Marketing via New Media Mid-Term Exam Customer-Driven Marketing, Part 1 Becky Carroll, MBA UCSD Extension Summer 2008

Tonight’s Topic: Customer-driven Marketing Midterm Exam Customer-driven design Ratings and reviews Energizing customers

Midterm Exam

Customer-driven design

Ratings and reviews

Energizing customers

What’s coming up Next week : Viral marketing and intro to final project – PLUS GUEST SPEAKER August 13: Microblogging and widgets August 20: NO CLASS August 27: Communities AND Creating a Social Media Plan September 3: Final Projects

Next week : Viral marketing and intro to final project – PLUS GUEST SPEAKER

August 13: Microblogging and widgets

August 20: NO CLASS

August 27: Communities AND Creating a Social Media Plan

September 3: Final Projects

Homework Assignment #4 Ratings and Reviews: Write a half-page description of how ratings and reviews can help energize customers and increase word of mouth. - Give an example of where you have used ratings or reviews from other people to help you decide for (or against) a product or service Blog: Write at least one more post! Link to class blog, other student blogs, and outside of class (if possible)

Ratings and Reviews:

Write a half-page description of how ratings and reviews can help energize customers and increase word of mouth.

- Give an example of where you have used ratings or reviews from other people to help you decide for (or against) a product or service

Blog:

Write at least one more post!

Link to class blog, other student blogs, and outside of class (if possible)

What are your customers doing?

Energizing the customer base More than one out of six people blog One in four people are critics Nearly half are spectators How can we reach them?? Note: US-based statistics from Groundswell

More than one out of six people blog

One in four people are critics

Nearly half are spectators

How can we reach them??

Note: US-based statistics from Groundswell

Ratings and reviews Geared to critics and spectators Amazon, TripAdvisor, Toys-R-Us are examples Stats 36% “highly trust” info from friends and acquaintances on social networks 90% “moderately trust” this info 4% trust ads or vendors

Geared to critics and spectators

Amazon, TripAdvisor, Toys-R-Us are examples

Stats

36% “highly trust” info from friends and acquaintances on social networks

90% “moderately trust” this info

4% trust ads or vendors

Word of Mouth It’s believable We trust our friends and others like us It’s self-reinforcing If we hear it from enough people, we probably believe it It’s self-spreading People spread the word on something they like

It’s believable

We trust our friends and others like us

It’s self-reinforcing

If we hear it from enough people, we probably believe it

It’s self-spreading

People spread the word on something they like

Zappos

Encouraging Reviews

Threadless: Customer-Driven Design Video

Threadless: Customer-Driven Design Democratic innovation (crowdsourcing) Fans submit, select, and buy the winning designs 700K members in their community Millions of dollars sold – of t-shirts “ The users of products are often best-equipped to innovate” They also tell others Street Team

Democratic innovation (crowdsourcing)

Fans submit, select, and buy the winning designs

700K members in their community

Millions of dollars sold – of t-shirts

“ The users of products are often best-equipped to innovate”

They also tell others

Street Team

Collarfree: Voting for favorites

Let’s look at Groundswell’s examples, too Lego Creator Critic Spectator eBags Customer reviews

Lego

Creator

Critic

Spectator

eBags

Customer reviews

5 Steps to Energize Figure out if you want to energize! Check the social technographics profile “ What is my customer’s problem?” Pick a strategy that fits Stay in it!

Figure out if you want to energize!

Check the social technographics profile

“ What is my customer’s problem?”

Pick a strategy that fits

Stay in it!

Homework Assignment #4 Ratings and Reviews: Write a half-page description of how ratings and reviews can help energize customers and increase word of mouth. - Give an example of where you have used ratings or reviews from other people to help you decide for (or against) a product or service Blog: Write at least one more post! Link to class blog, other student blogs, and outside of class (if possible)

Ratings and Reviews:

Write a half-page description of how ratings and reviews can help energize customers and increase word of mouth.

- Give an example of where you have used ratings or reviews from other people to help you decide for (or against) a product or service

Blog:

Write at least one more post!

Link to class blog, other student blogs, and outside of class (if possible)