Complete the Brand Advocate poll: http://bit.ly/Zpoll

Your Brand Advocates- How to Find Them and What They Are Worth

July 28, 2010

Meet the Panel

Frank EliasonSenior Director of National Customer Operations at Comcast

Esteban ContrerasSocial Media Manager at Samsung Electronics

Kety EsquivelVP of Digital Influence at Ogilvy

Rob FuggettaFounder and CEO of Zuberance

Brand Advocate Poll ResultsHow much is a Brand Advocate worth to your company? (Compared to an average customer)

Twice as much as average customers: 7.7%Three times as much as average customers:

15.4%Four times as much as average customers:

3.8%Five times as much as average customers:

15.4%Over five times as much as average customers: 15.4%I don’t know: 38.5%Brand Advocates and average customers are worth the same: 3.8%

Has your company identified its Brand Advocates?

Yes: 30.8%No: 46.2%I don’t know: 23.1%

Is your company currently utilizing its Brand Advocates to do anything on behalf of the brand?

Yes: 26.9%No: 46.2%I don’t know: 26.9%

Identifying + Igniting Brand Advocates

20% of consumers are key influencers of purchasing activities of 74% of the pop.Gartner

Less than 25% of people say they trust emails they sign up for.

1 in 3 people come to a brand through a recommendation.

Consumers mention 56 brands in conversation per week. Keller Fay

2/3rds of the economy is influenced by personal recommendations. McKinsey & Company

The most recommended company in any given category grows 2.5x the category average.Bain & Co.

Weber Shandwick

62% of these discussions are positive.

40% of advocates answer, comment, or give opinions online several times each week.

Yahoo! and Comscore

Each peer recommendation reaches 150 people on the social web. Forrester

Brand Advocateinvolved

influencer

independentsupporter forgiving

spender

engaged

recommendercredible

friend

passionate

vocal

authentic

honest

customer

fanloyal

proactive

contributor

invested

adopter

consumer

expert

demanding enthusiast

ADVOCATE CUSTOMER CRITIC

participant

active

empoweredbeliever

knowledgeablepromoterleader

aware

connected

• Advocacy has always been a Social Activity– “Social” should be a Long-Term Commitment– Increasing Advocacy should be a Long-Term Goal

• Identifying Advocates :– Immersion in the Social Web: Being part of the Community– Truly listening to comments, likes, @replies, reviews, ratings, etc.– Actively monitoring, measuring and tracking Buzz / Sentiment / Impact– Scores:

• NPS: Likelihood to recommend• BAQ: Brand Advocacy Quotient• OPS: Online Promoter Scores• TAS: % Advocates / % Critics

• Empowering + Encouraging + Inspiring + Igniting Advocacy:– Engaging in On-Going Conversations– Consistently Providing Valuable and Memorable Experiences– Being Human: Personality, Generosity, Creativity, Fun, Empathy, etc.– Thinking of the 5 C’s from their Perspective– Enabling Sharing– Identifying Influencers and the Influencers’ Influencers– Having a Service-Mindset towards everyone– Developing Social CRM– Nurturing relationships

twitter.com/samsungesteban twitter.com/socialnerdiafacebook.com/estebancontreraslinkedin.com/in/juanestebancontrerase-mail: socialnerdia@gmail.com

Slides will be posted soon at www.socialnerdia.com

YOUR BRAND ADVOCATESHow to Find Them and What They Are Worth

Kety esquivelVice President, Digital Influence Ogilvy Public Relations Worldwide

Who Are the Brand Advocates?

• Social Media Brand Advocates - Defined

• Usually bloggers, these folks can also be influential folks on FB, Twitter, YouTube or other SM platforms.

THE OPPORTUNITY

The Opportunity• The opportunity

– finding, engaging and activating brand advocates in social media

• This could include folks who are already loyal to the brand

• It could also include new folks – folks that could be supportive

of the brand given their interests

SO WHAT?

The Numbers• According to a recent article, 76% of

online shoppers rely on feedback from other buyers when making product purchases

• This is even true in niche markets like the Latino community which historically had relied on in person recommendations from family and friends

• A recent study by AOL and Cheskin found that Latinos have more confidence in online product ratings than their friends’ opinions (78%: 28%)

•

VISUALIZE IT

What Is the Current State? • Increasingly more folks in the

business, government and non-profit sectors are seeing the value of harnessing social media on behalf of the brand

• Although more orgs are investing in brand advocacy through social media, this is still a very new space for most

• The upside can be great but the rules of engagement for success are not necessarily intuitive to these new players and without the right strategy and stewardship it can be a confusing space

That’s Why Its Important to Have a Great Team that Gets It

• Check it out!

• Our blog: http://blog.ogilvypr.com/

•The Ogily PR feed on Twitter:http://twitter.com/ogilvypr

Several twitter lists following the Ogilvy team:@Lauren_Turner/ogilvy@serenamay/ogilvy @mikemangi/opr @sarahmarchetti/ogilvy

• Happy Birthday @unterekless!

KETY ESQUIVEL

Vice President, Digital Influence Ogilvy Public Relations WorldwideTwitter: @KetyE

19

Finding & Valuing Brand Advocates

Rob Fuggetta Zuberance Founder & CEO

July 28, 2010

Value to Your Business Loyal Customers (1 in 5 are Detractors)

Brand Advocates

Brand Advocates Distinct Segment

Fans, Followers

Pro-active recommendersRecommendations drive

sales

“Ultimate Question”

Very likelyExtremely Unlikely

0 1 2 3 4 5 6 7 8 9 10

Detractors Passives Advocates

“How likely are you to recommend us to a friend or colleague?”

40%Source: Zuberance

Advocates 5X More Valuable than Average Customers

Spend Value

Advocacy Value

3X

Spend Value 2X

Average Customers

Brand Advocates

Favorable Ratings & ReviewsPositive TestimonialsPositive comments on FB,

Twitter, blogs, online forums, and more

Offline recommendationsShared offers with social

networks

Hotel Advocate Worth $3,000Customer Type Spend

Value (Average

Spend over lifetime)

Advocacy Value

Total Lifetime Value of

Customer or Brand Advocate

Average Customer

$600

(3 stays x $200 per stay)

$0 $600

Brand Advocate $1,200

(6 stays x $200 per stay)

$1,800

(9 stays x $200 per stay)

$3,000

10X Return on Advocacy (ROA)

3-Year Investment in

Brand Advocate Marketing Program

Value of New

Customers Brought in by Brand

Advocates

Media Value of Brand

Advocates

Lead (Click) Value

Return on Brand

Advocate Marketing Program

$750,000 $6,800,000

(20,000 new customers

brought in as a direct result of

Brand Advocate Recommendati

ons x $340 average

lifetime value per customer)

$495,000

(4,950,000 impressions

@$100 CPM)

$300,000

(150,000 clicks @$2 cost per

click)

$7,595,000

Talk to a Brand Advocate Expert Now

Matt Elders(415) 264-1821

matt@zuberance.com

Blog: http://blog.zuberance.com

Twitter: http://twitter.com/Zuberance

Facebook: http://www.facebook.com/zuberance