Your Brand Advocates- How to Find Them and What They Are Worth

Complete the Brand Advocate poll: http://bit.ly/Zpoll Your Brand Advocates- How to Find Them and What They Are Worth July 28, 2010

Meet the Panel Frank Eliason Senior Director of National Customer Operations at Comcast Esteban Contreras Social Media Manager at Samsung Electronics Kety Esquivel VP of Digital Influence at Ogilvy Rob Fuggetta Founder and CEO of Zuberance

Brand Advocate Poll Results How much is a Brand Advocate worth to your company? (Compared to an average customer) Twice as much as average customers: 7.7% Three times as much as average customers: 15.4% Four times as much as average customers: 3.8% Five times as much as average customers: 15.4% Over five times as much as average customers: 15.4% I don’t know: 38.5% Brand Advocates and average customers are worth the same: 3.8% Has your company identified its Brand Advocates? Yes: 30.8% No: 46.2% I don’t know: 23.1% Is your company currently utilizing its Brand Advocates to do anything on behalf of the brand? Yes: 26.9% No: 46.2% I don’t know: 26.9%

Identifying + Igniting Brand Advocates

Less than 25% of people say they trust emails they sign up for. 1 in 3 people come to a brand through a recommendation. Consumers mention 56 brands in conversation per week. Keller Fay 2/3rds of the economy is influenced by personal recommendations. McKinsey & Company The most recommended company in any given category grows 2.5x the category average. Bain & Co . Weber Shandwick 62% of these discussions are positive. 40% of advocates answer, comment, or give opinions online several times each week . Yahoo! and Comscore Each peer recommendation reaches 150 people on the social web. Forrester 20% of consumers are key influencers of purchasing activities of 74% of the pop. Gartner

Brand Advocate
involved influencer independent supporter forgiving spender engaged recommender credible friend passionate vocal authentic honest customer fan loyal proactive contributor invested adopter consumer expert demanding enthusiast ADVOCATE CUSTOMER CRITIC participant active empowered believer knowledgeable promoter leader aware connected

Advocacy has always been a Social Activity
“ Social” should be a Long-Term Commitment
Increasing Advocacy should be a Long-Term Goal
Identifying Advocates :
Immersion in the Social Web: Being part of the Community
Truly listening to comments, likes, @replies, reviews, ratings, etc.
Actively monitoring, measuring and tracking Buzz / Sentiment / Impact
Scores:
NPS: Likelihood to recommend
BAQ: Brand Advocacy Quotient
OPS: Online Promoter Scores
TAS: % Advocates / % Critics
Empowering + Encouraging + Inspiring + Igniting Advocacy :
Engaging in On-Going Conversations
Consistently Providing Valuable and Memorable Experiences
Being Human: Personality, Generosity, Creativity, Fun, Empathy, etc.
Thinking of the 5 C’s from their Perspective
Enabling Sharing
Identifying Influencers and the Influencers’ Influencers
Having a Service-Mindset towards everyone
Developing Social CRM
Nurturing relationships

Slides will be posted soon at www. socialnerdia.com twitter.com/ samsungesteban twitter.com/ socialnerdia facebook.com/ estebancontreras linkedin.com/in/ juanestebancontreras e-mail: socialnerdia @ gmail . com

YOUR BRAND ADVOCATES
How to Find Them and What They Are Worth
Kety esquivel Vice President, Digital Influence Ogilvy Public Relations Worldwide

Who Are the Brand Advocates?
Social Media Brand Advocates - Defined
Usually bloggers, these folks can also be influential folks on FB, Twitter, YouTube or other SM platforms.

THE OPPORTUNITY

The Opportunity
The opportunity
finding, engaging and activating brand advocates in social media
This could include folks who are already loyal to the brand
It could also include new folks
folks that could be supportive of the brand given their interests

SO WHAT?

The Numbers
According to a recent article, 76% of online shoppers rely on feedback from other buyers when making product purchases
This is even true in niche markets like the Latino community which historically had relied on in person recommendations from family and friends
A recent study by AOL and Cheskin found that Latinos have more confidence in online product ratings than their friends’ opinions (78%: 28%)

VISUALIZE IT

What Is the Current State?
Increasingly more folks in the business, government and non-profit sectors are seeing the value of harnessing social media on behalf of the brand
Although more orgs are investing in brand advocacy through social media, this is still a very new space for most
The upside can be great but the rules of engagement for success are not necessarily intuitive to these new players and without the right strategy and stewardship it can be a confusing space

That’s Why Its Important to Have a Great Team that Gets It
Check it out!
Our blog: http://blog.ogilvypr.com/
The Ogily PR feed on Twitter: http://twitter.com/ogilvypr Several twitter lists following the Ogilvy team: @Lauren_Turner/ ogilvy @serenamay/ ogilvy @mikemangi/ opr @sarahmarchetti/ ogilvy
Happy Birthday @ unterekless !

KETY ESQUIVEL
Vice President, Digital Influence
Ogilvy Public Relations Worldwide
Twitter: @KetyE

Finding & Valuing Brand Advocates Rob Fuggetta Zuberance Founder & CEO July 28, 2010

Loyal Customers (1 in 5 are Detractors) Brand Advocates Brand Advocates Distinct Segment Fans, Followers Pro-active recommenders Recommendations drive sales Value to Your Business

“ Ultimate Question” Very likely Extremely Unlikely 0 1 2 3 4 5 6 7 8 9 10 Detractors Passives Advocates “ How likely are you to recommend us to a friend or colleague?” 40% Source: Zuberance

Advocates 5X More Valuable than Average Customers Spend Value Advocacy Value 3X Spend Value 2X Average Customers Brand Advocates Favorable Ratings & Reviews Positive Testimonials Positive comments on FB, Twitter, blogs, online forums, and more Offline recommendations Shared offers with social networks

Hotel Advocate Worth $3,000 Customer Type Spend Value (Average Spend over lifetime) Advocacy Value Total Lifetime Value of Customer or Brand Advocate Average Customer $600 (3 stays x $200 per stay) $0 $600 Brand Advocate $1,200 (6 stays x $200 per stay) $1,800 (9 stays x $200 per stay) $3,000

10X Return on Advocacy (ROA) 3-Year Investment in Brand Advocate Marketing Program Value of New Customers Brought in by Brand Advocates Media Value of Brand Advocates Lead (Click) Value Return on Brand Advocate Marketing Program $750,000 $6,800,000 (20,000 new customers brought in as a direct result of Brand Advocate Recommendations x $340 average lifetime value per customer) $495,000 (4,950,000 impressions @$100 CPM) $300,000 (150,000 clicks @$2 cost per click) $7,595,000

Talk to a Brand Advocate Expert Now Matt Elders (415) 264-1821 [email_address] Blog: http://blog.zuberance.com Twitter: http://twitter.com/Zuberance Facebook: http://www.facebook.com/zuberance

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Your Brand Advocates- How to Find Them and What They Are Worth

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Your Brand Advocates- How to Find Them and What They Are Worth Presentation Transcript