harvard business review

This Week in Social: How Google+ is Winning (and Losing), Foursquare Launches Tip Lists

LinkedOut: Another Social Network Opt-Out Draws Fire - WSJ It seems that privacy questions about social-networking sites are the new black. This time, some customers are expressing concern about LinkedIn, the job-networking site that had its IPO last month. At issue, a two-month-old site tweak that can turn members from ordinary career networkers into brand cheerleaders with their profile photo and name popping up in related advertising.

Social Media Hierarchy of Effects and ROISocial Media Today

We all know that Brand Advocates are actively promoting your brand to their network, but how did they get there? This article explains the hierarchy, or the funnel, of the social network and its effects.  If a brand nurtures the relationship through the stages in the funnel then hopefully they find a Brand Advocate who can help with positive ROI.

Foursquare Gets into the Crowdsourced Curation Game With Tip Lists - TechCrunch

Up until now your Foursquare Tips have sort of roamed free on the app, without rhyme or reason or real incentive to add more. The company is now trying to improve on the Tips experience and get users to fancy themselves local experts. After all, you must know something about some place in the city you live in right?

6 Ways Google+ is Winning (and Losing) - AdAge

PepsiCo’s Shiv Singh, shares the pro’s and cons of Google+. He’s still trying to figure out if this network will become an add-on or a replacement to his current digital habits. To him, Google+ has the best of Facebook and the best of Twitter you have the ability to broadcast and select closed groups who should receive that broadcast. So is it meant to be a bridge between the two but do we really need that?

Restaurant Groupies Are Valuable to Companies - Star-Telegram

Call it fanaticism or simply dedication, but these are the ultra-enthusiastic fans that every restaurant craves. Restaurant groupies have always been around, but they're more valuable at a time when the economy forces consumers to choose carefully when they eat out, and a few online posts can inform thousands.

-Cara Fuggetta, Marketing Manager, Zuberance

Marketers are Spending Money in All the Wrong Places

Have you seen the cover story of Harvard Business Review’s latest issue? It was all about…you guessed it…brand advocacy!

It's called, “Branding in the Digital Age: You’re Spending Your Money in All the Wrong Places” by David C. Edelman (Principal, McKinsey & Company.)

The article highlights the “consumer decision journey” (CDJ), developed by David Court (McKinsey & Company) from studying purchase decisions of about 20,000 consumers across five different industries and three continents.

Four Stages of the “consumer decision journey”:

  1. Consider- consumer considers products/brands attributed to various stimuli (exposure to ads or store displays, encounter at a friend’s house, etc)
  2. Evaluate- consumer seeks input from peers, review sites, retailers, and the brand/competitors to the brand
  3. Buy- consumers often put off a purchase decision until they’re actually in the store, making placement, packaging, pricing, etc very important
  4. Enjoy, advocate, bond- when pleased with the purchase, consumers will advocate the product/brand by recommending it to others. As the bond between the consumer and brand becomes stronger, consumers will enter an “enjoy-advocate-buy” loop that skips the consider and evaluate stage

David Edelman makes a critical point: The traditional sales funnel is outdated; it ignores the enjoy-advocate-bond stage and the shifting nature of consumer engagement in general. People like to talk about products and brands- they write reviews, create testimonials, recommend products to others, and more. In fact, the average American consumer discusses brands 56 times per week; 62% of these discussions are positive (Keller Fay, 2010.)

But check this out: 70%-90% of marketing budgets go to advertising and retail promotions that hit consumers at the consider and buy stages, yet consumers are often most influenced by the evaluate and enjoy-advocate-bond stages (McKinsey.)

Why aren’t marketers spending money on driving advocacy?