the power of crowds

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  • December 8, 2015

    The Power of Crowds

  • To follow the conversation on Twitter, use #TracxCrowds

    Conversation Analysis

  • Reinhardt Schuhmann, Product Manager, Tracx

    Conversation Analysis

  • Identifying Crowdsourcing

  • What is it?

    Crowdsourcing is defined as soliciting contributions from large crowds

    It has been around for many years, and has evolved along with technology

    One of the most powerful platforms for crowdsourcing is social media

    Identifying Crowdsourcing

  • Before The Internet

    1714 - The Longitude Prize The British Government offered the

    public a monetary prize to come up with a method for measuring a ships longitude. John Harrison succeeded.

    1884 The Oxford English Dictionary Created from an open call for

    volunteers to contribute words in the English language with quotations that included examples of their usage.

    Early Examples of Crowdsourcing

  • The Internet has led to an explosion of crowdsourcing opportunities.

    Open source software paved the way for the types of crowdsourcing we see today

    Starting in 1991, Linus Torvalds crowdsourced much of the architecture behind the Linux OS, which now powers roughly 40% of the worlds servers.

    Widespread Internet adoption, in particular social media, has eroded the barriers to organizing without organizations.

    Clay Shirky, Here Comes Everybody: The Power of Organizing Without Organizations.

    Crowdsourcing Today

  • Deeply impacts research and development Businesses better understand the needs of their

    customers Cuts costs and breeds innovation

    Crowdsourcing Purposes

  • A group of people gets a higher sense of belonging and becomes more active if it works together on achieving a task

    Individuals within a group feed off each others energy and conversation, sparking engagement and the free flowing of ideas

    Diverse minds do better than expert minds when their decisions are averaged*

    Why Crowdsource

    *In groups of 40 or more, the crowd response is better than 99% of participants. http://www.wired.com/insights/2014/01/crowdsourcing-2014-great-power-comes-great-responsibility/

  • Various types of Crowdsourcing

  • Crowdfunding What is it? Crowdfunding is the result of

    many people funding a project with small amounts of money

    Kickstarter, a popular crowdfunding platform, is a main benefactor to the arts; 50% of projects have been successfully funded

    Crowdfunding platforms leverage human desires to participate in a common goal, and reduce the costs associated with making a concept a reality.

    Types of Crowdsourcing

  • Crowdfunding Examples The ALS Associations Ice Bucket Challenge; results: In six weeks, they raised

    $112 million in donations, and over the course of one year, they amassed $2.5 million

    The movie Veronica Mars was the one of the highest grossing crowdfunded projects with a goal of $2 million; results: 91,585 backers pledged over $5.5 million

    Types of Crowdsourcing

  • Crowd Advertising

    What is it? Sourcing an audience for TV spots or

    creative for print ads, among other forms of advertising or campaigns with video

    Examples: Pepsi and Doritos, Super Bowl commercials

    Gives full creative control to the audience

    Cost-saving tactic Greatly engages audience/fans/

    customers

    Types of Crowdsourcing

  • Crowd Coding What is it? Crowdsourcing a coder community for help to solve problems Harvard Clinical and Translational

    Science Center collaborated with Topcoder

    They crowdsourced coding that its own scientists were challenged with

    Results: 122 solvers each submitted a viable solution

    Many of the solutions outdid the ones developed by Harvard scientists & the National Institutes of Health

    Types of Crowdsourcing

  • Crowd Labor

    What is it? Breaking down unwanted tasks into smaller, micro-tasks, such as data entry, transcribing, and taking surveys Pairs businesses with requesters who

    compete for tasks at a defined price and time frame

    Connects the collaborative nature of the Internet

    Types of Crowdsourcing

  • Crowd Labor Examples

    Fiverr: Sources digital tasks such as logo design, and other graphics-oriented jobs for only five dollars each

    CNNs iReport: Citizen engagement program in which people submit local news (images, text, and video) and happenings through utilizing #iReport

    Creatives like writers are becoming fed up with the low pay, yet there are still many who participate

    Types of Crowdsourcing

    The value of transactions over platforms such as car services Lyft and Uber, grocery delivery service Instacart, courier service Postmates, and others could grow as large as $10 billion this year, reveals reporter Sarah Kessler on Fast Companys website.

  • Crowdsourcing: Whos Doing it Right?

  • Whos Doing it Right?

    Successful Crowdfunding

    Starbucks: mystarbucksidea.com The platform allows for customers to work

    with Starbucks employees called Idea Partners, and polls them for feedback on existing products or new product ideas

  • Whos Doing it Right?

    Successful Crowdfunding

    IBM: used the incentive of money to get their employees to vote for ideas based on their donations (money allocated from different departments) After applying the principle to various departments, they amassed an

    enormous amount of data. Crowdsourcing has become a core strategy at IBM

  • Whos Doing it Right?

    Successful Crowdfunding

    UBER: a form of crowd labor, the Uber platform is a simple and easy to use mobile application that allocated drivers and their cars for a taxi service UBER doesnt actually own their assets Anyone with a drivers license and a

    car can apply to be a driver (they are then vetted)

    Customers are charged on their credit card, avoiding any cash exchange and saving time

  • Whos Doing it Right?

    Successful Crowdfunding

    airbnb: sources crowds in over 190 countries to offer their home for rent, in lieu of a hotel for travelers Pairs travelers and hosts, who earn extra income; travelers benefit by staying in

    comfortable homes and interacting with locals 1.2 million listings and growing, the company has served over 35 million

    travelers

  • Leveraging Social Data for Crowdsourcing

  • Leveraging Social Data

    Crowds already exist; businesses dont necessarily need to create crowdsourcing campaigns

    Mining existing information as opposed to seeking it out is an option Existing information such as social data can reveal powerful intelligence

    through the use of a social management and monitoring platform

    How its Done

  • Leveraging Social Data

    Monitoring social media conversations, reviews and comments can help discover answers to questions that brands are asking about how their

    customers use their product(s) and what can be better about it.

  • Crowd Insights

    What is it? Mining crowd data to learn valuable information about a group. Made possible by the rise of digital and

    social technology Rather than ask the crowd to provide a

    specific answer or result, this process seeks to learn new things from the crowds organic activity.

    Data analyzed can be conversational, behavioral, or related to how people organize and connect.

    A New Type of Crowdsourcing

  • Leveraging Social Data

    Social data allows businesses to measure messaging and ad performance helps marketing to determine the efficacy of its efforts

    New product ideas and feedback can be applied through social data analysis and

    insights

  • Leveraging Social Data

    Applying social data can help businesses identify missed opportunities, which can reveal how they are faring compared to the competition

    Through sentiment analysis from social data, consumer preferences can be measured

    Social data goes beyond being a marketing tool, and should fall into the hands of research and development teams as well as product managers

  • Is Crowdsourcing Right for All?

  • Right for All?

    Having a problem that cannot be solved internally? A need to create a buzz? Working against the clock? Are looking for diversity in ideas? Have budget constraints?

    Questions to Ask

  • How to Approach Crowdsourcing

  • How?

    Dedicate resources Work with a trusted partner Stay humble the crowd may have better ideas Choose an appropriate and relevant audience

  • How?

    Understand your audience to motivate participation Use video or imagery to capture the crowds attention If possible, offer an incentive monetary or otherwise Be sure your task and goal are clearly conveyed Give feedback as the crowd submits responses stay engaged

  • Q & A

  • Thank you www.tracx.com info@tracx.com

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