The Network Is Your Customer:5 Strategies to Thrivein a Digital AgeKeynote address to the World Brand Congress, Mumbai, Nov 4, 2009David RogersExecutive Director, Center on Global Brand LeadershipColumbia University

Executive DirectorBooks & Case StudiesDavid RogersHost, BRITE conferencesExecutive Director, Center on Global Brand LeadershipMy work on brands & marketingBRITE conferenceBlogwww.davidrogers.biz2

My next bookThe Network Is Your Customer:5 Strategies to Thrive in a Digital Age(Yale University Press, 2010)

The Internet revolution is fundamentally reshaping the nature of relationships that customers have with each other -- and with businesses and organizations.

As a result, businesses need to rethink their paradigm for understanding customers.Instead of strategies designed to suit the aggregate behaviors of masses of isolated, individual customers…we need to focus on strategies suited to the behaviors of customer networks.

6Customer networks are… self-organizing

7…bashing brands“bloggers”

8…loving & advocating brands

…driving new models of business9

Will YOUR customer be……your biggest competitor?…or your biggest business driver?10

A revolution in communications3500 BC: writing1439: printing press1969: Internet1920: broadcast11

1-to-1 communication toolsPhoneLetterFace-to-face12

13Many-to-many communication toolsEmailBlogsCommentsVideoWikisForumsSocial networks

Mass market strategymass productionCompanyCustomersmass communication14

Customer network strategyBlogsCommentsCompanyForums15

++≠Mass Market StrategyCustomer Network Strategy+

Apple Inc. has a brilliant understanding of customer networks……but it does not use Facebook, Twitter, or YouTube.

Four domains needed for customer network strategyBusiness ModelInnovationMediaMarketing

To inspire loyalty, advocacy, and word-of-mouth… you need innovative products, services, & experiences… that help customer networks get what they want.

WHAT DO customer networks WANT?

AccessCustomerNetworksCollaborateEngageCustomizeConnect21

ACCESS… digital data & interactions as quickly, easily, and flexibly as possible22Behavior #1: Customer networks want to…

Our 1st Blackberry President

Mullah Zaif, former Talibanambassadorto Pakistan, told Al Jazeera that he’s “addicted to his iPhone.”8 millionmobile phones in Afghanistan… for calling, texting, virtual chess, voting in “Afghan Star”

25Always on

26On demand

Be faster, be easier, be everywhere, be always on27The ACCESS Strategy

ACCESS: be easyFlip VideoBlackberry

ACCESS: into the cloudcalendarcontactsemailwork filesphotosdatabase

30ACCESS: real-time

31ACCESS: embedded internetNike Plus

ENGAGE… with digital content that is sensory, interactive, and relevant to their needs34Behavior #2: Customer networks want to…

Old media audiences are shrinking…

36… but customers are consuming more content than ever

content scarcityattention surplusBroadcast age

Age of abundancecontent surplusattention scarcity

Marketing MessagesContent Customers Want

We must all be media companies now … producer … curator … sponsor

Become an indispensable source of valued information41The ENGAGE Strategy

ENGAGE: branding, not advertisingDove Campaign for Real Beauty42

ENGAGE: utility trumps metaphorKraft iFood Assistant43

ENGAGE: authentic, personal stories44

ENGAGE: know your audience45

CUSTOMIZE… by choosing and modifying a “Long Tail” of information, products, and services46Behavior #3: Customer networks want to…

The paradox of choice

Six filters for the paradox of choiceTaxonomiesRatingsText reviewsCollaborative filteringChoice schemasSocial filters

Make your offering adaptable to the needs of your customer51The CUSTOMIZE Strategy

CUSTOMIZE: mix your playlistPandora52

CUSTOMIZE: mashup your products & services53

CUSTOMIZE: choice makes it personal54

CUSTOMIZE: create a platform for choice

CONNECT… with each other by creating and sharing text, images, videos, votes, & links56Behavior #4: Customer networks want to…

In the time I've spoken with you today… 3 million messages, links, photos, videos, articles, and quizzes have been posted to Facebook. 600 hours of new video footage have been uploaded by users onto YouTube.Half a millionshort text posts have been sent to Twitter… equal in length to about 30 Harry Potter booksx30

… adding to what we’ve already accumulated13 million encyclopedia entries in 262 languages on Wikipedia200 million bloggers, most of whom blog or tweet every day3.8 billion user photos shared and available to search on Flickr

Conversations shape brandsMost trusted sources of information on brands: #1 recommendations from personal acquaintances (90%)#2 online consumer opinions from strangers (70%)Source: 2009 Nielsen Global Online Consumer Survey

Become a place where others share ideas62The CONNECT Strategy

CONNECT: listen & learn63

CONNECT: join the conversationBlogsYOUR COMPANY64

CONNECT: provide a forum65

CONNECT: ask for ideas66

COLLABORATE… on collective projects and goals through open platforms67Behavior #5: Customer networks want to…

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Linux69

Key factors in designing network collaborationsMotivation: love, glory, or moneyModularity (slicing the problem)Expertise vs. breadth of crowdProject vs. platformBottom-up and top-down

Wikipedia founder Jimmy Wales:“Wikipedia works by a confusing but workable mix of consensus (minority views count); democracy (but not usually simple voting); aristocracy (those who have built respect in the community have greater sway); andmonarchy(‘benevolent dictator’— someone to make a decision when it needs to be made)."

Involve your customers at every stage of your enterprise72The COLLABORATE Strategy

COLLABORATE: piece of the puzzle73

COLLABORATE: open competition74

COLLABORATE: open platforms100,00075

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AccessCustomerNetworksCollaborateEngageCustomizeConnect79

Thank youPlease share these slides!80

More cases: www.davidrogers.bizAll text in these slides © 2009 David RogersContact: contact@davidrogers.biz