The Network Is Your Customer: 5 Strategies to Thrive In a Digital Age - by David L Rogers

THE NETWORK IS YOUR CUSTOMER5 Strategies to Thrive in a Digital Age
David Rogers
Executive Director, Center on Global Brand Leadership
Columbia Business School
www.davidrogers.biz

Buy the Book Anywhere:
-Hardcover
-Kindle ebook
-Nook ebook
Free Sample Chapter:
http://thenetworkisyourcustomer.com

Instead of focusing on technologies & tools…

We need to rethink our understanding of customers…

Customer
Customer
Customer
Customer
Customer
Customer
6

CUSTOMER NETWORKS: Self-organizing
7

9
CUSTOMER NETWORKS: Bashing your brand

10
CUSTOMER NETWORKS: Loving your brand

CUSTOMER NETWORKS : Driving your business
3 winning grad students:
Developed a billion-dollar new business venture for Cisco

Will YOUR customer be…
…your biggest competitor?
…or your biggest business driver?
12

Mass market model
mass production
Company
Customers
mass communication
13

Customer network model
Customer
Customer
Blogs
Comments
Customer
Customer
Company
Forums
Customer
14

Rethinking the purchase funnel
OLD: Broadcast
NEW: Customer Networks
Search, buzz, blogs
TV, radio, out-of-door
,
Online research, user reviews
Direct mail, brochure
Social networks, YouTube, local search
Product test, comparison
Group discounts, purchase on-line/in-store/mobile
In-store purchase
“Friending” (FB, Twitter, email),customized up-selling
Reward points
Reviews, links, “likes,” social buzz
15

+
≠
Customer Network Strategy
Mass Market Strategy

In a world of customer networks…What kinds of products, services, & communications… …will inspire loyalty, advocacy, and word-of-mouth?

Five core behaviors of customer networksdrive the adoption of—and give meaning to—new technologies, products, and services.

Access
CustomerNetworks
Collaborate
Engage
Customize
Connect
19

ACCESS
… digital data & interactions as quickly, easily, and flexibly as possible
20
Behavior #1: Customer networks want to…

Mullah Zaif, former Talibanambassadorto Pakistan,
told Al Jazeera that he’s “addicted to his iPhone.”

Be faster, be easier, be everywhere, be always on
23
The ACCESS Strategy

ACCESS: On-demand brands

ACCESS: Always-on connectivity

ACCESS: Communicate at point-of-purchase

ENGAGE
… with digital content that is sensory, interactive, and relevant to their needs
27

content scarcity
attention surplus
Broadcast age

Age of abundance
content surplus
attention scarcity

Every company must think like a media company
… producer
… sponsor
… curator

Become a source of valued content
33
The ENGAGE Strategy

ENGAGE: A hub of information
34

ENGAGE: Offer utility
35

36
ENGAGE: B2B game for lead generation

CUSTOMIZE
… by choosing and modifying a vast range of information, products, and services
37

1,500,000+ books
20,000 books
39
Adapted from “The Long Tail,” Chris Anderson (Hyperion, 2006)
The “Long Tail” of choice on the Web

Make your offering adaptable to your customers’ needs
40
The CUSTOMIZE Strategy

CUSTOMIZE: The playlist that learns from you
Pandora
41

CUSTOMIZE: E-tail that is tailored just to you

CUSTOMIZE: Personalize your products
43

CUSTOMIZE: Choose where to make a difference
44

CONNECT
… with one another, by sharing their ideas as text, images, videos, & social links
45

In the last 30 minutes…
15 million messages, links, photos, videos, articles, and quizzes have been posted to Facebook.

700 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 books
x30

Social media shape brands
Most trusted sources of information on brands:
#1 recommendations from personal acquaintances (90%)
#2(tied) online consumer opinions from strangers (70%)

Become a part of your customers’ conversations
48
The CONNECT Strategy

CONNECT: Listen and learn
49

CONNECT: Join the conversation
50

CONNECT: Provide a forum (for customer buzz)
51

CONNECT: Ask for (new product) ideas
52
Dell Ideastorm logo
– linux laptops, servicepro, and…
Kids ed laptops (show pictures)

COLLABORATE
… on collective projects and goals through open platforms
53

One “Wiki unit” = 100 million hours of human thought

Invite your customers to help buildyour enterprise
56
The COLLABORATE Strategy

COLLABORATE: Customer support by customers
57

COLLABORATE: Tap into open innovation
58

COLLABORATE: Make your business an open platform
59

9-year-old’s iPhone app had 480,000 downloads

Process for Planning & Implementing a Customer Network Strategy

1. Objectives
2. Segmentation & Positioning
3. Strategy Selection & Ideation
4. Execution
5. Measurement
62

Customer Network Strategy can achieve many different business OBJECTIVES
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)

EXECUTION requires a variety of skill sets
Leverage existing domains
Marketing
I.T.
Innovation
PR/communications
Customer service
H.R.
Develop new capabilities
Social media
Idea capture
New media production

Three Stages of Digital Marketing METRICS
Engagementmetrics
1. Activity metrics
3. Business metrics
Level of customer involvement, attention, and commitment
Impact on critical business outcomes (KPIs, ROI, etc.)
"Something is happening"
Amount of time spent by community members
Level of interaction
Number of ideas submitted
Number of ideas implemented
Cost savings, sales, or increased loyalty driven by implementing ideas
Page views
Number of members joining community

The reaction of many legacy companies?

Customer networks
Customer networks
Customer networks
Customer networks
Customer networks
Customer networks
67

Yet, despite the challenge and threats of disruption…

There is tremendous opportunity for any company or organization today, IF it can focus on how to help its own customer networks to…

Access
CustomerNetworks
Collaborate
Engage
Customize
Connect
70

How can I help your business?
David Rogers
www.davidrogers.biz
Public speaking
Workshops
Executive education
Strategic consulting
71

Thank You.
www.davidrogers.biz
contact@davidrogers.biz
@david_rogers
facebook.com/thenetworkisyourcustomer
72

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The Network Is Your Customer: 5 Strategies to Thrive In a Digital Age - by David L Rogers

by David Rogers on Nov 09, 2009

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The Network Is Your Customer: 5 Strategies to Thrive In a Digital Age - by David L Rogers — Presentation Transcript