Archive for the 'Brand/Product Advocacy' Category
I guess you are sucessful when you see others doing similar surveys on advocacy. This one is definitely more fun than most because of its cool infographics. The study on brand advocacy was done with Dr. Kathleen Ferris-Costa at the University of Rhode Island, College of Business Administration. Some of the findings are similar to what we learned and reported on about advocacy in 2007 and continually report on in this blog.
- Brand advocates are 83% more likely to share information about a product than typical web users, and 50% more likely to influence a purchase.
- They are 75% more likely to share a great product experience and three times more likely to share product opinions with someone they don’t know.
- Brand advocates are more than 2.5 times more likely to use social media to expand their social networks.
Advocates love to be a resource for brands and other people. They like to see themselves as “thought leaders.” According to the survey that was done with Bzzagent, they are motivated by how good it makes them feel — spreading the word makes Advocates relax, several times more typical than among web users. The latter motivation is a new one to me so thanks to the creators for recognizing the personal ROI on brand advocacy. In a world of natural disasters, wars, economic uncertainty, it is good to know that brand advocates have found their feel good fix.
Tags: Advocacy, brand advocates, Bzzagent.com, personal ROI, University of Rhode Island
Wanted to update everyone on some interesting research on advocacy we recently did on how social media can be employed to further corporate responsibility. We (KRC Research and the Social Impact team at Weber Shandwick) found that crowdsourcing plays a vital role in helping companies drive engagement for their corporate social responsibility (CSR) programs. Wikipedia describes crowdsourcing as an “open call to an undefined group of people…to solve complex problems and contribute with the most relevant and fresh ideas.” The survey was conducted among corporate executives in large-sized companies with responsibility for philanthropic, social responsibility or community relations. They are advocates themselves because these jobs require strong conviction about what is important and what is the right thing to do to meet corporate business goals.
The research found that a sizable 44% of companies have used crowdsourcing. In addition, an overwhelming majority (95%) of those who have used crowdsourcing found it invaluable to the organization’s pro-social or CSR efforts.
What particularly stood out for me was the reasons why these advocating executives say crowdsourcing is valuable for CSR programming. They said that it surfaces new perspectives and diverse opinions (36%), builds engagement and relationships with key audiences (25%), invites clients and customers from nontraditional sources to contribute ideas and opinions (22%) and it brings new energy into the process of generating ideas and content (16%).
The latter is particularly important to all advocacy programs — igniting the process by energizing people. It seems that the “energy” component is what really makes the difference so I was glad to see it among the top reasons mentioned why crowdsourcing helps drive corporate CSR. Where would advocacy be without advocates’ energy to mobilize these efforts to build a better planet? It should be at the heart of all corporate efforts. The question is how to find that energy and capitalize on it. How do you ignite it to drive mobilization? Energizing people is an important ingredient of true advocacy and worth deeper thought. Maybe a good topic in itself for crowdsourcing. Hmmmm.
Tags: advocates, crowdsourcing, CSR, KRC Research, Social Impact, Weber Shandwick
An interesting article surfaced last week on a wholly new corporate position — Chief Good Officers (CGOs). The article mentioned our recent research on the impact of crowdsoucing on corporate social responsibility. The CGO would be the newest evolution of the CSR Officer. The idea is that this person would straddle the CSR position with marketing/advertising that aims to attract customers. The CGO would create “brand purpose” and drive action to the company’s causes by bringing them to life. “This is the chef who blends financial and social bottom lines into a tasty dish that is as engaging as it is impactful for consumers.” I think that the CGO is an alternative version of the CAO–the chief advocacy officer. So be it.
Tags: CGO, CSR, Social Impact, Weber Shandwick
Female advocates complain less! Really. So says a study by Empathica about how men and women interact online with retail brands. According to the research, women are more likely to recommend a brand, product or service through social media than men — 35% vs. 28%. And they do this often…10+ times in the past three months. What surprised me most was the finding that men are the complainers or what we call “badvocates” with more men than women using social media to register a complaint or seek resolution — 4% vs. 2%. Everyone needs a life.
Tags: advocates, Badvocates, retail
Just read about employee advocates in a report (Do Your Employees Advocate for Your Company?) from Forrester. I am a big believer in understanding how to get employees onboard as advocates. I think it is where future success truly lies. How to do it is another story.
The survey (which I believe is only available to subscribers) was among 5, 519 technology end users in Canada, France, Germany, the UK and the US. They used the well-known NPS (Net Promoter Score developed at Bain) to ask employees how likely they would be to recommend their employer’s products/services to a friend or relative and how likely they would be to recommend their company as an employer? Without a doubt, employee advocates are critical to spreading positive word of mouth, attracting the best talent and building reputation. The headline about the results say it all, “The Sorry State of Employee Advocacy.” Here are a few nuggets:
- Employees in North America and Europe scored-23% on the employee advocacy index developed for recommending their company’s products and services. Particularly interesting to me was that detractors or what we at Weber Shandwick call “badvocates” made up 49% of the respondents on this question, 24% were neutral and 27% were advocates or promoters. Essentially, the badvocates were nearly twice as prominent in their answers compared to advocates.
- For the second NPS question about recommending the company as a good place to work to a friend or family member, the employee advocacy score was -16%, with 43% detractors, 29% neutrals and 27% advocates. Badvocates still overwhelm the discussion about one’s company as an employer. That is alot of conversation to compensate for.
These findings do not speak well of employees’ endorsement of the companies they work for and the goods they produce. Of course, this is not a representative sample because they are information workers. However, I suspect that if the research was conducted among a broader population, the results could be as bad or even worse. The economy certainly is a factor but in truth, greater attention needs to be paid internally for advocacy to take root. This is a good starting point for understanding employee advocacy however.
An article in the LATimes described super fans of brands or what we at Weber Shandwick identified as high intensity advocates. They are those people who will take action on behalf of a brand, company or cause. They will tell friends, wear a logo in support or join a group devoted to their advocacy passion. The article referred to those overzealous fans who wait on line for days for the opening of a store such as a new Krispy Kreme, Ikea or Trader Joe’s. Paco Underhill, author and often-quoted president of shopping research company Envirosell, said that suburban loneliness has created this growing segment of super fans. “One of the byproducts of this suburbanization of America is a sense of loneliness. If we live in a suburb and particularly if we work on a corporate campus, we have no way for chance to affect our lives…. In that loneliness, we as a culture are looking for other communities.” I tend to think that community is the most important word here. Finding people like oneself with similar passions is a driving force that has only accelerated with the penetration of social media.
There is such a thing as a true advocate, according to Bobert Passikoff of Brand Keys, a consulting firm in New York. “We call it the rule of six. A true advocate — you’re basically talking about your top 20% of customers — are six times more likely to buy things from you. They’re six times more likely to recommend you. They’re six times more likely to invest in you if you’re a publicly traded company. And they’re six times more likely to rebuff competitive offers, especially if they’re only based on price.”
The rule of six jives with our global research on Advocacy. Take a look. Super Advocates are a company’s best customers.
Tags: Advocacy, fans, Super Advocates, Weber Shandwick
The summer has been distracting with vacations and glorious hot days. Our postings have not been as frequent but we still muse about advocacy all the time. Thanks for your patience and followship.
Thinking about advocates, in an article in the recent McKinsey Quarterly on leading business and technology trends, advocacy of course came up. In the article, they mention that 70% of executives said that their comapnies created value through Web communities, the ultimate advocacy network.
One example given was from Intuit which is worth mentioning here. Intuit hosts customer support groups for its financial and tax return products where more experienced customers provide advice and support to those in need of help. These Intuit advocates build their reputation credibility by noting the number of questions they answer and the number of thank yous they get from those they help.
Thought this was a great way of using advocates to help build loyalty to products and generate good vibes. McKinsey has the numbers to prove it. They found that when customer communities of advocates handle an issue, the per-contact cost can be as low as 10% of the cost to resolve the issue through traditional call centers. That’s a good ROI for advocacy.
Worth mentioning here on the advocacy blog.
Tags: Advocacy, advocates, communities, Intuit, McKinsey
Apparently April was Advocacy Measurement Month. I collected a number of fantastic and enormously valuable reports and articles published during April or so that are highly relevant to evaluating the impact of advocacy. I’ve summarized interesting findings and stats from each piece below that I thought are worth noting but hope that you’ll find the bytes interesting enough to click-thru to read the full analyses.
1. The McKinsey Quarterly: A New Way to Measure Word-of-Mouth Marketing (April 2010)
- Word-of-mouth is the primary factor behind 20 to 50 percent of all purchasing decisions
- McKinsey has developed the “word-of-mouth equity” index which measures a brand’s power to generate messages that influence the consumer’s decision to purchase
- In the mobile-phone market, McKinsey has found that the pass-on rates for messages can increase a company’s market share by 10 percent (positive messages) and reduce it by 20 percent (negative messages) over a two-year period. [If you are familiar with Weber Shandwick’s advocacy research, you may recall that badvocacy, or brand criticism, reaches nearly twice as many people as brand advocacy.]
- Marketers tend to build campaigns around emotional positioning, but McKinsey found that consumers actually talk and generate buzz about product functions
- About 8 to 10 percent of consumers are influentials, whose common factor is trust and competence in a particular subject area. Influentials generate three times more word-of-mouth messages than noninfluentials do, and each message has four times more impact on a recipient’s purchasing decision. About 1 percent of these people are digital influentials—most notably, bloggers—with disproportionate power to influence
- Marketing-induced consumer-to-consumer word of mouth generates more than twice the sales of paid advertising in categories as diverse as skincare and mobile phones
2. AdvertisingAge: Spotting the Creators of Peer Influence, by Josh Bernoff (April 20, 2010)
Through online word-of-mouth, people make over 500 billion impressions on each other about products and services annually. Forrester Research estimates that U.S. social network users create 256 billion impressions on other social networkers per year and blog posts, blog comments, ratings and reviews, etc. generate another 250 billion impressions per year (hence the roughly 500 billion impressions)
Forrester concludes:
- People’s influence on each other rivals online advertising. For comparison, for a 12-month period ending September 30 last year, Nielsen Online estimates advertisers created 1.974 trillion online advertising impressions, compared to the 500 billion impressions people make on each other about products and services. And peer impressions are more credible than advertising, since they come from friends.
- A minority of people generate 80% of the impressions. About 6.2% of the online adults generate 80% of the influence impressions. Around 13.8% of the online adults generate 80% of the influence posts.
3. Nielsen/Facebook Report: The Value of Social Media Ad Impressions (April 20, 2010)
One common form of advocacy on Facebook is through social ads. That is, if a user’s friends are fans of a brand on Facebook, the ad unit itself will contain the names of those friends. But does this lightweight form of endorsement actually impact the effectiveness of the advertising? Nielsen and Facebook compared the responses of users who had seen ads with social context against users who saw ads with no social context from the same campaign. A user would be eligible to see social context if one of their friends had previously “Become a Fan” of the brand running the advertisement.
The result? Social advocacy impacts consumers three-fold: Ad recall is substantially higher with social advocacy with a lift of 16% (vs. 10% for non-social ads), the awareness lift is doubled, and the purchase intent lift increases from 2% to nearly 8%.
4. Altimeter Group and Web Analytics Demystified: Social Marketing Analytics – A New Framework for Measuring Results in Social Media (April 22, 2010)
This report provides methods for quantifying your social media advocates, their reach/influence and their impact. It assumes that a company already has an agreed upon definition of advocates and a process for identifying them, for example, the individuals generating positive or negative discussion about your brand.
Finally, having nothing at all to do with measuring advocacy, April saw the release of a movie called “The Joneses.” David Duchovny and Demi Moore star as a couple planted by a consumer marketing company in a gated community to spread word-of-mouth about its goods and services with the upscale community. The intent, of course, is to drive demand for the products. When I read the review for this movie (haven’t seen it), I thought of how the value advocacy has become so acknowledged by the mainstream.
Recently became aware of this very cool mobile application that lets consumers advocate for causes just by scanning certain products in stores or restaurants with their iPhone or Android. It is called CauseWorld and it is sponsored by Citibank, Kraft Foods and Proctor & Gamble who have provided nearly $1,000,000 for you to donate. No purchase of their products is necessary – you walk into a store and scan the barcode of products. Each time you scan a product you earn “karmas” and when you earn enough, you can donate them to a variety of charities with which CauseWorld partners.
A really innovative way of turning advocacy into action.
In an article by Stefan Stern of the Financial Times, I always find something thoughtful for this blog. This past week he wrote about where marketing was going (or not going) in this current economic environment. Stern was describing his conversation with the “father of modern marketing” Phillip Kotler. One part of the conversation had to do with advocacy, the mainstay of this blog. The other one was just plain funny.
Kotler was reminiscing about a book he enjoyed titled Firms of Endearment (the best title). He said that in the book they talk about how some of the most successful companies spend less on marketing than the less successful ones. Sounds counterintuitive? Kotler says, “But they used the word of mouth effect of unpaid advocates – loyal customers – to boost their reputation.” Advocates will do your marketing for you if you mobilize them, listen to them and engage them. Our research at Weber Shandwick found this to be the case. Indeed. Kotler is apparently publishing a new book on the role of advocates in marketing titled Marketing 3.0.
What made me laugh was a statement by Kotler who is 79 years wise. He is quoted by Stern as saying, “At least it’s the finance people who are getting blamed for a change.” Marketers and communications professionals are getting by without the blame for awhile.
Tags: advocates, Financial Times, Weber Shandwick
