Eventually you ask some car lover-‐friends which used car you should buy. Aston Mar*n or BMW.
That’s the social consumer: he/she buys a lot -‐ not only cars -‐ based on recommenda*ons.
What’s the problem with adver*sing? “Why now? You interrupt my ac4vi4es” “Not for me. I just bought my stuﬀ” “Too many ads. I avoid them” “So stupid”. “Nice ad, but so what? Not relevant for me.” “Haven’t even seen it.” “I don’t care. Will search when I need something.” “Don’t trust it. Nothing but lies. I’ll ask my friends or colleagues”
About 70% of Yelp’s revenue is from ads (!!!) by local businesses listed on its site.
Prof. Dr. Gerard Tellis 1980-‐1990:Adver,sing +10% = +2.2% marketshare 2008:Adver,sing +20% = +2.2% marketshare “ …. the authors conduct a meta-‐analysis of 751 short-‐term and 402 long-‐term direct-‐to-‐consumer brand adver4sing elas4ci4es es4mated in 56 studies published between 1960 and 2008. the study ﬁnds several new empirical generaliza4ons about adver4sing elas4city. the most important are as follows: the average short-‐term adver4sing elas4city is .12, which is substan4ally lower than the prior meta-‐analy4c mean of .22; there has been a decline in the adver4sing elas4city over 4me.” Gerard Tellis, PhD Michigan, is Professor of Marke,ng, Management, and Organiza,on, Neely Chair of American Enterprise, and Director of the Center for Global Innova,on, at the USC Marshall School of Business. He is Dis,nguished Visitor of Marke,ng Research, Erasmus University, RoUerdam and has been Visi,ng Chair of Marke,ng, Strategy, and Innova,on at the Judge Business School, Cambridge University, UK. Tellis specializes in the areas of innova,on, adver,sing, global strategy, market entry, new product growth, promo,on, and pricing.
One of many brands’ issues: “Adver*sing is too expensive. Grows faster than the economy!” YOY-growth +7% +3,8% +3,8% +4,6% +5,2%
Recommenders directly inﬂuence 20-‐50% of all purchase decisions.
“Friends & family” are the trusted source. Adver*sing …?
Some buy a lot online and tell it to a lot of people online too.
Who’s inﬂuencing? Is all that buzzing trustworthy? “… while consumer electronics buyers pay more aZen4on to other consumers’ reviews than to editorial reviews – by a margin of more than three to one (77 percent vs. 23 percent) – a majority are concerned about the authen4city of consumer reviews (80 percent), leading them to conduct considerable analysis before making their decision.”
Recommenda*on measurement started with Reichheld in 2003
Not only we ask clients whether they will/will not recommend a brand… 8 8 8 NPS
We ask non-‐clients too. They too judge, talk and inﬂuence. That’s why we ask them. NPS
The actual Holaba B2B-‐dashboard in China Net Promoter Score= % promoters (9-10) minus % detractors (0-6)among clients.Holaba Score = % promoters (9-10) minus % detractors (0-6) among recommenders
From RFM to RRFM to decide about what to Recency, frequency, monetary value (RFM) of invest where. clients are decisive for investment in RFM -‐ axis marke,ng communica,on. Therefore lots of money spent (wasted) in this group of heavy and recent buyers Light and non frequent buyers are o_en “neglected”
The recommenda*on power of clients becomes the decisive tool to decide on marcom-‐investments RFM -‐ axis Does not mean they all give posi4ve +RFM & -‐ REC +RFM & + REC recommenda4ons Recommenda7on axis Frequency and intensity of recommenda*on. -‐ RFM & + REC -‐ RFM & -‐ REC
To inﬂuence these inﬂuencers, iden*fy them. Con*nuously. Everywhere.
Jan Van den Bergh 杨⽂文博 email@example.com hFps://www.facebook.com/jevedebe hFps://www.facebook.com/holaba TwiFer:@holaba Skype:jevedebechina +86 136 2179 9450 (CH) +32 475 427 882 (BEL) A : 上海市新闸路831号丽都新贵13层F室, 200041 13－F, No 831 Xin Zha Road, Shanghai, 200041