The Friendship Model™

HOW TO BUILD BRAND ADVOCACY THE IN A CONSUMER-DRIVEN WORLDFRIENDSHIPMODEL

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 Thank you

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...

GOT IT ?

Well, boiled down:we were a divided culturesplit between two o ceswith no united perspectiveand no common method for doing what we do

(+)we were falling o the gridcast as a regional agencywho 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 videoSource: Microsoft Digital Advertising Solutions

Source: Microsoft Digital Advertising Solutions

ACTPeople 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 createrelationshipsworth talking about.

We needed to turn our originalway of marketing on it’s head...

Literally

[OLD]AWARENESSPREFERENCEPURCHASE

[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 otherpeople than in 2 years by makingother people interested in you.” - Dale Carnegie

Think about it... ...what do friends do?

H AV E C H E M I S T R YREM AIN AUT HENT ICA C T T R A N S PA R E N TA R E E M PAT H E T I CFRIENDSSUPPORT EACH OTHERSPEND QUALITY TIMES H A R E A P O VGIVE MORE THAN GETS TAY I N TO U C HINSPIRE EACH OTHER

Makes sense, right?

But how do we put that theory in action?

FRIEND SHIPState of being a friendSomeone you know and trustA member of the same group/nationAllied in a struggle, cause or movement

FRIEND SHIP + MODELState of being a friendSomeone you know and trust An example of a behavior; a philosophy lived out Statistical method for accomplishing somethingA member of the same group/nation A compass that points you in the right directionAllied in a struggle, cause or movement A belief that never lets you down

[OUR PURPOSE]

BIGGERIncrease 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 - CTRUE ADVOCACY ADVOCATES CRITICS

TA = A - CNOTE: 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 levelsTalk and share more Conversation rates Recommend more Recommendation rates 44

FACT :When advocates talk, brands grow

seriously, check it out...GROWTH TRUE ADVOCACY

APPARELRETAILERS *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

WIRELESSPROVIDERS 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

HOW1) 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

ROLES1) 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 MATECLOSE FRIENDNICHE FRIEND NEW FRIENDACQUAINTANCEFAMILY FRIEND FLING 351 Index A unique connection; a DEFAULT brand you can’t live without FORCED

A unique connection; a SOUL MATEbrand 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 MATEbrand 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 MATEbrand 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 MATEbrand 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 MATEbrand 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 MATEbrand 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 MATEbrand 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 MATEbrand 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.

ACTIONS2) 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 YREM AIN AUT HENTICA C T T R A N S PA R E N TA R E E M PAT H E T I CFRIENDSSUPPORT EACH OTHERSPEND QUALITY TIMES H A R E A P O VGIVE MORE THAN GETS TAY I N TO U C HINSPIRE 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 FRIENDSFIREWORKS 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 FRIENDSFOR 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 OTHERCLEAR 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 TUnderstand 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 TIMETHERE 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 OTHERALWAYS 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 OTHERBELIEVE 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 TIMEA DEFINING EXPERIENCE A VACATION S H A R E A P O VProvide 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 VCARD 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 GETBE 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?

ACTIONS2) 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

BIGTHOSE ARE NUMBERS.

MOMENTUM3) Create momentum, get people talking more and moving toward the brand

MOMENTUM3) FADING STABLE GROWING STOPPED TALKING TO BORED TO TALK TALKING

MOMENTUM3) 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

MOMENTUM3) 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 gains3) 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

BIGAGAIN...THOSE ARE NUMBERS.

TAKE A BREATH Let’s get back to the second half of our purpose.

BIGGERIncrease 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

3Imperatives for LOUDNESS

1) BE OF SERVICE Actions speak louder than words2) PROPAGATE Light the fuse3) 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 contentthat people can use, inﬂuence, adopt and adapt.

Create experiences worthy ofparticipation and word of mouth. >Alternative Reality Game: Find the new ad. Win a solid gold dice. Facebook Group for hints.

Marketing is the product: createthings 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 inhelping the brand succeed, allow them to participate and they will advocate

2) PROPAGATE Light the fuse

PROPAGATION PLANNINGPlan not for the people we reach, butfor the people that they reach

Broadcast Media: targets the majorityInnovators Early Adopters Early Majority Late Majority Laggards

Broadcast Media: targets the majorityPropagation:Spreadable content Innovators Early Adopters Early Majority Late Majority Laggards

Propagation Process 1) CREATIVE STIMULUS Images Audio Assets Video Assets Product BrandWhat can we sharethat 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 BrandWhat can we sharethat is interesting? What innovator/ early adopter tribe can wePlan 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 BrandWhat can we share How do we sharethat is interesting? What innovator/ early the idea? adopter tribe can wePlan 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 BrandWhat can we share How do we sharethat is interesting? What innovator/ early the idea? Build the platform adopter tribe can we and feed it withPlan 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 BrandWhat can we share How do we sharethat is interesting? What innovator/ early the idea? Build the platform Monitor the adopter tribe can we and feed it with feedback andPlan 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 andtheir best relationshipwith the brand

Find the best times toengage with them

Determine the value thebrand can add to theirlife during that time

Determine the ultimateaction the brand will take

Gaming Bracket Challenge WAP Identify the best channels OOH/SMS Games Widgets Sweepstakes Rich Media Social Networks QuizzesPaid 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 FoodsCreatively 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

BIGGERIncrease the number of advocates So this is how we use the Friendship Model

BIGGERIncrease 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 206of 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

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The Friendship Model™

by 22squared on Mar 30, 2011

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The Friendship Model™ — Presentation Transcript