THE NETWORK IS YOUR CUSTOMER5 Strategies to Thrive in a Digital Age<br />David Rogers<br />Executive Director, Center on G...
Buy the Book Anywhere:<br />-Hardcover<br />-Kindle ebook<br />-Nook ebook<br />Free Sample Chapter:<br />http://thenetwor...
Instead of focusing on technologies & tools…<br />
4<br />
We need to rethink our understanding of customers…<br />
Customer<br />Customer<br />Customer<br />Customer<br />Customer<br />Customer<br />6<br />
CUSTOMER NETWORKS: Self-organizing<br />7<br />
8<br />
9<br />CUSTOMER NETWORKS: Bashing your brand<br />
CUSTOMER NETWORKS : Driving your business<br />3 winning grad students:<br />Developed a billion-dollar new business ventu...
Will YOUR customer be…<br />…your biggest competitor?<br />…or your biggest business driver?<br />12<br />
Mass market model<br />mass production<br />Company<br />Customers<br />mass communication<br />13<br />
Customer network model<br />Customer<br />Customer<br />Blogs<br />Comments<br />Customer<br />Customer<br />Company<br />...
Rethinking the purchase funnel<br />OLD: Broadcast<br />NEW: Customer Networks<br />Search, buzz, blogs<br />TV, radio, ou...
+<br />≠<br />Customer Network Strategy<br />Mass Market Strategy<br />
In a world of customer networks…What kinds of products, services, & communications… …will inspire loyalty, advocacy, and w...
Five core behaviors of customer networksdrive the adoption of—and give meaning to—new technologies, products, and services...
Access<br />CustomerNetworks<br />Collaborate<br />Engage<br />Customize<br />Connect<br />19<br />
ACCESS<br />… digital data & interactions as quickly, easily, and flexibly as possible<br />20<br />Behavior #1: Customer ...
Mullah Zaif, former Talibanambassadorto Pakistan, <br />told Al Jazeera that he’s “addicted to his iPhone.”<br />
Be faster, be easier, be everywhere, be always on<br />23<br />The ACCESS Strategy<br />
ACCESS: On-demand brands<br />
ACCESS: Always-on connectivity<br />
ENGAGE<br />… with digital content that is sensory, interactive, and relevant to their needs<br />27<br />Behavior #2: Cus...
29<br />
content scarcity<br />attention surplus<br />Broadcast age<br />
Age of abundance<br />content surplus<br />attention scarcity<br />
Every company must think like a media company<br /> … producer<br /> … sponsor<br /> … curator<br />
Become a source of valued content<br />33<br />The ENGAGE Strategy<br />
ENGAGE: A hub of information<br />34<br />
ENGAGE: Offer utility<br />35<br />
36<br />ENGAGE: B2B game for lead generation<br />
CUSTOMIZE<br />… by choosing and modifying a vast range of information, products, and services<br />37<br />Behavior #3: C...
1,500,000+ books<br />20,000 books<br />39<br />Adapted from “The Long Tail,” Chris Anderson (Hyperion, 2006)<br />The “Lo...
Make your offering adaptable to your customers’ needs<br />40<br />The CUSTOMIZE Strategy<br />
CUSTOMIZE: The playlist that learns from you<br />Pandora<br />41<br />
CUSTOMIZE: E-tail that is tailored just to you<br />
CUSTOMIZE: Personalize your products<br />43<br />
CUSTOMIZE: Choose where to make a difference<br />44<br />
CONNECT<br />… with one another, by sharing their ideas as text, images, videos, & social links<br />45<br />Behavior #4: ...
In the last 30 minutes… <br />15 million messages, links, photos, videos, articles, and quizzes have been posted to Facebo...
Social media shape brands<br />Most trusted sources of information on brands: <br />#1 recommendations from personal acqua...
Become a part of your customers’ conversations<br />48<br />The CONNECT Strategy<br />
CONNECT: Listen and learn<br />49<br />
CONNECT: Join the conversation<br />50<br />
CONNECT: Provide a forum (for customer buzz)<br />51<br />
CONNECT: Ask for (new product) ideas<br />52<br />Dell Ideastorm logo<br />– linux laptops, servicepro, and…<br />Kids ed ...
COLLABORATE<br />… on collective projects and goals through open platforms<br />53<br />Behavior #5: Customer networks wan...
One “Wiki unit” = 100 million hours of human thought<br />
Invite your customers to help buildyour enterprise<br />56<br />The COLLABORATE Strategy<br />
COLLABORATE: Customer support by customers<br />57<br />
COLLABORATE: Tap into open innovation<br />58<br />
COLLABORATE: Make your business an open platform<br />59<br />
9-year-old’s iPhone app had 480,000 downloads<br />
Process for Planning & Implementing a Customer Network Strategy<br />
1. Objectives<br />2. Segmentation & Positioning<br />3. Strategy Selection & Ideation <br />4. Execution<br />5. Measurem...
Customer Network Strategy can achieve many different business OBJECTIVES<br /><ul><li>Brand building (Amex OPEN)
Product trial (Lancôme)
Customer service (Intuit)
Market entry (Ford)
Website sales conversion (Home Depot)
Service differentiation (Bank of America)
Product innovation (Innocentive)
Business development (Cisco)
Lead generation (IBM)</li></li></ul><li>EXECUTION requires a variety of skill sets<br />Leverage existing domains<br />Mar...
Idea capture
New media production</li></li></ul><li>Three Stages of Digital Marketing METRICS<br />Engagementmetrics<br />1.	Activity m...
Level of interaction
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The Network Is Your Customer: 5 Strategies to Thrive In a Digital Age - by David L Rogers

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  1. 1. THE NETWORK IS YOUR CUSTOMER5 Strategies to Thrive in a Digital Age<br />David Rogers<br />Executive Director, Center on Global Brand Leadership<br />Columbia Business School<br />www.davidrogers.biz<br />
  2. 2. Buy the Book Anywhere:<br />-Hardcover<br />-Kindle ebook<br />-Nook ebook<br />Free Sample Chapter:<br />http://thenetworkisyourcustomer.com<br />
  3. 3. Instead of focusing on technologies & tools…<br />
  4. 4. 4<br />
  5. 5. We need to rethink our understanding of customers…<br />
  6. 6. Customer<br />Customer<br />Customer<br />Customer<br />Customer<br />Customer<br />6<br />
  7. 7. CUSTOMER NETWORKS: Self-organizing<br />7<br />
  8. 8. 8<br />
  9. 9. 9<br />CUSTOMER NETWORKS: Bashing your brand<br />
  10. 10. 10<br />CUSTOMER NETWORKS: Loving your brand<br />
  11. 11. CUSTOMER NETWORKS : Driving your business<br />3 winning grad students:<br />Developed a billion-dollar new business venture for Cisco<br />
  12. 12. Will YOUR customer be…<br />…your biggest competitor?<br />…or your biggest business driver?<br />12<br />
  13. 13. Mass market model<br />mass production<br />Company<br />Customers<br />mass communication<br />13<br />
  14. 14. Customer network model<br />Customer<br />Customer<br />Blogs<br />Comments<br />Customer<br />Customer<br />Company<br />Forums<br />Customer<br />14<br />
  15. 15. Rethinking the purchase funnel<br />OLD: Broadcast<br />NEW: Customer Networks<br />Search, buzz, blogs<br />TV, radio, out-of-door<br />,<br />Online research, user reviews<br />Direct mail, brochure<br />Social networks, YouTube, local search<br />Product test, comparison<br />Group discounts, purchase on-line/in-store/mobile<br />In-store purchase<br />“Friending” (FB, Twitter, email),customized up-selling<br />Reward points<br />Reviews, links, “likes,” social buzz<br />15<br />
  16. 16. +<br />≠<br />Customer Network Strategy<br />Mass Market Strategy<br />
  17. 17. In a world of customer networks…What kinds of products, services, & communications… …will inspire loyalty, advocacy, and word-of-mouth?<br />
  18. 18. Five core behaviors of customer networksdrive the adoption of—and give meaning to—new technologies, products, and services.<br />
  19. 19. Access<br />CustomerNetworks<br />Collaborate<br />Engage<br />Customize<br />Connect<br />19<br />
  20. 20. ACCESS<br />… digital data & interactions as quickly, easily, and flexibly as possible<br />20<br />Behavior #1: Customer networks want to…<br />
  21. 21.
  22. 22. Mullah Zaif, former Talibanambassadorto Pakistan, <br />told Al Jazeera that he’s “addicted to his iPhone.”<br />
  23. 23. Be faster, be easier, be everywhere, be always on<br />23<br />The ACCESS Strategy<br />
  24. 24. ACCESS: On-demand brands<br />
  25. 25. ACCESS: Always-on connectivity<br />
  26. 26. ACCESS: Communicate at point-of-purchase<br />
  27. 27. ENGAGE<br />… with digital content that is sensory, interactive, and relevant to their needs<br />27<br />Behavior #2: Customer networks want to…<br />
  28. 28.
  29. 29. 29<br />
  30. 30. content scarcity<br />attention surplus<br />Broadcast age<br />
  31. 31. Age of abundance<br />content surplus<br />attention scarcity<br />
  32. 32. Every company must think like a media company<br /> … producer<br /> … sponsor<br /> … curator<br />
  33. 33. Become a source of valued content<br />33<br />The ENGAGE Strategy<br />
  34. 34. ENGAGE: A hub of information<br />34<br />
  35. 35. ENGAGE: Offer utility<br />35<br />
  36. 36. 36<br />ENGAGE: B2B game for lead generation<br />
  37. 37. CUSTOMIZE<br />… by choosing and modifying a vast range of information, products, and services<br />37<br />Behavior #3: Customer networks want to…<br />
  38. 38.
  39. 39. 1,500,000+ books<br />20,000 books<br />39<br />Adapted from “The Long Tail,” Chris Anderson (Hyperion, 2006)<br />The “Long Tail” of choice on the Web<br />
  40. 40. Make your offering adaptable to your customers’ needs<br />40<br />The CUSTOMIZE Strategy<br />
  41. 41. CUSTOMIZE: The playlist that learns from you<br />Pandora<br />41<br />
  42. 42. CUSTOMIZE: E-tail that is tailored just to you<br />
  43. 43. CUSTOMIZE: Personalize your products<br />43<br />
  44. 44. CUSTOMIZE: Choose where to make a difference<br />44<br />
  45. 45. CONNECT<br />… with one another, by sharing their ideas as text, images, videos, & social links<br />45<br />Behavior #4: Customer networks want to…<br />
  46. 46. In the last 30 minutes… <br />15 million messages, links, photos, videos, articles, and quizzes have been posted to Facebook.<br /> <br />700 hours of new video footage have been uploaded by users onto YouTube.<br />Half a millionshort text posts have been sent to Twitter… equal in length to about 30 Harry Potter books<br />x30<br />
  47. 47. Social media shape brands<br />Most trusted sources of information on brands: <br />#1 recommendations from personal acquaintances (90%)<br />#2(tied) online consumer opinions from strangers (70%)<br />
  48. 48. Become a part of your customers’ conversations<br />48<br />The CONNECT Strategy<br />
  49. 49. CONNECT: Listen and learn<br />49<br />
  50. 50. CONNECT: Join the conversation<br />50<br />
  51. 51. CONNECT: Provide a forum (for customer buzz)<br />51<br />
  52. 52. CONNECT: Ask for (new product) ideas<br />52<br />Dell Ideastorm logo<br />– linux laptops, servicepro, and…<br />Kids ed laptops (show pictures)<br />
  53. 53. COLLABORATE<br />… on collective projects and goals through open platforms<br />53<br />Behavior #5: Customer networks want to…<br />
  54. 54.
  55. 55. One “Wiki unit” = 100 million hours of human thought<br />
  56. 56. Invite your customers to help buildyour enterprise<br />56<br />The COLLABORATE Strategy<br />
  57. 57. COLLABORATE: Customer support by customers<br />57<br />
  58. 58. COLLABORATE: Tap into open innovation<br />58<br />
  59. 59. COLLABORATE: Make your business an open platform<br />59<br />
  60. 60. 9-year-old’s iPhone app had 480,000 downloads<br />
  61. 61. Process for Planning & Implementing a Customer Network Strategy<br />
  62. 62. 1. Objectives<br />2. Segmentation & Positioning<br />3. Strategy Selection & Ideation <br />4. Execution<br />5. Measurement<br />62<br />
  63. 63. Customer Network Strategy can achieve many different business OBJECTIVES<br /><ul><li>Brand building (Amex OPEN)
  64. 64. Product trial (Lancôme)
  65. 65. Customer service (Intuit)
  66. 66. Market entry (Ford)
  67. 67. Website sales conversion (Home Depot)
  68. 68. Service differentiation (Bank of America)
  69. 69. Product innovation (Innocentive)
  70. 70. Business development (Cisco)
  71. 71. Lead generation (IBM)</li></li></ul><li>EXECUTION requires a variety of skill sets<br />Leverage existing domains<br />Marketing<br />I.T.<br />Innovation<br />PR/communications<br />Customer service<br />H.R.<br />Develop new capabilities<br /><ul><li>Social media
  72. 72. Idea capture
  73. 73. New media production</li></li></ul><li>Three Stages of Digital Marketing METRICS<br />Engagementmetrics<br />1. Activity metrics<br />3. Business metrics<br />Level of customer involvement, attention, and commitment<br />Impact on critical business outcomes (KPIs, ROI, etc.)<br />"Something is happening"<br /><ul><li>Amount of time spent by community members
  74. 74. Level of interaction
  75. 75. Number of ideas submitted
  76. 76. Number of ideas implemented
  77. 77. Cost savings, sales, or increased loyalty driven by implementing ideas
  78. 78. Page views
  79. 79. Number of members joining community</li></li></ul><li>The reaction of many legacy companies?<br />
  80. 80. Customer networks<br />Customer networks<br />Customer networks<br />Customer networks<br />Customer networks<br />Customer networks<br />67<br />
  81. 81. Yet, despite the challenge and threats of disruption…<br />
  82. 82. There is tremendous opportunity for any company or organization today, IF it can focus on how to help its own customer networks to…<br />
  83. 83. Access<br />CustomerNetworks<br />Collaborate<br />Engage<br />Customize<br />Connect<br />70<br />
  84. 84. How can I help your business?<br />David Rogers<br />www.davidrogers.biz<br /><ul><li> Public speaking
  85. 85. Workshops
  86. 86. Executive education
  87. 87. Strategic consulting</li></ul>71<br />
  88. 88. Thank You.<br />www.davidrogers.biz <br />contact@davidrogers.biz<br />@david_rogers<br />facebook.com/thenetworkisyourcustomer<br />72<br />

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