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A-HA!
         Moving research from a cost centre
               to a knowledge centre




April 2009

Peter Harris
Managing Director, Colmar Brunton



                            http://fc97.deviantart.com/fs28/f/2008/084/7/d/reach_for_knowledge_by_ramybws.jpg
Pictures adapted from
                        Ivory Tower Syndrome

                           Tone Deafness

                        Corporate Disconnect
                                                                     Cost Centre

                                               Walls Of Separation
The War Is On
“Marketers need to know what is
relevant to their consumer today and
not what was relevant in 2008… and
then focus on the critical things that
will appeal to consumers at this time”



         Helen Farquhar, McDonalds
         Australia Director of Marketing
The Old Way
One Way Dialogue
Little buy-in or shared learning among stakeholders
Build the factory, then tear it down




                    http://www.flickr.com/photos/monkeyiron/367271228/sizes/l/
What Happened, Why Now!
Social Media Happened
Creating an explosion in online conversations
From Passive Consumption to Active Participation
We need a new model

Research 2.0
Research Evolved
Who should lead and
manage the conversation?
Accountants
Our Competitors Are Transforming
“More than 60% of Fortune 1000
companies will connect to or host a
form of online community by 2010.”

Gartner.com, October 6th 2008
Brand Communities

                          Adidas insiders




                                            Chrysler Listens



                       Ambrielle Team




     Generation Benz
“50% of companies that start an
online community will fail to establish
a mutual purpose ultimately eroding
customer and company value”

Gartner.com, October 6th 2008
We Need To Step Up
The New Way
All departments of       A private branded online          Your communities
company can engage and   community is a dialogue focused   conversations with your
benefit from the         on improving your offering        brand
community




Marketing   Innovation


Research      Retail
                                       Brand

            Strategic
 Sales
            Planning
                                  Brand Community
Customer
               HR
 Service
What is a Market Research Online Community?


“Private, branded, online space, where 100‟s
or 1000‟s of invited consumers or prospects
regularly spend time generating ideas, offering
advice to you and to one another, sharing
experiences and feelings, discussing trends,
and helping you figure out your marketing
and business issues.”
37% of members contribute daily and 89% contribute
                     monthly




Communispace 2008
Over 80% of people say they are willing to participate in
            online company communities




Your Source; Australians 18+; online users
Willingness spans a variety of areas


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

  Your Source; Australians 18+; online users; say they are willing to
  participate in company online communities
The research findings from an
online community can be more
useful for decision making than
other research for the following
            reasons:
Reason # 1: Knowledge is built quickly
Reason # 2: More debate between members +
        richer quality of response
Reason # 3: Closer consumer contact among
               stakeholders
Reason # 4: Reduced surveying costs
More Than Research




Market & Customer Insight     Customer-Driven Innovation   Brand Advocacy
Cost Centre                     Knowledge Centre



                                                            Sales


               Knowledge                        Retail
                                                                      Marketing
                  GAP
The Customer               Your Company




                                          HR                                  Research


                                                           Customer
                                                          Community
                                               Customer
                                               Service                 Innovation



                                                             PR
Designed to eliminate
wasted time and energy
More Efficient



                  Traditional Focus
                                           Online Research Community
                        Group

                                           Cost is ≤ 3 traditional focus
Significantly
                 $8,000 to $15,000
                  per individual focus
                                                      groups
Lower Costs                                    (supporting many more
                         group
                                                  research events)


Increased                                             2 weeks
Productivity    to hold 12 focus groups      to hold 12 online research
                       in 6 cities        community activities with no travel
                                                      required
Market Pricing For Online Communities




„The Business Case For Online Communities‟ presentation developed by Mzinga and authored by Don Tapscott (Author of Wikinomics), Barry Libert (Author, We Are Smarter Than Me‟), Aaron Strout (VP New Media at
Mzinga),
http://www.slideshare.net/whatidiscover/the-business-case-for-online-communities-presentation
Demonstrated ROI




„The Business Case For Online Communities‟ presentation developed by Mzinga and authored by Don Tapscott (Author of Wikinomics), Barry Libert (Author, We Are Smarter Than Me‟), Aaron Strout (VP New Media at
Mzinga), Slide sourced to Mukund Mohan, Best Engaging Communities
http://www.slideshare.net/whatidiscover/the-business-case-for-online-communities-presentation
Marketing 2.0
Takeaways

1. Online communities help companies and their employees join the
   conversation, literally
2. Online communities need to become the centralised hub for
   business decision making, where all stakeholders collaborate in an
   iterative manner, managed and led by market researchers
3. Putting an online community at the centre of your organisational
   decision making is the key to getting closer to consumers and
   therefore delivering competitive advantage
4. Online communities provide additional benefits of customer
   collaboration and brand advocacy
5. Online communities refocus and realign the organisation around
   the customer
Once this is in place and working
   efficiently, it will ensure that
  research moves from being a
cost centre to a knowledge centre
  and business will take notice
Cost Centre                                                                 Knowledge Centre



                        Walls Of Separation
                                                                                                               Sales
                                                                      Corporate Disconnect
                               Ivory Tower Syndrome




                                                                                                                         Marketing
                                                                                                   Retail
                                                      Tone Deafness




                                                                                             HR                                  Research


                                                                                                              Customer
                                                                                                             Community
                                                                                                  Customer
                                                                                                  Service                 Innovation



                                                                                                                PR



Pictures adapted from
A-HA!
         Moving research from a cost centre
               to a knowledge centre




April 2009

Peter Harris
Managing Director, Colmar Brunton



                            http://fc97.deviantart.com/fs28/f/2008/084/7/d/reach_for_knowledge_by_ramybws.jpg

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A-HA! Moving research from a cost centre to a knowledge centre

  • 1. A-HA! Moving research from a cost centre to a knowledge centre April 2009 Peter Harris Managing Director, Colmar Brunton http://fc97.deviantart.com/fs28/f/2008/084/7/d/reach_for_knowledge_by_ramybws.jpg
  • 2. Pictures adapted from Ivory Tower Syndrome Tone Deafness Corporate Disconnect Cost Centre Walls Of Separation
  • 4. “Marketers need to know what is relevant to their consumer today and not what was relevant in 2008… and then focus on the critical things that will appeal to consumers at this time” Helen Farquhar, McDonalds Australia Director of Marketing
  • 7. Little buy-in or shared learning among stakeholders
  • 8. Build the factory, then tear it down http://www.flickr.com/photos/monkeyiron/367271228/sizes/l/
  • 11. Creating an explosion in online conversations
  • 12. From Passive Consumption to Active Participation
  • 13. We need a new model Research 2.0
  • 15. Who should lead and manage the conversation?
  • 17.
  • 18. Our Competitors Are Transforming
  • 19. “More than 60% of Fortune 1000 companies will connect to or host a form of online community by 2010.” Gartner.com, October 6th 2008
  • 20. Brand Communities Adidas insiders Chrysler Listens Ambrielle Team Generation Benz
  • 21. “50% of companies that start an online community will fail to establish a mutual purpose ultimately eroding customer and company value” Gartner.com, October 6th 2008
  • 22. We Need To Step Up
  • 24. All departments of A private branded online Your communities company can engage and community is a dialogue focused conversations with your benefit from the on improving your offering brand community Marketing Innovation Research Retail Brand Strategic Sales Planning Brand Community Customer HR Service
  • 25. What is a Market Research Online Community? “Private, branded, online space, where 100‟s or 1000‟s of invited consumers or prospects regularly spend time generating ideas, offering advice to you and to one another, sharing experiences and feelings, discussing trends, and helping you figure out your marketing and business issues.”
  • 26. 37% of members contribute daily and 89% contribute monthly Communispace 2008
  • 27. Over 80% of people say they are willing to participate in online company communities Your Source; Australians 18+; online users
  • 28. Willingness spans a variety of areas Interacting with Having a direct other community impact on the members company Getting a behind- 48% the-scenes look at 58% the company 61% Interacting with company decision What would be makers of interest if you 49% joined a brand Giving input on Previewing/Input on new community? advertising/marketing product's/services campaigns before anyone else 68% 84% Other 4% Your Source; Australians 18+; online users; say they are willing to participate in company online communities
  • 29. The research findings from an online community can be more useful for decision making than other research for the following reasons:
  • 30. Reason # 1: Knowledge is built quickly
  • 31. Reason # 2: More debate between members + richer quality of response
  • 32. Reason # 3: Closer consumer contact among stakeholders
  • 33. Reason # 4: Reduced surveying costs
  • 34. More Than Research Market & Customer Insight Customer-Driven Innovation Brand Advocacy
  • 35. Cost Centre Knowledge Centre Sales Knowledge Retail Marketing GAP The Customer Your Company HR Research Customer Community Customer Service Innovation PR
  • 36. Designed to eliminate wasted time and energy
  • 37. More Efficient Traditional Focus Online Research Community Group Cost is ≤ 3 traditional focus Significantly $8,000 to $15,000 per individual focus groups Lower Costs (supporting many more group research events) Increased 2 weeks Productivity to hold 12 focus groups to hold 12 online research in 6 cities community activities with no travel required
  • 38. Market Pricing For Online Communities „The Business Case For Online Communities‟ presentation developed by Mzinga and authored by Don Tapscott (Author of Wikinomics), Barry Libert (Author, We Are Smarter Than Me‟), Aaron Strout (VP New Media at Mzinga), http://www.slideshare.net/whatidiscover/the-business-case-for-online-communities-presentation
  • 39. Demonstrated ROI „The Business Case For Online Communities‟ presentation developed by Mzinga and authored by Don Tapscott (Author of Wikinomics), Barry Libert (Author, We Are Smarter Than Me‟), Aaron Strout (VP New Media at Mzinga), Slide sourced to Mukund Mohan, Best Engaging Communities http://www.slideshare.net/whatidiscover/the-business-case-for-online-communities-presentation
  • 41. Takeaways 1. Online communities help companies and their employees join the conversation, literally 2. Online communities need to become the centralised hub for business decision making, where all stakeholders collaborate in an iterative manner, managed and led by market researchers 3. Putting an online community at the centre of your organisational decision making is the key to getting closer to consumers and therefore delivering competitive advantage 4. Online communities provide additional benefits of customer collaboration and brand advocacy 5. Online communities refocus and realign the organisation around the customer
  • 42. Once this is in place and working efficiently, it will ensure that research moves from being a cost centre to a knowledge centre and business will take notice
  • 43. Cost Centre Knowledge Centre Walls Of Separation Sales Corporate Disconnect Ivory Tower Syndrome Marketing Retail Tone Deafness HR Research Customer Community Customer Service Innovation PR Pictures adapted from
  • 44. A-HA! Moving research from a cost centre to a knowledge centre April 2009 Peter Harris Managing Director, Colmar Brunton http://fc97.deviantart.com/fs28/f/2008/084/7/d/reach_for_knowledge_by_ramybws.jpg