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HOW TO BUILD BRAND ADVOCACY
    THE
          IN A CONSUMER-DRIVEN WORLD




FRIENDSHIP

MODEL
                                 Copyright © 2007 22squared
AN ORIENTATION BY BRANDON MURPHY
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.
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
YES
Copyright © 2007 22squared
YES
Copyright © 2007 22squared
                             Thank you
J/K
Let’s start with the first question...




                                        why did we create it?
Let’s start with the first question...




            [BECAUSE WE HAD TO]

                                        why did we create it?
We were trying to change the way we
do business...just like every other ad
agency that existed before web 2.0.
But the real problem...
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
ACT
People want brands that...




                             ...more like friends than salespeople
                                                          Copyright © 2007 22squared
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
So we need to help brands
                                            DO
Copyright © 2007 22squared
BUT                ...
To get people talking...




                           Copyright © 2007 22squared
... we must create

                             relationships
                             worth talking about.


Copyright © 2007 22squared
We need to turn our original
way of marketing on its head...




                                  Copyright © 2007 22squared
Literally
[OLD]



AWARENESS




PREFERENCE




PURCHASE



                     Copyright © 2007 22squared
[NOW]


RELATIONSHIPS




 PURCHASES




 ADVOCACY




                        Copyright © 2007 22squared
HOW                          does an agency create
                             relationships worth talking about?




Copyright © 2007 22squared
REALIZE

                             that good brands are like people.




Copyright © 2007 22squared
The actions that make people great friends




are the same
                   that cause people to advocate for brands.

Copyright © 2007 22squared
[                               ]
“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
Think about it...




                                     ...what do friends do?


Copyright © 2007 22squared
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
                             S H A R E     A    P. O .V.
                             GIVE MORE THAN GET
                             S TAY I N TO U C H

Copyright © 2007 22squared
                             INSPIRE EACH OTHER
Makes sense, right?




Copyright © 2007 22squared
But how do we put that theory in action?




Copyright © 2007 22squared
FRIEND
    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
FRIEND
    SHIP
                                          + MODEL
State of being a friend

Someone you know and trust                  An example of a behavior; a philosophy lived out

                                            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
Friendship   Higher
           Model      = Advocacy


Copyright © 2007 22squared
Here’s how we size up advocacy:
                 % of brand’s customers who are...



                SHAREHOLDER
                               EVANGELIST
                                            RECOMMENDER



                                                      REPEAT   SATISFIED
                             ADVOCATES                    BUYERS                  CRITICS

                                                                           MARGINAL
                                                                           CUSTOMER
                                                                                      DISSATISFIED
                                                                                       CUSTOMER      ACTIVELY
                                                                                                     AGAINST




Copyright © 2007 22squared
TA = A - C
TRUE ADVOCACYTM   ADVOCATES   CRITICS




                                  Copyright © 2007 22squared
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
$                    Are advocates worth more than other customers?




Copyright © 2007 22squared
YES
  (THE SHORT ANSWER)
WHAT
      THEY DO         ADVOCATES   WHAT WE
                                  MEASURE


         Buy more                 Spending levels

Talk and share more               Conversation rates

 Recommend more                   Recommendation rates




                                                    Copyright © 2007 22squared
FACT :
                             When advocates talk, brands grow
                                                            TM




Copyright © 2007 22squared
seriously,
                                                      check it out...

                             GROWTH




                                      TRUE ADVOCACY



Copyright © 2007 22squared
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
WIRELESS
PROVIDERS




            Average annual growth rate from 2005 - 2007
            SOURCE: 22squared Wireless Provider White Paper, 2008


                                                                    Copyright © 2007 22squared
AIRLINES




           Average annual passenger revenue growth rate from 2005-2007
           SOURCE: 22squared Airline White Paper, 2009



                                                                         Copyright © 2007 22squared
HOW 1)
          ROLES               ACTIONS
                             2)
                                                             does the Friendship Model help
                                                             increase advocacy for brands?




                                                                    3)
                                                                         MOMENTUM
           Play a more            Identify the actions the               Create momentum, get people
           meaningful role        brand must take to                     talking more and moving
           in their life          increase advocates                     toward the brand




Copyright © 2007 22squared
ROLES
                1)




                             Play a more meaningful role in their life




Copyright © 2007 22squared
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
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
A unique connection; a      SOUL MATE
      brand you can’t live without




                                     CLOSE FRIEND



                                     NICHE FRIEND



                                      NEW FRIEND



                                     ACQUAINTANCE




                                     FAMILY FRIEND



                                        FLING


                                                                                202 Index*
                                       DEFAULT       Inner-circle, depend on,
                                                           always there
                                       FORCED
Copyright © 2007 22squared
*Index among all brands tested
A unique connection; a      SOUL MATE
      brand you can’t live without




          Inner-circle, depend on,
                      always there   CLOSE FRIEND



                                     NICHE FRIEND



                                      NEW FRIEND



                                     ACQUAINTANCE




                                     FAMILY FRIEND



                                        FLING


                                                                                     143 Index*
                                       DEFAULT       Familiar in a narrow context,
                                                       but in a restrictive way.
                                       FORCED
Copyright © 2007 22squared
*Index among all brands tested
A unique connection; a       SOUL MATE
      brand you can’t live without




          Inner-circle, depend on,
                      always there    CLOSE FRIEND



                      Familiar in a
                   narrow context     NICHE FRIEND



                                       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
A unique connection; a       SOUL MATE
      brand you can’t live without




          Inner-circle, depend on,
                      always there    CLOSE FRIEND



                      Familiar in a
                   narrow context     NICHE FRIEND



                  On the road to
                 becoming closer       NEW FRIEND



                                      ACQUAINTANCE




                                      FAMILY FRIEND



                                         FLING


                                                                                    143 Index*
                                        DEFAULT
                                                      Ambivalent, no expectations
                                                           and little reward
                                        FORCED
Copyright © 2007 22squared
*Index among all brands tested
A unique connection; a       SOUL MATE
      brand you can’t live without




          Inner-circle, depend on,
                      always there    CLOSE FRIEND



                      Familiar in a
                   narrow context     NICHE FRIEND



                  On the road to
                 becoming closer       NEW FRIEND



                   Ambivalent, no
                    expectations      ACQUAINTANCE




                                      FAMILY FRIEND



                                         FLING
                                                                                       286 Index*


                                        DEFAULT
                                                      By association or inheritance,
                                                         not solely your choice
                                        FORCED
Copyright © 2007 22squared
*Index among all brands tested
A unique connection; a       SOUL MATE
      brand you can’t live without




          Inner-circle, depend on,
                      always there    CLOSE FRIEND



                      Familiar in a
                   narrow context     NICHE FRIEND



                  On the road to
                 becoming closer       NEW FRIEND



                   Ambivalent, no                                                  177 Index*
                    expectations      ACQUAINTANCE



                 By association or
                       inheritance    FAMILY FRIEND



                                         FLING


                                                       A short-term experiment,
                                        DEFAULT
                                                      likely to happen only once

                                        FORCED
Copyright © 2007 22squared
*Index among all brands tested
A unique connection; a       SOUL MATE
      brand you can’t live without




          Inner-circle, depend on,
                      always there    CLOSE FRIEND



                      Familiar in a
                   narrow context     NICHE FRIEND



                  On the road to
                 becoming closer       NEW FRIEND



                   Ambivalent, no
                    expectations      ACQUAINTANCE



                 By association or
                       inheritance    FAMILY FRIEND



                       Short-term
                       experiment
                                         FLING
                                                                                210 Index*


                                        DEFAULT       Lack of options, out of
                                                      proximity or avoidance.
                                        FORCED
Copyright © 2007 22squared
*Index among all brands tested
A unique connection; a       SOUL MATE
      brand you can’t live without




          Inner-circle, depend on,
                      always there    CLOSE FRIEND



                      Familiar in a
                   narrow context     NICHE FRIEND



                  On the road to
                 becoming closer       NEW FRIEND



                   Ambivalent, no
                    expectations      ACQUAINTANCE



                 By association or
                       inheritance    FAMILY FRIEND



                       Short-term
                       experiment
                                         FLING



                 Lack of options,                                                   231 Index*
           proximity or avoidance       DEFAULT

                                                      No choice, feel trapped and
                                        FORCED             want to escape
Copyright © 2007 22squared
*Index among all brands tested
Remember...




IT’S NOT ABOUT BEING FRIENDLY

              ...it’s about BEHAVING like a friend.



                                           Copyright © 2007 22squared
ACTIONS
                         2)




                              Identify the actions the brand must take
                              to increase advocates.




Copyright © 2007 22squared
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
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
                             S H A R E     A    P. O .V.
                             GIVE MORE THAN GET
                             S TAY I N TO U C H

Copyright © 2007 22squared
                             INSPIRE EACH OTHER
Create a visceral spark   HAVE
                                                  H A V E CHEMISTRY
                                                          CHEMISTRY            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
                             FIREWORKS                                                        FORCED
                                 225*                                                              4*




                                                  SPEND QUALITY TIME
                                                  S H A R E     A    P O V
                                                  GIVE MORE THAN GET
                                                  S TAY I N TO U C H
*Category Index
Copyright © 2007 22squared
                                                  INSPIRE EACH OTHER
H AV E C H E M I S T R Y
                                Original, real and   REMAIN AUTHENTIC
                                                     REMAIN AUTHENTIC             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 REAL                                                           FOR NOT
                               127*                                                                47*




                                                     SPEND QUALITY TIME
                                                     S H A R E     A    P O V
                                                     GIVE MORE THAN GET
                                                     S TAY I N TO U C H
*Category Index
Copyright © 2007 22squared
                                                     INSPIRE EACH OTHER
H AV E C H E M I S T R Y
                                                 REMAIN AUTHENTIC
                                 Be honest and   ACT TRANSPARENT
                                                 A C T T R A N S PA R E N T   have clear intentions


                                                 A R E E M PAT H E T I C




                                                 FRIENDS
                                                 SUPPORT EACH OTHER


                             CLEAR                                                           HIDDEN
                              210*                                                             14*
                                                 SPEND QUALITY TIME
                                                 S H A R E     A    P O V
                                                 GIVE MORE THAN GET
                                                 S TAY I N TO U C H
*Category Index
Copyright © 2007 22squared
                                                 INSPIRE EACH OTHER
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
                      Understand their needs,   ARE EMPATHETIC
                                                A R E E M PAT H E T I C      desires and lives




                                                FRIENDS
                                                SUPPORT EACH OTHER




                             GETS ME            SPEND QUALITY TIME                        HASSLES ME
                               231*                                                           5*

                                                S H A R E     A    P O V
                                                GIVE MORE THAN GET
                                                S TAY I N TO U C H
*Category Index
Copyright © 2007 22squared
                                                INSPIRE EACH OTHER
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
                              Be helpful, useful   SUPPORT EACH OTHER           act on their behalf




                                                   SPEND QUALITY TIME

                    THERE FOR PEOPLE               S H A R E     A    P O V                THEY’RE PEOPLE?
                             171*                                                                100*
                                                   GIVE MORE THAN GET
                                                   S TAY I N TO U C H
*Category Index
Copyright © 2007 22squared
                                                   INSPIRE EACH OTHER
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
                             Provide talk-worthy   SPEND QUALITY TIME           immersive experiences

                                                   S H A R E     A    P O V
                                                   GIVE MORE THAN GET
                                                   S TAY I N TO U C H
*Category Index
Copyright © 2007 22squared
                                                   INSPIRE EACH OTHER
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
                               Common lifestyle,
                                                   SHARE A P
                                                   S H A R E.O.V.A    P O V     belief system or attitude


                                                   GIVE MORE THAN GET
                                                   S TAY I N TO U C H
*Category Index
Copyright © 2007 22squared
                                                   INSPIRE EACH OTHER
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
                          164*              S H A R E     A    P O V                    4*


                Provide value and meaning   GET MORE THAN GIVE
                                            GIVE MORE THAN GET           beyond the money spent


                                            S TAY I N TO U C H
*Category Index
Copyright © 2007 22squared
                                            INSPIRE EACH OTHER
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
                                                  S H A R E     A    P O V
                CARD CARRYING MEMBER                                                      ON THE SHELF
                             185*                 GIVE MORE THAN GET                          28*


                        Build anticipation, add   STAY
                                                  S T A Y IN TOUCH
                                                           IN TOUCH            value & communicate

*Category Index
Copyright © 2007 22squared
                                                  INSPIRE EACH OTHER
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
                        S H A R E     A    P O V
                        GIVE MORE THAN GET
BE DIFFERENT                                                      BE NORMAL
     372*               S TAY I N TO U C H                            27*


  Motivates you to be   INSPIRE EACH OTHER
                        INSPIRE EACH OTHER           di erent or better   *Category Index
                                                                          Copyright © 2007 22squared
Friendship Actions   build...




Copyright © 2007 22squared
Advocacy   which sparks...




Copyright © 2007 22squared
Conversations         that lead to...




Copyright © 2007 22squared
Recommendations  that turn into...




Copyright © 2007 22squared
Sales        which are usually...




Copyright © 2007 22squared
Higher             in profit and lower in acquisition costs




Copyright © 2007 22squared
WHAT IF...                             Brand Z* improved these actions?




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                                                     G
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                                                                                                    C
                                                         category mean


                                                                                                                                     -1%
 -4%


              -7%                      -7%
                                                     -8%


                                                                                   -14%                            -13%
                           -16%                                     -17%


     * We’ve run this analysis for 75 brands.                                                       -22%                               Copyright © 2007 22squared
WOW, THIS...
              advocacy
         4%   increase




                                       =
                 incremental
    3000         advocates/wk


                                           $25MM
                                               annually
                     conversations
  4800               (1.6 rate)                for Brand Z



                         incremental
$480M                    sales/wk




                                                 Copyright © 2007 22squared
BIG
THAT’S A




           NUMBER.
MOMENTUM
         3)




                             How active are your advocates?
                             Get people talking more about the brand.



Copyright © 2007 22squared
Brand X
                       Brand Z




                       FADING             STABLE              GROWING
                        STOPPED TALKING   TOO BORED TO TALK     TALKING

Copyright © 2007 22squared
Number of purchases influenced by each advocate




                             Brand Z   :   1.6



                             Brand X
                                       :         4.5




Copyright © 2007 22squared
WHAT IF...                          Brand Z’s advocates were more active?



                    Brand Z now


                             :      1.6
                                                        =   $25 MM


                    Brand Z on the Friendship Model


                             :                    4.5
                                                        = $70MM  incremental revenue/yr



Copyright © 2007 22squared
BIGGER
WHOA, THOSE ARE




                  NUMBERS.
Copyright © 2007 22squared
                                  3
                             marketing imperatives for giving
                               advocates a BIGGER VOICE
1)
                                  BE OF SERVICE
                                  Actions speak louder than words

                             2)
                                  PROPAGATE
                                  Light the fuse


                             3)
                                  ENGAGE
                                  Engage: Right time, right place, right context


Copyright © 2007 22squared
1)
     BE OF SERVICE
     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
Have a purpose that’s bigger than
    your product or service.
Position              Purpose
                                                        (better/best)         (Blue Ocean)


                                             GOOD

                                                         Not good,             Horizontal
                                                        not di erent         Di erentiation
                                                        (badly positioned)   Di erent & irrelevant




                                                                  DIFFERENT


* ZAG, Marty Nuemeier + Blue Ocean Strategy, HBR 2004
Entertain and provide content
that people can use, influence,
      adopt and adapt.
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.
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
Do things for consumers,
and enable consumers to do
     things for others.
Give customers a role in
helping the brand succeed,
 allow them to participate
  and they will advocate.
2)
                                  PROPAGATE
                                  Light the fuse.




Copyright © 2007 22squared
PROPAGATION PLANNING
                             Plan not for the people we reach, but
                             for the people that they reach




Copyright © 2007 22squared
Broadcast Media: targets the majority




                             Innovators   Early Adopters   Early Majority   Late Majority   Laggards




Copyright © 2007 22squared
Broadcast Media: targets the majority




   Propagation:
   Spreadable content


                             Innovators   Early Adopters   Early Majority   Late Majority   Laggards




Copyright © 2007 22squared
Propagation 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
Propagation Process
        1)                      2)
  CREATIVE                MARKET
  STIMULUS             INTELLIGENCE


      Images
   Audio Assets        Identify Fan Cultures
   Video Assets        Uncover Connection
     Product             & Dialogue Points
       Brand



What can we share
that is interesting?   What innovator/ early
                       adopter tribe can we
Plan for the content      connect with?
  you don’t have.




                                               AdSpace Pioneers (Reworked) by Griffin Farley
Propagation Process
        1)                      2)                    3)
  CREATIVE                MARKET                   IDEA
  STIMULUS             INTELLIGENCE            PROPAGATION


      Images
   Audio Assets        Identify Fan Cultures   Blogger Outreach
   Video Assets        Uncover Connection      Tribe Mobilization
     Product             & Dialogue Points      Public Relations
       Brand



What can we share                               How do we share
that is interesting?   What innovator/ early       the idea?
                       adopter tribe can we
Plan for the content      connect with?        How do we get fans
  you don’t have.                                to work for us?




                                                                    AdSpace Pioneers (Reworked) by Griffin Farley
Propagation Process
        1)                      2)                    3)                     4)
  CREATIVE                MARKET                   IDEA             PARTICIPATORY
  STIMULUS             INTELLIGENCE            PROPAGATION            PLATFORM


      Images                                                         YouTube Uploads
   Audio Assets        Identify Fan Cultures   Blogger Outreach
                                                                         Website
   Video Assets        Uncover Connection      Tribe Mobilization
                                                                         Mobile
     Product             & Dialogue Points      Public Relations
                                                                          Blog
       Brand



What can we share                               How do we share
that is interesting?   What innovator/ early       the idea?          Build the platform
                       adopter tribe can we                            and feed it with
Plan for the content      connect with?        How do we get fans    interesting content.
  you don’t have.                                to work for us?




                                                                                            AdSpace Pioneers (Reworked) by Griffin Farley
Propagation Process
        1)                      2)                    3)                     4)                                   5)
  CREATIVE                MARKET                   IDEA             PARTICIPATORY                       FEEDBACK
  STIMULUS             INTELLIGENCE            PROPAGATION            PLATFORM                           POINTS


      Images                                                         YouTube Uploads                    Email Accounts
   Audio Assets        Identify Fan Cultures   Blogger Outreach                                           Voicemail
                                                                         Website
   Video Assets        Uncover Connection      Tribe Mobilization                                         Facebook
                                                                         Mobile
     Product             & Dialogue Points      Public Relations                                          MySpace
                                                                          Blog
       Brand



What can we share                               How do we share
that is interesting?   What innovator/ early       the idea?          Build the platform                   Monitor the
                       adopter tribe can we                            and feed it with                   feedback and
Plan for the content      connect with?        How do we get fans    interesting content.                 participation.
  you don’t have.                                to work for us?




                                                                                            AdSpace Pioneers (Reworked) by Griffin Farley
FOR MORE ... GO HERE
  Propagationplanning.com
    A blog by Gri n Farley
   Sr. Planner @ 22squared
3)
                                  ENGAGE
                                  Engage: Right time, right place, right context




Copyright © 2007 22squared
Define your target and
                             their best relationship
                             with the brand




Copyright © 2007 22squared
Find the best times to
                             engage with them




Copyright © 2007 22squared
Determine the value the
                             brand can add to their
                             life during that time




Copyright © 2007 22squared
Determine the ultimate
           action the brand will take




Copyright © 2007 22squared
Identify the best
                    channels




Copyright © 2007 22squared
Creatively use the channel to
  make a connection and
  encourage conversation




Copyright © 2007 22squared
IN

                                    a nutshell




                             Friendship Model

Copyright © 2007 22squared
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
THANK YOU
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

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Friendship Model Orientation Ss

  • 1. HOW TO BUILD BRAND ADVOCACY THE IN A CONSUMER-DRIVEN WORLD FRIENDSHIP MODEL Copyright © 2007 22squared
  • 2. AN ORIENTATION BY BRANDON MURPHY
  • 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. 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
  • 6. YES Copyright © 2007 22squared Thank you
  • 7. J/K
  • 8. Let’s start with the first question... why did we create it?
  • 9. Let’s start with the first question... [BECAUSE WE HAD TO] why did we create it?
  • 10. We were trying to change the way we do business...just like every other ad agency that existed before web 2.0.
  • 11. But the real problem...
  • 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. ACT People want brands that... ...more like friends than salespeople Copyright © 2007 22squared
  • 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. So we need to help brands DO Copyright © 2007 22squared
  • 16. BUT ... To get people talking... Copyright © 2007 22squared
  • 17. ... we must create relationships worth talking about. Copyright © 2007 22squared
  • 18. We need to turn our original way of marketing on its head... Copyright © 2007 22squared
  • 20. [OLD] AWARENESS PREFERENCE PURCHASE Copyright © 2007 22squared
  • 21. [NOW] RELATIONSHIPS PURCHASES ADVOCACY Copyright © 2007 22squared
  • 22. HOW does an agency create relationships worth talking about? Copyright © 2007 22squared
  • 23. REALIZE that good brands are like people. Copyright © 2007 22squared
  • 24. The actions that make people great friends are the same that cause people to advocate for brands. Copyright © 2007 22squared
  • 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. Think about it... ...what do friends do? Copyright © 2007 22squared
  • 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 S H A R E A P. O .V. GIVE MORE THAN GET S TAY I N TO U C H Copyright © 2007 22squared INSPIRE EACH OTHER
  • 28. Makes sense, right? Copyright © 2007 22squared
  • 29. But how do we put that theory in action? Copyright © 2007 22squared
  • 30. FRIEND 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. FRIEND SHIP + MODEL State of being a friend Someone you know and trust An example of a behavior; a philosophy lived out 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. Friendship Higher Model = Advocacy Copyright © 2007 22squared
  • 33. Here’s how we size up advocacy: % of brand’s customers who are... SHAREHOLDER EVANGELIST RECOMMENDER REPEAT SATISFIED ADVOCATES BUYERS CRITICS MARGINAL CUSTOMER DISSATISFIED CUSTOMER ACTIVELY AGAINST Copyright © 2007 22squared
  • 34. TA = A - C TRUE ADVOCACYTM ADVOCATES CRITICS Copyright © 2007 22squared
  • 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. $ Are advocates worth more than other customers? Copyright © 2007 22squared
  • 37. YES (THE SHORT ANSWER)
  • 38. WHAT THEY DO ADVOCATES WHAT WE MEASURE Buy more Spending levels Talk and share more Conversation rates Recommend more Recommendation rates Copyright © 2007 22squared
  • 39. FACT : When advocates talk, brands grow TM Copyright © 2007 22squared
  • 40. seriously, check it out... GROWTH TRUE ADVOCACY Copyright © 2007 22squared
  • 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. WIRELESS PROVIDERS Average annual growth rate from 2005 - 2007 SOURCE: 22squared Wireless Provider White Paper, 2008 Copyright © 2007 22squared
  • 43. AIRLINES Average annual passenger revenue growth rate from 2005-2007 SOURCE: 22squared Airline White Paper, 2009 Copyright © 2007 22squared
  • 44. HOW 1) ROLES ACTIONS 2) does the Friendship Model help increase advocacy for brands? 3) MOMENTUM Play a more Identify the actions the Create momentum, get people meaningful role brand must take to talking more and moving in their life increase advocates toward the brand Copyright © 2007 22squared
  • 45. ROLES 1) Play a more meaningful role in their life Copyright © 2007 22squared
  • 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. 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. A unique connection; a SOUL MATE brand you can’t live without CLOSE FRIEND NICHE FRIEND NEW FRIEND ACQUAINTANCE FAMILY FRIEND FLING 202 Index* DEFAULT Inner-circle, depend on, always there FORCED Copyright © 2007 22squared *Index among all brands tested
  • 49. A unique connection; a SOUL MATE brand you can’t live without Inner-circle, depend on, always there CLOSE FRIEND NICHE FRIEND NEW FRIEND ACQUAINTANCE FAMILY FRIEND FLING 143 Index* DEFAULT Familiar in a narrow context, but in a restrictive way. FORCED Copyright © 2007 22squared *Index among all brands tested
  • 50. A unique connection; a SOUL MATE brand you can’t live without Inner-circle, depend on, always there CLOSE FRIEND Familiar in a narrow context NICHE FRIEND 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. A unique connection; a SOUL MATE brand you can’t live without Inner-circle, depend on, always there CLOSE FRIEND Familiar in a narrow context NICHE FRIEND On the road to becoming closer NEW FRIEND ACQUAINTANCE FAMILY FRIEND FLING 143 Index* DEFAULT Ambivalent, no expectations and little reward FORCED Copyright © 2007 22squared *Index among all brands tested
  • 52. A unique connection; a SOUL MATE brand you can’t live without Inner-circle, depend on, always there CLOSE FRIEND Familiar in a narrow context NICHE FRIEND On the road to becoming closer NEW FRIEND Ambivalent, no expectations ACQUAINTANCE FAMILY FRIEND FLING 286 Index* DEFAULT By association or inheritance, not solely your choice FORCED Copyright © 2007 22squared *Index among all brands tested
  • 53. A unique connection; a SOUL MATE brand you can’t live without Inner-circle, depend on, always there CLOSE FRIEND Familiar in a narrow context NICHE FRIEND On the road to becoming closer NEW FRIEND Ambivalent, no 177 Index* expectations ACQUAINTANCE By association or inheritance FAMILY FRIEND FLING A short-term experiment, DEFAULT likely to happen only once FORCED Copyright © 2007 22squared *Index among all brands tested
  • 54. A unique connection; a SOUL MATE brand you can’t live without Inner-circle, depend on, always there CLOSE FRIEND Familiar in a narrow context NICHE FRIEND On the road to becoming closer NEW FRIEND Ambivalent, no expectations ACQUAINTANCE By association or inheritance FAMILY FRIEND Short-term experiment FLING 210 Index* DEFAULT Lack of options, out of proximity or avoidance. FORCED Copyright © 2007 22squared *Index among all brands tested
  • 55. A unique connection; a SOUL MATE brand you can’t live without Inner-circle, depend on, always there CLOSE FRIEND Familiar in a narrow context NICHE FRIEND On the road to becoming closer NEW FRIEND Ambivalent, no expectations ACQUAINTANCE By association or inheritance FAMILY FRIEND Short-term experiment FLING Lack of options, 231 Index* proximity or avoidance DEFAULT No choice, feel trapped and FORCED want to escape Copyright © 2007 22squared *Index among all brands tested
  • 56. Remember... IT’S NOT ABOUT BEING FRIENDLY ...it’s about BEHAVING like a friend. Copyright © 2007 22squared
  • 57. ACTIONS 2) Identify the actions the brand must take to increase advocates. Copyright © 2007 22squared
  • 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. 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 S H A R E A P. O .V. GIVE MORE THAN GET S TAY I N TO U C H Copyright © 2007 22squared INSPIRE EACH OTHER
  • 60. Create a visceral spark HAVE H A V E CHEMISTRY CHEMISTRY 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 FIREWORKS FORCED 225* 4* SPEND QUALITY TIME S H A R E A P O V GIVE MORE THAN GET S TAY I N TO U C H *Category Index Copyright © 2007 22squared INSPIRE EACH OTHER
  • 61. H AV E C H E M I S T R Y Original, real and REMAIN AUTHENTIC REMAIN AUTHENTIC 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 REAL FOR NOT 127* 47* SPEND QUALITY TIME S H A R E A P O V GIVE MORE THAN GET S TAY I N TO U C H *Category Index Copyright © 2007 22squared INSPIRE EACH OTHER
  • 62. H AV E C H E M I S T R Y REMAIN AUTHENTIC Be honest and ACT TRANSPARENT A C T T R A N S PA R E N T have clear intentions A R E E M PAT H E T I C FRIENDS SUPPORT EACH OTHER CLEAR HIDDEN 210* 14* SPEND QUALITY TIME S H A R E A P O V GIVE MORE THAN GET S TAY I N TO U C H *Category Index Copyright © 2007 22squared INSPIRE EACH OTHER
  • 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 Understand their needs, ARE EMPATHETIC A R E E M PAT H E T I C desires and lives FRIENDS SUPPORT EACH OTHER GETS ME SPEND QUALITY TIME HASSLES ME 231* 5* S H A R E A P O V GIVE MORE THAN GET S TAY I N TO U C H *Category Index Copyright © 2007 22squared INSPIRE EACH OTHER
  • 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 Be helpful, useful SUPPORT EACH OTHER act on their behalf SPEND QUALITY TIME THERE FOR PEOPLE S H A R E A P O V THEY’RE PEOPLE? 171* 100* GIVE MORE THAN GET S TAY I N TO U C H *Category Index Copyright © 2007 22squared INSPIRE EACH OTHER
  • 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 Provide talk-worthy SPEND QUALITY TIME immersive experiences S H A R E A P O V GIVE MORE THAN GET S TAY I N TO U C H *Category Index Copyright © 2007 22squared INSPIRE EACH OTHER
  • 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 Common lifestyle, SHARE A P S H A R E.O.V.A P O V belief system or attitude GIVE MORE THAN GET S TAY I N TO U C H *Category Index Copyright © 2007 22squared INSPIRE EACH OTHER
  • 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 164* S H A R E A P O V 4* Provide value and meaning GET MORE THAN GIVE GIVE MORE THAN GET beyond the money spent S TAY I N TO U C H *Category Index Copyright © 2007 22squared INSPIRE EACH OTHER
  • 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 S H A R E A P O V CARD CARRYING MEMBER ON THE SHELF 185* GIVE MORE THAN GET 28* Build anticipation, add STAY S T A Y IN TOUCH IN TOUCH value & communicate *Category Index Copyright © 2007 22squared INSPIRE EACH OTHER
  • 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 S H A R E A P O V GIVE MORE THAN GET BE DIFFERENT BE NORMAL 372* S TAY I N TO U C H 27* Motivates you to be INSPIRE EACH OTHER INSPIRE EACH OTHER di erent or better *Category Index Copyright © 2007 22squared
  • 70. Friendship Actions build... Copyright © 2007 22squared
  • 71. Advocacy which sparks... Copyright © 2007 22squared
  • 72. Conversations that lead to... Copyright © 2007 22squared
  • 73. Recommendations that turn into... Copyright © 2007 22squared
  • 74. Sales which are usually... Copyright © 2007 22squared
  • 75. Higher in profit and lower in acquisition costs Copyright © 2007 22squared
  • 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% -14% -13% -16% -17% * We’ve run this analysis for 75 brands. -22% Copyright © 2007 22squared
  • 77. WOW, THIS... advocacy 4% increase = incremental 3000 advocates/wk $25MM annually conversations 4800 (1.6 rate) for Brand Z incremental $480M sales/wk Copyright © 2007 22squared
  • 78. BIG THAT’S A NUMBER.
  • 79. MOMENTUM 3) How active are your advocates? Get people talking more about the brand. Copyright © 2007 22squared
  • 80. Brand X Brand Z FADING STABLE GROWING STOPPED TALKING TOO BORED TO TALK TALKING Copyright © 2007 22squared
  • 81. Number of purchases influenced by each advocate Brand Z : 1.6 Brand X : 4.5 Copyright © 2007 22squared
  • 82. WHAT IF... Brand Z’s advocates were more active? Brand Z now : 1.6 = $25 MM Brand Z on the Friendship Model : 4.5 = $70MM incremental revenue/yr Copyright © 2007 22squared
  • 84. Copyright © 2007 22squared 3 marketing imperatives for giving advocates a BIGGER VOICE
  • 85. 1) BE OF SERVICE Actions speak louder than words 2) PROPAGATE Light the fuse 3) ENGAGE Engage: Right time, right place, right context Copyright © 2007 22squared
  • 86. 1) BE OF SERVICE 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. Have a purpose that’s bigger than your product or service.
  • 88. Position Purpose (better/best) (Blue Ocean) GOOD Not good, Horizontal not di erent Di erentiation (badly positioned) Di erent & irrelevant DIFFERENT * ZAG, Marty Nuemeier + Blue Ocean Strategy, HBR 2004
  • 89. Entertain and provide content that people can use, influence, adopt and adapt.
  • 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. 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. Do things for consumers, and enable consumers to do things for others.
  • 93. Give customers a role in helping the brand succeed, allow them to participate and they will advocate.
  • 94. 2) PROPAGATE Light the fuse. Copyright © 2007 22squared
  • 95. PROPAGATION PLANNING Plan not for the people we reach, but for the people that they reach Copyright © 2007 22squared
  • 96. Broadcast Media: targets the majority Innovators Early Adopters Early Majority Late Majority Laggards Copyright © 2007 22squared
  • 97. Broadcast Media: targets the majority Propagation: Spreadable content Innovators Early Adopters Early Majority Late Majority Laggards Copyright © 2007 22squared
  • 98. Propagation 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. Propagation Process 1) 2) CREATIVE MARKET STIMULUS INTELLIGENCE Images Audio Assets Identify Fan Cultures Video Assets Uncover Connection Product & Dialogue Points Brand What can we share that is interesting? What innovator/ early adopter tribe can we Plan for the content connect with? you don’t have. AdSpace Pioneers (Reworked) by Griffin Farley
  • 100. Propagation Process 1) 2) 3) CREATIVE MARKET IDEA STIMULUS INTELLIGENCE PROPAGATION Images Audio Assets Identify Fan Cultures Blogger Outreach Video Assets Uncover Connection Tribe Mobilization Product & Dialogue Points Public Relations Brand What can we share How do we share that is interesting? What innovator/ early the idea? adopter tribe can we Plan for the content connect with? How do we get fans you don’t have. to work for us? AdSpace Pioneers (Reworked) by Griffin Farley
  • 101. Propagation Process 1) 2) 3) 4) CREATIVE MARKET IDEA PARTICIPATORY STIMULUS INTELLIGENCE PROPAGATION PLATFORM Images YouTube Uploads Audio Assets Identify Fan Cultures Blogger Outreach Website Video Assets Uncover Connection Tribe Mobilization Mobile Product & Dialogue Points Public Relations Blog Brand What can we share How do we share that is interesting? What innovator/ early the idea? Build the platform adopter tribe can we and feed it with Plan for the content connect with? How do we get fans interesting content. you don’t have. to work for us? AdSpace Pioneers (Reworked) by Griffin Farley
  • 102. Propagation Process 1) 2) 3) 4) 5) CREATIVE MARKET IDEA PARTICIPATORY FEEDBACK STIMULUS INTELLIGENCE PROPAGATION PLATFORM POINTS Images YouTube Uploads Email Accounts Audio Assets Identify Fan Cultures Blogger Outreach Voicemail Website Video Assets Uncover Connection Tribe Mobilization Facebook Mobile Product & Dialogue Points Public Relations MySpace Blog Brand What can we share How do we share that is interesting? What innovator/ early the idea? Build the platform Monitor the adopter tribe can we and feed it with feedback and Plan for the content connect with? How do we get fans interesting content. participation. you don’t have. to work for us? AdSpace Pioneers (Reworked) by Griffin Farley
  • 103. FOR MORE ... GO HERE Propagationplanning.com A blog by Gri n Farley Sr. Planner @ 22squared
  • 104. 3) ENGAGE Engage: Right time, right place, right context Copyright © 2007 22squared
  • 105. Define your target and their best relationship with the brand Copyright © 2007 22squared
  • 106. Find the best times to engage with them Copyright © 2007 22squared
  • 107. Determine the value the brand can add to their life during that time Copyright © 2007 22squared
  • 108. Determine the ultimate action the brand will take Copyright © 2007 22squared
  • 109. Identify the best channels Copyright © 2007 22squared
  • 110. Creatively use the channel to make a connection and encourage conversation Copyright © 2007 22squared
  • 111. IN a nutshell Friendship Model Copyright © 2007 22squared
  • 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
  • 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