The Power of Loyalty & Advocacy - Overview

© 2015 AZBlue | www.AZblueinc.com
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THE POWER OF LOYALTY & ADVOCACY
OVERVIEW
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THE POWER OF ADVOCACY
The World Today…

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THE CONSUMER WORLD IS CHANGING!
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Consumers now have more
choices,
More channels than ever
to engage
and are able to speak their
minds!
Advocates have become
madvocates
less time,
Minimal attention span to view
and consume information

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…AS ARE THEIR BEHAVIORS IN BRAND ENGAGEMENT!
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Traditional Behaviors New Behaviors
Like
Call
Pin
Comment
Write a
Review
Add to
Cart
Fill Out
Profile
Email
Direct Mail
Fax
Face 2 Face
Engagement has evolved from personal interaction…to the click of a mouse!
Text

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BECOMING A “SOCIAL BRAND”
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A social brand is any
company, product, or
individual that uses social
technologies to communicate
with social customers, their
partners and constituencies,
or the general public
Social media marketing
programs usually center
on efforts to create
content that attracts
attention and encourages
readers to share it with
their social networks.
Human
Technology
Social Media Brands – Activity driven brand
uses social media to…
• measure traffic and sentiment
• craft social tactics around user generated
actions (channels, clicks, sentiment)
• determine success metrics thru
quantitative analysis
Social Marketing Brands – Data driven brand uses social media to…
• create, grow and manage user communities
• support paid media investment through content calendars
• measure marketing results thru actions (clicks, likes, follows, shares)
• respond to issues that impact brand perception (Care & PR)
Social Brands – Highly interactive and engaged brand uses social media to…
• connect with consumers & customers by anticipating their needs (based on previous) actions
taken on a continuous basis
• drives conversations with constant questions and engaging content
• empower the consumer to speak
• provide a long-term platform to inspire advocacy and reward loyalty
• highlight the personality of the brand thru people & relationships (vs. corporations)
• connect consumer interaction to brand KPI’s/ROI
No Risk/Reward - Safe
Low Risk/Reward –
Utilitarian
High Risk/Reward –
Interactive & Intuitive

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SOCIAL BRANDS HAVE AN ENTERPRISE STRATEGY @ THE CORE
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Store Management
Supply Chain
Human Resources
PR
R&D
Marketing
Communications
Product
Development
 What: Create a fully-formed
social business strategy (not a
social media strategy)
 Why: To directly connect social
strategy to business outcomes
 How: Integration across the
enterprise, with cross-
departmental participation
and coordinated execution

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THE EVOLUTION TO A “PASSION BRAND”
• Typically brands look at their fans as a collective number of “Likes” or email addresses,
used to continuously engage via social marketing campaigns.
• Once those fans are identified there is little action taken to cultivate and nurture those
fans into Advocacy Fans and ultimately Passionate Fans
– Advocate Fans – Regularly check in with the brand, participate and share
– Passionate Fans – Engage at a high rate with tracked keywords alluding to personal beliefs and
preferences (e.g. “I love,” “the best,” can’t live without,” etc.)
• [Social] Word of Mouth has one of the highest impacts on the buying decisions of
consumers who listen to friends, peers and recommendations when making choices.
• Focus – Identify, cultivate and activate the core LG “Passionate Fans” as ambassadors to
drive higher consideration and engagement in social.
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THE POWER OF ADVOCACY & PASSION
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* 2013 study by Ogilvy on the power of passionate brands
The percentage of advocacy comments as
a percentage of total brand conversations
Skin Care Ranks Highest!

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THE POWER OF ADVOCACY & PASSION
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* 2013 study by Ogilvy on the power of passionate brands

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WHAT PASSIONATE BRANDS LOOK LIKE
Social Brands in the CPG/ Health & Beauty space include L’Oreal and Dove:
• L’Oreal
– High number of Likes
– Daily conversations with Fans
– High PTAT rates
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• Dove
– Very high PTAT rates
– Continues to engage with
Customers to grow Likes 4
years after they launched
on Facebook

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Passion
ALIGNING A SOCIAL STRATEGY TO THE CLIENT’S KPI’S
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Acquisition
Like/Share
Retention
Loyalty
Consideration
Advocacy
Awareness
 Provide consumers with information to know
brand value
 Help consumers make buy decisions thru peer
support
 Facilitate purchase
 Provide a platform to grow Retention
 Build loyalty (Advocacy) by allowing
consumers to interact with the Client and
build relationships
 Cultivate the most passionate fans to speak as
brand ambassadors
 Recycle content back to community for
continued awareness…

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ALIGNING A SOCIAL STRATEGY TO THE CLIENT KPI’S
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Acquisition
Like/Share
Retention
Loyalty
Consideration
Advocacy
Awareness
Current Investment in Social
Where social media marketing loses traction = low
ROI
The path between advocates and
new fans is disconnected
Passion
X

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WHAT DOES THIS MEAN FOR THE CLIENT?
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A NEW SOCIAL ROADMAP
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• What are consumers
doing today in social
and why is it different
from 2 years ago?
• Who are they?
• Where are they?
• What are their social
habits?
• Who are the
influencers?
• What motivates them?
• How broad is their
social graph?
• What makes them
consume and share
content?
• What motivates them
to actively participate?
• What is the right mix of
POE investment to
maximize Reach and
ROI?
Social Insights
Redefining the
Target
Audience(s)
Identifying
the Influencers/
Advocates
Focusing Optimized
Content &
Engagement to
Increase loyalty
Driving Long-
term Advocacy
to Increase ROI
Key step…once you’ve
found them how so you
incentivize them to stay?

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REDEFINING A SOCIAL STRATEGY THAT ENHANCES THE CLIENT
KEY BUSINESS GOALS
• The explosive growth and use of social by consumers requires the Client to
refocus their communications/marketing efforts at the “lower end” of the
funnel to maximize the ROI
• Quantitative measurement (number of Fans/Likes) no longer translates to
shares, conversions and sales
• Focus now needs to be on cultivating the most active fans/ loyalists to:
– nurture them through a long-term, ongoing relationship
– turn them into active voices/faces of the brand
– Utilize UGC as a key component to experiential marketing plan
– create an ongoing process to develop fans from “Potentials to Supers”
– activate influentials as brand ambassadors/advocates
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THE GROWTH & DEVELOPMENT OF A FAN
• The key to Fan Development is:
– the ability to identify and activate based
on the product need, campaign and KPI’s
– cultivating each type by their needs,
characteristics and habits
– Deliver the right mix of content and
rewards to gain their long term
attention, participation and advocacy
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Potential Fan – A non-fan in the Social Graph
of an existing fan.
Engaged Fan – Someone who “likes” a brand
Advocate Fan – Has shared content about a
brand and increased likes and/or positive
comments.
Purchasing Fan – Has given a brand their
basic data permissions and has purchased
products.
Passionate Fan – A purchasing Fan who has
led other fans to buy from a brand.LevelofEngagement

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WHERE THE CLIENTS TRUE ADVOCATES LIE
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General Fans/Visitors
40-60%
Regular Fans
20-30%
Loyalists
15-20%
Advocates
5-10%

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WHAT IS THE VALUE OF A FAN?
• According to a recent study by Syncapse, Facebook fans are:
– 80 percent more likely than non-fans to be users of a brand
– Spend 43 percent more than non-fans in respective categories
– 11 percent more likely to continue using the brand than non-fans (loyal consumers)
– 85 percent more likely to recommend your brand compared with 60 percent of non-fans
• And that consumers like brand pages for two reasons:
– Coupons, discounts, and rewards
– Showing support for brands or receiving regular updates
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UNDERSTANDING SOCIAL HABITS*
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• Publish own blog or web page
• Upload personally created video/audio/music
• Write and post articles or stories
• Social Librarians
• Categorize info by bookmarking and tagging with specific keywords
• Shelve information for others to find, consume & share
• Maintain profiles on & visit social networking sites
• Participate by connecting, submitting, commenting and consuming
•Primarily consume information and play a passive role
• Read blogs, online forums & customer ratings/reviews
• Watch videos & listen to podcasts
• None of the Above
• Vocal, Passionate & Opinionated (Positive & Negative)
• Post ratings or reviews of products and services; comment on blogs
• Contribute to online forums or articles in a wiki
* Forrester Technographics approach to the Social Habits of people today

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Health Focus Personal Development
Busy Family
Critic
Creator
Collector
Joiner
Collector
Conversationalist
Spectator
Creator
Conversationalist
Spectator
Critic
Creator
Critic
Collector
Engage via brand advocacy, blogs, social networks
Reach on social networks and forumsOnline Moms
Applying the Social Habits to the Clients Target Customers

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EMPOWERING ADVOCACY IS THE LONG-TERM GOAL
• The Advocate is:
– Aligned with the Client core mission and authority
– Engaged in the product discussion
– Looking for content that speaks to the practical & emotional benefits of product usage
• This group is the most likely to take action during periods of advocacy and education on
key issues
– This audience is more likely to interact with the Client because they have found a resource that
differentiates the product from competition
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Positive
Experience
RelationshipDifferentiation

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CREATING ADVOCACY USING HIGH-VALUED CONTENT
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Objective: Long-term relationship with Product Users
For the relationship to be long-term, content must consistently:
Come from a
source with an
authoritative
voice on the
subject
Align with the
core values of the
Client
Meet the
consumers intent

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THE CONSUMER JOURNEY
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Awareness Consideration Reassurance
Collecting info
Talk to
friends
Talk to
friends
Narrow
choice Avoiding a
mistake
Final check
PURCHASEPURCHASE
Purchase Loyalty
Excitement
Use
Advocacy
Feeling more
confident
Obtain a visual
baseline

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THE CONSUMER JOURNEY
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Awareness Consideration Reassurance
Collecting info
Talk to
friends
Talk to
friends
Narrow
choice Avoiding a
mistake
Final check
PURCHASEPURCHASE
Purchase Loyalty
Excitement
Use
Advocacy
Feeling more
confident
Obtain a visual
baseline
facebook
Email
PinterestPinterest
Mobile
In-storeSearch In-store Search
Reviews MobileReviewsMobile
Pinterest

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PROGRAMS/TACTICS FOR CONSIDERATION
• Social Loyalty Program/Gamification to drive more registered users and increase long-
term engagement (FF Mile model)
• Paid media to drive consumer reviews of products
• Redefine messaging to focus “ownable” space = dermatological superiority vs. beauty
– Use content and experiential marketing (UGC) to differentiate
– Consider heavy push in Pinterest or Instagram
– Vine videos to make it more creative and social (GE Science Project)
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THE POWER OF SOCIAL LOYALTY PROGRAMS

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INVESTMENT IN DIGITAL IS NOT ENOUGH!
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16%
28%
Low Adoption
Customers who see Facebook brand
updates
Visitors actually login to sites they
visit
3%
65%
Low Conversions
Average online conversion rates from
consideration to purchase
Abandon shopping carts
25%
55%
Limited Loyalty
Customers swayed by a brand to
make a purchase decision
Customers inactive in loyalty
programs
Sources: Gartner, FMC, Forrester, Colloquy, Statista

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WHAT ARE SOCIAL LOYALTY PROGRAMS?
Social loyalty programs are platforms that allow brands/employers to connect with users
through social, to incentivize deeper relationships using behavioral and game mechanics to
reward participation and increased engagement.
What’s in it for the customer?
• The ability to earn social currency (points and status) through deeper engagement that
can be translated to discounts, insider access and an elevated voice within the
community.
What’s in it for the brand?
• The ability to build longer term relationships with customers and increase sales
opportunities along the customer journey, by incentivizing them to continue through
each stage. Through the process, the brand also gains access to increased levels of
valuable customer insights from specific behavioral actions taken.
What’s in it for the employers?
• The ability to provide a platform to motivate/reward employees to participate and
engage internally and externally, improve job performance and maximize job
satisfaction.
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THE POWER OF LOYALTY
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Members of social loyalty programs in general, tend to…

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BEHAVIORS CAN BE ENCOURAGED/ REWARDED
• Game & behavioral mechanics tap into users
emotional needs and interests to reward
specific actions through recognition and
status.
– Points are given to customers for interactions
that can vary from posts, reviews, polls, shares
etc. More in-depth activities increase the value
of the rewards to purchase.
– Points can be given to employees for
supporting peers, contributing to solutions,
connecting to the corporate network and
providing assistance to clients.
• The process awards with social currency and
provides recognition to the broader
community to incentivize competition.
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Engagement
RevenueOpportunities
Net Impact – rewarding
engagement increases revenue
opportunities!

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WHY SOCIAL LOYALTY PROGRAMS (SLPS)?
The Situation
• Most traditional loyalty programs are not highly effective beyond the campaign level–points, coupons
& freebies are great for gaining initial interest, but long-term promotions do not compensate for an
uninspiring customer experience.
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• Social platforms give brands the ability to identify and
interact with their most active loyalists/influencers, driving
consideration within their networks
– Rewarding consumers for engagement motivates them to share
their experience more often with friends.
• The basis of SLP platforms today is to provide a game
environment to connect with users and reward specific
desired actions (e.g. engagement, loyalty and employee
service) through points, status and rewards to continue – the
frequent flyer mileage model:
– Earning/accruing points or status motivates consumers to maintain
brand stronger & longer relationships.
• Many brands are reluctant to consider SLPs, however, fearing
that such programs are too expensive, difficult to manage or
“gimmicky.”

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NEXT STEPS…

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THE CONGRUENCE OF MARKETING & STRATEGY
• The Concept – A platform & process to capture live, social consumer interaction
around brands to create real-time brand opportunities based on…
– Resolution of actionable issues publicly (Care & PR) to build consumer advocacy/relationships
– Center of Excellence Marketing capabilities to provide consumers with valued content and
engagement
– Learning from their past history to anticipate what their future needs
– Drive and manage campaign effectiveness
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– Optimize marketing spend by using best-in-class
tools to deliver to highest ROI targets
– Drive down marketing & operational costs by
reducing redundancy and expanding reach

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NEXT STEPS…
• The Evolution of a social brand is based upon the concept of creating a
“platform” (an integrated set of technologies, resources and management
processes) that enables the brand to connect to consumers continuously and in
real-time.
• The platform is focused on
– Listening to what consumers say
– Asking them what want
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– Learning from their past history to anticipate what
their future needs
• Build a strategic roadmap to consolidate and
optimize the brands assets, resources, processes,
budget & technology/tools
• First & Foremost – Optimize around your existing
assets (technology, resources & management
processes!

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FOUR STEPS TO SOCIAL MEDIA OPTIMIZATION
• The evolution from a social media user (technology) to a Social Brand (human)
has a four step process:
1. Organizational [Re] Alignment/Plan – Internal alignment of Business
Units/Lines of Business to move forward
2. Design – Creating the ability to utilize Social Media as a core function of
the business across all BUs, focused on:
• Resources (People)
• Process (Management)
• Technology (Tools)
3. Build – Putting the pieces in place to create and run a social platform
4. Manage – Day 1+ of running the daily operations of the social platform
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Reactive ProactivePlan
Listening
Design
Engaging
Build
Interacting
Manage
Anticipating

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FOUR STEPS TO SOCIAL MEDIA OPTIMIZATION
• The evolution from a social media user (technology) to a Social Brand (human) has a four step
process:
1. Organizational [Re] Alignment/Plan – Internal alignment of
Business Units/Lines of Business to move forward
2. Design – Creating the ability to utilize Social Media as a core
function of the business across all BUs, focused on:
• Resources (People)
• Process (Management)
• Technology (Tools)
3. Build – Putting the pieces in place to create and run a SIC
4. Manage – Day 1+ of running the daily operations of the SIC
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Additional Slides

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ON FACEBOOK, A HOLISTIC VIEW OF SOCIAL ENGAGEMENT
• With more than half of all U.S. home owners engaging on Facebook, this channel will play
a primary role in daily engagement, extended reach and advocacy, encompassing all core
client/brand goals.
• Key Metrics:
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Awareness
Total Page Views
Unique Page Views
Total Impressions
Virality
Unique users by
frequency
Expansion of audience
within target
categories
Engagement
Increased online
conversations
conversations within
topic areas
Engaged Users/Reach
Talking About This
Likes
Comments
Shares
Loyalty
Increase in repeat
monthly visits
Referral Traffic To Site
with bounce rate
Increase in PTAT
Sentiment
Advocacy
Key Metrics on
advocacy content
Actions taken
Referral to email
database

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ON TWITTER, A FOCUS ON ACTION
• The Twitter platform is primarily for news, information and influencer engagement
particularly with advocates and will play a role in advocacy efforts. Click-thrus are
important, but referrals will be more important during actual advocacy periods.
• Key Metrics:
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Awareness
Tweet and content
reach
Engagement
Retweets
Mentions
Click throughs
Conversations within
topic areas
Loyalty
Referrals to site with
bounce rate
Sentiment
Followers
Advocacy
Key Metrics on
advocacy content
Actions taken during
advocacy periods
Referral to email
database

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ON PINTEREST, A FOCUS ON GROWTH WITHIN A NARROWER
CONTENT CATEGORY
• Pinterest is the home for lighter content. Follower growth will be the key measurement.
A secondary statistic will be referrals to the site (and the bounce rate of those referrals),
which will indicate if the growth is focused on followers who may relate to the
clients/brands core mission.
• Key Metrics:
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Awareness
Increased followers
Views
Engagement
Pins
Pin Likes
Comments
Repins
Average interactions
per post
Loyalty
Referral traffic to
site with bounce
rate

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ON YOUTUBE, DEEPENING THE CONNECTION WITH THE
BRANDS MISSION
• The YouTube is a content engine, and will help drive paid media, search, and video
promotion. YouTube bridges the gap between with the advocacy page. Key metrics
include shares and social actions.
• Key Metrics:
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Awareness
Views
Followers
Engagement
Likes
Shares
Comments
Advocacy
Key metrics with
advocacy content
Actions taken

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ADVOCACY: MEASURING ACTIONS TAKEN
Advocacy benchmarks: Measuring action
• During activations, we measure traditional online actions (likes, shares) taken in relation to advocacy
content across all platforms, and additionally measure:
– Signatures collected
– Emails sent
– Petition Signatures
– Actions taken through email
– Click-to-Call
– Engagement with influencers
– Increased share of voice relative to like-minded and detractors organizations and topics
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TRANSLATING KPIS INTO DIGITAL BENCHMARKS
• While it is important to measure performance
over time across a wide cross-section of in-
depth metrics, measuring the health and
wellness of the brands website within the
context of relevant content producers and
organizations requires a dynamic benchmark
that covers the digital ecosystem at a macro
level
• These digital and social benchmark indexes
will be based on the most important overall
organizational objectives and key KPIs
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Strategy without tactics is the slowest route to victory. Tactics without
strategy is the noise before defeat – General Sun Tzu
azurite blue inc. - we are a consulting firm that has the
experience and ability to help clients articulate their needs
with regards to “all things social,” and create an operational
roadmap to get there!
More importantly, we help design strategies that are based upon executable
tactics and tactics that support achievable strategies!
Contact:
Jim Clark – 908-305-8475
jim@azblueinc.com
www.linkedin.com/in/azblue/

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