FRIENDSHIP
MODEL
HOW TO BUILD BRAND ADVOCACY IN A CONSUMER-DRIVEN WORLDTHE
Copyright © 2007 22squared
AN ORIENTATION BY BRANDON MURPHY
Copyright © 2007 22squared inc. For educational use only. No part of this presentation maybe published, sold, or otherwise used for profit without the written permission of 22squared.
The Friendship Model is a registered trademark of 22squared.
THE LAWYERS SAY....
A new business tool?
A positioning for the agency?
A belief about marketing?
A philosophy for how we work?
A measure of our success?
SO, WHAT IS THE FRIENDSHIP MODEL?
Copyright © 2007 22squared
YESCopyright © 2007 22squared
YESThank you
Copyright © 2007 22squared
J/K
Let’s start with the first question...
why did we create it?
Let’s start with the first question...
why did we create it?
[BECAUSE WE HAD TO]
We were trying to change the way we do business...just like every other ad agency that existed before web 2.0.
But the real problem...
Source: Microsoft Digital Advertising Solutions
If you haven’t seen this video, you’re missing out...it’s brilliant. http://ub0.cc/77/4f
She’s a consumer.He’s an advertiser.All she wants is genuine a!ection.All he gives is loyalty reduction.
People want brands that...
...more like friends than salespeople
ACTCopyright © 2007 22squared
And when brands DO, people talk:
Brands perceived to act on their customers’ behalf have 44% more advocates.*[ ]
*22squared Friendship Model ResearchCopyright © 2007 22squared
So we need to help brandsDO
Copyright © 2007 22squared
To get people talking...
BUT...
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... we must create
relationships worth talking about.
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We need to turn our original way of marketing on its head...
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Literally
AWARENESS
PURCHASE
[OLD]
PREFERENCE
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ADVOCACY
PURCHASES
RELATIONSHIPS
[NOW]
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does an agency create relationships worth talking about?
HOWCopyright © 2007 22squared
that good brands are like people.
REALIZE
Copyright © 2007 22squared
The actions that make people great friends
that cause people to advocate for brands.
are the same
Copyright © 2007 22squared
[“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
]
Think about it...
...what do friends do?
Copyright © 2007 22squared
H AV E C H E M I S T R Y
REMAIN AUTHENTIC
ACT TRANSPARENT
A R E E M P A T H E T I C
SUPPORT EACH OTHER
SPEND QUALITY TIME
S H A R E A P.O .V.
GIVE MORE THAN GET
S T A Y I N T O U C H
INSPIRE EACH OTHER
FRIENDSFRIENDS
Copyright © 2007 22squared
Makes sense, right?
Copyright © 2007 22squared
But how do we put that theory in action?
Copyright © 2007 22squared
FRIENDSHIP
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
MODEL
FRIENDSHIP
State of being a friend
Someone you know and trust
A member of the same group/nation
Allied in a struggle, cause or movement
An example of a behavior; a philosophy lived out
Statistical method for accomplishing something
A compass that points you in the right direction
A belief that never lets you down++
Copyright © 2007 22squared
Friendship Model = Higher
Advocacy
Copyright © 2007 22squared
SHAREHOLDER
EVANGELISTRECOMMENDER
MARGINALCUSTOMER
DISSATISFIEDCUSTOMER ACTIVELY
AGAINST
REPEAT SATISFIED
ADVOCATES BUYERS CRITICS
Here’s how we size up advocacy:
% of brand’s customers who are...
Copyright © 2007 22squared
TA = A - C
TRUE ADVOCACYTM
TA = A - CADVOCATES CRITICS
Copyright © 2007 22squared
TA = A - C
NOTE: We’ve done lots of research on this...on 200 brands with over 50,000 people*
TA = A - C
*22squared Friendship Model Research
Copyright © 2007 22squared
TA = A - C
Are advocates worth more than other customers?$Copyright © 2007 22squared
YES(THE SHORT ANSWER)
TA = A - C
Buy more
Talk and share more
Recommend more
WHAT THEY DO
Spending levels
Conversation rates
Recommendation rates
WHAT WE MEASUREADVOCATES
Copyright © 2007 22squared
When advocates talk, brands growFACT :
Copyright © 2007 22squared
TM
GROWTH
TRUE ADVOCACY
seriously, check it out...
Copyright © 2007 22squared
*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
APPAREL RETAILERS
Copyright © 2007 22squared
%
Average annual growth rate from 2005 - 2007
SOURCE: 22squared Wireless Provider White Paper, 2008
WIRELESSPROVIDERS
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Average annual passenger revenue growth rate from 2005-2007
SOURCE: 22squared Airline White Paper, 2009
AIRLINES
Copyright © 2007 22squared
does the Friendship Model help increase advocacy for brands?
Play a more meaningful role in their life
Create momentum, get people talking more and moving toward the brand
Identify the actions the brand must take to increase advocates
1) 2) 3)
HOWROLES ACTIONS MOMENTUM
Copyright © 2007 22squared
Play a more meaningful role in their life
1)
ROLES
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The better friend you are, the more customers talk.
Understand the role a brand plays in the life of the customer and deepen it.[ ]
FACT :
Copyright © 2007 22squared
SOUL MATE
CLOSE FRIEND
NICHE FRIEND
NEW FRIEND
ACQUAINTANCE
FAMILY FRIEND
DEFAULT
FLING
FORCED
351 Index*
A unique connection; a brand you can’t live without
Copyright © 2007 22squared*Index among all brands tested
SOUL MATE
CLOSE FRIEND
NICHE FRIEND
NEW FRIEND
ACQUAINTANCE
FAMILY FRIEND
DEFAULT
FLING
FORCED
Inner-circle, depend on, always there
202 Index*
A unique connection; a brand you can’t live without
Copyright © 2007 22squared*Index among all brands tested
SOUL MATE
CLOSE FRIEND
NICHE FRIEND
NEW FRIEND
ACQUAINTANCE
FAMILY FRIEND
DEFAULT
FLING
FORCED
Familiar in a narrow context, but in a restrictive way.
143 Index*
A unique connection; a brand you can’t live without
Inner-circle, depend on, always there
Copyright © 2007 22squared*Index among all brands tested
SOUL MATE
CLOSE FRIEND
NICHE FRIEND
NEW FRIEND
ACQUAINTANCE
FAMILY FRIEND
DEFAULT
FLING
FORCED
Still new, but on the road to becoming closer
320 Index*
A unique connection; a brand you can’t live without
Inner-circle, depend on, always there
Familiar in a narrow context
Copyright © 2007 22squared*Index among all brands tested
SOUL MATE
CLOSE FRIEND
NICHE FRIEND
NEW FRIEND
ACQUAINTANCE
FAMILY FRIEND
DEFAULT
FLING
FORCED
Ambivalent, no expectations and little reward
143 Index*
A unique connection; a brand you can’t live without
Inner-circle, depend on, always there
On the road to becoming closer
Copyright © 2007 22squared*Index among all brands tested
Familiar in a narrow context
SOUL MATE
CLOSE FRIEND
NICHE FRIEND
NEW FRIEND
ACQUAINTANCE
FAMILY FRIEND
DEFAULT
FLING
FORCED
By association or inheritance, not solely your choice
286 Index*
A unique connection; a brand you can’t live without
Inner-circle, depend on, always there
On the road to becoming closer
Ambivalent, no expectations
Copyright © 2007 22squared*Index among all brands tested
Familiar in a narrow context
SOUL MATE
CLOSE FRIEND
NICHE FRIEND
NEW FRIEND
ACQUAINTANCE
FAMILY FRIEND
DEFAULT
FLING
FORCED
A short-term experiment, likely to happen only once
177 Index*
A unique connection; a brand you can’t live without
Inner-circle, depend on, always there
On the road to becoming closer
Ambivalent, no expectations
By association or inheritance
Copyright © 2007 22squared*Index among all brands tested
Familiar in a narrow context
SOUL MATE
CLOSE FRIEND
NICHE FRIEND
NEW FRIEND
ACQUAINTANCE
FAMILY FRIEND
DEFAULT
FLING
FORCED
Lack of options, out of proximity or avoidance.
210 Index*
A unique connection; a brand you can’t live without
Inner-circle, depend on, always there
On the road to becoming closer
Ambivalent, no expectations
By association or inheritance
Short-term experiment
Copyright © 2007 22squared*Index among all brands tested
Familiar in a narrow context
SOUL MATE
CLOSE FRIEND
NICHE FRIEND
NEW FRIEND
ACQUAINTANCE
FAMILY FRIEND
DEFAULT
FLING
FORCED
No choice, feel trapped and want to escape
231 Index*
A unique connection; a brand you can’t live without
Inner-circle, depend on, always there
On the road to becoming closer
Ambivalent, no expectations
By association or inheritance
Lack of options, proximity or avoidance
Copyright © 2007 22squared*Index among all brands tested
Familiar in a narrow context
Short-term experiment
Remember...
...it’s about BEHAVING like a friend.
IT’S NOT ABOUT BEING FRIENDLY
Copyright © 2007 22squared
Identify the actions the brand must take to increase advocates.
2)
ACTIONS
Copyright © 2007 22squared
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.*[ ]
FACT :
*22squared Friendship Model ResearchCopyright © 2007 22squared
H AV E C H E M I S T R Y
REMAIN AUTHENTIC
ACT TRANSPARENT
A R E E M P A T H E T I C
SUPPORT EACH OTHER
SPEND QUALITY TIME
S H A R E A P.O .V.
GIVE MORE THAN GET
S T A Y I N T O U C H
INSPIRE EACH OTHER
FRIENDSFRIENDS
Copyright © 2007 22squared
H AV E C H E M I S T R Y
REMAIN AUTHENTIC
ACT TRANSPARENT
A R E E M P A T H E T I C
SUPPORT EACH OTHER
FRIENDSSPEND QUALITY TIME
S H A R E A P O V
GIVE MORE THAN GET
S T A Y I N T O U C H
INSPIRE EACH OTHER
HAVE CHEMISTRYCreate a visceral spark or a gut reaction
FIREWORKS FORCED
225* 4*
Copyright © 2007 22squared*Category Index
H AV E C H E M I S T R Y
REMAIN AUTHENTIC
ACT TRANSPARENT
A R E E M P A T H E T I C
SUPPORT EACH OTHER
SPEND QUALITY TIME
S H A R E A P O V
GIVE MORE THAN GET
S T A Y I N T O U C H
INSPIRE EACH OTHER
REMAIN AUTHENTIC
FRIENDS
Original, real and distinctly meaningful
FOR REAL FOR NOT
127* 47*
Copyright © 2007 22squared*Category Index
H AV E C H E M I S T R Y
REMAIN AUTHENTIC
ACT TRANSPARENT
A R E E M P A T H E T I C
SUPPORT EACH OTHER
SPEND QUALITY TIME
S H A R E A P O V
GIVE MORE THAN GET
S T A Y I N T O U C H
INSPIRE EACH OTHER
FRIENDS
ACT TRANSPARENT
FRIENDS
Be honest and have clear intentions
CLEAR HIDDEN
210* 14*
Copyright © 2007 22squared*Category Index
H AV E C H E M I S T R Y
REMAIN AUTHENTIC
ACT TRANSPARENT
A R E E M P A T H E T I C
SUPPORT EACH OTHER
SPEND QUALITY TIME
S H A R E A P O V
GIVE MORE THAN GET
S T A Y I N T O U C H
INSPIRE EACH OTHER
FRIENDSARE EMPATHETIC
FRIENDSFRIENDS
Understand their needs, desires and lives
GETS ME HASSLES ME
231* 5*
Copyright © 2007 22squared*Category Index
H AV E C H E M I S T R Y
REMAIN AUTHENTIC
ACT TRANSPARENT
A R E E M P A T H E T I C
SUPPORT EACH OTHER
SPEND QUALITY TIME
S H A R E A P O V
GIVE MORE THAN GET
S T A Y I N T O U C H
INSPIRE EACH OTHER
FRIENDSSUPPORT EACH OTHER
FRIENDSFRIENDSFRIENDSBe helpful, useful act on their behalf
THERE FOR PEOPLE THEY’RE PEOPLE?
Copyright © 2007 22squared
171* 100*
*Category Index
SPEND QUALITY TIME
S H A R E A P O V
GIVE MORE THAN GET
S T A Y I N T O U C H
INSPIRE EACH OTHER
Provide talk-worthy immersive experiences
H AV E C H E M I S T R Y
REMAIN AUTHENTIC
ACT TRANSPARENT
A R E E M P A T H E T I C
SUPPORT EACH OTHER
FRIENDSSPEND QUALITY TIME
FRIENDSFRIENDSFRIENDSFRIENDSALWAYS CLEAR NEVER HEAR242* 7*
Copyright © 2007 22squared*Category Index
SPEND QUALITY TIME
S H A R E A P O V
GIVE MORE THAN GET
S T A Y I N T O U C H
INSPIRE EACH OTHER
Common lifestyle, belief system or attitude
H AV E C H E M I S T R Y
REMAIN AUTHENTIC
ACT TRANSPARENT
A R E E M P A T H E T I C
SUPPORT EACH OTHER
SHARE A P.O.V.
FRIENDSFRIENDSFRIENDSFRIENDSFRIENDSBELIEVE USE
Copyright © 2007 22squared*Category Index
SPEND QUALITY TIME
S H A R E A P O V
GIVE MORE THAN GET
S T A Y I N T O U C H
INSPIRE EACH OTHER
Provide value and meaning beyond the money spent
FRIENDSFRIENDSFRIENDSFRIENDS
H AV E C H E M I S T R Y
REMAIN AUTHENTIC
ACT TRANSPARENT
A R E E M P A T H E T I C
SUPPORT EACH OTHER
GET MORE THAN GIVE
A DEFINING EXPERIENCE A VACATION
164* 4*
Copyright © 2007 22squared*Category Index
FRIENDSSPEND QUALITY TIME
S H A R E A P O V
GIVE MORE THAN GET
S T A Y I N T O U C H
INSPIRE EACH OTHER
H AV E C H E M I S T R Y
REMAIN AUTHENTIC
ACT TRANSPARENT
A R E E M P A T H E T I C
SUPPORT EACH OTHER
Build anticipation, add value & communicateSTAY IN TOUCH
CARD CARRYING MEMBER ON THE SHELF185* 28*
Copyright © 2007 22squared*Category Index
H AV E C H E M I S T R Y
REMAIN AUTHENTIC
ACT TRANSPARENT
A R E E M P A T H E T I C
SUPPORT EACH OTHER
SPEND QUALITY TIME
S H A R E A P O V
GIVE MORE THAN GET
S T A Y I N T O U C H
INSPIRE EACH OTHER
FRIENDS
Motivates you to be di!erent or betterINSPIRE EACH OTHER
BE DIFFERENT BE NORMAL372* 27*
Copyright © 2007 22squared*Category Index
build...Friendship Actions
Copyright © 2007 22squared
which sparks...Advocacy
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that lead to...Conversations
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Recommendationsthat turn into...
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which are usually...Sales
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in profit and lower in acquisition costsHigher
Copyright © 2007 22squared
Get m
ore th
an g
ive
Honest
Attrac
tive/
Comforta
ble
Supporti
ve
Authe
ntic
Keeps r
elatio
nship
fres
h
Somethin
g in co
mmon
Communica
tes w
ith m
e
Quality
exper
ience
s
Liste
ns/R
espec
ts me
-8%-7%
-16%
-7%
-17%
-14%
-22%
-13%
-1%
category mean
* We’ve run this analysis for 75 brands.
-4%
WHAT IF... Brand Z* improved these actions?
Copyright © 2007 22squared
advocacy increase
incremental sales/wk
conversations (1.6 rate)
incremental advocates/wk
4%
3000
4800
$480M
WOW, THIS...
= $25MMannuallyfor Brand Z
Copyright © 2007 22squared
BIGTHAT’S A
NUMBER.
How active are your advocates?Get people talking more about the brand.
3)
MOMENTUM
Copyright © 2007 22squared
STOPPED TALKING TOO BORED TO TALK TALKINGFADING STABLE GROWING
Brand XBrand Z
Copyright © 2007 22squared
1.6
4.5
Brand Z
Brand X
:
:
Number of purchases influenced by each advocate
Copyright © 2007 22squared
WHAT IF... Brand Z’s advocates were more active?
1.6:
:
=
$70MM=
$25 MM
incremental revenue/yr
4.5
Brand Z now
Brand Z on the Friendship Model
Copyright © 2007 22squared
BIGGERWHOA, THOSE ARE
NUMBERS.
3marketing imperatives for giving
advocates a BIGGER VOICE
Copyright © 2007 22squared
BE OF SERVICE
PROPAGATE
ENGAGE
Actions speak louder than words
Light the fuse
Engage: Right time, right place, right context
2)
1)
3)
Copyright © 2007 22squared
BE OF SERVICE1)
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)
Actions speak louder than words
Copyright © 2007 22squared
Have a purpose that’s bigger than your product or service.
GO
OD
DIFFERENT
Position(better/best)
Not good, not di!erent
(badly positioned)
Horizontal Di!erentiation
Di!erent & irrelevant
Purpose(Blue Ocean)
* ZAG, Marty Nuemeier + Blue Ocean Strategy, HBR 2004
Entertain and provide content that people can use, influence,
adopt and adapt.
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.
>
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
>
Do things for consumers, and enable consumers to do
things for others.
Give customers a role in helping the brand succeed, allow them to participate and they will advocate.
PROPAGATELight the fuse.
2)
Copyright © 2007 22squared
PROPAGATION PLANNING
Plan not for the people we reach, but for the people that they reach
Copyright © 2007 22squared
Early Majority Early AdoptersInnovators Late Majority Laggards
Broadcast Media: targets the majority
Copyright © 2007 22squared
Early Majority Early AdoptersInnovators Late Majority Laggards
Broadcast Media: targets the majority
Propagation:Spreadable content
Copyright © 2007 22squared
CREATIVESTIMULUS
1)
ImagesAudio AssetsVideo Assets
ProductBrand
What can we share that is interesting?
Plan for the content you don’t have.
Propagation Process
AdSpace Pioneers (Reworked) by Griffin Farley
CREATIVESTIMULUS
MARKETINTELLIGENCE
Identify Fan CulturesUncover Connection
& Dialogue Points
1) 2)
ImagesAudio AssetsVideo Assets
ProductBrand
What can we share that is interesting?
Plan for the content you don’t have.
What innovator/ earlyadopter tribe can we
connect with?
Propagation Process
AdSpace Pioneers (Reworked) by Griffin Farley
CREATIVESTIMULUS
MARKETINTELLIGENCE
Identify Fan CulturesUncover Connection
& Dialogue Points
1) 2) 3)
IDEAPROPAGATION
Blogger OutreachTribe MobilizationPublic Relations
ImagesAudio AssetsVideo Assets
ProductBrand
What can we share that is interesting?
Plan for the content you don’t have.
What innovator/ earlyadopter tribe can we
connect with?
How do we share the idea?
How do we get fans to work for us?
Propagation Process
AdSpace Pioneers (Reworked) by Griffin Farley
CREATIVESTIMULUS
MARKETINTELLIGENCE
Identify Fan CulturesUncover Connection
& Dialogue Points
1) 2) 3) 4)
IDEAPROPAGATION
Blogger OutreachTribe MobilizationPublic Relations
PARTICIPATORYPLATFORM
YouTube UploadsWebsiteMobileBlog
ImagesAudio AssetsVideo Assets
ProductBrand
What can we share that is interesting?
Plan for the content you don’t have.
What innovator/ earlyadopter tribe can we
connect with?
How do we share the idea?
How do we get fans to work for us?
Build the platformand feed it with
interesting content.
Propagation Process
AdSpace Pioneers (Reworked) by Griffin Farley
CREATIVESTIMULUS
MARKETINTELLIGENCE
Identify Fan CulturesUncover Connection
& Dialogue Points
FEEDBACKPOINTS
Email AccountsVoicemailFacebookMySpace
1) 2) 3) 4) 5)
IDEAPROPAGATION
Blogger OutreachTribe MobilizationPublic Relations
PARTICIPATORYPLATFORM
YouTube UploadsWebsiteMobileBlog
ImagesAudio AssetsVideo Assets
ProductBrand
What can we share that is interesting?
Plan for the content you don’t have.
What innovator/ earlyadopter tribe can we
connect with?
How do we share the idea?
How do we get fans to work for us?
Build the platformand feed it with
interesting content.
Monitor thefeedback andparticipation.
Propagation Process
AdSpace Pioneers (Reworked) by Griffin Farley
FOR MORE ... GO HEREPropagationplanning.com
A blog by Gri"n Farley
Sr. Planner @ 22squared
ENGAGEEngage: Right time, right place, right context
3)
Copyright © 2007 22squared
Define your target and their best relationship with the brand
Copyright © 2007 22squared
Find the best times to engage with them
Copyright © 2007 22squared
Determine the value the brand can add to their life during that time
Copyright © 2007 22squared
Determine the ultimate action the brand will take
Copyright © 2007 22squared
Identify the best channels
Copyright © 2007 22squared
Creatively use the channel to make a connection and encourage conversation
Copyright © 2007 22squared
Copyright © 2007 22squared
IN
a nutshell
Friendship Model
Be of service
Engage more than reach
Plan for propagation
Copyright © 2007 22squared
Change your role
Act more than communicate
Build conversation momentum
IN
a nutshell
THANK YOU
About 22squared22squared: 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 | [email protected]