Beyond Web2.0
  y
Shaping The Future Of Your Company
Using Online Research Communities




February 27th 2009
Peter Harris
National President AMSRS, Managing Director Colmar Brunton
2
What is
Wh i a
market research
 online community




                    3
“It’s research Jim
but not as we know it ”
                   it.

                          Well said.




                                       4
+



Private, branded, online space , where 100’s or 1000’s of invited
consumers or prospects regularly spend time generating ideas, offering
              p p         g    y p           g         g       ,     g
advice to you and to one another, sharing experiences and feelings,
discussing trends, and helping you figure out your marketing and
business issues.


                                                                     5
Simply Put....




     “Ongoing dialogue with the people that will help
     you shape the people future of your company”

                                           Forrester Research




                                                                6
All departments from      A private branded online           Your communities
your company can engage   community i a di l
                                   it is dialogue ffocused
                                                         d   conversations with your
                                                                     ti     ith
and benefit from the      on improving your offering         brand
community




Marketing   Innovation


Research      Retail
                                        Brand

            Strategic
  Sales
            Planning                 Community

Customer
               HR
 Service




                                                                                 7
8
What are the features
 market research
  online community




                        9
Member Qualification




                       10
Branded




          11
Discussions




              12
Polls




        13
Surveys




          14
Activities




             15
Online Focus Groups




                      16
Analysis & Reporting




                       17
Why
Wh
market research
 online community




                    18
MROC can lead to new ideas, better products and
more relevant messages




                                                  19
Dells IdeaStorm Community




Community results at a glance
• 1 Customer has saved Dell $1million in support costs
• 9,000 ideas contributed
• 4 000 comments
  4,000
• 120 ideas put into practice
                                                    http://au.youtube.com/watch?v=Y0SOXW_K56w
                                                                                         20
Starbucks




Community results at a glance
• 50 000 ideas submitted in first 4 months
  50,000
• Thousands of blog posts and customer conversations about the brand
                                                                       21
Mini-USA




Community results at a glance
• 75% of mini owners in the US are part of the online community.
• 50% of all sales leads are generated through the social media marketing.
• Cost per lead on site is $15‐20; in the showroom it’s closer to $800
                                                   it s           $800.
• In 2003 the site generated 12,000 qualified leads (target through all avenues was 25,000).
• 53% of the growth in consumer advocacy was realised in growth in revenue from sales.
                                                                                          22
Obama




Community results at a glance
• 500 million blog postings mentioned Obama vs. 150 million mentioning McCain
• Obama had 844, 927 MySpace friends vs. McCain’s 219,404
• Obama gained over 10,000 new MySpace ‘friends’ in the 24 hours leading up to election day.
                                                                                         23
Case Study: Easy Jet

 Europe’s 4th largest airline
 Low cost + customer
 advocacy proposition
 165 aircraft / 400 routes /
 28 countries / 38m+
 passengers (2007) / 1,050+
 daily departures
 Vision T be the best low
 Vi i ‐To b th b t l
 fares airline in the world




                                24
“Our whole brand is created out of customer contact and the
experience customers have with us – therefore our success is
based on listening to them”




- Stelios Haji-Ioannou, EasyJet founder and Serial Entrepreneur

                                                                  25
Situation

 Insights to innovate more rapidly and keep up with the fast
 evolving airline market place
 Harness customer intelligence to inform better decision
 making
 Low cost / efficient / real time tool required to support
 business model




                                                               26
Actions

 Developed private brand community
 2,000 participants
       p      p
 Customers who have flown easyJet in the last 12 months
 New Topics introduced each week
 90 topics i l 6 months
       i in last        h
 Recent topics include:




                                                          27
Example Topic: Boarding Processes




Challenge: easyJet had seen year on year improvements
across the majority of key customer satisfaction measures
with exception of the boarding process.

There was a need to understand customer perceptions of the
boarding process in more detail, what is preventing improvement
and how should easyJet be addressing these.




                                                                  28
Example Topic: Boarding Processes



                      Online
                      post in               Discussion
                    community




                                                   Analysis &
               feedback
                                                    report




                                prototype




                                                                29
Conclusions

 Blueprint for ongoing dialogue with easyJet customers
  Cost benefits of approach ‐ re‐assessment of research
                    pp
 planning process
 More opportunity for research coverage/dialogue
 Indication of how we will talk to customers in the future
 It has further highlighted the need for client and agency
 research teams to work differently.




                                                             30
Operating in a silo without customer input can lead
to problems




                                                                                              31
                               Adapted from Forrester Research presentation ‘Customer Collaboration’
Marketers today still do not collaborate enough with
consumers throughout innovation processes




                                                       32
But wait! Consumers don’t know what they want!




                      “Had
                      “H d I asked end customers, all
                               k d d       t       ll
                      they would have said is that
                      they need a faster horse.”
                                            Henry Ford




                                                         33
Marketers have a variety of tools and techniques
beyond simply asking a question




                                                   34
Consumers are willing to participate in online
company communities




 Of online adults say they are
 willing to participate company
 online communities to develop
 p
 products & services




  Your Source; Australians 18+; online users

                                                 35
Willingness spans a variety of areas




                 Interacting with                Having a direct
                other community                  impact on the
                    members                        company                  Getting a behind‐
                     48%                            58%                     the‐scenes
                                                                            the scenes look at
                                                                              the company
                                                                                61%
                             Interacting with
                            company d i i
                                      decision
 What would be                   makers
of interest if you                49%
 joined a brand                                         Giving input on                 Previewing/Input on
  community?                                         advertising/marketin
                                                               g/                      new product's/services
                                                                                           product s/services
                                                         g campaigns                     before anyone else
                                                           68%                                   84%
                          Other
                         4%

  Your Source; Australians 18+; online users; say they are willing
  to participate in company online communities
                                                                                                                36
MROC Pays Off



 Better products                                  Customer               Customer
                          More efficient
                                                engagement,
   & services           innovation / NPD                                acquisition
                                              advocacy & loyalty
• Understanding        • Testing ideas        • Showing loyal       • Learning why
  customer               earlier i the
                             li in h            customers that
                                                             h        non‐customers
  challenges, needs,     development            their opinions        aren’t buying
  and ideas              process to get         matter                from you
• Gaining new            cheaper and more     • Empower people      • Engaging new
  perspectives on        real time
                         real‐time              through the           target segments
  the overall            feedback               ability to impact     early to transition
  experience           • Understanding          decisions through     them to future
                         interest levels to     ownership in the      buyers
                         p
                         prioritize new         p
                                                process
                         innovation
                         initiatives




                                                                                  37
How does it compare
 to other forms of
   market research




                      38
• More research, for less (rule of thumb: twice the research at half the cost)

• F t responses
  Faster

• Reduced surveying costs

• Richer quality of responses

• More brand contact with marketing partners / stakeholders

• Refocus and realign the organisation around the customer




                                                                                 39
Focus Group    Online Community
Medium              In person      Online
Participant Size
       p            8‐12           100s‐1000s
Respondent Bias     Medium         Low
Time Frame          2 hours        Years
Turnaround Time     Weeks‐Months   Hours‐Days
Geography           Metro          Worldwide
Cost                Variable       Fixed
Cost per Response   High           Low
Methodology
M h d l             Qualitative
                    Q li i         Qualitative
                                   Q li i &
                                   Quantitative




                                                      40
What Works

1.   Clear communication
2.
2    Active company participation
3.   Engaging content – rich media
4.   Showing impact of participation
5.   Ceding some control of the agenda
6.   Regular contact – weekly or fortnightly
       g                               g
7.   Using a variety of tools
8.   Company wide involvement & partner support
9.   Rewarding the community – discounts, invitation to special events




                                                                         41
What Doesn't

1.   Not having clear objectives
2.
2    Being absent You must show‐up
           absent.
3.   Not recognising contributions
4.   Not being conversational
5.   Not being transparent
6.   Not demonstrating action
                     g
7.   Treating people as respondents to research
8.   Not having the Your Community platform and team in your corner




                                                                      42
Research communities offer
fresh insights for
accelerated innovation
             innovation.
At the end of the day, it
should connect you with
y
your community   y




                      43
Your Community
Join the Conversation



                        44
45

Web2.0 And Communities

  • 1.
    Beyond Web2.0 y Shaping The Future Of Your Company Using Online Research Communities February 27th 2009 Peter Harris National President AMSRS, Managing Director Colmar Brunton
  • 2.
  • 3.
    What is Wh ia market research online community 3
  • 4.
    “It’s research Jim butnot as we know it ” it. Well said. 4
  • 5.
    + Private, branded, onlinespace , where 100’s or 1000’s of invited consumers or prospects regularly spend time generating ideas, offering p p g y p g g , g advice to you and to one another, sharing experiences and feelings, discussing trends, and helping you figure out your marketing and business issues. 5
  • 6.
    Simply Put.... “Ongoing dialogue with the people that will help you shape the people future of your company” Forrester Research 6
  • 7.
    All departments from A private branded online Your communities your company can engage community i a di l it is dialogue ffocused d conversations with your ti ith and benefit from the on improving your offering brand community Marketing Innovation Research Retail Brand Strategic Sales Planning Community Customer HR Service 7
  • 8.
  • 9.
    What are thefeatures market research online community 9
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.
  • 18.
  • 19.
    MROC can leadto new ideas, better products and more relevant messages 19
  • 20.
    Dells IdeaStorm Community Communityresults at a glance • 1 Customer has saved Dell $1million in support costs • 9,000 ideas contributed • 4 000 comments 4,000 • 120 ideas put into practice http://au.youtube.com/watch?v=Y0SOXW_K56w 20
  • 21.
    Starbucks Community results ata glance • 50 000 ideas submitted in first 4 months 50,000 • Thousands of blog posts and customer conversations about the brand 21
  • 22.
    Mini-USA Community results ata glance • 75% of mini owners in the US are part of the online community. • 50% of all sales leads are generated through the social media marketing. • Cost per lead on site is $15‐20; in the showroom it’s closer to $800 it s $800. • In 2003 the site generated 12,000 qualified leads (target through all avenues was 25,000). • 53% of the growth in consumer advocacy was realised in growth in revenue from sales. 22
  • 23.
    Obama Community results ata glance • 500 million blog postings mentioned Obama vs. 150 million mentioning McCain • Obama had 844, 927 MySpace friends vs. McCain’s 219,404 • Obama gained over 10,000 new MySpace ‘friends’ in the 24 hours leading up to election day. 23
  • 24.
    Case Study: EasyJet Europe’s 4th largest airline Low cost + customer advocacy proposition 165 aircraft / 400 routes / 28 countries / 38m+ passengers (2007) / 1,050+ daily departures Vision T be the best low Vi i ‐To b th b t l fares airline in the world 24
  • 25.
    “Our whole brandis created out of customer contact and the experience customers have with us – therefore our success is based on listening to them” - Stelios Haji-Ioannou, EasyJet founder and Serial Entrepreneur 25
  • 26.
    Situation Insights toinnovate more rapidly and keep up with the fast evolving airline market place Harness customer intelligence to inform better decision making Low cost / efficient / real time tool required to support business model 26
  • 27.
    Actions Developed privatebrand community 2,000 participants p p Customers who have flown easyJet in the last 12 months New Topics introduced each week 90 topics i l 6 months i in last h Recent topics include: 27
  • 28.
    Example Topic: BoardingProcesses Challenge: easyJet had seen year on year improvements across the majority of key customer satisfaction measures with exception of the boarding process. There was a need to understand customer perceptions of the boarding process in more detail, what is preventing improvement and how should easyJet be addressing these. 28
  • 29.
    Example Topic: BoardingProcesses Online post in Discussion community Analysis & feedback report prototype 29
  • 30.
    Conclusions Blueprint forongoing dialogue with easyJet customers Cost benefits of approach ‐ re‐assessment of research pp planning process More opportunity for research coverage/dialogue Indication of how we will talk to customers in the future It has further highlighted the need for client and agency research teams to work differently. 30
  • 31.
    Operating in asilo without customer input can lead to problems 31 Adapted from Forrester Research presentation ‘Customer Collaboration’
  • 32.
    Marketers today stilldo not collaborate enough with consumers throughout innovation processes 32
  • 33.
    But wait! Consumersdon’t know what they want! “Had “H d I asked end customers, all k d d t ll they would have said is that they need a faster horse.” Henry Ford 33
  • 34.
    Marketers have avariety of tools and techniques beyond simply asking a question 34
  • 35.
    Consumers are willingto participate in online company communities Of online adults say they are willing to participate company online communities to develop p products & services Your Source; Australians 18+; online users 35
  • 36.
    Willingness spans avariety of areas Interacting with Having a direct other community impact on the members company Getting a behind‐ 48% 58% the‐scenes the scenes look at the company 61% Interacting with company d i i decision What would be makers of interest if you 49% joined a brand Giving input on Previewing/Input on community? advertising/marketin g/ new product's/services product s/services g campaigns before anyone else 68% 84% Other 4% Your Source; Australians 18+; online users; say they are willing to participate in company online communities 36
  • 37.
    MROC Pays Off Better products Customer Customer More efficient engagement, & services innovation / NPD acquisition advocacy & loyalty • Understanding • Testing ideas • Showing loyal • Learning why customer earlier i the li in h customers that h non‐customers challenges, needs, development their opinions aren’t buying and ideas process to get matter from you • Gaining new cheaper and more • Empower people • Engaging new perspectives on real time real‐time through the target segments the overall feedback ability to impact early to transition experience • Understanding decisions through them to future interest levels to ownership in the buyers p prioritize new p process innovation initiatives 37
  • 38.
    How does itcompare to other forms of market research 38
  • 39.
    • More research,for less (rule of thumb: twice the research at half the cost) • F t responses Faster • Reduced surveying costs • Richer quality of responses • More brand contact with marketing partners / stakeholders • Refocus and realign the organisation around the customer 39
  • 40.
    Focus Group Online Community Medium In person Online Participant Size p 8‐12 100s‐1000s Respondent Bias Medium Low Time Frame 2 hours Years Turnaround Time Weeks‐Months Hours‐Days Geography Metro Worldwide Cost Variable Fixed Cost per Response High Low Methodology M h d l Qualitative Q li i Qualitative Q li i & Quantitative 40
  • 41.
    What Works 1. Clear communication 2. 2 Active company participation 3. Engaging content – rich media 4. Showing impact of participation 5. Ceding some control of the agenda 6. Regular contact – weekly or fortnightly g g 7. Using a variety of tools 8. Company wide involvement & partner support 9. Rewarding the community – discounts, invitation to special events 41
  • 42.
    What Doesn't 1. Not having clear objectives 2. 2 Being absent You must show‐up absent. 3. Not recognising contributions 4. Not being conversational 5. Not being transparent 6. Not demonstrating action g 7. Treating people as respondents to research 8. Not having the Your Community platform and team in your corner 42
  • 43.
    Research communities offer freshinsights for accelerated innovation innovation. At the end of the day, it should connect you with y your community y 43
  • 44.
    Your Community Join theConversation 44
  • 45.