SXSW 2014 - The Future of Marketing: Advocacy

The Future of Marketing: Advocacy A Case Study Approach to Understanding What Works

Sunday, March 9 9:30AM - 10:30AM

Hilton Austin Downtown Salon E - 500 E 4th St

The Future of Marketing: Advocacy

The focus of this session is utilizing case studies and experiences building and operating different advocacy programs to understand and discover the potential of advocacy

Agenda – SXSW Session: Sunday, March 9th, 2014

Agenda & Approach

• Introduction

• The Past, Present, and Future

• Understanding Advocacy…

• Why is Advocacy Important?

• Types of Advocacy

• Drivers & Motivators

• Case Studies

• Looking into the Future…

The Future of Marketing: Advocacy Understanding Advocates in the Market Today…

The consumer's new role: "from isolated to connected, from unaware to informed,

from passive to active." "Co-Creating Unique Value with Customers,"

author Venkat Ramaswamy


Do you remember when marketing was so much simpler?

Understanding Advocates in the Market Today…


Do you remember when marketing was so much simpler?


Choose a compelling message…

…and deliver it through a few communication channels that

reached the masses…

Drink heavily at lunch…

Smoke a lot…

http://www.google.com/imgres?imgurl=http://howellsteel.com/images/old-newspaper-article.jpg&imgrefurl=http://howellsteel.com/about.html&usg=__KYSMfWc0-BIuMaRhcu1zYf77v-4=&h=614&w=800&sz=80&hl=en&start=38&um=1&itbs=1&tbnid=Vqd_L1_mc3cEGM:&tbnh=110&tbnw=143&prev=/images?q=old+newspaper&start=20&um=1&hl=en&sa=N&rlz=1I7DKUS_en&ndsp=20&tbs=isch:1

http://www.google.com/imgres?imgurl=http://www1.istockphoto.com/file_thumbview_approve/99858/2/istockphoto_99858_old_radio.jpg&imgrefurl=http://backreaction.blogspot.com/2009_01_01_archive.html&usg=__4LXnk7YtYupgIFOcuZsW_PmG9hA=&h=309&w=380&sz=38&hl=en&start=9&um=1&itbs=1&tbnid=FewF8pp7XfvWnM:&tbnh=100&tbnw=123&prev=/images?q=old+radio&um=1&hl=en&sa=N&rlz=1I7DKUS_en&tbs=isch:1

http://www.google.com/imgres?imgurl=http://www.lib.udel.edu/ud/spec/images/hemingwa/72-2.jpg&imgrefurl=http://www.lib.udel.edu/ud/spec/exhibits/hemngway/oldman.htm&usg=__jYLbTi5tsUjzwDAg1u_Gsk6H2XY=&h=632&w=484&sz=82&hl=en&start=53&um=1&itbs=1&tbnid=6HWH5N33JPeXkM:&tbnh=137&tbnw=105&prev=/images?q=old+magazine&start=40&um=1&hl=en&sa=N&rlz=1I7DKUS_en&ndsp=20&tbs=isch:1


Even the Early Digital Days Were Less Complicated…


Choose a compelling message…

…and deliver it through a few communication channels that

reached the masses…

Drink heavily at lunch…

Smoke a lot…


Even the Early Digital Days Were Less Complicated…



Even the Internet advertising days were great…


Not A Normal Consumer….

WARNING


Fast Forward to 2014…



Media Fragmentation & Overload



Ad Effectiveness



The Collective Value is Tremendous….

100 friends x 5000 emp 500K Reach



Mobile & Wearable Tech


76% of consumers don’t believe that companies tell the truth in advertisements

Yankelowich


Declining Trust



Declining Engagement

Less Than 1% Facebook Fans Engage with Brands



Easy to Hide Behind the Digital Wall



Customer Relationship Scaling

Customers are fragmented and distracted… They each receive up to 4,500 commercial messages a day. There is a need to empower influential voices in the market Brands can’t operate a 1:1 relationship with every customer

http://www.google.com/imgres?imgurl=http://lavrusik.com/wp-content/uploads/2010/04/twitter.png&imgrefurl=http://lavrusik.com/2009/12/23/8-news-media-business-trends-for-2010/&usg=__YYWaxbJVoZm49djJ3dl6YkZrZEc=&h=256&w=256&sz=27&hl=en&start=5&um=1&itbs=1&tbnid=FbMT-lNSzauZsM:&tbnh=111&tbnw=111&prev=/images?q=twitter&um=1&hl=en&sa=N&rlz=1I7DKUS_en&tbs=isch:1

http://www.google.com/imgres?imgurl=http://www.gie-expo.com/gieexpo/templates/giee_960_white/images/Facebook_icon.png&imgrefurl=http://www.gie-expo.com/gieexpo/index.php?option=com_content&view=article&id=51&Itemid=97&usg=__kP1HVpGScy6peLbVB4b_VAb5Cww=&h=512&w=512&sz=44&hl=en&start=20&um=1&itbs=1&tbnid=5DyhH8M7S3rMYM:&tbnh=131&tbnw=131&prev=/images?q=facebook&um=1&hl=en&rlz=1I7DKUS_en&tbs=isch:1

http://www.google.com/imgres?imgurl=http://scrapetv.com/News/News Pages/Technology/images/youtube-logo-2.jpg&imgrefurl=http://scrapetv.com/News/News Pages/Technology/pages/YouTube-challenges-users-to-guess-how-much-money-its-losing-Scrape-TV-The-World-on-your-side.html&usg=__8yP-8F1r8FT7j5CXLZvrs3WEEk8=&h=345&w=487&sz=21&hl=en&start=5&um=1&itbs=1&tbnid=dI7uwE0TkZ9HwM:&tbnh=91&tbnw=129&prev=/images?q=youtube&um=1&hl=en&sa=N&rlz=1I7DKUS_en&tbs=isch:1

http://www.google.com/imgres?imgurl=http://sdkyp.files.wordpress.com/2009/12/linkedin-logo.jpg&imgrefurl=http://sdkyp.wordpress.com/2009/12/17/reminder-1219-saturday-beach-cleanup/&usg=__DIj9GSH-h1F53Q-WMA3KYGUGdnc=&h=256&w=256&sz=13&hl=en&start=2&um=1&itbs=1&tbnid=Fx9VjA8QUnwe_M:&tbnh=111&tbnw=111&prev=/images?q=linkedin&um=1&hl=en&sa=N&rlz=1I7DKUS_en&tbs=isch:1

http://www.google.com/imgres?imgurl=http://menukarma.com/menus/files/rss-syndicate.png&imgrefurl=http://www.menukarma.com/menus/rss-feeds&usg=__T-SnpMbknR7Oux3-aYKcTHfxa5k=&h=450&w=450&sz=120&hl=en&start=2&um=1&itbs=1&tbnid=bCctO5lVUVWIHM:&tbnh=127&tbnw=127&prev=/images?q=RSS&um=1&hl=en&rlz=1I7DKUS_en&tbs=isch:1

http://www.google.com/imgres?imgurl=http://thenextweb.com/us/files/2010/03/foursquare_logo.png&imgrefurl=http://thenextweb.com/us/2010/03/23/foursquare-raw-facts/&usg=__W-PwMPvQu0vjo5tBAkWOsWf1cpY=&h=251&w=623&sz=20&hl=en&start=24&um=1&itbs=1&tbnid=ch6N88tZGF0t6M:&tbnh=55&tbnw=136&prev=/images?q=foursquare&start=20&um=1&hl=en&sa=N&rlz=1I7DKUS_en&ndsp=20&tbs=isch:1

http://www.google.com/imgres?imgurl=http://www.krds.com/skins/images/iphone_logo.jpg&imgrefurl=http://www.krds.com/index.php?page=mobile&usg=__NLz7j8hn3R5Fti8hdcbB4jBa7xk=&h=112&w=200&sz=7&hl=en&start=12&um=1&itbs=1&tbnid=hGH7hyibifjfhM:&tbnh=58&tbnw=104&prev=/images?q=iphone+logo&um=1&hl=en&rlz=1I7DKUS_en&tbs=isch:1

http://www.google.com/imgres?imgurl=http://www.canadiandesignresource.ca/officialgallery/wp-content/uploads/2009/05/blackberry_logo.jpg&imgrefurl=http://www.canadiandesignresource.ca/officialgallery/logo/blackberry-logo/&usg=__rElXvr8Pa57Dk5oq-HwgAIm4Xuc=&h=200&w=415&sz=28&hl=en&start=12&um=1&itbs=1&tbnid=ED7G8VjpkVEedM:&tbnh=60&tbnw=125&prev=/images?q=blackberry+logo&um=1&hl=en&rlz=1I7DKUS_en&tbs=isch:1



Influencers are Becoming Trust Merchants

Influencer: • Transactional • Quick Impact • No Loyalty • Expensive


What is going on in the marketplace today? How can brands cut through the noise and make an impact without breaking the bank?


Operational Drivers of Large Scale Influencer & Advocate Management

Social & Earned Media

Strategy

Highly Fragmented Audiences

Complicated Marketing Messages

Difficulty in Building True Consumer Engagement

Fans

Advocates

Influencers


Brand Advocates Can Become a Valuable Asset…

How do you define the difference between…

Influencer: • Transactional • Quick Impact • No Loyalty • Expensive

Advocate: • True Relationship • Longer Process • Extreme Loyalty • Not Motivated by $ • Larger Number • Smaller Audience


So What Is a Brand Advocate?

Loyalty, Trust and Enthusiasm are Core to Advocate


What Does An Advocate Look Like?

Advocates

Influencers

Fans and Followers

Semi-pro content creators Content bloggers/enthusiasts who expect to be paid

Social Publishers Enthusiasts looking for content and non-cash social currency

Super fans Brand advocates seeking Brand perks and recognition


Why Are Advocates So Important?



What Types of Brand Advocates Are There?

Loyalty, Trust and Enthusiasm are Core to Advocate

Employees

Partners

Teams & Orgs

Customers


Employees are a Great Advocacy Group!

These two items have the same volume, but do they have the same surface?

A bag of marbles has ~300% more surface area of a softball.

Corporate Marketing Employees


There are many different types of advocates and they all play a role in the advocate ecosystems. Brands should segment their advocates into groups.

Breaking Down the Advocates & Fans Into Deeper Segments

Brands are empowering and tapping into the many different types of market voices to build and operate engagement communities. Each of these segments can offer tangible and measurable ROI for the brand.

Market Voices

Reach

Influence

Mass

Significant

Viral

Large

High Trust

Category

Engaged

Brand

Peers

Unlimited

Influencer Amplifier Connector Fanatic Relationships


Where Are The Passionate Voices? Social Media & Self Publishing has created a rich market of fanatics and amplifiers

The Long Tail of the Social Web

Big Media

Mid-tail Influencers

Passionate Voices

Fans & Followers

650MM Active Social Voices

Where can you find these influencers, amplifiers and fans?


What Value Can Advocates Offer?

Their Interest and Engagement in Your Brand is Key…

Amplify Content Product Reviews Content Syndication User Groups References

Produce Content Market Support Referrals Opinion/Survey Market Intel


What Differentiates Advocates vs. Fans?


What are the primary drivers for brand advocates and fans to continue a direct relationship by advocating and sharing content on behalf of the brand?

Overview of the Operational Components to Influencer Marketing

% Advocate Strong Motivation Drivers

Recognition Access Rewards

73% 63% 56%

• Thank You recognition • Viewed as good advocate • Identified as value add • Called on to help out

• Invited into program • Exclusive membership • Access to unique content • Authentic relationships

• Increased levels in program • Prizes & gifts • Branded products & swag • Virtual rewards


Most businesses treat the transaction or sale as the pinnacle of the relationship. Brands must think about the Neighborly Relationship – need to be human…

• Interact

• Listen

• Respond

Communication One Way

Good

Improving

Bad!

The Problem Today…


Advocates like being recognized for their insights and contribution to the brand. They enjoy being seen as experts and well informed in the category or products.

Motivators for Advocates & Fans are Different…

75.2%

58.3%

41.1%

30.1%

21.2% 16.3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Recognized as category expert being well informedand connected to brand

Brand and followers recognize my value &contribution

% Strongly Agree – Brand Motivation

Advocate Fan Web UserSource: Dunnhumby 2011


How to Get to Sustained Advocacy…


Advocates like being recognized for their insights and contribution to the brand. They enjoy being seen as experts and well informed in the category or products.

Motivators for Advocates & Fans are Different…

75.2%

58.3%

41.1%

30.1%

21.2% 16.3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Recognized as category expert being well informedand connected to brand

Brand and followers recognize my value &contribution

% Strongly Agree – Brand Motivation

Advocate Fan Web UserSource: Dunnhumby 2011


The goals and objectives behind any incentives built into your ambassador program should be tied to building a sustainable relationship with advocates

Overview of the Operational Components to Influencer Marketing

Building active brand ambassadors through an authentic relationship between your brand and your fans/advocates can activate and empower your membership to become involved and hyper loyal!

Rewards & Incentives

Gifts & Prizes Events & Concerts Merchandise Industry Events

Digital Rewards Charitable Donations Travel Tickets Special Experiences


Building relationships with influencers NOW is key when faces with a crisis or issue. Brands are able to leverage the relationship to help diffuse or broadcast responses.

Establish Your Advocacy Program and Scale

Identify Constituents Engage & Amplify Empower

social thresholds and segmentation Share & Broadcast content & messages Active to generate advocacy


Building relationships with influencers NOW is key when faces with a crisis or issue. Brands are able to leverage the relationship to help diffuse or broadcast responses.

Broadcast and Empower the Advocates

Text Message SMS Alert

Smart Phone Message

Email or Social Message

Browser Extension Desktop Alert

All Content Company Confidential ©2014 Dynamic Signal 39

United Nations: Giving Tuesday

Launched November 2012

Case Study: Giving Tuesday – Small Number of people generated

awareness and was able to launch this program across the Globe…




Case Study: Giving Tuesday – Small Number of people generated

awareness and was able to launch this program across the Globe…




Second Year for Giving Tuesday initiative; Expanded from powering

influencer community (’12) to full Global Media (‘13)

Giving Tuesday Community

#GivingTuesday became a global trend… more than

500K social mentions /100MM+ impressions in

24hrs

– USA Today Technology News


Business

SXSW 2014 - The Future of Marketing: Advocacy