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The Marketing Power
of Brand Advocates
Rob Fuggetta
CEO/Founder, Zuberance
2
Meet Your Best Marketers
Your Advocates
• Highly trusted
• Influential
• Amplified
• Willing to recommend
without pay or
incentives
Today You Will Learn
• What’s a Brand Advocate? (and
why they matter)
• 3 ways to identify Advocates
• 4 Ways to energize Advocates
• 10 ways to reward Advocates
• Zuberance Founder/CEO
• Author, “Brand Advocates:
Turning Enthusiastic
Customers into Powerful
Marketing Force” (Wiley, 2012)
• Marketing consultant Apple;
former CMO, Genuity
About Rob Fuggetta
@robfuggetta
1. UNDERSTANDING BRAND
ADVOCATES
People who recommend your
company, brand, or products
without pay or incentives
6
What’s a Brand Advocate?
7
50%
37%
8%
3%
1%
Good experience with product or service
Help others
Recommend when asked
Let others know I'm knowledgeable
Incentives and rewards
Source: Loyalty Wins for Zuberance, March 2012
Why Advocates Recommend
8
CDW Advocate Justin Dorfman
• Generated $400K sales for CDW
• CDW has paid Justin: $0
• Recommends CDW because of
superb customer service
►81% surveyed CDW customers are Advocates
9
Advocates: Unique, Valuable Segment
Recommenders
BusinessValue
10
Not all Advocates are Alike
How Advocates Differ
• Influence
• Reach
• Activities (create, share)
• Frequency
• Brand; product; services
11
Motivations
Influencers vs. Advocates
Influencers Advocates
Low/none Very high
Build audience &
personal brand
Help others
Incentives In some cases No
Loyalty
12
Advocates are the Real Influencers
Justin Dorfman,
CDW Advocate
Alexia Tsotsis,
TechCrunch Co-Editor
AdvocateInfluencer
Item Alexia Justin
# Twitter Followers 55,876 669
Trust level 22% 92%
Influence on purchases
(among Justin’s network)
Low High
Fans vs. Advocates
13
41%
37%
35%
31%
28%
Let friends know products I
support
Get coupons and discount
offers
Stay current on new
products
Learn about
company/organization
Meet people with similar
interests as mine
Why People Join
Facebook Fan Pages
% of US Facebook users
Source: Morpace
58%
57%
54%
53%
50%
47%
36%
33%
I want to help people
I've had good experiences with a
product
Others could benefit from my
perspective
I would want to know before I buy
things
I've had bad experiences with a product
I want others to make smart purchase
decisions
It feels great to be heard
Feel connected to other people
I give my opinions online regarding
products & purchases because..
Why Advocates
Recommend Brands
Source: Comscore, Yahoo!
14
Why Advocates Matter
1. Highly trusted
2. Drive sales
3. Massive reach
4. Surprisingly large segment
Advocates are Highly Trusted
92%
70%
53%
33%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Word of Mouth Online reviews Your website Online ads
Source: Nielsen
16
Source: Multiple
WOM
50%
All other
Marketing
Tactics
50% Ads, paid
search, email
marketing,
billboards, etc.
80% of Intuit Business ($3.2M) from AdvocatesSource: Intuit
50% of Business from Advocates
17
Power of Advocates in Restaurants
1-star increase on Yelp boosts sales by 5% to 9%
Source: “Reviews, Reputation, and Revenue: The Case of Yelp.com,” M. Luca, Sept 16, 2011
5% to 9%
18
Advocates Drive Sales
Buy This! Okay!
One Energized Advocate Brings in 3 New Customers
Source: Zuberance analysis
19
Social Media Amplifies Advocates
1 Advocate’s Trusted
Recommendations Family,
Friends,
Colleagues,
Peers
Shopping &
Review Sites,
Blogs, Brand
Website, etc.
Social
& Business
Networks
Reach: 500+
Reach: 10,000+
Reach: 150+
20
Advocates are Surprisingly Large Segment
How likely are you to recommend our
brand or products to your friends?
“Ultimate Question” for Customer Loyalty:
50%
Source: Zuberance customer data
2. THREE WAYS TO IDENTIFY
ADVOCATES
3 Ways to ID Brand Advocates
1. Ask
2. Listen
3. Observe
23
1. Ask
How likely are you to recommend our
brand or products to your friends?
“Ultimate Question” for Customer Loyalty:
Ask Ultimate Question Everywhere
Social Web eMail Support Usage Mobile
How likely are you to recommend our brand or product?
Ask on Social Channels
Ask on Digital Channels
Ask on Mobiles
2. Listen
3. Observe
3. FOUR WAYS TO ENERGIZE
ADVOCATES
4 Ways to Energize Advocates
Reviews Stories
Answers Offers
Parallels Software Energizes Advocates
Ratings up 50%
30% Sales
Conversions
Thousands of Stories
Advocacy is Delicious for Rubio’s
Ratings Up on Yelp
10% Sales
Conversions
Thousands of Stories
34
3 Ways to Leverage Advocates Now!
Super-charge Content
Boost Product Launches
Enhance Reference Programs
4. 10 WAYS TO REWARD
ADVOCATES
36
1. Sneak peeks
2. Special events
3. Exclusive communities
4. Special content
5. Seek their opinions
6. Access to VIPs
7. Contribute to causes
8. Honor your Advocates
9. Show them you care
10. Say thank you
Top 10 Ways to Reward Advocates
Key Takeaways
1. Advocates are genuine recommenders
2. Advocates are not same as fans, followers, loyal
customers, influencers
3. Advocates are highly trusted, influential, and amplified;
you have many more Advocates than you think
4. Identify Advocates by asking, listening, and observing
5. Energize Advocates to create and share content and
offers plus launch products and more
6. Don’t pay or provide incentives to Advocates
• Zuberance.com
• Blog.zuberance.com
• BrandAdvocateBook.com
Learn More
Move The Needle
www.onlinemarketinginstitute.org
Thank You

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The Marketing Power of Brand Advocates

  • 1. The Marketing Power of Brand Advocates Rob Fuggetta CEO/Founder, Zuberance
  • 2. 2 Meet Your Best Marketers Your Advocates • Highly trusted • Influential • Amplified • Willing to recommend without pay or incentives
  • 3. Today You Will Learn • What’s a Brand Advocate? (and why they matter) • 3 ways to identify Advocates • 4 Ways to energize Advocates • 10 ways to reward Advocates
  • 4. • Zuberance Founder/CEO • Author, “Brand Advocates: Turning Enthusiastic Customers into Powerful Marketing Force” (Wiley, 2012) • Marketing consultant Apple; former CMO, Genuity About Rob Fuggetta @robfuggetta
  • 6. People who recommend your company, brand, or products without pay or incentives 6 What’s a Brand Advocate?
  • 7. 7 50% 37% 8% 3% 1% Good experience with product or service Help others Recommend when asked Let others know I'm knowledgeable Incentives and rewards Source: Loyalty Wins for Zuberance, March 2012 Why Advocates Recommend
  • 8. 8 CDW Advocate Justin Dorfman • Generated $400K sales for CDW • CDW has paid Justin: $0 • Recommends CDW because of superb customer service ►81% surveyed CDW customers are Advocates
  • 9. 9 Advocates: Unique, Valuable Segment Recommenders BusinessValue
  • 10. 10 Not all Advocates are Alike How Advocates Differ • Influence • Reach • Activities (create, share) • Frequency • Brand; product; services
  • 11. 11 Motivations Influencers vs. Advocates Influencers Advocates Low/none Very high Build audience & personal brand Help others Incentives In some cases No Loyalty
  • 12. 12 Advocates are the Real Influencers Justin Dorfman, CDW Advocate Alexia Tsotsis, TechCrunch Co-Editor AdvocateInfluencer Item Alexia Justin # Twitter Followers 55,876 669 Trust level 22% 92% Influence on purchases (among Justin’s network) Low High
  • 13. Fans vs. Advocates 13 41% 37% 35% 31% 28% Let friends know products I support Get coupons and discount offers Stay current on new products Learn about company/organization Meet people with similar interests as mine Why People Join Facebook Fan Pages % of US Facebook users Source: Morpace 58% 57% 54% 53% 50% 47% 36% 33% I want to help people I've had good experiences with a product Others could benefit from my perspective I would want to know before I buy things I've had bad experiences with a product I want others to make smart purchase decisions It feels great to be heard Feel connected to other people I give my opinions online regarding products & purchases because.. Why Advocates Recommend Brands Source: Comscore, Yahoo!
  • 14. 14 Why Advocates Matter 1. Highly trusted 2. Drive sales 3. Massive reach 4. Surprisingly large segment
  • 15. Advocates are Highly Trusted 92% 70% 53% 33% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Word of Mouth Online reviews Your website Online ads Source: Nielsen
  • 16. 16 Source: Multiple WOM 50% All other Marketing Tactics 50% Ads, paid search, email marketing, billboards, etc. 80% of Intuit Business ($3.2M) from AdvocatesSource: Intuit 50% of Business from Advocates
  • 17. 17 Power of Advocates in Restaurants 1-star increase on Yelp boosts sales by 5% to 9% Source: “Reviews, Reputation, and Revenue: The Case of Yelp.com,” M. Luca, Sept 16, 2011 5% to 9%
  • 18. 18 Advocates Drive Sales Buy This! Okay! One Energized Advocate Brings in 3 New Customers Source: Zuberance analysis
  • 19. 19 Social Media Amplifies Advocates 1 Advocate’s Trusted Recommendations Family, Friends, Colleagues, Peers Shopping & Review Sites, Blogs, Brand Website, etc. Social & Business Networks Reach: 500+ Reach: 10,000+ Reach: 150+
  • 20. 20 Advocates are Surprisingly Large Segment How likely are you to recommend our brand or products to your friends? “Ultimate Question” for Customer Loyalty: 50% Source: Zuberance customer data
  • 21. 2. THREE WAYS TO IDENTIFY ADVOCATES
  • 22. 3 Ways to ID Brand Advocates 1. Ask 2. Listen 3. Observe
  • 23. 23 1. Ask How likely are you to recommend our brand or products to your friends? “Ultimate Question” for Customer Loyalty:
  • 24. Ask Ultimate Question Everywhere Social Web eMail Support Usage Mobile How likely are you to recommend our brand or product?
  • 25. Ask on Social Channels
  • 26. Ask on Digital Channels
  • 30. 3. FOUR WAYS TO ENERGIZE ADVOCATES
  • 31. 4 Ways to Energize Advocates Reviews Stories Answers Offers
  • 32. Parallels Software Energizes Advocates Ratings up 50% 30% Sales Conversions Thousands of Stories
  • 33. Advocacy is Delicious for Rubio’s Ratings Up on Yelp 10% Sales Conversions Thousands of Stories
  • 34. 34 3 Ways to Leverage Advocates Now! Super-charge Content Boost Product Launches Enhance Reference Programs
  • 35. 4. 10 WAYS TO REWARD ADVOCATES
  • 36. 36 1. Sneak peeks 2. Special events 3. Exclusive communities 4. Special content 5. Seek their opinions 6. Access to VIPs 7. Contribute to causes 8. Honor your Advocates 9. Show them you care 10. Say thank you Top 10 Ways to Reward Advocates
  • 37. Key Takeaways 1. Advocates are genuine recommenders 2. Advocates are not same as fans, followers, loyal customers, influencers 3. Advocates are highly trusted, influential, and amplified; you have many more Advocates than you think 4. Identify Advocates by asking, listening, and observing 5. Energize Advocates to create and share content and offers plus launch products and more 6. Don’t pay or provide incentives to Advocates
  • 38. • Zuberance.com • Blog.zuberance.com • BrandAdvocateBook.com Learn More