Brand Advocacy and Social Media - 2009 GMA Conference

Harnessing the power of consumer advocacy to fuel efficient growth Art Ash, Deloitte Brandon Murphy, 22squared

))) Brands 4

Friendship Actions build... 5

Advocacy which sparks... 6

Conversations that lead to... 7

Recommendations that turn into... 8

Sales which are usually... 9

Higher in profit and lower in acquisition costs 10

Are you ))) activating your advocates? Consumers mention 56 brands in conversation a week. 1 in 3 people come to a brand through a recommendation. Customers referred by loyal customers have 37% higher retention rate. 11

How can you do it? 1) ROLES Understand the role the brand plays in the consumers life and the role the consumer plays for your brand. ))) 3) MOMENTUM 2) Create momentum, get people talking more and ignite ACTION conversation about your brand. Identify the actions the brand must take to increase advocates and ultimately growth. 12

1) Qualify your buyer base TRUE ADVOCACY SCORE = %Advocates - %Critics Determine what “brand actions” are driving active advocates and active critics. SHAREHOLDER EVANGELIST RECOMMENDER REPEAT SATISFIED ADVOCATES BUYERS CRITICS MARGINAL CUSTOMER DISSATISFIED CUSTOMER ACTIVELY AGAINST 13

2) Identify Improvement Actions Regression analyses across more than 30 categories, 300 brands and more than 33,000 customers Drivers of True Advocacy™ Potential Actions Illustrative Keep it Fresh Stay in Touch • Improve / evolve existing CRM solutions • Execute targeted marketing Be Transparent • Improve call-center response and support Be Exciting • Ensure consistent cross-channel Share a POV experience and messaging Spend Q-Time Be Empathetic • Assess and revise pricing policies Support Them • Improve loyalty and rewards programs Give More • Implement CSR initiatives • Wrap products with free services that Be Authentic create immersive customer experiences 14

Results: CPG Beverage • A CPG company held the #4 position within a flat market • Our study revealed poor performance on several critical drivers • Improvement initiatives were identified and executed • A robust advocacy activation program was initiated in three phases Advocacy* Qualified Leads Brand X Brand X +80% All Competitors All Competitors +29% +28% +24% +9% +8% +1% -11% -6% -6% Loyalty Advocacy Momentum Market Share Revenues 22squared Friendship Model Research *Change in advocate population (trade/end-consumer) vs. average of all tracked competitors 15

3) Creating Momentum Company B Company E Company F Company G Company A Company D Company C FADING STABLE GROWING Stopped Talking To Bored to Talk Talking 16

Social Media The catalyst for building momentum and the forum for igniting advocates. Rule # 1... 17

NOT social media an advertising platform... Think of it as a value delivery platform. 18

“If I tell my Facebook friends about your brand, it’s not because I like your brand, but rather because I like my friends.” - Mike Arauz, UnderCurrent 19

Social Media allows us to market with people instead of at them 20

It’s a SOCIAL thing 21

...you can’t control it 22

...you can’t ignore it 23

It must be... Authentic 24

It must be... Personal 25

It must be... Transparent 26

It must be... Inclusive 27

It must be... Honest 28

It must be... Funny 29

It must be... Conversational 30

most of all... Bring Value 31

ﬁgure out what this means +Value= Brand Consumer Social Connections (advocate) (result of advocacy) 32

PROPAGATE Light the fuse 33

7 Common Pitfalls of social media. 35

Lack of agenda and plan No objective = no success What to measure and how to measure it 36

Metrics: Advocacy is the end. Fans/Followers Shared pages Embeds Posts Social Bookmarks Mentions Content Uploads Comments ADVOCACY Tweet : Retweet Impressions Downloads Sentiment Registrations Views Time spent Search Rank Repeat Visits Unique Visits Subscribe ENGAGEMENT 37

Lack of agenda and plan No objective = no success What to measure and how to measure it Lack of content, narrative, calendar etc. Failure to listen and learn Overlook reach: networks & relationships Under-estimate people power needed 38

7 Learnings for social media success. 40

Purpose (have a purpose over a positioning) Content (varying types grow communities, organize for it) Personality (communities are made of people, not brands) Experiences (that spark advocacy) Utilities (that make the brand useful) Earn vs. Buy (each brand earns fans in their own way) Listen (so you know what will work) 41

Purpose (have a purpose over a positioning) Content (varying types grow communities, organize for it) Personality (communities are made of people, of consumers 44% not brands) follow brands on Experiences (that spark advocacy) twitter for deals... 37% fan brands on Facebook for deals Utilities (that make the brand useful) Razorfish Feed Report, 09 Earn vs. Buy (each brand earns fans in their own way) Listen (so you know what will work) 42

Where do you fit into the social graph? ? What will our “fans” want to do the most of? • Post Comments • Use Cool Apps/Widgets • Post Images• Post Videos • Get Advice (from us or friends) • Play Games, Quizzes... Win or Get Free Stuff • • Promotional/Research Driven Posts/Engagement Opt. 43

Purpose (have a purpose over a positioning) Content (varying types grow communities, organize for it) Personality (communities are made of people, not brands) 65% of consumers Experiences (that spark advocacy) have had an online experience that Utilities (that make the brand useful) changed their perception about a Earn vs. Buy (each brand earns fans in their own way) brand...97% claimed that experience Listen (so you know what will work) influence their purchase Razorfish Feed Report, 09 45

Objectives and 7 Steps to a social media strategy. Audiences Engage Communities & Influencers Stage out narrative Establish metrics, tools and method for calculating ROI ID Social Platforms Develop mktg. Develop plan/determine fit content plan with other media

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Advocacy Workshops 1 Meet with us – we would be honored to spend a half-day with you to review and share the ten most important tenets of Consumer Advocacy and understand how companies across a multitude categories have achieved above average growth 2 Share with us - potential products, brands and categories that you might be interested in applying Consumer Advocacy analysis to help grow your business Work with us - allow us to conduct a social media audit 3 beyond the usual buzz metrics to show you how to optimize your social media presence to mobilize advocates and build your community online. 52 22squared Friendship Model Research. Copyright © 2009 Deloitte Development LLC. All rights reserved.

email: aash@deloitte.com Twitter: @brmurphy 22squared, one of the largest independent advertising agencies in the U.S., About Deloitte provides strategic marketing and creative services across multiple industries. Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about Believing today’s consumer is far more inﬂuenced by what a brand does than for a detailed description of the legal structure of Deloitte Touche Tohmatsu and its member firms. what it says, the agency applies its proprietary Friendship Model to assess the Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP relationship between brands and consumers and determine actions to optimize and its subsidiaries. it. With this intelligence, 22squared develops marketing and advertising that Copyright © 2009 Deloitte Development LLC. All rights reserved. motivates consumers to advocate on behalf of the brand, leveraging the power Member of Deloitte Touche Tohmatsu of peer persuasion and ultimately increasing revenue. 53