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mRAMEWO creaGLADWELL’S TIPPING POIN in G TF - Colleen Carrington USIN

Why Gladwell’s Tipping Point Framework?

“Gladwell’s theories could be used
to run businesses more effectively, to turn products in to runaway bestsellers, and perhaps most important, to alter human behavior.” - New York Times

Agreed.

Everyone is getting connected

3 out of 4 adults
use social networks Source: Pew Research

Why?

Maslow knew

Oh, and there’s that other
thing

76% of people think advertisers
LIE Source: 2009 Yankelovich Study

Most trusted advertising 1. Recommendations
from friends 2. Other people’s opinions online 3. Company websites 4. Editorial content (news articles) 5. Brand sponsorships Source: Neilsen Online Global Consumer Study, April 2009

Friends like to get recommendations
from friends ...

and to read other people’s
opinions online

With hundreds of millions of
people on social networks

spe nd r ket ing
mTaE RISE dia ON H ial me soc IS 2014 $3.1 Billion 2010 $9.3 million Source: Forrester Research

BUT
DID YOU
KNOW
?

By 2010, half of companies
with an online community will fail to manage it as an agent of change, ultimately eroding customer value Source: Gartner Group

Why?

Rushing in without clearly defined
benefits for both the company and the customer will be the biggest cause of failure. Source: Gartner Group

Those who fail to plan
(mutual benefits), plan to fail.

‘Agent of Change’ Success Story
Ford Fiesta Movement • founded on fair trade (free Fiesta & gas for 6 months in return for one video posted per month) • both the brand and the agent were giving and getting • gift economy approach • happier, more productive, more symmetrical relationship Source: Bud Caddell, Undercurrent

Sensational Results • 100 Ford
Fiesta Agents • 6.5 million YouTube views 3.4 million impressions on Twitter 670,000 photo views on Flickr • 50,000 requests for info from non- Ford owners • Sold 10,000 units in the first six days of sales • Fraction of the cost of typical national TV campaign Source: Scott Monty, Ford, and Bud Caddell, Undercurrent

To reach a social media
tipping point focus planning on three key areas

Gladwell’s Framework 1. th e
rig 2. a ht pe stick ople 3. th y ide e rig a ht co ntex t

Gladwell’s Framework 1. th e
rig 2. a ht p stick eop 3. th y ide le e rig a ht co ntex t

How well do you know
your customers? DEMOGRAPHICS PSYCHOGRAPHICS BEHAVIORS GEOGRAPHICS

Where are they spending their
time? Top Social Sites: Estimated Monthly Traffic 150 112.5 75 Millions 37.5 0 Wordpress Facebook YouTube MySpace Blogger LinkedIn Twitter Blogs Blogs Source: Carrington (chart), Quantcast (data), May 2010

Are they ... ? connectors
know lots of people mavens know about things convince us to salespeople use information in a certain way Source: Malcolm Gladwell, The Tipping Point

Online Behavior Social Technographic Profiles
n fol ks ca rs Th ese e othe c Creators 24% in fluen answer questions, create new content Critics/Editors 37% provide feedback, ideas, insight Joiners/Connectors 51% amplify conversations and WOM Collectors 21% organize, tag, rate, rank and moderate Spectators 73% listen/watch Inactives 18% do nothing 0% 20 % 40 % 60 % 80 % Source: Groundswell 2009 general population data merged with Ant’s Eye View’s classification system

Who are your Influencers? Source:
Jake McKee

Find, thank and energize your
Influencers They are your ‘Agents of Change’

Influencers Find. Thank. Energize. Source:
Ant’s Eye View

Example: The Power of Many
Microsoft MVP Program Numbers: 2008 Independent Experts Real World Answers The Microsoft MVP award recognizes exceptional technology community leaders who foster the free and objective exchange of knowledge by actively sharing their real world expertise with users and Microsoft. Selection Benefits The Numbers • Recognized • Relationship • 4000+ MVPs • Credible • Early access • 90+ Countries • Annual in scope • Private & peer • 90+ Products • Global connections • 7000+ bugs (Vista/012) • Community & Microsoft • Global summit, industry • 500+ product reviews nominated & local events • 70% author, speak, blog • Reputation & brand • 1M+ answers (NG/Forum) Source: Ant’s Eye View

Example: The Power of One
Influencer: Rich Marcotte, ‘The Mayor of Southwest’ • Flew 200 times a year for 9 years • Was recognized and thanked • Brand enthusiast • Rich evangelized ... ~ 9000 customers Source: Ben McConnell / Jackie Huba

Influencers can help calm th
e waters when there is a s torm

I'm Too Fat to Fly
So uthwest?! Kevin Smith

How do you find your
influencers? Top commercial listening platforms

How do you find your
influencers? Free Social Mention listening Alterian SM2 platforms Alltop Technorati Google Reader Google Blogsearch Google Alerts Twitter Search Twitter Analyzer BackType

Other types of influencers? •
journalists • analysts • bloggers • employees

Personas Proven to increase effectiveness
of user-centered design & communications • Develop a persona for each segment of target market, prioritize • Analyze online behavior within each persona Source: Long 2009

Primary Persona Example For Ford
Fiesta Meet Eric: • Generation Y • young US adult Eric wants: • tech savvy • a small, fuel efficient car with all the • has aversion to status quo cool technology of full-sized more • immune to tried-and-true expensive cars brands • a car that helps him broadcast a • socially vibrant (creator) youthful, hip, slightly adventurous image and a fun attitude … even if he is none of those things in real life • custom graphics and color options that let him express his individuality • a safe vehicle that handles well • a price less than $20k Eric is delighted to find the Ford Fiesta meets all of his price/performance criteria and exceeds other cars in the category for cool technology (voice activated music search, hands free calls, audible text, turn-by-turn nav, keyless entry, remote start) (Created by C. Carrington)

How well do you understand
your target market? Who are your organization’s influencers?

Gladwell’s Framework 1. th e
rig 2. a ht pe stick ople 3. th y ide e rig a ht co ntex t

Quintupled ‘Blendtec’ sales with YouTube
videos t ble nd? Will i Source: Groundswell

the brothers heath have it
right

a “sticky” idea is simple
unexpected concrete credentialed emotional story Source: Chip & Dan Heath, Made to Stick

Southwest Airlines: a cause, not
just an airline Source: Flying Photog

Southwest Airlines: a cause, not
just an airline Simple only one type of plane Unexpected humor Concrete consistently low fares, outstanding service Credentialed results Emotional close-knit, gregarious, huggy staff Story give passengers a story to tell

“The captain will be turning
down the lights as we prepared for takeoff. This isn’t necessary for any technical purpose. It’s just been a long day and our flight attendants don’t look as lovely as they did this morning. “ Source: Flying Photog

Don’t worry about the profit.
Think about customer service. Profit is a by-product of customer service. It’s not an end of itself. - Herb Keller, Co-founder Southwest Airlines Source: Ben McConnell / Jackie Huba

Southwest uses social media to
enhance and improve customer experience

Southwest Airlines: engaged in social
mutual positive benefit sentiment listening & interacting responding

content is king, long live
the king

the secret to good social
content • friendly & human voice • consistent & clear language • helpful & timely • meaningful & relevant • entertaining

successful social is all about
being helpful

relevant

entertaining

Gary V grew his family
business from $4M to $50M

What is your sticky idea?

Gladwell’s Framework 1. th e
rig 2. a ht pe stick ople 3. th y ide e rig a ht co ntex t

Broken windows theory and the
power of context are one and the same. They are both based on the premise that an epidemic can be reversed, can by tipped, by tinkering with the smallest details of the immediate environment. - Malcolm Gladwell Source: The Tipping Point

Epidemic: Customers feel like they
are in ‘dell hell’ ‘ I can’t find anyone to help me.’ ‘dell lies. dell sucks.’ Source: Jeff Jarvis & dellhell.net

Reversed/tipped by: IdeaStorm - a
place to vent, share ideas, vote 14k ideas 720k votes 89k comments

Epidemic: Starbucks losing share &
profit Jan 2007 • stiff competition $35.14 • sharp decline in traffic stock price pr and spending ofi ts dr ee y th op ea • poor economy made r 97 r lo % (Q 4, w 20 the problem worse 8)0 Dec 2008 $7.95 Source: Wikivest & Seattle Times

Reversed/tipped by: ‘My Starbucks Idea’
75,000 IDEAS < 6 MONTHS May 2010 $27.18 stock price ed en list ks uc rb Sta Dec 2008 $7.95 Source: Forrester Research Source: Wikivest & Seattle Times

Customers need a place to
have their opinions heard

ebags Ratings and Reviews Source:
Josh Bernhoff & Charlene Li, ebags.com • Y1 cost = $200k • Y1 net additional sales because of R&R = $1.6MM • Net add’l profit margin at 25% = $400k

People like the psychic income
they get from being part of community and helping each other

Constant Contact Customer Community •
2005/2006 • 10% participation • 30% generated referrals • acquisition cost = $60 credit • new customer lifetime value = $1500 • revenues grew 88% Source: Groundswell

It’s about building brand community
Branded mentions up 600+%, 5,000+ members, de-commoditized Fiskars Source: Brains on Fire

What’s the context for your
organization’s social media program?

Gladwell Knows To reach a
1. th e rig 2. a ht pe tipping point stick ople 3. th y ide you need e rig a ... an ht co das ntex olid t plan

Next Steps 1. yo ur
ta To reach your 2. a rget com audi own tipping 3. th pelli ence e be ng & point, orga st SM stick nizat ion/p tools y idea identify: rodu give n yo ct’s c ur onte xt Develop a solid plan

Colleen Carrington Keeping Brand Love
Alive www.linkedin.com/in/colleencarrington @colleencar

Ben McConnell, Creating Customer Evangelists
Brian Solis, Engage Charlene Li, Groundswell Chip & Dan Heath, Made to Stick Chris Brogan, Trust Agents Dan Roam, The Back of a Napkin David Armano, Edelman Digital David Meerman Scott, The New Rules of Marketing and PR Eric Weaver, Tribal DDB Garr Reynolds, Presentation Zen Geno Church, Brains of Fire Inspired by Jackie Huba, Creating Customer Evangelists Jake McKee, Ant’s Eye View Jeremiah Owyang, Altimeter Group Josh Bernoff, Groundswell Karen McGrane, Bond Art + Science Kristina Halvorson, Content Strategy for the Web Malcom Gladwell, The Tipping Point Peter Kim, Dachis Group Rick Levine, Cluetrain Manefesto Sean O’Driscoll, Ant’s Eye View Seth Godin, Purple Cow Spike Jones, Brains on Fire Tac Anderson, Waggenner Edstrom, Studio D William J. McEwen, Married to the Brand

Sources All images from iStockphoto.com
unless other wise indicated Slide 3 Malcolm Gladwell, Blink, outside back cover http://pewinternet.org/Reports/2010/Social-Media-and-Young- Slide 6 Adults/Summary-of-Findings.aspx?r=1 http://www.letsstartthinking.org/quickreference/images/maslow- Slide 8 need-hierarchy.gif http://www.slideshare.net/BrainsOnFire/social-media-business- Slide 10 forum-geno-church http://blog.nielsen.com/nielsenwire/consumer/global-advertising- Slide 11 consumers-trust-real-friends-and-virtual-strangers-the-most/ Slide 15 http://mashable.com/2009/07/08/social-media-marketing-growth/ http://www.slideshare.net/JacobMorgan8/social-crm-presentation- Slide 17 at-new-comm-forum http://www.slideshare.net/JacobMorgan8/social-crm-presentation- Slide 19 at-new-comm-forum http://socialmediainfluence.com/2010/01/20/fords-fiesta-of-social- media/ Slide 21 http://www.businessweek.com/managing/content/jan2010/ ca2010018_445530.htm http://www.scottmonty.com/2009/11/on-giving-thanks.html Slide 22 http://www.businessweek.com/managing/content/jan2010/ ca2010018_445530.htm Slide 24 Malcolm Gladwell, The Tipping Point Slide 28 Malcolm Gladwell, The Tipping Point, p.30 Contd/...

Sources All images from iStockphoto.com
unless other wise indicated http://www.forrester.com/Groundswell/ladder.html Slide 29 http://www.slideshare.net/seanodmvp/smb-seattle-antseyeview http://www.socialmediatoday.com/SMC/118941 Slide 32 http://www.slideshare.net/seanodmvp/smb-seattle-antseyeview Slide 33 http://www.slideshare.net/seanodmvp/smb-seattle-antseyeview http://www.creatingcustomerevangelists.com/photos/readers/ Slide 34 09.asp Slide 36 http://www.people.com/people/article/0,,20344142,00.html Slide 40 http://en.wikipedia.org/wiki/Persona_(marketing) Slide 44 Source: Erik Qualman,Socialnomics, and YouTube Slide 49 Ben McConell and Jackie Huba, Creating Customer Evangelists, p 175 - 179 Slide 50 Photo: Flying Photog http://flickriver.com/groups/southwestairlines/pool/interesting/ Slide 55 http://www.youtube.com/user/homedepot Slide 56 http://instoresnow.walmart.com/Community.aspx?id=101 Slide 57 http://www.youtube.com/sienna Erik Qualman, Social Media ROI, http://www.youtube.com/watch? v=ypmfs3z8esI&feature=related Slide 58 http://tv.winelibrary.com/2010/05/19/gourmet-library-cheese- tasting-with-wine-pairings-episode-864/ Contd/...

Sources All images from iStockphoto.com
unless other wise indicated Slide 61 Malcolm Gladwell, The Tipping Point, p.146 http://www.dellhell.net/ http://www.buzzmachine.com/archives/2005_06_21.html Slide 62 http://www.baldrige.com/criteria_customerfocus/lessons-learned- from-dell-hell/ http://www.ideastorm.com/ideaList?cat=IdeaStorm&lsi=0 Slide 63 22May21010 http://www.wikinvest.com/stock/Starbucks_(SBUX)/WikiChart stock: http://seattletimes.nwsource.com/html/businesstechnology/ Slide 64 2004079246_bizbriefs18.html profits http://seattletimes.nwsource.com/html/localnews/ 2008375931_starbucks11.html http://www.forrester.com/Groundswell/embracing/ mystarbucksidea.html http://www.wikinvest.com/stock/Starbucks_(SBUX)/WikiChart Slide 65 stock: http://seattletimes.nwsource.com/html/businesstechnology/ 2004079246_bizbriefs18.html profits http://seattletimes.nwsource.com/html/localnews/ 2008375931_starbucks11.html Groundswell p. 129 Slide 67 http://www.ebags.com/product/ebags/mother-lode-tls-junior-25- wheeled-duffel/125548 Slide 69 Groundswell, p.129 Contd/...

Sources All images from iStockphoto.com
unless other wise indicated photo: http://www.brainsonfire.com/assets/images/ slideshow_assets/slide9.jpg Slide 70 blog: http://www.whatsnextblog.com/archives/2008/10/ fiskateers_how_a_social_community_became_a_veritable_sales_for ce.asp