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Energizing Groundswell

Energizing Groundswell. Allen Crotty Anna Nemittanan Toya Dartis William 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.

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Energizing Groundswell

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  1. Energizing Groundswell Allen Crotty Anna Nemittanan Toya Dartis William Olaleye

  2. 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

  3. 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.”

  4. 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.

  5. 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.”

  6. 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.

  7. Using Ratings and Reviews to Energize Customers • http://www.youtube.com/watch?v=y6-OmLq82eU

  8. 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,

  9. First Year Analysis • Up front development cost = $50k • Yearly ongoing costs = $25k • Additional yearly costs = $125k • Average yearly cost = $200k.

  10. 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

  11. 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

  12. 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

  13. 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

  14. 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.

  15. Conclusion • Not all customers are equal • The Base: Most enthusiastic customers • EX: Lego Brand Ambassador Program • EX: eBags and Jim Noble/Field Testers

  16. Unhappy Base • Imperative to Listen • Respond: Energized customers wield power within the community of customers • When possible give customers what they desire most

  17. What They Want • Information: Present and Future Products • Evidence they are making a difference • To be engaged (No layoffs)

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