The Friendship Model: How to build brand advocacy in a consumer-driven world.

AN ORIENTATION BY BRANDON MURPHY

THE LAWYERS SAY.... Copyright © 2007 22squared inc. For educational use only. No part of this presentation may be published, sold, or otherwise used for proﬁt without the written permission of 22squared. The Friendship Model is a registered trademark of 22squared.

J/K

Let’s start with the ﬁrst question... why did we create it?

Let’s start with the ﬁrst question... [BECAUSE WE HAD TO] why did we create it?

We were trying to change the way we do business...just like every other ad agency that existed before web 2.0.

But the real problem...

She’s a consumer. He’s an advertiser. All she wants is genuine a ection. All he gives is loyalty reduction. If you haven’t seen this video, you’re missing out...it’s brilliant. http://ub0.cc/77/4f Source: Microsoft Digital Advertising Solutions

Literally

[ ] “You can make more friends in two months by being interested in other people than in two years by making other people interested in you.” - Dale Carnegie

H AV E C H E M I S T R Y REMAIN AUTHENTI C A C T T R A N S PA R E N T A R E E M PAT H E T I C FRIENDS SUPPORT EACH OTHER SPEND QUALITY TIME SHARE A P. O .V. GIVE MORE THAN GET S TAY I N TO U C H INSPIRE EACH OTHER Copyright © 2007 22squared

RIEND SHIP + MODEL State of being a friend An example of a behavior; a philosophy lived out Someone you know and trust Statistical method for accomplishing something A member of the same group/nation A compass that points you in the right direction Allied in a struggle, cause or movement A belief that never lets you down Copyright © 2007 22squared

Here’s how we size up advocacy: % of brand’s customers who are... SHAREHOLDER EVANGELIST RECOMMENDER REPEAT SATISFIED CRITICS ADVOCATES BUYERS MARGINAL CUSTOMER DISSATISFIED CUSTOMER ACTIVELY AGAINST Copyright © 2007 22squared

ES (THE SHORT ANSWER)

APPAREL RETAILERS % *Growth index combines revenue growth, proﬁt margins and operating income growth over a three-year period, from 05 - 07 SOURCE: 22squared Apparel Retail White Paper, 2008 Copyright © 2007 22squared

OW does the Friendship Model help increase advocacy for brands? ROLES ACTIONS MOMENTUM 1) 2) 3) Identify the actions the Create momentum, get people Play a more brand must take to talking more and moving meaningful role increase advocates toward the brand in their life Copyright © 2007 22squared

SOUL MATE CLOSE FRIEND NICHE FRIEND NEW FRIEND ACQUAINTANCE FAMILY FRIEND FLING 351 Index* A unique connection; a DEFAULT brand you can’t live without FORCED Copyright © 2007 22squared *Index among all brands tested

SOUL MATE A unique connection; a brand you can’t live without CLOSE FRIEND NICHE FRIEND NEW FRIEND ACQUAINTANCE FAMILY FRIEND FLING 202 Index* Inner-circle, depend on, DEFAULT always there FORCED Copyright © 2007 22squared *Index among all brands tested

SOUL MATE A unique connection; a brand you can’t live without Inner-circle, depend on, CLOSE FRIEND always there NICHE FRIEND NEW FRIEND ACQUAINTANCE FAMILY FRIEND FLING 143 Index* Familiar in a narrow context, DEFAULT but in a restrictive way. FORCED Copyright © 2007 22squared *Index among all brands tested

SOUL MATE A unique connection; a brand you can’t live without Inner-circle, depend on, CLOSE FRIEND always there Familiar in a NICHE FRIEND narrow context NEW FRIEND ACQUAINTANCE FAMILY FRIEND FLING 320 Index* DEFAULT Still new, but on the road to becoming closer FORCED Copyright © 2007 22squared *Index among all brands tested

SOUL MATE A unique connection; a brand you can’t live without Inner-circle, depend on, CLOSE FRIEND always there Familiar in a NICHE FRIEND narrow context On the road to NEW FRIEND becoming closer ACQUAINTANCE FAMILY FRIEND FLING 143 Index* DEFAULT Ambivalent, no expectations and little reward FORCED Copyright © 2007 22squared *Index among all brands tested

SOUL MATE A unique connection; a brand you can’t live without Inner-circle, depend on, CLOSE FRIEND always there Familiar in a NICHE FRIEND narrow context On the road to NEW FRIEND becoming closer Ambivalent, no ACQUAINTANCE expectations FAMILY FRIEND FLING 286 Index* DEFAULT By association or inheritance, not solely your choice FORCED Copyright © 2007 22squared *Index among all brands tested

SOUL MATE A unique connection; a brand you can’t live without Inner-circle, depend on, CLOSE FRIEND always there Familiar in a NICHE FRIEND narrow context On the road to NEW FRIEND becoming closer 177 Index* Ambivalent, no ACQUAINTANCE expectations By association or FAMILY FRIEND inheritance FLING A short-term experiment, DEFAULT likely to happen only once FORCED Copyright © 2007 22squared *Index among all brands tested

SOUL MATE A unique connection; a brand you can’t live without Inner-circle, depend on, CLOSE FRIEND always there Familiar in a NICHE FRIEND narrow context On the road to NEW FRIEND becoming closer Ambivalent, no ACQUAINTANCE expectations By association or FAMILY FRIEND inheritance Short-term FLING experiment 210 Index* Lack of options, out of DEFAULT proximity or avoidance. FORCED Copyright © 2007 22squared *Index among all brands tested

SOUL MATE A unique connection; a brand you can’t live without Inner-circle, depend on, CLOSE FRIEND always there Familiar in a NICHE FRIEND narrow context On the road to NEW FRIEND becoming closer Ambivalent, no ACQUAINTANCE expectations By association or FAMILY FRIEND inheritance Short-term FLING experiment 231 Index* Lack of options, DEFAULT proximity or avoidance No choice, feel trapped and want to escape FORCED Copyright © 2007 22squared *Index among all brands tested

FACT : The more brands behave like friends, the more customers return the favor [ ] Brands that are perceived to act on their customer’s behalf have 44% more advocates than brands that do not.* *22squared Friendship Model Research Copyright © 2007 22squared

H AV E C H E M I S T R Y REMAIN AUTHENTIC A C T T R A N S PA R E N T A R E E M PAT H E T I C FRIENDS SUPPORT EACH OTHER SPEND QUALITY TIME SHARE A P. O .V. GIVE MORE THAN GET S TAY I N TO U C H INSPIRE EACH OTHER Copyright © 2007 22squared

HAVE H A V E CHEMISTRY CHEMISTRY Create a visceral spark or a gut reaction REMAIN AUTHENTIC A C T T R A N S PA R E N T A R E E M PAT H E T I C SUPPORT EACH OTHER FRIENDS FORCED FIREWORKS 4* 225* SPEND QUALITY TIME SHARE A POV GIVE MORE THAN GET S TAY I N TO U C H INSPIRE EACH OTHER *Category Index Copyright © 2007 22squared

H AV E C H E M I S T R Y REMAIN AUTHENTIC REMAIN AUTHENTIC Original, real and distinctly meaningful A C T T R A N S PA R E N T A R E E M PAT H E T I C SUPPORT EACH OTHER FRIENDS FOR NOT FOR REAL 47* 127* SPEND QUALITY TIME SHARE A POV GIVE MORE THAN GET S TAY I N TO U C H INSPIRE EACH OTHER *Category Index Copyright © 2007 22squared

H AV E C H E M I S T R Y REMAIN AUTHENTIC ACT TRANSPARENT A C T T R A N S PA R E N T Be honest and have clear intentions A R E E M PAT H E T I C FRIENDS SUPPORT EACH OTHER HIDDEN CLEAR 14* 210* SPEND QUALITY TIME SHARE A POV GIVE MORE THAN GET S TAY I N TO U C H INSPIRE EACH OTHER *Category Index Copyright © 2007 22squared

H AV E C H E M I S T R Y REMAIN AUTHENTIC A C T T R A N S PA R E N T ARE EMPATHETIC A R E E M PAT H E T I C Understand their needs, desires and lives FRIENDS SUPPORT EACH OTHER SPEND QUALITY TIME HASSLES ME GETS ME 5* 231* SHARE A POV GIVE MORE THAN GET S TAY I N TO U C H INSPIRE EACH OTHER *Category Index Copyright © 2007 22squared

H AV E C H E M I S T R Y REMAIN AUTHENTIC A C T T R A N S PA R E N T A R E E M PAT H E T I C SUPPORT EACH OTHER FRIENDS SUPPORT EACH OTHER Be helpful, useful act on their behalf SPEND QUALITY TIME SHARE A POV THEY’RE PEOPLE? THERE FOR PEOPLE 100* 171* GIVE MORE THAN GET S TAY I N TO U C H INSPIRE EACH OTHER *Category Index Copyright © 2007 22squared

H AV E C H E M I S T R Y REMAIN AUTHENTIC A C T T R A N S PA R E N T A R E E M PAT H E T I C FRIENDS SUPPORT EACH OTHER ALWAYS CLEAR NEVER HEAR 242* 7* SPEND QUALITY TIME SPEND QUALITY TIME Provide talk-worthy immersive experiences SHARE A POV GIVE MORE THAN GET S TAY I N TO U C H INSPIRE EACH OTHER *Category Index Copyright © 2007 22squared

H AV E C H E M I S T R Y REMAIN AUTHENTIC A C T T R A N S PA R E N T A R E E M PAT H E T I C FRIENDS SUPPORT EACH OTHER BELIEVE USE SPEND QUALITY TIME SHARE A P.O.V. SHARE A POV Common lifestyle, belief system or attitude GIVE MORE THAN GET S TAY I N TO U C H INSPIRE EACH OTHER *Category Index Copyright © 2007 22squared

H AV E C H E M I S T R Y REMAIN AUTHENTIC A C T T R A N S PA R E N T A R E E M PAT H E T I C FRIENDS SUPPORT EACH OTHER SPEND QUALITY TIME A DEFINING EXPERIENCE A VACATION SHARE A POV 164* 4* GET MORE THAN GIVE GIVE MORE THAN GET Provide value and meaning beyond the money spent S TAY I N TO U C H INSPIRE EACH OTHER *Category Index Copyright © 2007 22squared

H AV E C H E M I S T R Y REMAIN AUTHENTIC A C T T R A N S PA R E N T A R E E M PAT H E T I C SUPPORT EACH OTHER FRIENDS SPEND QUALITY TIME SHARE A POV CARD CARRYING MEMBER ON THE SHELF GIVE MORE THAN GET 185* 28* STAY S T A Y IN TOUCH IN TOUCH Build anticipation, add value & communicate INSPIRE EACH OTHER *Category Index Copyright © 2007 22squared

H AV E C H E M I S T R Y REMAIN AUTHENTIC A C T T R A N S PA R E N T A R E E M PAT H E T I C SUPPORT EACH OTHER FRIENDS SPEND QUALITY TIME SHARE A POV GIVE MORE THAN GET BE NORMAL BE DIFFERENT S TAY I N TO U C H 372* 27* INSPIRE EACH OTHER INSPIRE EACH OTHER Motivates you to be di erent or better *Category Index Copyright © 2007 22squared

WHAT IF... Brand Z* improved these actions? e e h on m bl es e ta m fr ith es m ve r m p fo nc w ts gi hi co om c ie es ns n pe r in a at pe io C th es e e/ ng ic at ex tiv ic R e un tiv l hi or nt re s/ or y t m et es c m he lit en ps pp ra om m ua on ut et st tt e So Su Ke Li Q A A G H C category mean -1% -4% -7% -7% -8% -13% -14% -16% -17% -22% * We’ve run this analysis for 75 brands. Copyright © 2007 22squared

IG THAT’S A NUMBER.

IGGER WHOA, THOSE ARE NUMBERS.

BE OF SERVICE 1) Actions speak louder than words Purpose (over positioning) Content (that builds and spreads) Experiences (that spark advocacy) Utilities (that make the brand useful) Actions (do more and do good) Participation (make consumers a part of the brand) Copyright © 2007 22squared

Have a purpose that’s bigger than your product or service.

Position Purpose (Blue Ocean) (better/best) GOOD Not good, Horizontal not di erent Di erentiation (badly positioned) Di erent & irrelevant DIFFERENT * ZAG, Marty Nuemeier + Blue Ocean Strategy, HBR 2004

Entertain and provide content that people can use, inﬂuence, adopt and adapt.

Create experiences worthy of participation and word of mouth. > Alternative Reality Game: Find the new ad. Win a solid gold dice. Facebook Group for hints.

Marketing is the product: create things people can use and make their lives better. > Hear your run. See your run. Connect with runners. 90% reco rate

Do things for consumers, and enable consumers to do things for others.

Give customers a role in helping the brand succeed, allow them to participate and they will advocate.

ropagation Process 1) CREATIVE STIMULUS Images Audio Assets Video Assets Product Brand What can we share that is interesting? Plan for the content you don’t have. AdSpace Pioneers (Reworked) by Griffin Farley

ropagation Process 1) 2) CREATIVE MARKET STIMULUS INTELLIGENCE Images Identify Fan Cultures Audio Assets Uncover Connection Video Assets & Dialogue Points Product Brand What can we share What innovator/ early that is interesting? adopter tribe can we Plan for the content connect with? you don’t have. AdSpace Pioneers (Reworked) by Griffin Farley

ropagation Process 1) 2) 3) CREATIVE MARKET IDEA STIMULUS INTELLIGENCE PROPAGATION Images Blogger Outreach Identify Fan Cultures Audio Assets Tribe Mobilization Uncover Connection Video Assets Public Relations & Dialogue Points Product Brand How do we share What can we share What innovator/ early the idea? that is interesting? adopter tribe can we How do we get fans Plan for the content connect with? to work for us? you don’t have. AdSpace Pioneers (Reworked) by Griffin Farley

ropagation Process 1) 2) 3) 4) CREATIVE MARKET IDEA PARTICIPATORY STIMULUS INTELLIGENCE PROPAGATION PLATFORM Images YouTube Uploads Blogger Outreach Identify Fan Cultures Audio Assets Website Tribe Mobilization Uncover Connection Video Assets Mobile Public Relations & Dialogue Points Product Blog Brand How do we share What can we share Build the platform What innovator/ early the idea? that is interesting? and feed it with adopter tribe can we How do we get fans Plan for the content interesting content. connect with? to work for us? you don’t have. AdSpace Pioneers (Reworked) by Griffin Farley

ropagation Process 1) 2) 3) 4) 5) CREATIVE MARKET IDEA PARTICIPATORY FEEDBACK STIMULUS INTELLIGENCE PROPAGATION PLATFORM POINTS Images Email Accounts YouTube Uploads Blogger Outreach Identify Fan Cultures Audio Assets Voicemail Website Tribe Mobilization Uncover Connection Video Assets Facebook Mobile Public Relations & Dialogue Points Product MySpace Blog Brand How do we share What can we share Monitor the Build the platform What innovator/ early the idea? that is interesting? feedback and and feed it with adopter tribe can we How do we get fans Plan for the content participation. interesting content. connect with? to work for us? you don’t have. AdSpace Pioneers (Reworked) by Griffin Farley

FOR MORE ... GO HERE Propagationplanning.com A blog by Gri n Farley Sr. Planner @ 22squared

THANK YOU

About 22squared 22squared: one of the largest independent, privately-owned advertising agencies (we use the term loosely) in the U.S. We provide strategic and creative advertising services across multiple business verticals. O ering an empirical approach to building brand advocacy called the Friendship Model, we specialize in communications that drive business growth by building strong relationships with customers. The number 22squared represents the exponential power of brand advocacy as well as the average number of friends a person makes throughout his or her life. 22squared is located in Atlanta, GA and Tampa, FL. For more information, visit 22squared.com. Created by : Brandon Murphy | brandon.murphy@22squared.com

The Friendship Model: How to build brand advocacy in a consumer-driven world.

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