Netnography - Insights2.0 derived from Online-Communities

1. NETNOGRAPHY Insights2.0 derived from Online-Communities Steffen Hück HYVE Innovation Research Lab

2. NETNOGRAPHY WHY you should listen to online conversations

3. WHY you should LISTEN to ONLINE CONVERSATIONS MARKETS are CONVERSATIONS CONSUMERS are EMPOWERED CONSUMERS are CREATIVE COMMUNITIES are EVERYWHERE COMMUNITIES are TRIBES

4. MARKETS are CONVERSATIONS Information Product Seeking reviews WOM Buying Decisions Complaints Recommendations Brand Ambassadors ONLINE enables CONVERSATIONS that were NOT POSSIBLE BEFORE See: The Cluetrain Manifesto: The End of Business as Usual, by Christopher Locke, Rick Levine, und Doc Searls

5. CONSUMERS are EMPOWERED creative & smart create knowledge create media create stars create brands powerful vs. fight brands criticize brands support b(r)ands own brands critical & innovative discuss/review products unmask product lies co-create products modify/create products SOCIAL MEDIA supports KNOWLEDGE, CREATIVITY & POWER

6. CONSUMERS are CREATIVE VARIOUS INNOVATIONS developed at first by CREATIVE CONSUMERS Several studies document the innovative potential of consumers Herstatt & von Hippel 1992; von Hippel 1986; 2001; Shah 2000; Franke & Shah 2001; Franke 2001; Lüthje 2001; Thomke & von Hippel 2002; ...

7. COMMUNITIES are EVERYWHERE ONLINE COMMUNITIES exist for nearly every IMAGINABLE INTEREST

8. COMMUNITIES are EVERYWHERE 2,081,357 Members 1,454,706Members 1,347,454 Members 1,346,681 Members 722,714 Members 615,725 Members 550,000 Members 531,905 Members 398,456 Members 362,928 Members 356,457 Members 351,779 Members 256,964 Members 233,910 Members 222,370 Members 226,124 Members 196,714 Members 197,517 Members 209,240 Members 209,191 Members 187,433 Members 186,920 Members 180,462 Members 174,784 Members 173,941 Members ONLINE COMMUNITIES exist for nearly every IMAGINABLE INTEREST

9. COMMUNITIES are TRIBES TRIBES are ENTREPRENEURS degree of market annexation TRIBES are TRIBES are DOUBLE AGENTS PLUNDERERS TRIBES are ACTIVATORS degree of market appropriation CONSUMERS TRIBES are groups of people sharing a COMMON PASSION See: Consumer tribes, by B Cova, R Kozinets, A Shankar

10. NETNOGRAPHY HOW we see netnography and research 2.0

11. NETNOGRAPHY: context and theoretical touchpoints METHODOLOGY content analysis and text mining METHODOLOGY METHODOLOGY ethnography and narrative interviews observational research and storytelling THEORY THEORY virtual communities grounded theory and and consumer tribes cultural anthropology THEORY open innovation and co-creation

12. NETNOGRAPHY: our understanding NETNOGRAPHY [interNET & ethNOGRAPHY] is a QUALITATIVE and EXPLORATIVE research approach to analyze the CONSUMER DIALOGUE in ONLINE COMMUNITIES in order to gain UNBIASED CONSUMER INSIGHTS. The EMPATHIC and NON-OBTRUSIVE online OBSERVATION and LISTENING allows a DEEP UNDERSTANDING of explicitly verbalized and implicitly existing NEED- and SOLUTION-INFORMATION of highly INVOLVED CONSUMERS. NETNOGRAPHY is a great approach for consumer-centric (open) INNOVATION and COCREATION. Conducted by INTERDISCIPLINARY project teams of RESEARCHERS and DESIGNERS the derived insights are directly TRASNFERED into initial PRODUCT SOLUTIONS for the EARLY STAGES of the innovation process. Systematic LISTENING to online CONVERSATIONS of highly involved CONSUMERS

13. NETNOGRAPHY: interNET & ethNOGRAPHY foreign cultures ethnography urban subcultures trendscouting modern consumer tribes nethnography MODERN CONSUMER TRIBES can be observed within ONLINE COMMUNITIES

14. NETNOGRAPHY: observation and listening observe-and-listen research unobtrusive explorative Less-biased Fresher Insight Insight FRESHER & LESS-BIASED INSIGHTS with NETNOGRAPHY

15. NETNOGRAPHY: qualitative research understanding UNDERSTANDING READING before before MEASURING COUNTING INDUCTIVE DETAILED before before DEDUCTIVE AGGREGATED Real CONSUMER UNDERSTANDING requires INDUCTIVE RESEARCH and CONTEXT

16. NETNOGRAPHY: explorative research design testing research explorative research  pre-structured study designs  flexible study designs  deductive research approach  inductive research approach  sequential research process  circular research process

17. NETNOGRAPHY: deep understanding („Thick Descriptions“) In anthropology and other fields, a “thick description” of a human behavior is one that explains not just the behavior, but its context as well, such that the behavior becomes meaningful to an outsider. Exploring the DIFFERENCES between a TWITCH and a WINK WORDS & STORIES tell more than NUMBERS Interpreting SIGNS to gain their MEANING within the COMMUNITY Geertz, Clifford. "Thick Description: Toward an Interpretive Theory of Culture". In The Interpretation of Cultures: Selected Essays. (New York: Basic Books, 1973) 3-30.

18. NETNOGRAPHY: analysis of highly involved consumers

19. NETNOGRAPHY: gaining insight into need- & solution-information Solution Information Solution for Company Level 4 Solution Principle or Method Level 3 Need Information Problem / Desire; Disadvantage / Advantage; Satisfaction / Dissatisfaction; Experience Level 2 Motivation / Needs; Attitudes; Buying & Consumption Behavior Level 1

20. NETNOGRAPHY: conducted by interdisciplinary teams Solution Information Solution Creative for Company Open Level 4 Solution-oriented Solution Principle or Method Level 3 Need Information Problem / Desire; Disadvantage / Advantage; Satisfaction / Dissatisfaction; Experience Analytical Level 2 Structured Need-oriented Motivation / Needs; Attitudes; Buying & Consumption Behavior Level 1

21. NETNOGRAPHY: conducted by interdisciplinary teams Analytical Creative Structured Open Need-oriented Solution-oriented Human-centred Innovation consumer driven Need- & Solution Information See: Human-Centred Innovation Presentation on Slideshare or ESOMAR Qualitative 2009 Paper

22. NETNOGRAPHY HOW we listen to community conversations

23. NETNOGRAPHY: Systematic listening to online conversations Research Community Community Data Analysis Product Definition Selection Observation and Insights Solutions 1 2 3 4 5 Key Word Community Initial Coding Innovation Brainstorming Definition Observation Structure Fields Community Discussion Qualitative Content Creative Desk Research Identification Selection Analysis Workshop (Coding-Report) Topic Community Discussion Initial Consumer Insights Dimensions Selection Download Solutions (Presentation) (Mindmap) (Community-List) (Text-Files) (Presentation)

24. NETNOGRAPHY: main CHALLENGES and TASKS 1 2 IDENTIFY LISTEN valuable consumers for your company to unbiased consumer conversations 5 TRANSFER insights into initial solutions 4 3 UNDERSTAND EXPLORE culture and language of consumers the hot topics of involved consumers

25. NETNOGRAPHY: IDENTIFY valuable consumers for your company Quantitative Filter Qualitative Filter Profile-Analysis • Number of Posts • Involvement • Network Centrality (Reach) • Replies & Views on User’s Posts • Expertise • Socio demographics • Frequency of Posting (per week) • Reputation • Interests • Share of voice • Topic Leadership •… •… •… ALL Users ACTIVE Users INNOVATIVE Users

26. NETNOGRAPHY: LISTEN to unbiased consumer conversations spontaneous & unreflected implicit & emotion synchronous interaction special rooms with a “mirror” in research institutes & test studios Focus Groups artificial natural biased unbiased research conversation & forced & involved situation situation natural occurring conversations in forums, social networks & blogs NetnographyInsights© asynchronous interaction explicit & cognition time-delayed & content-rich

27. NETNOGRAPHY: EXPLORE the hot topics of involved consumers Insight 1 Insight 2 Insight 4 Insight 3 Insight 6 Insight 5

28. NETNOGRAPHY: UNDERSTAND culture & language of consumers Implication Essence (Ideas & Actions) (Surprise & AHA Effect) Insights2.0 Framework Understanding Relevance (Causality & Context) (Problem & Opportunity)

29. NETNOGRAPHY: UNDERSTAND culture & language of consumers

30. NETNOGRAPHY: TRANSFER insights into initial solutions Essence Consumer Insight Benefit Reason to Believe Character

31. NETNOGRAPHY: TRANSFER insights into initial solutions

32. NETNOGRAPHY: TRANSFER insights into initial solutions Insights Fields of innovation Possible Solutions Innovation Field Innovation Field Innovation Field Innovation Field

33. Netnography HOW we listened to „sunless tannig“ community conversations

34. NETNOGRAPHY – online communities as source of innovation Objectives and Definition of Research Field  Learn what INFLUENCES her  Learn how she THINKS  See the WORLD through her EYES  Know her daily RITUALS and HABITS of usage  Hear WHAT she SAYS and HOW she SAYS it  Understnad the PERSON not only single BODY PARTS  Learn what DRIVES her  Know what she LIKES/DISLIKES and how she encounters PROBLEMS  Consider her INNOVATIONS

35. NETNOGRAPHY – online communities as source of innovation

36. NETNOGRAPHY – online communities as source of innovation Threads Posts Members Activity Index Posts/Members-Ratio 53.702 964.035 9.086 106 n/a 427.273 ~ 5.000 85 147.783 1.399.971 6.129 228 n/a 2.390.463 n/a ~ 30 422.828 2.539.801 292.425 9 10.493 127.946 16.213 8

39. NETNOGRAPHY – online communities as source of innovation Cosmetic applicators Professional tanning booth „mystic tanning“ Adjustable professional airbrush pistol

40. NETNOGRAPHY – online communities as source of innovation Tanning Desasters S: MY GOD!!!!!!!! THIS SOOOOOOOOOO HAPPENED TO ME!!!! i absalutely HATE the jergens natural glow now. my neck was sooo blotchy and my dad told me i looked like i had a skin disease!!!!!!! it was impossible to scrub off the remaining parts!! i scrubbed and scrubbed at my neck with a lufa until my skin was red but the blotches still wouldnt come off!!! i ALSO have the jergens natural glow for the face(which was the biggest waste of money) because ya! i would apply it before iwent to bed and the next morning-NOTHING!! it didnt even work and it stunk horribly and gave me a stuffy nose!! i will NEVER use this line again!!!!!! TanSweetHrt4Hi Source: www.iamtan.com Challenge of De-Tanning Q: I know we talked about this a little while ago, but I tried using nail polish remover to make sure the corners of my nails didn't get orange, but it didn't work. Normally I just clip my nails really short so if there is discoloration you can't really tell that much, but it's really starting to bug me. The nail polish remover is acetone free... does that make a difference? Source: www.iamtan.com Jamie A

41. NETNOGRAPHY – online communities as source of innovation Challenge of De-Tanning … Tanning Desasters …

42. Netnography You want to know more about doing research 2.0?

43. „MUST READS“ for netnographers and open-minded marketers

44. Check out presentations & interviews of netnography08 conference http://www.netnographyinsights.com 2008

45. Share your thoughts on netnography with me Steffen Hück Project Manager Innovation Research HYVE AG www.hyve.de steffen.hueck@hyve.de twitter.com/netnoblography netnography.wordpress.com

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