More Related Content Similar to The Friendship Model: How to build brand advocacy in a consumer-driven world. (20) More from Brandon Murphy (15) The Friendship Model: How to build brand advocacy in a consumer-driven world.1. HOW TO BUILD BRAND ADVOCACY
THE
IN A CONSUMER-DRIVEN WORLD
FRIENDSHIP
MODEL
Copyright © 2007 22squared
3. THE LAWYERS SAY....
Copyright © 2007 22squared inc. For educational use only. No part of this presentation may
be published, sold, or otherwise used for profit without the written permission of 22squared.
The Friendship Model is a registered trademark of 22squared.
4. SO, WHAT IS THE FRIENDSHIP MODEL?
A new business tool?
A positioning for the agency?
A belief about marketing?
A philosophy for how we work?
A measure of our success?
Copyright © 2007 22squared
6. ES
Thank you
Copyright © 2007 22squared
9. Let’s start with the first question...
[BECAUSE WE HAD TO]
why did we create it?
10. We were trying to change the way we
do business...just like every other ad
agency that existed before web 2.0.
12. She’s a consumer.
He’s an advertiser.
All she wants is genuine a ection.
All he gives is loyalty reduction.
If you haven’t seen this video, you’re missing out...it’s brilliant. http://ub0.cc/77/4f
Source: Microsoft Digital Advertising Solutions
14. And when brands DO, people talk:
[ ]
Brands perceived to act on
their customers’ behalf have
44% more advocates.*
*22squared Friendship Model Research
Copyright © 2007 22squared
15. DO
So we need to help brands
Copyright © 2007 22squared
16. BUT ...
To get people talking...
Copyright © 2007 22squared
17. ... we must create
relationships
worth talking about.
Copyright © 2007 22squared
18. We need to turn our original
way of marketing on its head...
Copyright © 2007 22squared
22. OW
does an agency create
relationships worth talking about?
Copyright © 2007 22squared
23. REALIZE
that good brands are like people.
Copyright © 2007 22squared
24. The actions that make people great friends
re the same
that cause people to advocate for brands.
Copyright © 2007 22squared
25. [ ]
“You can make more friends in two
months by being interested in other
people than in two years by making
other people interested in you.”
- Dale Carnegie
27. H AV E C H E M I S T R Y
REMAIN AUTHENTI C
A C T T R A N S PA R E N T
A R E E M PAT H E T I C
FRIENDS
SUPPORT EACH OTHER
SPEND QUALITY TIME
SHARE A P. O .V.
GIVE MORE THAN GET
S TAY I N TO U C H
INSPIRE EACH OTHER
Copyright © 2007 22squared
29. But how do we put that theory in action?
Copyright © 2007 22squared
30. RIEND
SHIP
State of being a friend
Someone you know and trust
A member of the same group/nation
Allied in a struggle, cause or movement
Copyright © 2007 22squared
31. RIEND
SHIP
+ MODEL
State of being a friend
An example of a behavior; a philosophy lived out
Someone you know and trust
Statistical method for accomplishing something
A member of the same group/nation
A compass that points you in the right direction
Allied in a struggle, cause or movement
A belief that never lets you down
Copyright © 2007 22squared
32. Friendship Higher
= Advocacy
Model
Copyright © 2007 22squared
33. Here’s how we size up advocacy:
% of brand’s customers who are...
SHAREHOLDER
EVANGELIST
RECOMMENDER
REPEAT SATISFIED
CRITICS
ADVOCATES BUYERS
MARGINAL
CUSTOMER
DISSATISFIED
CUSTOMER ACTIVELY
AGAINST
Copyright © 2007 22squared
34. TA = A - C
TRUE ADVOCACYTM ADVOCATES CRITICS
Copyright © 2007 22squared
35. TA = A - C
NOTE: We’ve done lots of research on this...
on 200 brands with over 50,000 people*
*22squared Friendship Model Research
Copyright © 2007 22squared
36. $ Are advocates worth more than other customers?
Copyright © 2007 22squared
38. ADVOCATES
WHAT WHAT WE
THEY DO MEASURE
Buy more Spending levels
Talk and share more Conversation rates
Recommend more Recommendation rates
Copyright © 2007 22squared
39. FACT :
When advocates talk, brands grow
TM
Copyright © 2007 22squared
40. seriously,
check it out...
GROWTH
TRUE ADVOCACY
Copyright © 2007 22squared
41. APPAREL
RETAILERS
%
*Growth index combines revenue growth, profit margins and
operating income growth over a three-year period, from 05 - 07
SOURCE: 22squared Apparel Retail White Paper, 2008
Copyright © 2007 22squared
42. WIRELESS
PROVIDERS
Average annual growth rate from 2005 - 2007
SOURCE: 22squared Wireless Provider White Paper, 2008
Copyright © 2007 22squared
43. AIRLINES
Average annual passenger revenue growth rate from 2005-2007
SOURCE: 22squared Airline White Paper, 2009
Copyright © 2007 22squared
44. OW does the Friendship Model help
increase advocacy for brands?
ROLES ACTIONS MOMENTUM
1) 2) 3)
Identify the actions the Create momentum, get people
Play a more
brand must take to talking more and moving
meaningful role
increase advocates toward the brand
in their life
Copyright © 2007 22squared
45. ROLES
1)
Play a more meaningful role in their life
Copyright © 2007 22squared
46. FACT :
The better friend you are,
the more customers talk.
[ ]
Understand the role a brand
plays in the life of the
customer and deepen it.
Copyright © 2007 22squared
47. SOUL MATE
CLOSE FRIEND
NICHE FRIEND
NEW FRIEND
ACQUAINTANCE
FAMILY FRIEND
FLING 351 Index*
A unique connection; a
DEFAULT
brand you can’t live without
FORCED
Copyright © 2007 22squared
*Index among all brands tested
48. SOUL MATE
A unique connection; a
brand you can’t live without
CLOSE FRIEND
NICHE FRIEND
NEW FRIEND
ACQUAINTANCE
FAMILY FRIEND
FLING
202 Index*
Inner-circle, depend on,
DEFAULT
always there
FORCED
Copyright © 2007 22squared
*Index among all brands tested
49. SOUL MATE
A unique connection; a
brand you can’t live without
Inner-circle, depend on,
CLOSE FRIEND
always there
NICHE FRIEND
NEW FRIEND
ACQUAINTANCE
FAMILY FRIEND
FLING
143 Index*
Familiar in a narrow context,
DEFAULT
but in a restrictive way.
FORCED
Copyright © 2007 22squared
*Index among all brands tested
50. SOUL MATE
A unique connection; a
brand you can’t live without
Inner-circle, depend on,
CLOSE FRIEND
always there
Familiar in a
NICHE FRIEND
narrow context
NEW FRIEND
ACQUAINTANCE
FAMILY FRIEND
FLING
320 Index*
DEFAULT
Still new, but on the road to
becoming closer
FORCED
Copyright © 2007 22squared
*Index among all brands tested
51. SOUL MATE
A unique connection; a
brand you can’t live without
Inner-circle, depend on,
CLOSE FRIEND
always there
Familiar in a
NICHE FRIEND
narrow context
On the road to
NEW FRIEND
becoming closer
ACQUAINTANCE
FAMILY FRIEND
FLING
143 Index*
DEFAULT
Ambivalent, no expectations
and little reward
FORCED
Copyright © 2007 22squared
*Index among all brands tested
52. SOUL MATE
A unique connection; a
brand you can’t live without
Inner-circle, depend on,
CLOSE FRIEND
always there
Familiar in a
NICHE FRIEND
narrow context
On the road to
NEW FRIEND
becoming closer
Ambivalent, no
ACQUAINTANCE
expectations
FAMILY FRIEND
FLING
286 Index*
DEFAULT
By association or inheritance,
not solely your choice
FORCED
Copyright © 2007 22squared
*Index among all brands tested
53. SOUL MATE
A unique connection; a
brand you can’t live without
Inner-circle, depend on,
CLOSE FRIEND
always there
Familiar in a
NICHE FRIEND
narrow context
On the road to
NEW FRIEND
becoming closer
177 Index*
Ambivalent, no
ACQUAINTANCE
expectations
By association or
FAMILY FRIEND
inheritance
FLING
A short-term experiment,
DEFAULT
likely to happen only once
FORCED
Copyright © 2007 22squared
*Index among all brands tested
54. SOUL MATE
A unique connection; a
brand you can’t live without
Inner-circle, depend on,
CLOSE FRIEND
always there
Familiar in a
NICHE FRIEND
narrow context
On the road to
NEW FRIEND
becoming closer
Ambivalent, no
ACQUAINTANCE
expectations
By association or
FAMILY FRIEND
inheritance
Short-term
FLING
experiment
210 Index*
Lack of options, out of
DEFAULT
proximity or avoidance.
FORCED
Copyright © 2007 22squared
*Index among all brands tested
55. SOUL MATE
A unique connection; a
brand you can’t live without
Inner-circle, depend on,
CLOSE FRIEND
always there
Familiar in a
NICHE FRIEND
narrow context
On the road to
NEW FRIEND
becoming closer
Ambivalent, no
ACQUAINTANCE
expectations
By association or
FAMILY FRIEND
inheritance
Short-term
FLING
experiment
231 Index*
Lack of options,
DEFAULT
proximity or avoidance
No choice, feel trapped and
want to escape
FORCED
Copyright © 2007 22squared
*Index among all brands tested
57. ACTIONS
2)
Identify the actions the brand must take
to increase advocates.
Copyright © 2007 22squared
58. FACT :
The more brands behave like friends,
the more customers return the favor
[ ]
Brands that are perceived to act on
their customer’s behalf have 44% more
advocates than brands that do not.*
*22squared Friendship Model Research
Copyright © 2007 22squared
59. H AV E C H E M I S T R Y
REMAIN AUTHENTIC
A C T T R A N S PA R E N T
A R E E M PAT H E T I C
FRIENDS
SUPPORT EACH OTHER
SPEND QUALITY TIME
SHARE A P. O .V.
GIVE MORE THAN GET
S TAY I N TO U C H
INSPIRE EACH OTHER
Copyright © 2007 22squared
60. HAVE
H A V E CHEMISTRY
CHEMISTRY
Create a visceral spark or a gut reaction
REMAIN AUTHENTIC
A C T T R A N S PA R E N T
A R E E M PAT H E T I C
SUPPORT EACH OTHER
FRIENDS
FORCED
FIREWORKS
4*
225*
SPEND QUALITY TIME
SHARE A POV
GIVE MORE THAN GET
S TAY I N TO U C H
INSPIRE EACH OTHER
*Category Index
Copyright © 2007 22squared
61. H AV E C H E M I S T R Y
REMAIN AUTHENTIC
REMAIN AUTHENTIC
Original, real and distinctly meaningful
A C T T R A N S PA R E N T
A R E E M PAT H E T I C
SUPPORT EACH OTHER
FRIENDS
FOR NOT
FOR REAL
47*
127*
SPEND QUALITY TIME
SHARE A POV
GIVE MORE THAN GET
S TAY I N TO U C H
INSPIRE EACH OTHER
*Category Index
Copyright © 2007 22squared
62. H AV E C H E M I S T R Y
REMAIN AUTHENTIC
ACT TRANSPARENT
A C T T R A N S PA R E N T
Be honest and have clear intentions
A R E E M PAT H E T I C
FRIENDS
SUPPORT EACH OTHER
HIDDEN
CLEAR
14*
210*
SPEND QUALITY TIME
SHARE A POV
GIVE MORE THAN GET
S TAY I N TO U C H
INSPIRE EACH OTHER
*Category Index
Copyright © 2007 22squared
63. H AV E C H E M I S T R Y
REMAIN AUTHENTIC
A C T T R A N S PA R E N T
ARE EMPATHETIC
A R E E M PAT H E T I C
Understand their needs, desires and lives
FRIENDS
SUPPORT EACH OTHER
SPEND QUALITY TIME HASSLES ME
GETS ME
5*
231*
SHARE A POV
GIVE MORE THAN GET
S TAY I N TO U C H
INSPIRE EACH OTHER
*Category Index
Copyright © 2007 22squared
64. H AV E C H E M I S T R Y
REMAIN AUTHENTIC
A C T T R A N S PA R E N T
A R E E M PAT H E T I C
SUPPORT EACH OTHER
FRIENDS
SUPPORT EACH OTHER
Be helpful, useful act on their behalf
SPEND QUALITY TIME
SHARE A POV THEY’RE PEOPLE?
THERE FOR PEOPLE
100*
171*
GIVE MORE THAN GET
S TAY I N TO U C H
INSPIRE EACH OTHER
*Category Index
Copyright © 2007 22squared
65. H AV E C H E M I S T R Y
REMAIN AUTHENTIC
A C T T R A N S PA R E N T
A R E E M PAT H E T I C
FRIENDS
SUPPORT EACH OTHER
ALWAYS CLEAR NEVER HEAR
242* 7*
SPEND QUALITY TIME
SPEND QUALITY TIME
Provide talk-worthy immersive experiences
SHARE A POV
GIVE MORE THAN GET
S TAY I N TO U C H
INSPIRE EACH OTHER
*Category Index
Copyright © 2007 22squared
66. H AV E C H E M I S T R Y
REMAIN AUTHENTIC
A C T T R A N S PA R E N T
A R E E M PAT H E T I C
FRIENDS
SUPPORT EACH OTHER
BELIEVE USE
SPEND QUALITY TIME
SHARE A P.O.V.
SHARE A POV
Common lifestyle, belief system or attitude
GIVE MORE THAN GET
S TAY I N TO U C H
INSPIRE EACH OTHER
*Category Index
Copyright © 2007 22squared
67. H AV E C H E M I S T R Y
REMAIN AUTHENTIC
A C T T R A N S PA R E N T
A R E E M PAT H E T I C
FRIENDS
SUPPORT EACH OTHER
SPEND QUALITY TIME
A DEFINING EXPERIENCE A VACATION
SHARE A POV
164* 4*
GET MORE THAN GIVE
GIVE MORE THAN GET
Provide value and meaning beyond the money spent
S TAY I N TO U C H
INSPIRE EACH OTHER
*Category Index
Copyright © 2007 22squared
68. H AV E C H E M I S T R Y
REMAIN AUTHENTIC
A C T T R A N S PA R E N T
A R E E M PAT H E T I C
SUPPORT EACH OTHER
FRIENDS
SPEND QUALITY TIME
SHARE A POV
CARD CARRYING MEMBER ON THE SHELF
GIVE MORE THAN GET
185* 28*
STAY
S T A Y IN TOUCH
IN TOUCH
Build anticipation, add value & communicate
INSPIRE EACH OTHER
*Category Index
Copyright © 2007 22squared
69. H AV E C H E M I S T R Y
REMAIN AUTHENTIC
A C T T R A N S PA R E N T
A R E E M PAT H E T I C
SUPPORT EACH OTHER
FRIENDS
SPEND QUALITY TIME
SHARE A POV
GIVE MORE THAN GET
BE NORMAL
BE DIFFERENT
S TAY I N TO U C H
372* 27*
INSPIRE EACH OTHER
INSPIRE EACH OTHER
Motivates you to be di erent or better *Category Index
Copyright © 2007 22squared
71. Advocacy which sparks...
Copyright © 2007 22squared
74. Sales which are usually...
Copyright © 2007 22squared
75. Higher in profit and lower in acquisition costs
Copyright © 2007 22squared
76. WHAT IF... Brand Z* improved these actions?
e
e
h
on
m
bl
es
e
ta
m
fr
ith
es
m
ve
r
m
p
fo
nc
w
ts
gi
hi
co
om
c
ie
es
ns
n
pe
r
in
a
at
pe
io
C
th
es
e
e/
ng
ic
at
ex
tiv
ic
R
e
un
tiv
l
hi
or
nt
re
s/
or
y
t
m
et
es
c
m
he
lit
en
ps
pp
ra
om
m
ua
on
ut
et
st
tt
e
So
Su
Ke
Li
Q
A
A
G
H
C
category mean
-1%
-4%
-7%
-7% -8%
-13%
-14%
-16% -17%
-22%
* We’ve run this analysis for 75 brands. Copyright © 2007 22squared
77. WOW, THIS...
advocacy
4% increase
=
incremental
3000 advocates/wk
$25MM
annually
conversations
4800 for Brand Z
(1.6 rate)
incremental
$480M sales/wk
Copyright © 2007 22squared
79. MOMENTUM
3)
How active are your advocates?
Get people talking more about the brand.
Copyright © 2007 22squared
80. Brand X
Brand Z
FADING STABLE GROWING
STOPPED TALKING TOO BORED TO TALK TALKING
Copyright © 2007 22squared
81. Number of purchases influenced by each advocate
: 1.6
Brand Z
: 4.5
Brand X
Copyright © 2007 22squared
82. WHAT IF... Brand Z’s advocates were more active?
Brand Z now
=
: $25 MM
1.6
Brand Z on the Friendship Model
= $70MM
: 4.5
incremental revenue/yr
Copyright © 2007 22squared
84. 3
marketing imperatives for giving
advocates a BIGGER VOICE
Copyright © 2007 22squared
85. BE OF SERVICE
1)
Actions speak louder than words
PROPAGATE
2)
Light the fuse
ENGAGE
3)
Engage: Right time, right place, right context
Copyright © 2007 22squared
86. BE OF SERVICE
1)
Actions speak louder than words
Purpose (over positioning)
Content (that builds and spreads)
Experiences (that spark advocacy)
Utilities (that make the brand useful)
Actions (do more and do good)
Participation (make consumers a part of the brand)
Copyright © 2007 22squared
88. Position Purpose
(Blue Ocean)
(better/best)
GOOD
Not good, Horizontal
not di erent Di erentiation
(badly positioned) Di erent & irrelevant
DIFFERENT
* ZAG, Marty Nuemeier + Blue Ocean Strategy, HBR 2004
90. Create experiences worthy of
participation and word of mouth.
>
Alternative Reality Game: Find the
new ad. Win a solid gold dice.
Facebook Group for hints.
91. Marketing is the product: create
things people can use and make
their lives better.
>
Hear your run. See your
run. Connect with runners.
90% reco rate
92. Do things for consumers,
and enable consumers to do
things for others.
93. Give customers a role in
helping the brand succeed,
allow them to participate
and they will advocate.
94. PROPAGATE
2)
Light the fuse.
Copyright © 2007 22squared
95. PROPAGATION PLANNING
Plan not for the people we reach, but
for the people that they reach
Copyright © 2007 22squared
96. Broadcast Media: targets the majority
Innovators Early Adopters Early Majority Late Majority Laggards
Copyright © 2007 22squared
97. Broadcast Media: targets the majority
Propagation:
Spreadable content
Innovators Early Adopters Early Majority Late Majority Laggards
Copyright © 2007 22squared
98. ropagation Process
1)
CREATIVE
STIMULUS
Images
Audio Assets
Video Assets
Product
Brand
What can we share
that is interesting?
Plan for the content
you don’t have.
AdSpace Pioneers (Reworked) by Griffin Farley
99. ropagation Process
1) 2)
CREATIVE MARKET
STIMULUS INTELLIGENCE
Images
Identify Fan Cultures
Audio Assets
Uncover Connection
Video Assets
& Dialogue Points
Product
Brand
What can we share
What innovator/ early
that is interesting?
adopter tribe can we
Plan for the content connect with?
you don’t have.
AdSpace Pioneers (Reworked) by Griffin Farley
100. ropagation Process
1) 2) 3)
CREATIVE MARKET IDEA
STIMULUS INTELLIGENCE PROPAGATION
Images
Blogger Outreach
Identify Fan Cultures
Audio Assets
Tribe Mobilization
Uncover Connection
Video Assets
Public Relations
& Dialogue Points
Product
Brand
How do we share
What can we share
What innovator/ early the idea?
that is interesting?
adopter tribe can we
How do we get fans
Plan for the content connect with?
to work for us?
you don’t have.
AdSpace Pioneers (Reworked) by Griffin Farley
101. ropagation Process
1) 2) 3) 4)
CREATIVE MARKET IDEA PARTICIPATORY
STIMULUS INTELLIGENCE PROPAGATION PLATFORM
Images YouTube Uploads
Blogger Outreach
Identify Fan Cultures
Audio Assets Website
Tribe Mobilization
Uncover Connection
Video Assets Mobile
Public Relations
& Dialogue Points
Product Blog
Brand
How do we share
What can we share
Build the platform
What innovator/ early the idea?
that is interesting?
and feed it with
adopter tribe can we
How do we get fans
Plan for the content interesting content.
connect with?
to work for us?
you don’t have.
AdSpace Pioneers (Reworked) by Griffin Farley
102. ropagation Process
1) 2) 3) 4) 5)
CREATIVE MARKET IDEA PARTICIPATORY FEEDBACK
STIMULUS INTELLIGENCE PROPAGATION PLATFORM POINTS
Images Email Accounts
YouTube Uploads
Blogger Outreach
Identify Fan Cultures
Audio Assets Voicemail
Website
Tribe Mobilization
Uncover Connection
Video Assets Facebook
Mobile
Public Relations
& Dialogue Points
Product MySpace
Blog
Brand
How do we share
What can we share
Monitor the
Build the platform
What innovator/ early the idea?
that is interesting?
feedback and
and feed it with
adopter tribe can we
How do we get fans
Plan for the content participation.
interesting content.
connect with?
to work for us?
you don’t have.
AdSpace Pioneers (Reworked) by Griffin Farley
103. FOR MORE ... GO HERE
Propagationplanning.com
A blog by Gri n Farley
Sr. Planner @ 22squared
104. ENGAGE
3)
Engage: Right time, right place, right context
Copyright © 2007 22squared
105. Define your target and
their best relationship
with the brand
Copyright © 2007 22squared
106. Find the best times to
engage with them
Copyright © 2007 22squared
107. Determine the value the
brand can add to their
life during that time
Copyright © 2007 22squared
110. Creatively use the channel to
make a connection and
encourage conversation
Copyright © 2007 22squared
111. IN
a nutshell
Friendship Model
Copyright © 2007 22squared
112. IN
a nutshell
Change your role Be of service
Act more than communicate Engage more than reach
Build conversation momentum Plan for propagation
Copyright © 2007 22squared
114. About 22squared
22squared: one of the largest independent, privately-owned advertising agencies (we
use the term loosely) in the U.S. We provide strategic and creative advertising services
across multiple business verticals. O ering an empirical approach to building brand
advocacy called the Friendship Model, we specialize in communications that drive
business growth by building strong relationships with customers. The number 22squared
represents the exponential power of brand advocacy as well as the average number of
friends a person makes throughout his or her life. 22squared is located in Atlanta, GA and
Tampa, FL. For more information, visit 22squared.com.
Created by : Brandon Murphy | brandon.murphy@22squared.com