A
New Dawn for Marketing
The challenges
for today’s multi-unit retailers are the same
as they have always been: how to drive same store sales
by increasing visit frequency, basket size and referral
business. The method of accomplishing this is also largely
unchanged – bring in the customers via a compelling
brand promise and then drive revisits and referrals
via operational excellence (“marketing brings
them in, operations brings them back”). What has
changed however is the way to reach new customers and
connect with existing customers afforded by new social
media technologies. This transformational opportunity
is one that should not be missed by today’s retailers.
The advent of social media has forever altered the market
landscape. In the past, the golden rule was always that
it would take weeks for word of a positive experience
at a restaurant or store to be spread to 4 or 5 friends
(bad news would spread even faster to 10 people!). Today,
with the advent of social media platforms, 150 of a
customer’s closest friends can hear about their
experience (good or bad!) – in seconds.
These trends have a few implications for brands today:
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The effectiveness of traditional
television and print advertising is on the decline
and has been subordinated to web based media |
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Friends and people we
know remain the most trusted source of product
recommendations |
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Because of
their increasing reach and this trust factor,
consumers who advocate for brands increasingly
drive long term profitability health |
What is an Advocate?
A brand advocate is a customer who communicates favorably
about a brand or product, passing on positive word-of-mouth
(or electronic) messages about the brand to other
people. Advocates are extremely valuable to cultivate
as their individual buying value is multiplied exponentially
by their influence on others.
Advocates generally fall into one of three categories1:
Mavens – are passionate about a product category
and they know everything about it - they will educate
people on the product and compel them to buy from
a particular retailer. To target these users, retailers
need to build their database of user data by adding
questions into their feedback processes that measure
their knowledge about the category and how often they
exhibit maven- style behavior.
Connectors – have many friends and casual acquaintances.
They thrive on having numerous shallow relationships
and often introduce people to one another. Connectors
can be easily identified by the number of friends
they have on social networks like Facebook.
Salespeople – they are critical at getting something
to “tip” in terms of adoption as they
often use their great social skills to peer pressure
people into trial.
Why
the Advocate is King (or Queen)
“Growth [at leading brands] occurs because their
customers love doing business with them and sing their
praises to friends and colleagues.”
Fred Reicheld, The Ultimate Question, 2007.
Advocates are the lifeblood of any growing business
as they effectively create zero cost salespeople through
their passion for the brand. A world without advocates
would be a frustrating place for companies. Marketing
would spend inordinate amounts of money bringing customers
in but the retail experience would be a leaky bucket.
Marketing would constantly be trying to fill the void
that having no advocates would leave – and the
only way to fill it would be by throwing more dollars
at advertising.
Enter the advocate. She loves your brand and what’s
more she is extremely well connected and likes to
tell her friends all about you. Guess what? She has
a great experience and would like to tell the world
– but how will she do it? She needs an easy
way to let her friends, family, even casual acquaintances
know about it.
Leveraging
the Advocate as a Channel
This is all interesting, but what do brands do with
advocates today? The answer currently is “not
much” and this is a huge untapped opportunity.
The first thing to recognize is that advocates want
to talk about your brand. In fact, Empathica has found
that over 70% of customers fall into this camp2. Engaging
with people that are passionate about your brand and
will “shout this from the rooftops” if
given the opportunity is the key to promoting your
brand. This can be done by keeping a few simple rules
in mind:
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Tap into advocates
existing social networks by using platforms like
Facebook and Twitter to help get the word out
about their positive experiences. |
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Give your advocates simple
tools– don’t make advocates fill out
long forms or jump through hoops to recommend
your brand – make it simple and intuitive.
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Take advantage of the
medium – a lot of useful data can be gleaned
from social networks that will you identify the
“mavens”, “connectors”
and “salespeople”. In addition, new
technologies can help you both find the issues
that are most important to your customers and
to respond in real time to improve their experience.
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Reward them for helping
you – set up programs for your advocates.
Online media provides the opportunity to stay
connected to your most loyal customers and to
reward them for their referrals. |
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Don’t go it alone
– partner with a company that understands
the power of social media, has tapped into the
voice of your advocates, and can turn that voice
into positive recommendations online. |
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