands are like people.
  • 29. ARE THE SAME The actions that make people great friends that cause people to advocate for brands
  • 30. [ “you can make more friends in 2 ] months by being interested in other people than in 2 years by making other people interested in you.” - Dale Carnegie
  • 31. Think about it... ...what do friends do?
  • 32. H AV E C H E M I S T R Y REM AIN AUT HENT IC A C T T R A N S PA R E N T A R E E M PAT H E T I C FRIENDS SUPPORT EACH OTHER SPEND QUALITY TIME S H A R E A P O V GIVE MORE THAN GET S TAY I N TO U C H INSPIRE EACH OTHER
  • 34. But how do we put that theory in action?
  • 35. FRIEND SHIP State of being a friend Someone you know and trust A member of the same group/nation Allied in a struggle, cause or movement
  • 36. FRIEND SHIP + MODEL State of being a friend Someone you know and trust An example of a behavior; a philosophy lived out Statistical method for accomplishing something A member of the same group/nation A compass that points you in the right direction Allied in a struggle, cause or movement A belief that never lets you down
  • 38. BIGGER Increase the number of advocates [OUR PURPOSE]
  • 39. Here’s how we size up advocacy: % of brand’s customers who are... SHAREHOLDER EVANGELIST RECOMMENDER REPEAT SATISFIED ADVOCATES BUYERS CRITICS MARGINAL CUSTOMER DISSATISFIED CUSTOMER ACTIVELY AGAINST
  • 40. TA = A - C TRUE ADVOCACY ADVOCATES CRITICS
  • 41. TA = A - C NOTE: We’ve done lots of research on this... on 180 brands with over 40,000 people
  • 42. $ Are advocates worth more than other customers?
  • 43. YES (THE SHORT ANSWER)
  • 44. WHAT THEY DO ADVOCATES WHAT WE MEASURE Buy more Spend levels Talk and share more Conversation rates Recommend more Recommendation rates 44
  • 45. FACT : When advocates talk, brands grow
  • 46. seriously, check it out... GROWTH TRUE ADVOCACY
  • 47. APPAREL RETAILERS *Growth index combines revenue growth, profit margins and operating income growth over a three-year period, from 05 - 07 SOURCE: 22squared Apparel Retail White Paper
  • 48. WIRELESS PROVIDERS Average annual growth rate from 05 - 07 SOURCE: 22squared Wireless Provider White Paper, 2008
  • 49. AIRLINES Average annual passenger revenue growth rate from 05-07 SOURCE: 22squared Airline White Paper, 2009
  • 50. HOW 1) ROLES ACTIONS 2) does the Friendship Model help us grow advocacy for brands? 3) MOMENTUM Play a more Identify the actions the Create momentum, get people meaningful role brand must take to talking more and moving in their life increase advocates toward the brand
  • 51. ROLES 1) Play a more meaningful role in their life
  • 52. FACT : The better friend you are, the more customers talk [ ] Understand the role a brand play’s in the life of the customer and deepen it.
  • 53. SOUL MATE CLOSE FRIEND NICHE FRIEND NEW FRIEND ACQUAINTANCE FAMILY FRIEND FLING 351 Index A unique connection; a DEFAULT brand you can’t live without FORCED
  • 54. A unique connection; a SOUL MATE brand you can’t live without CLOSE FRIEND NICHE FRIEND NEW FRIEND ACQUAINTANCE FAMILY FRIEND FLING 351 Index DEFAULT Inner-circle, depend on, always there. FORCED
  • 55. A unique connection; a SOUL MATE brand you can’t live without Inner-circle, depend on, always there CLOSE FRIEND NICHE FRIEND NEW FRIEND ACQUAINTANCE FAMILY FRIEND FLING 143 Index DEFAULT Familiar, in a narrow context, but in a restrictive way. FORCED
  • 56. A unique connection; a SOUL MATE brand you can’t live without Inner-circle, depend on, always there CLOSE FRIEND Familiar, in a narrow context NICHE FRIEND NEW FRIEND ACQUAINTANCE FAMILY FRIEND FLING 320 Index DEFAULT Still new, but on the road to becoming closer FORCED
  • 57. A unique connection; a SOUL MATE brand you can’t live without Inner-circle, depend on, always there CLOSE FRIEND Familiar, in a narrow context NICHE FRIEND On the road to becoming closer NEW FRIEND ACQUAINTANCE FAMILY FRIEND FLING 143 Index DEFAULT Ambivalent, no expectations and little reward FORCED
  • 58. A unique connection; a SOUL MATE brand you can’t live without Inner-circle, depend on, always there CLOSE FRIEND Familiar, in a narrow context NICHE FRIEND On the road to becoming closer NEW FRIEND Ambivalent, no expectations ACQUAINTANCE FAMILY FRIEND FLING 286 Index DEFAULT By association or inheritance, not solely your choice FORCED
  • 59. A unique connection; a SOUL MATE brand you can’t live without Inner-circle, depend on, always there CLOSE FRIEND Familiar, in a narrow context NICHE FRIEND On the road to becoming closer NEW FRIEND Ambivalent, no 177 Index expectations ACQUAINTANCE By association or inheritance FAMILY FRIEND FLING A short-time experiment, likely DEFAULT to happen only once FORCED
  • 60. A unique connection; a SOUL MATE brand you can’t live without Inner-circle, depend on, always there CLOSE FRIEND Familiar, in a narrow context NICHE FRIEND On the road to becoming closer NEW FRIEND Ambivalent, no expectations ACQUAINTANCE By association or inheritance FAMILY FRIEND Short-time experiment FLING 210 Index DEFAULT Lack of options, out of proximity or avoidance. FORCED
  • 61. A unique connection; a SOUL MATE brand you can’t live without Inner-circle, depend on, always there CLOSE FRIEND Familiar, in a narrow context NICHE FRIEND On the road to becoming closer NEW FRIEND Ambivalent, no expectations ACQUAINTANCE By association or inheritance FAMILY FRIEND Short-time experiment FLING Lack of options, 231 Index proximity or avoidance DEFAULT No choice, feel trapped and FORCED want to escape.
  • 62. Remember... IT’S NOT ABOUT BEING FRIENDLY ...it’s about BEHAVING like a friend.
  • 63. ACTIONS 2) Identify the actions the brand must take to increase advocates
  • 64. FACT : The more brands behave like friends, the more customers return the favor [Brands that are perceived to act on their customer’s behalf have 44% more advocates than brands that do not.* ] *22squared Friendship Model Research
  • 65. H AV E C H E M I S T R Y REM AIN AUT HENTIC A C T T R A N S PA R E N T A R E E M PAT H E T I C FRIENDS SUPPORT EACH OTHER SPEND QUALITY TIME S H A R E A P O V GIVE MORE THAN GET S TAY I N TO U C H INSPIRE EACH OTHER
  • 66. create a visceral spark HAVE H A V E CHEMISTRY CHEMISTRY or a gut reaction REM AIN AUT HENTIC A C T T R A N S PA R E N T A R E E M PAT H E T I C SUPPORT EACH OTHER FRIENDS FIREWORKS FORCED SPEND QUALITY TIME S H A R E A P O V GIVE MORE THAN GET S TAY I N TO U C H INSPIRE EACH OTHER
  • 67. H AV E C H E M I S T R Y Original, real and REMAIN AUTHENTIC REM AIN AUT HENTIC distinctly meaningful A C T T R A N S PA R E N T A R E E M PAT H E T I C SUPPORT EACH OTHER FRIENDS FOR REAL FOR NOT SPEND QUALITY TIME S H A R E A P O V GIVE MORE THAN GET S TAY I N TO U C H INSPIRE EACH OTHER
  • 68. H AV E C H E M I S T R Y REM AIN AUT HENTIC Be honest and ACT TRANSPARENT A C T T R A N S PA R E N T have clear intentions A R E E M PAT H E T I C FRIENDS SUPPORT EACH OTHER CLEAR HIDDEN SPEND QUALITY TIME S H A R E A P O V GIVE MORE THAN GET S TAY I N TO U C H INSPIRE EACH OTHER
  • 69. H AV E C H E M I S T R Y REM AIN AUT HENTIC A C T T R A N S PA R E N T Understand their needs ARE EMPATHETIC A R E E M PAT H E T I C desires and lives FRIENDS SUPPORT EACH OTHER GETS ME SPEND QUALITY TIME HASSLES ME S H A R E A P O V GIVE MORE THAN GET S TAY I N TO U C H INSPIRE EACH OTHER
  • 70. H AV E C H E M I S T R Y REM AIN AUT HENTIC A C T T R A N S PA R E N T A R E E M PAT H E T I C SUPPORT EACH OTHER FRIENDS Be helpful, useful SUPPORT EACH OTHER act on their behalf SPEND QUALITY TIME THERE FOR PEOPLE S H A R E A P O V THEY’RE PEOPLE? GIVE MORE THAN GET S TAY I N TO U C H INSPIRE EACH OTHER
  • 71. H AV E C H E M I S T R Y REM AIN AUT HENTIC A C T T R A N S PA R E N T A R E E M PAT H E T I C FRIENDS SUPPORT EACH OTHER ALWAYS CLEAR NEVER HEAR SPEND QUALITY TIME Provide talk-worthy SPEND QUALITY TIME immersive experiences S H A R E A P O V GIVE MORE THAN GET S TAY I N TO U C H INSPIRE EACH OTHER
  • 72. H AV E C H E M I S T R Y REM AIN AUT HENTIC A C T T R A N S PA R E N T A R E E M PAT H E T I C FRIENDS SUPPORT EACH OTHER BELIEVE USE SPEND QUALITY TIME Common lifestyle SHARE A POV S H A R E A P O V belief system or attitude GIVE MORE THAN GET S TAY I N TO U C H INSPIRE EACH OTHER
  • 73. H AV E C H E M I S T R Y REM AIN AUT HENTIC A C T T R A N S PA R E N T A R E E M PAT H E T I C FRIENDS SUPPORT EACH OTHER SPEND QUALITY TIME A DEFINING EXPERIENCE A VACATION S H A R E A P O V Provide value and meaning GIVE MORE THAN GET GIVE MORE THAN GET beyond the money spent S TAY I N TO U C H INSPIRE EACH OTHER
  • 74. H AV E C H E M I S T R Y REM AIN AUT HENTIC A C T T R A N S PA R E N T A R E E M PAT H E T I C SUPPORT EACH OTHER FRIENDS SPEND QUALITY TIME S H A R E A P O V CARD CARRYING MEMBER ON THE SHELF GIVE MORE THAN GET Build anticipation, add STAY S T A Y IN TOUCH IN TOUCH value & communicate INSPIRE EACH OTHER
  • 75. H AV E C H E M I S T R Y REM AIN AUT HENTIC A C T T R A N S PA R E N T A R E E M PAT H E T I C SUPPORT EACH OTHER FRIENDS SPEND QUALITY TIME S H A R E A P O V GIVE MORE THAN GET BE DIFFERENT BE NORMAL S TAY I N TO U C H Motivates you to be INSPIRE EACH OTHER INSPIRE EACH OTHER di erent or better
  • 76. 2) Category Mean PERFORMANCE Tr -11 ACTIONS an sp ar en cy Au -10 th en tic ity -5 Su pp or ts m e Em -4 pa th y Q -2 ua lit y tim e WHAT IF Sh -10 ar ed ... PO V 0 Ch em ist ry -3 In sp ire sm e Ge -7 tm or e th an St Ig -8 ay ive si n to uc h AT&T IMPROVED THESE ACTIONS?
  • 77. ACTIONS 2) WOW, THIS... 4% advocacy increase 2.8 incremental advocates million (07 customer count of 70MM) 8.4 conversations/week million (based on 3 per week) 3.4 new customers a month million (based on 10% conversion of 33.6MM) Average customer revenue: $606.00
  • 78. BIG THOSE ARE NUMBERS.
  • 79. MOMENTUM 3) Create momentum, get people talking more and moving toward the brand
  • 80. MOMENTUM 3) FADING STABLE GROWING STOPPED TALKING TO BORED TO TALK TALKING
  • 81. MOMENTUM 3) Hawaii 45 24 18 21 Costa Rica 14 Belize Florida Mexico Virgin -6 Keys Islands -18 Jamaica FADING STABLE GROWING STOPPED TALKING TO BORED TO TALK TALKING
  • 82. HAVE ADVOCATES THAT AREN’T LOUD ENOUGH... COSTA RICA: Costa Rica social media volume compared with 6 competitors 119 189 52 GROW 63 REVIEWS/POSTS 90
  • 83. MOMENTUM 3) WHAT IF... COSTA RICA COULD INCREASE THE INFLUENCE OF THEIR ADVOCATES? NOW POTENTIAL 1 Visitor influences 1 future visit 1 Visitor influences 1.5 future visits : :
  • 84. MOMENTUM = BIG gains 3) small increase NOW POTENTIAL : : 350,000 X $1,000 = $350MM Incremental Visitors Avg. Rev./Person Incremental Rev. Based on estimated 700,000 US Estimated from 2007 int’l travel Estimated from 2007 int’l travel citizens/year visitors and receipts visitors and receipts Source: US State Dept. Source: UNWTO Source: UNWTO
  • 86. TAKE A BREATH Let’s get back to the second half of our purpose.
  • 87. BIGGER Increase the number of advocates [OUR PURPOSE] WE JUST COVERED THIS
  • 88. NOW LET’S TALK ABOUT THIS: [OUR PURPOSE] LOUDER Magnify their voice and increase their impact
  • 90. 1) BE OF SERVICE Actions speak louder than words 2) PROPAGATE Light the fuse 3) ENGAGE Engage: Right time, right place, right context
  • 91. 1) BE OF SERVICE Actions speak louder than words Purpose (over positioning) Content (that builds and spreads) Experiences (that spark advocacy) Utilities (be useful) Actions (do more and do good) Participation (power of social connection)
  • 92. Have a purpose that’s bigger than your product or service.
  • 93. Entertain and provide content that people can use, influence, adopt and adapt.
  • 94. Create experiences worthy of participation and word of mouth. > Alternative Reality Game: Find the new ad. Win a solid gold dice. Facebook Group for hints.
  • 95. Marketing is the product: create things people can use and make their lives better. > Hear your run. See your run. Connect with runners. 90% reco rate
  • 96. Do things for consumers, and enable consumers to do things for others.
  • 97. Give customers a role in helping the brand succeed, allow them to participate and they will advocate
  • 98. 2) PROPAGATE Light the fuse
  • 99. PROPAGATION PLANNING Plan not for the people we reach, but for the people that they reach
  • 100. Broadcast Media: targets the majority Innovators Early Adopters Early Majority Late Majority Laggards
  • 101. Broadcast Media: targets the majority Propagation: Spreadable content Innovators Early Adopters Early Majority Late Majority Laggards
  • 102. Propagation Process 1) CREATIVE STIMULUS Images Audio Assets Video Assets Product Brand What can we share that is interesting? Plan for the content you don’t have.
  • 103. Propagation Process 1) 2) CREATIVE MARKET STIMULUS INTELLIGENCE Images Audio Assets Identify Fan Cultures Video Assets Uncover Connection Product & Dialogue Points Brand What can we share that is interesting? What innovator/ early adopter tribe can we Plan for the content connect with? you don’t have.
  • 104. Propagation Process 1) 2) 3) CREATIVE MARKET IDEA STIMULUS INTELLIGENCE PROPAGATION Images Audio Assets Identify Fan Cultures Blogger Outreach Video Assets Uncover Connection Tribe Mobilization Product & Dialogue Points Public Relations Brand What can we share How do we share that is interesting? What innovator/ early the idea? adopter tribe can we Plan for the content connect with? How do we get fans you don’t have. to work for us?
  • 105. Propagation Process 1) 2) 3) 4) CREATIVE MARKET IDEA PARTICIPATORY STIMULUS INTELLIGENCE PROPAGATION PLATFORM Images YouTube Uploads Audio Assets Identify Fan Cultures Blogger Outreach Website Video Assets Uncover Connection Tribe Mobilization Mobile Product & Dialogue Points Public Relations Blog Brand What can we share How do we share that is interesting? What innovator/ early the idea? Build the platform adopter tribe can we and feed it with Plan for the content connect with? How do we get fans interesting content. you don’t have. to work for us?
  • 106. Propagation Process 1) 2) 3) 4) 5) CREATIVE MARKET IDEA PARTICIPATORY FEEDBACK STIMULUS INTELLIGENCE PROPAGATION PLATFORM POINTS Images YouTube Uploads Email Accounts Audio Assets Identify Fan Cultures Blogger Outreach Voicemail Website Video Assets Uncover Connection Tribe Mobilization Facebook Mobile Product & Dialogue Points Public Relations MySpace Blog Brand What can we share How do we share that is interesting? What innovator/ early the idea? Build the platform Monitor the adopter tribe can we and feed it with feedback and Plan for the content connect with? How do we get fans interesting content. participation. you don’t have. to work for us? AdSpace Pioneers (Reworked)
  • 108. EXTENDING THE USE OF OUR ADVERTISEMENT
  • 109. EXTENDING THE USE OF OUR ADVERTISEMENT EXCLUSIVITY IS SOCIAL CURRENCY Give our fans a sneak peek Something to share to their friends
  • 110. EXTENDING THE USE OF OUR ADVERTISEMENT EXCLUSIVITY IS SOCIAL CURRENCY Give our fans a sneak peek Something to share to their friends USE FOOTAGE ON THE EDITING FLOOR Now we have a platform to leverage additional content that the client paid a lot of money to get
  • 111. EXTENDING THE USE OF OUR ADVERTISEMENT EXCLUSIVITY IS SOCIAL CURRENCY Give our fans a sneak peek Something to share to their friends USE FOOTAGE ON THE EDITING FLOOR Now we have a platform to leverage additional content that the client paid a lot of money to get EXISTING CULTURE People like to share Bad Calls on YouTube Point our audience to these existing videos
  • 112. EXTENDING THE USE OF OUR ADVERTISEMENT SHARING TIMELINE 7 Days Prior to Broadcast 3 Days Prior to Broadcast UGC Tie-in Upon Broadcast “Bad Calls” shared by others that we neither claim nor deny involvement
  • 113. 3) ENGAGE Engage: Right time, right place, right context
  • 114. Define your target and their best relationship with the brand
  • 115. Find the best times to engage with them
  • 116. Determine the value the brand can add to their life during that time
  • 117. Determine the ultimate action the brand will take
  • 118. Gaming Bracket Challenge WAP Identify the best channels OOH/SMS Games Widgets Sweepstakes Rich Media Social Networks Quizzes Paid Search Mobile Social Tools Instant Messaging Applications Social Networks Digital/Social Media Focus Rich Media Social Networks E-Cards IM OOH/SMS Mobile Twitter Blogging Event Alerts Social Media Behavioral Social Networks Free WiFi Targeting Email Events Video In-Game In-Store Digital Messaging Calendar O ers+Coupons Display Ads Widgets
  • 119. Blazin’ Challenge BWW Film School Featured Foods Creatively use the channel to Golden Tee, Silver make a connection and Strike, Etc. encouragethe Month Beer of conversation Boneless Thursdays Local Sports Fantasy Football Partnerships Takeout Night Hunger Featured Drinks Football Pick ‘Em Wing Tuesdays Competition Ideas Sauce Posters Buzztime Bracket Challenge Tactics Touchtunes WT/BT Messaging Website Games Campaigns Spring/Holiday B2B Local Gift Card Website Boss Button TV/Radio Cable Added Value CBS Partnership Local Lunch Programs WT Get Here Early Local TV/Radio Campaign NFL Radio ESPN Partnership LSM Sports Sponsorships
  • 120. So this is how we use the Friendship Model
  • 121. BIGGER Increase the number of advocates So this is how we use the Friendship Model
  • 122. BIGGER Increase the number of advocates So this is how we use the Friendship Model LOUDER Magnify their voice and increase their impact
  • 123. WE BELIEVE in it so much, that we changed our name... like getting a tattoo only better.
  • 124. [ Our research told us that people make an average of 484 friends in their lifetime. ] 403 484 378 352 317 274 244 Accumulation 206 of Friends Over Time 169 137 86 6 to 17 18 to 24 25 to 29 30 to 34 35 to 39 40 to 44 45 to 49 50 to 54 55 to 59 60 to 64 65 to 73 Age Group Source: June 2007 National Consumer Panel Study Among Census-Weighted Sample Sample size = 1,168 (Answers are accurate to +/- 2.5% at 90% confidence level)
  • 125. THE SQUARE ROOT OF FRIENDSHIP