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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…
4
We need to rethink our understanding of customers…
Customer Customer Customer Customer Customer Customer 6
CUSTOMER NETWORKS: Self-organizing 7
8
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 Behavior #2: Customer networks want to…
29
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 Behavior #3: Customer networks want to…
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 Behavior #4: Customer networks want to…
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 Behavior #5: Customer networks want to…
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 ,[object Object]
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),[object Object]
Idea capture

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