Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

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

26,037 views

Published on

The Friendship Model: How to build advocacy in a consumer-driven world. This presentation is an orientation for the philosophy and practical approach that changed an advertising agency to an advocacy agency.

Published in: Business, Education

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

  1. 1. HOW TO BUILD BRAND ADVOCACY THE IN A CONSUMER-DRIVEN WORLD FRIENDSHIP MODEL Copyright © 2007 22squared
  2. 2. AN ORIENTATION BY BRANDON MURPHY
  3. 3. 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.
  4. 4. SO, WHAT IS THE FRIENDSHIP MODEL? A new business tool? A positioning for the agency? A belief about marketing? A philosophy for how we work? A measure of our success? Copyright © 2007 22squared
  5. 5. ES Copyright © 2007 22squared
  6. 6. ES Thank you Copyright © 2007 22squared
  7. 7. J/K
  8. 8. Let’s start with the first question... why did we create it?
  9. 9. Let’s start with the first question... [BECAUSE WE HAD TO] why did we create it?
  10. 10. We were trying to change the way we do business...just like every other ad agency that existed before web 2.0.
  11. 11. But the real problem...
  12. 12. 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
  13. 13. ACT People want brands that... ...more like friends than salespeople Copyright © 2007 22squared
  14. 14. And when brands DO, people talk: [ ] Brands perceived to act on their customers’ behalf have 44% more advocates.* *22squared Friendship Model Research Copyright © 2007 22squared
  15. 15. DO So we need to help brands Copyright © 2007 22squared
  16. 16. BUT ... To get people talking... Copyright © 2007 22squared
  17. 17. ... we must create relationships worth talking about. Copyright © 2007 22squared
  18. 18. We need to turn our original way of marketing on its head... Copyright © 2007 22squared
  19. 19. Literally
  20. 20. [OLD] AWARENESS PREFERENCE PURCHASE Copyright © 2007 22squared
  21. 21. [NOW] RELATIONSHIPS PURCHASES ADVOCACY Copyright © 2007 22squared
  22. 22. OW does an agency create relationships worth talking about? Copyright © 2007 22squared
  23. 23. REALIZE that good brands are like people. Copyright © 2007 22squared
  24. 24. The actions that make people great friends re the same that cause people to advocate for brands. Copyright © 2007 22squared
  25. 25. [ ] “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
  26. 26. Think about it... ...what do friends do? Copyright © 2007 22squared
  27. 27. 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
  28. 28. Makes sense, right? Copyright © 2007 22squared
  29. 29. But how do we put that theory in action? Copyright © 2007 22squared
  30. 30. RIEND SHIP State of being a friend Someone you know and trust A member of the same group/nation Allied in a struggle, cause or movement Copyright © 2007 22squared
  31. 31. 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
  32. 32. Friendship Higher = Advocacy Model Copyright © 2007 22squared
  33. 33. 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
  34. 34. TA = A - C TRUE ADVOCACYTM ADVOCATES CRITICS Copyright © 2007 22squared
  35. 35. TA = A - C NOTE: We’ve done lots of research on this... on 200 brands with over 50,000 people* *22squared Friendship Model Research Copyright © 2007 22squared
  36. 36. $ Are advocates worth more than other customers? Copyright © 2007 22squared
  37. 37. ES (THE SHORT ANSWER)
  38. 38. ADVOCATES WHAT WHAT WE THEY DO MEASURE Buy more Spending levels Talk and share more Conversation rates Recommend more Recommendation rates Copyright © 2007 22squared
  39. 39. FACT : When advocates talk, brands grow TM Copyright © 2007 22squared
  40. 40. seriously, check it out... GROWTH TRUE ADVOCACY Copyright © 2007 22squared
  41. 41. 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
  42. 42. WIRELESS PROVIDERS Average annual growth rate from 2005 - 2007 SOURCE: 22squared Wireless Provider White Paper, 2008 Copyright © 2007 22squared
  43. 43. AIRLINES Average annual passenger revenue growth rate from 2005-2007 SOURCE: 22squared Airline White Paper, 2009 Copyright © 2007 22squared
  44. 44. 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
  45. 45. ROLES 1) Play a more meaningful role in their life Copyright © 2007 22squared
  46. 46. FACT : The better friend you are, the more customers talk. [ ] Understand the role a brand plays in the life of the customer and deepen it. Copyright © 2007 22squared
  47. 47. 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
  48. 48. 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
  49. 49. 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
  50. 50. 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
  51. 51. 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
  52. 52. 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
  53. 53. 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
  54. 54. 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
  55. 55. 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
  56. 56. Remember... IT’S NOT ABOUT BEING FRIENDLY ...it’s about BEHAVING like a friend. Copyright © 2007 22squared
  57. 57. ACTIONS 2) Identify the actions the brand must take to increase advocates. Copyright © 2007 22squared
  58. 58. 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
  59. 59. 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
  60. 60. 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
  61. 61. 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
  62. 62. 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
  63. 63. 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
  64. 64. 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
  65. 65. 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
  66. 66. 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
  67. 67. 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
  68. 68. 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
  69. 69. 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
  70. 70. Friendship Actions build... Copyright © 2007 22squared
  71. 71. Advocacy which sparks... Copyright © 2007 22squared
  72. 72. Conversations that lead to... Copyright © 2007 22squared
  73. 73. Recommendations that turn into... Copyright © 2007 22squared
  74. 74. Sales which are usually... Copyright © 2007 22squared
  75. 75. Higher in profit and lower in acquisition costs Copyright © 2007 22squared
  76. 76. 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
  77. 77. WOW, THIS... advocacy 4% increase = incremental 3000 advocates/wk $25MM annually conversations 4800 for Brand Z (1.6 rate) incremental $480M sales/wk Copyright © 2007 22squared
  78. 78. IG THAT’S A NUMBER.
  79. 79. MOMENTUM 3) How active are your advocates? Get people talking more about the brand. Copyright © 2007 22squared
  80. 80. Brand X Brand Z FADING STABLE GROWING STOPPED TALKING TOO BORED TO TALK TALKING Copyright © 2007 22squared
  81. 81. Number of purchases influenced by each advocate : 1.6 Brand Z : 4.5 Brand X Copyright © 2007 22squared
  82. 82. WHAT IF... Brand Z’s advocates were more active? Brand Z now = : $25 MM 1.6 Brand Z on the Friendship Model = $70MM : 4.5 incremental revenue/yr Copyright © 2007 22squared
  83. 83. IGGER WHOA, THOSE ARE NUMBERS.
  84. 84. 3 marketing imperatives for giving advocates a BIGGER VOICE Copyright © 2007 22squared
  85. 85. BE OF SERVICE 1) Actions speak louder than words PROPAGATE 2) Light the fuse ENGAGE 3) Engage: Right time, right place, right context Copyright © 2007 22squared
  86. 86. 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
  87. 87. Have a purpose that’s bigger than your product or service.
  88. 88. 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
  89. 89. Entertain and provide content that people can use, influence, adopt and adapt.
  90. 90. 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.
  91. 91. 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
  92. 92. Do things for consumers, and enable consumers to do things for others.
  93. 93. Give customers a role in helping the brand succeed, allow them to participate and they will advocate.
  94. 94. PROPAGATE 2) Light the fuse. Copyright © 2007 22squared
  95. 95. PROPAGATION PLANNING Plan not for the people we reach, but for the people that they reach Copyright © 2007 22squared
  96. 96. Broadcast Media: targets the majority Innovators Early Adopters Early Majority Late Majority Laggards Copyright © 2007 22squared
  97. 97. Broadcast Media: targets the majority Propagation: Spreadable content Innovators Early Adopters Early Majority Late Majority Laggards Copyright © 2007 22squared
  98. 98. 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
  99. 99. 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
  100. 100. 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
  101. 101. 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
  102. 102. 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
  103. 103. FOR MORE ... GO HERE Propagationplanning.com A blog by Gri n Farley Sr. Planner @ 22squared
  104. 104. ENGAGE 3) Engage: Right time, right place, right context Copyright © 2007 22squared
  105. 105. Define your target and their best relationship with the brand Copyright © 2007 22squared
  106. 106. Find the best times to engage with them Copyright © 2007 22squared
  107. 107. Determine the value the brand can add to their life during that time Copyright © 2007 22squared
  108. 108. Determine the ultimate action the brand will take Copyright © 2007 22squared
  109. 109. Identify the best channels Copyright © 2007 22squared
  110. 110. Creatively use the channel to make a connection and encourage conversation Copyright © 2007 22squared
  111. 111. IN a nutshell Friendship Model Copyright © 2007 22squared
  112. 112. IN a nutshell Change your role Be of service Act more than communicate Engage more than reach Build conversation momentum Plan for propagation Copyright © 2007 22squared
  113. 113. THANK YOU
  114. 114. 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

×