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“Empowering Consumers with Experiences That Drive Profits” Jeff Molander at Loyola University 2008


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Just when marketers thought it was safe to employ mainstream digital strategies an increasing number of hyper-connected customers are changing the game with social media – bypassing strategies like search and email marketing altogether! They’re choosing non-traditional paths to discover products and services. This presentation gives a hype-free look at what’s driving today’s ’social’ shift and understanding how to adapt existing marketing and business models to drive results. Here, I discuss why customers are hungry for experiences– not just products/services and how successful marketers are converting into publishers. I show you how to build a business case for or against social marketing investments.

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“Empowering Consumers with Experiences That Drive Profits” Jeff Molander at Loyola University 2008

  1. 1. Suddenly <ul><li>Jeffrey G. Molander </li></ul><ul><li>Molander & Associates Inc. </li></ul><ul><li>[email_address] </li></ul>Social
  2. 3. What Should Concern You <ul><li>Pre-crisis focus </li></ul><ul><ul><li>Short-term revenue: Advertising </li></ul></ul><ul><ul><li>Reliance on old (media) model for wealth </li></ul></ul><ul><ul><li>Social engineering posing as innovation </li></ul></ul><ul><ul><ul><li>Search & affiliate marketing </li></ul></ul></ul><ul><ul><ul><li>Spam, adware -- the stuff that REALLY works </li></ul></ul></ul><ul><ul><li>Endorsed & supported by marketers who could afford it! </li></ul></ul>
  3. 4. The Opportunities <ul><li>Kill advertising as we know it & make something better! </li></ul>
  4. 5. The Opportunities Doc Searls Co-author, The Cluetrain Manifesto Fellow at Harvard’s Berkman Center for Internet & Society “ Advertising is about supply finding and ‘creating’ demand. [There is] nothing wrong with that. At its best, it’s good and necessary stuff. But think about what will happen when demand can find and create supply.”
  5. 6. Content + Community “Crowdsourcing”
  6. 7. $30,000,000 (2007)
  7. 8. “ It was never about the computers. It was never about the applications. It was never about the sales channels. The Internet was always about the people, which is why email, IM, multi-player gaming and similar developments have always been the ‘killer apps’ of the social Web.” Brian Clark GMD Studios
  8. 9. Content Marketing <ul><li>“ To succeed, we need to stop standing between (consumers) and their content and actually be the content they want to see … </li></ul><ul><li>With some exceptions, consumers do not want to watch content about your brand. But consumers will watch original programming that supports your brand, if it entertains .” </li></ul>Greg Verdino Crayon
  9. 12. Look Familiar?
  10. 13. Look Familiar?
  11. 14. Look Threatening?
  12. 16. Fundamentals
  13. 17. Elements of the Social Web <ul><li>Websites (text) </li></ul><ul><ul><li>Blogging </li></ul></ul><ul><ul><li>Social networks (biz and personal) </li></ul></ul><ul><ul><li>Bookmarking ( Ma.gnolia StumbleUpon) </li></ul></ul><ul><li>Multi-Media </li></ul><ul><ul><li>Video (amateur & pro, social networks, etc.) </li></ul></ul><ul><ul><li>Audio & podcasting </li></ul></ul>
  14. 18. Elements of the Social Web <ul><li>Mobile </li></ul><ul><ul><li>Opportunity is clear: 2.5 billion mobile phones </li></ul></ul><ul><ul><li>Less than 2/10ths of a percent of the total advertising spent worldwide </li></ul></ul><ul><ul><li>Source: Informa Telecoms & Media 2007 </li></ul></ul>
  15. 19. <ul><li>Collaborative </li></ul><ul><ul><li>Shopping </li></ul></ul><ul><ul><li>Working </li></ul></ul><ul><li>Collaborative Narcissism </li></ul><ul><ul><li>“ Lifestreaming” & Micro-blogging </li></ul></ul><ul><ul><li>Multi-dimensional (mobile+Web) </li></ul></ul>Elements of the Social Web
  16. 20. Elements of the Social Web R.S.S.
  17. 21. Elements of the Social Web <ul><li>Websites </li></ul><ul><li>Multi-Media </li></ul><ul><li>Collaborative </li></ul><ul><ul><li>Shopping </li></ul></ul><ul><ul><li>Working </li></ul></ul><ul><ul><li>Socializing </li></ul></ul><ul><li>Tech: RSS, Widgets, Java, Ajax </li></ul>
  18. 22. Experiential!
  19. 23. What’s Changing? (really)
  20. 24. The New Reality Dr. David Weinberger Author, Speaker, Academic Marketers: “There is no market for your message.”
  21. 26. Social ‘Currency’
  22. 27. Social ‘Currency’ <ul><li>An alternate ‘Currency’ for the Web </li></ul><ul><ul><li>Consumer skepticism </li></ul></ul><ul><ul><li>Trust & authenticity </li></ul></ul><ul><ul><li>Word-of-mouth recommendations </li></ul></ul><ul><li>Influence </li></ul><ul><li>Challenges </li></ul><ul><ul><li>How to be trusted? </li></ul></ul><ul><ul><li>Authenticity requires transparency! </li></ul></ul><ul><ul><li>What are the tactics? </li></ul></ul>
  23. 28. Trust as Currency Source: Nielsen 2007 26,486 internet users in 47 different countries
  24. 29. Trust
  25. 30. TIME
  26. 31. Consumers’ Time Online Source: Online Publishers Association (Internet activity Index, January 2008) <ul><li>“ Content ” 43 % </li></ul><ul><li>“ Communications” 28.7 % </li></ul><ul><li>“ Commerce” 16.1 % </li></ul><ul><li>“ Community ” 7.5 % </li></ul><ul><li>“ Search” 5.0 % </li></ul>
  27. 32. Content & Community Sites: Commercial Intent Source: Online Publishers Association (Internet activity Index, January 2008) <ul><li>“ Content” + Community = 51 % </li></ul><ul><ul><li>Comparing </li></ul></ul><ul><ul><li>Researching </li></ul></ul><ul><ul><li>Gathering & sharing opinions </li></ul></ul>
  28. 33. Prime Time is ANYtime
  29. 35. Sling is THE Thing
  30. 36. New York – Philadelphia Train
  31. 37. Address Change Publish! <ul><li>Customers </li></ul><ul><li>Don’t want to be “sold to” and distrust </li></ul><ul><li>Distracted (discovering, communicating) </li></ul><ul><li>Consuming & creating content ON THEIR SCHEDULE </li></ul>
  32. 38. How to Publish & Drive Sales (getting invited to the party)
  33. 39. “ You are interrupting their life. All advertising is unwanted. So if you’re going to crash the party bring some Champagne with you.” Bob Thacker OfficeMax Inc.
  34. 40. Goals <ul><li>Where to Party </li></ul><ul><li>Making Champagne </li></ul><ul><li>Who to Invite </li></ul><ul><li>Risk Management </li></ul>
  35. 41. Where?
  36. 43. Exclusive Sponsorship
  37. 44. The Party!
  38. 46. Who’s at the Party?
  39. 47. Evangelists “ Bringing the good news&quot; Influencing…
  40. 48. Story Telling “Passionistas” <ul><li>43% spend 12 hours+ per week visiting sites related to their obsession </li></ul><ul><li>50% of consumers will consider buying if it’s associated with their passion </li></ul><ul><li>70% are making purchases based on experiences </li></ul>Source: MediaVest, Yahoo and Conifer Research 2008 Allows them to feel different or better about themselves
  41. 49. What are they Doing at the Party? <ul><li>CONTROLLING & EXPERIENCING </li></ul><ul><li>Discovering </li></ul><ul><li>Meeting </li></ul><ul><li>Trading (barter, auctions, buying) </li></ul><ul><li>Borrowing, cheating and stealing </li></ul><ul><li>Sharing stories </li></ul><ul><li>Creating! </li></ul>
  42. 50. (using the Social Web)
  43. 51. Party Planning Making Champagne
  44. 52. 3 Types of Story Telling Participants Bradley Horowitz Yahoo!
  45. 53. Tools of Production are Affordable Accessible
  46. 54. Rise of The ProSumer Anyone with a… Can be a… Publisher Photo Journalist Radio Host Author
  47. 55. Rise of Story Curators & Filters
  48. 56. The Business Goal of Social Web Companies Make EVERYONE a creator! 100% - creators 100% - synthesizers 100% - consumers Try to make it EASIER for everyone to participate in all roles.
  49. 57. YOUR Goal Make everyone an EVANGELIST On your turf
  50. 58. Party Planning Customer Reviews & Word of Mouth
  51. 59. The Recommendation Age Customer-Generated Reviews & Recommendations
  52. 60. Why? Authentic Trust is Implicit Authoritative *Reputation-based
  53. 62. The Winner Is…
  54. 63. Runner Up…
  55. 65. Where to Apply Product Pages (descriptions) Product Pages (catalogs)
  56. 66. Where to Listen “ Fan Mail” Product Reviews Contests Product Designs Suggestions Community Sites Enthusiast Commercials or Mock Commercials
  57. 67. Recommendations Source: Keller Fay Group 2008 <ul><li>Americans have 3.5 billion brand-related conversations per day </li></ul><ul><li>80% trust recommendations (STORIES) from friends, family and “trusted” sources over any form of advertising </li></ul><ul><li>The average American engages in over 10 per day, 8 of which are more influential than any advertisement or paid sponsorship </li></ul>
  58. 68. Do Product Reviews Have Impact? Source: The eTail Group 2008
  59. 69. Web-Video-Print Story Telling Integration
  60. 70. The Risks
  61. 71. Threats to Brands <ul><ul><li>Customer Complaints (Damage Control) </li></ul></ul><ul><ul><ul><li>No barrier to entry </li></ul></ul></ul><ul><ul><ul><li>No truth / validity filter </li></ul></ul></ul><ul><ul><ul><li>Exposure = credibility </li></ul></ul></ul><ul><ul><li>Monitor </li></ul></ul><ul><ul><ul><li>Watchdog Sites ( </li></ul></ul></ul><ul><ul><ul><li>Web Communities </li></ul></ul></ul><ul><ul><ul><li>Custom Sites ( </li></ul></ul></ul><ul><ul><ul><li>YouTube </li></ul></ul></ul>
  62. 72. WHO You Invite Matters
  63. 73. “ It’s moving slowly now for us, but we’re seeing growth and see it as a huge opportunity for users to build hundreds of thousands of ‘commercials’ for [PETCO products].” John Lazarchic Petco
  64. 74. Designing Experiences
  65. 75. <ul><li>Source: &quot;Passionistas: The New Empowered Consumer&quot; </li></ul><ul><li>Conference September 2007 </li></ul>Edwind Wong Dir. Customer Insights Yahoo! &quot;It is not (so much) about the consumer's trust in the brand, but rather… about building the brand out of the consumer's innate needs.”
  66. 76. $30,000,000 (2007)
  67. 77. Secret Sauce of “Crowdsourcing?”
  68. 78. Emotions! <ul><li>Suppliers (who are customers) </li></ul><ul><ul><li>Approval of community </li></ul></ul><ul><ul><li>Financial rewards </li></ul></ul><ul><li>Community </li></ul><ul><ul><li>Participatory </li></ul></ul><ul><ul><li>Cause-minded </li></ul></ul><ul><ul><li>Cool-minded </li></ul></ul>
  69. 80. Crowdsourcing!
  70. 81. Building a Roadmap
  71. 82. Jeff’s Golden Rules… <ul><li>Identify the right micro-verticals where consumers engage deeply </li></ul><ul><li>Activate new or existing consumer communities that welcome advertiser participation </li></ul><ul><li>Make the ‘network effect’ work for you through syndication & aggregation </li></ul><ul><li>Think the way industrial designers think about ergonomics – for us, it’s form factors of media consumption </li></ul>
  72. 83. Case Studies Best Practices
  73. 84. Best Practice: Marketers as Publishers
  74. 85. It’s SOCIAL!
  75. 87. The Opportunity $250,000 $100,000 Revenues 6 10 Cost per order 2,500 1,000 Customers 2.50% 10% Conversion rate 15,000 10,000 Total cost 0.15 1 Cost per e-mail 100,000 10,000 List size Un-Qualified Qualified
  76. 88. <ul><li>“ Editorial bribes” </li></ul><ul><li>3 per month </li></ul><ul><li>Targeted by gender </li></ul><ul><li>Click to long form content </li></ul><ul><li>Prone to sharing </li></ul><ul><li>Blatant Call to Action </li></ul><ul><li>1 Campaign/mo (with 3 f/u’s) </li></ul>The Secret
  77. 89. Editorial Bribes Keep ‘em Involved (and Campaigns Sell )
  78. 96. Take Home <ul><li>Trust your instincts and act boldly </li></ul><ul><li>Stop all tactical activities that don’t have a hope of nailing a STRATEGIC objective </li></ul><ul><li>Create authentic, honest relationships w/ customers and give them choice </li></ul><ul><li>Be fearless, experimental </li></ul><ul><li>Build trust-centric models that INFLUENCE and PROMPT behaviors </li></ul><ul><li>Embrace long-term thinking and METRICS! </li></ul>
  79. 97. Resources <ul><li>People </li></ul><ul><ul><li>Joe Pulizzi </li></ul></ul><ul><ul><li>Dave Chaffey ( </li></ul></ul><ul><ul><li>Chris Kenton ( </li></ul></ul><ul><ul><li>Ben Edelman ( </li></ul></ul><ul><li>Books </li></ul><ul><ul><li>Branding Only Works on Cattle ( Jonathan Salem Baskin) </li></ul></ul><ul><ul><li>Open Brands (Kelly Mooney) </li></ul></ul><ul><ul><li>Convergence Culture (Henry Jenkins, MIT) </li></ul></ul><ul><ul><li>The Big Switch (Nick Carr) </li></ul></ul><ul><ul><li>Cluetrain Manifesto , 1999 (Searls, Locke, Weinberger) </li></ul></ul>
  80. 98. Resources <ul><li>Blogs </li></ul><ul><ul><li>MarketingVox (Digital Media News Filter) </li></ul></ul><ul><ul><li>Avinash Kaushik (Analytics) </li></ul></ul><ul><ul><li> (Attention Economy) </li></ul></ul><ul><ul><li> and ClickZ (Ad Industry News) </li></ul></ul><ul><ul><li> (Search & Digital Economy) </li></ul></ul><ul><ul><li> (Leading eBiz Minds) </li></ul></ul><ul><ul><li>Web Analytics Association ( </li></ul></ul>
  81. 99. <ul><li>Jeff Molander </li></ul><ul><li>[email_address] </li></ul><ul><li>Blog: </li></ul><ul><li> </li></ul><ul><li>Slides at </li></ul><ul><li> </li></ul>