energizing groundswell

ENERGIZING GROUNDSWELL

Allen CrottyAnna NemittananToya DartisWilliam Olaleye

WHAT IS ENERGIZING?

Energizing the groundswell means tapping into the power of word of mouth by connecting with, and turning on, your most committed customers.

When political candidates get their supporters riled up and spreading the word can be called, “Energizing the base”.

Spreading the word or word of mouth succeeds because: It’s believable It’s self-reinforcing It’s self-spreading

WHAT IS ENERGIZING? Energizing the base is a powerful way to

use the groundswell to boost your business. According to WORD OF MOUTH

ASSOCIATION (WOMMA) word of mouth “ is the most honest form of marketing, building upon people’s natural desire to share their experiences with family, friends, and colleagues.”

ENERGIZING THE BASE AND SOCIAL TECHNOGRAPHICS Energizing the base is based off 18 % of

online customers in the US being in the Creators group.

Creators Group consists of: Creators who are customers blogging, uploading

video, and maintaining Web sites. Critics who are commenting on blogs or posting

ratings and reviews. Spectators who are reading the blogs and

watching the videos.

WHAT’S THE VALUE OF AN ENERGIZED CUSTOMER The definitive answer comes from a book

titled The Ultimate Question: Driving Good Profits and True Growth, by Fred Reichheld

The ultimate question the book discusses is, “How likely is it that you would recommend a company name/product to a friend or colleague.”

TECHNIQUES FOR ENTHUSIASTS 1. Tap into customers’ enthusiasm with

ratings and reviews. 2. Create a community to energize your

customers. 3. Participate in and energize online

communities of your brand enthusiasts.

USING RATINGS AND REVIEWS TO ENERGIZE CUSTOMERS http://www.youtube.com/watch?v=y6-OmLq8

2eU

ROI Ratings and reviews Companies like Bazzarvoice, charge $25,000 a

year Its development cost is around $50,000.

Bazzarvoice is a company which specializes in rating systems for sites,

FIRST YEAR ANALYSIS Up front development cost = $50k

Yearly ongoing costs = $25k

Additional yearly costs = $125k

Average yearly cost = $200k.

PROFIT ANALYSIS Site Visitors = 10m Visitors seeing reviews = 2m Sales at typical 2.5% conversion= $5m

$100 per transaction Sales w/ratings or reviews = $6.6m

$110 per transaction Net additional sales because of ratings/reviews =

$1.6m Net additional profit = $400K

At 25% profit margin

Reasons ratings and reviews help:

Allows for instant customer feedback Help alert to defects Help company remove unwanted products quicker Generates referrals Helps other customers find your products Allows for leverage with suppliers

ENERGIZING BY COMMUNITY CREATION Connects consumers Answers questions Helps generate revenue

Constant Contact received an 88% jump between 2005 & 2006.

Helps businesses collect information Allows people to talk to each other about

products

What is the advantage of businesses like Constant Contact?

They connect businesses and help them to connect to their consumers better

They help businesses sort out problems they are having such as being seen as spammers

Communities like these help energize consumers to buy more and tell about the experiences they have had, thus increasing revenue

HOW MUCH DO YOU WANT YOUR CUSTOMER RELATIONSHIP TO CHANGE? By energizing your consumers you will

change the relationship with them By creating communities you will create

“Ambassadors” who will be the go between for the company and the community These often become the icons within the

community This changes the relationships within the

community so take care how you create them.

CONCLUSION Not all customers

are equal The Base: Most

enthusiastic customers EX: Lego Brand

Ambassador Program

EX: eBags and Jim Noble/Field Testers

UNHAPPY BASE Imperative to Listen Respond: Energized

customers wield power within the community of customers

When possible give customers what they desire most

WHAT THEY WANT Information: Present

and Future Products Evidence they are

making a difference To be engaged (No

layoffs)