Diane Hessan's presentation to the Festival of NewMR 2010

1. The 8 Myths
About Successful Online
Communities
Diane Hessan, Communispace, USA
Part 3: Session 2, Convenor Andrew Jeavons, Chair Zoe Dowling, schedule = 2:12pm to 2:39pm (EST/New York)

2. one one one one one one one one one one one one one one
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A community is just
a fancy word for a
panel
1
Diane Hessan, Communispace, USA
Part 3: Session 2, Convenor Andrew Jeavons, Chair Zoe Dowling, schedule = 2:12pm to 2:39pm (EST/New York)

3. Diane Hessan, Communispace, USA
Part 3: Session 2, Convenor Andrew Jeavons, Chair Zoe Dowling, schedule = 2:12pm to 2:39pm (EST/New York)

4. two two two two two two two two two two two two two two
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Communities
can be valuable for almost
any decision
2
Diane Hessan, Communispace, USA
Part 3: Session 2, Convenor Andrew Jeavons, Chair Zoe Dowling, schedule = 2:12pm to 2:39pm (EST/New York)

5. Market Research Aid
• Hypothesis development for quantitative methods (segmentation schemes) or qualitative methods
• Survey and guide pre-testing
• Ready-made respondent pool for ethnography
(and other in-person methods like in-depth interviews)
Research Appropriate for Communities
New Product/Service Development
• Defining Customer needs, emotions/feelings, behaviors, habits
• Concepting and ideation for new products, services, packaging, bundling, promotions,
partnerships, etc.
• Concept development and refinement, including prototype testing
• Concept interest (pre-Bases, pre-Accupoll)
• Viral marketing pre-tests
• Substitute for ethnography using Customer diaries, lifestyle photos, etc.
Existing Brand and Product Feedback including competing brands
• Product/service experience evaluations, mystery shopping, product sampling
• Communications development and refinement
(tv, print, mail campaigns, online ads - copy, imagery, tag lines, etc.)
• Brand image/imagery
Diane Hessan, Communispace, USA
Part 3: Session 2, Convenor Andrew Jeavons, Chair Zoe Dowling, schedule = 2:12pm to 2:39pm (EST/New York)

6. What you shouldn’t use Communities for
• Go/no go decision-making or when high levels of precision are needed.
• Volume Forecasting
• Response rate estimation (for a promotion or mailing for example)
• Predictive modeling
• Segmentation
• Dynamic conjoint or other advanced quant methods
• Awareness and usage studies
• Satisfaction tracking studies
• Ad tracking
• Market sizing
• Brand equity studies
Diane Hessan, Communispace, USA
Part 3: Session 2, Convenor Andrew Jeavons, Chair Zoe Dowling, schedule = 2:12pm to 2:39pm (EST/New York)

7. three three three three three three three three three three three
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3
Bigger
is
Better
Diane Hessan, Communispace, USA
Part 3: Session 2, Convenor Andrew Jeavons, Chair Zoe Dowling, schedule = 2:12pm to 2:39pm (EST/New York)

8. TRUTH: Measure engagement rather than # of members
400-person community with 55%
participation rate and 16 contributions
per active member =
220 members x 16 contributions
OR
Public site that gets 1% of all
monthly visitors contributing once
Myth #3: Bigger is better
One 400-person private community Public site with ~ 350,000 visits/month
To collect 3,500 contributions/month:
Diane Hessan, Communispace, USA
Part 3: Session 2, Convenor Andrew Jeavons, Chair Zoe Dowling, schedule = 2:12pm to 2:39pm (EST/New York)

9. four four four four four four four four four four four four four four
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4
Make sure you pick the
best technology
Diane Hessan, Communispace, USA
Part 3: Session 2, Convenor Andrew Jeavons, Chair Zoe Dowling, schedule = 2:12pm to 2:39pm (EST/New York)

11. five five five five five five five five five five five five five five
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5
Communities are largely for
“BRAND FANS”
or high involvement products
Diane Hessan, Communispace, USA
Part 3: Session 2, Convenor Andrew Jeavons, Chair Zoe Dowling, schedule = 2:12pm to 2:39pm (EST/New York)

12. TRUTH: Brand communities only work with highly involved, actively listening brands.
8%
7%
9%
4%
6%
1%
7%
14%
1%
1%
7%
1%
4%
3%
19%
2%
7% Healthcare and Pharmaceuticals
Retail
Hospitality and Travel
Insurance
Consumer Electronics
Voluntary Sector
Retail
Technology
Telecommunications
Apparel and Footwear
Banking and Financial Services
Automotive
Beauty and Fragrances
Media and Publishing
Consumer Packaged Goods
Education
Food and Beverage
Myth #5: Communities only work for high involvement products
Diane Hessan, Communispace, USA
Part 3: Session 2, Convenor Andrew Jeavons, Chair Zoe Dowling, schedule = 2:12pm to 2:39pm (EST/New York)

13. six six six six six six six six six six six six six six six six six
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6
members are
biased
Community
Diane Hessan, Communispace, USA
Part 3: Session 2, Convenor Andrew Jeavons, Chair Zoe Dowling, schedule = 2:12pm to 2:39pm (EST/New York)

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7
response rate
The more you pay
the higher the
Diane Hessan, Communispace, USA
Part 3: Session 2, Convenor Andrew Jeavons, Chair Zoe Dowling, schedule = 2:12pm to 2:39pm (EST/New York)

15. eight eight eight eight eight eight eight eight eight eight eight
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8
ROI
is hard to get
Diane Hessan, Communispace, USA
Part 3: Session 2, Convenor Andrew Jeavons, Chair Zoe Dowling, schedule = 2:12pm to 2:39pm (EST/New York)

16. “In this day and age, it's rare when a
company/organization recognizes that
we are their customers, and without us,
there is no company; and then asks us
how to make themselves better. I
applaud and plan to maintain my
relationship with them for a long time.”
– Community Member
Myth #8: ROI is hard to get
Fresh perspectives
New product trial
More effective marketing
Kill bad ideas fast
Lower risk
Reduce cost
Speed to market
Customer loyalty
Creative solutions
Diane Hessan, Communispace, USA
Part 3: Session 2, Convenor Andrew Jeavons, Chair Zoe Dowling, schedule = 2:12pm to 2:39pm (EST/New York)

17. Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A
Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A
Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A
Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A
Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A
Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A
Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A
Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A
Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A
Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A
Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A
Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A
Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A
Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A
Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A
Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A
Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A Q&A
Q&A
Diane Hessan, Communispace, USA
Part 3: Session 2, Convenor Andrew Jeavons, Chair Zoe Dowling, schedule = 2:12pm to 2:39pm (EST/New York)
Q & A
Diane Hessan
Zoe Dowling