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The Dawning of a
New Era?
    In year 20 of the Internet as we
    know it, we see the rise of a
    whole new world. It's a world of
    exploding connectivity — which
    sounds great for marketers.
    But this world was built for
    people, not brands.
    Is your brand on Facebook,
    on Twitter? Are you happy
    with what you get?
    The opportunity is said to be
    huge. But what is it? We
    suggest it's: Sharing Surplus.
He, Look at Me!
I'm the Brand that
Makes You Happy.
     Brands want to stand out from
     the competition and connect
     with consumers. That's their
     job. And their job description
     doesn't change just because
     people find new ways to
     connect — unless they change
     the rules of the game.
     Are social media a game
     changer for brands?
     Books have been written about
     the "new rules" in the "network
     economy". What's the reality?
The Broken
Economies of the
Star-Brand
System.
    Brands used to connect with
    consumers via one-way media.
    And still today, nothing reaches
    hearts and minds more
    effectively than a benefit drama
    in technicolor. But the costs of
    staging the drama and
    maintaining consumer's interest
    keep rising.
    Can social media fill the gap
    between what brands need
    to do and what they can
    afford?
Hello, I'm Your
Consumer.
I Don't Want to Be
a Target.
     "Markets are conversations"
     opened the Cluetrain Manifesto
     in 2000. Since then, social
     media have given consumers
     an even stronger arm over
     brands and their policies.
     Do brands have to be in
     social media to open the
     consumer dialogue?
     Turns out, people don't have so
     much to talk with brands —
     and social media might just be
     the new service hotline…
The Strategy of the
Clueless
Cosmonaut.
     We are all like clueless
     cosmonauts, teleported into an
     unknown corner of the space-
     time-continuum.
     At this moment, trying to
     understand the grand
     design might not make us fit
     for survival.
     Right now, it is more important
     to check the oxygen supply —
     or selfishly ask: what's essential
     for the survival of my brand?
     And can I find some of it in
     social media?
Brand Essential 1:
Quality.
(Since 3000 BC)
     Trust marks must be as old as
     our civilization. Specimen of
     quality branding can be found
     from the rubbles of Babylon
     and Pompeji to the Golden Age
     of Madison Avenue.
     Today, after Kaizen and Six
     Sigma, however, quality
     appears like a problem
     solved.
     But consumer expectations go
     far beyond "doesn't break"
     now. Their idea of quality now
     is built-in excitement.
Brand Essential 2:
Position.
(Since 1950)
     The late 20th century brought
     moderate wealth to all — and a
     new challenge for brands:
     hyper competition.
     As a response, marketers
     looked to gain competitive
     advantage by better
     understanding the psychology
     of buying.
     "Consumer insight" became
     a brand's most valuable
     asset.
     This is where most brands are,
     today.
Brand Essential 3:
Sharing.
(Since 2001)       NE W
     Actually, it is not true. People have
     talked about brands, used them
     to demonstrate who they are or
     aspire to be, long before the
     Internet and social media.
     Brands have always been part
     of our "Social Graph" (as Mark
     Zuckerberg calls it).
     But the importance of sharing has
     grown in proportion with our
     technical reach. Where once one
     person's good- or bad-mouthing
     of a brand only reached a few
     mates in the pub, it can have
     global repercussions now.
The Rocket Science
of Branding.
    So we have three levels of
    branding: the functional (Quality);
    the psychological (Position); and
    the social (Sharing).
    Of these three levels, marketing is
    most familiar with the first two.
    Therefore, they receive the lion's
    share of attention and budgets.
    The third level, though not as well
    understood, is a missed
    opportunity for one simple reason:
    Since sharing has value for the
    consumer it has economic
    value, too. The question is how
    to convert it.
The New Brand
Value Equation.
 EURO
    On the first two levels of
    branding, we assume that the
    value for the consumer lies
    totally in owning and
    consuming the brand.
    The consumer could be
    alone on an island with the
    brand and its value would
    be the same.
    Very obviously, this is not true.
    An increasing share of a brand
    buyer's R.O.I. comes in the
    shape of social feedback.
Introducing the
Sharing Surplus.
    Why do we call the — not so
    new — reward that consumers
    get from sharing their brand
    choices with others, a surplus?
    Because, before the arrival of
    social media, it was only
    available to show-off luxury
    labels. And because, through
    the reach of social media, it has
    grown to an economically
    serious size.
    Sharing surplus can create
    windfall value for brands if
    they manage to tap it.
Not All Brands Are
Equally Sociable.
     Not all brands can benefit
     equally from a sharing surplus.
     In some product categories,
     consumers may always prefer
     to keep their choices private.
     But many more brands will be
     positively surprised by the
     willingness of people to placard
     their preferences in the digital
     public.
     It just depends on whether
     the sharing helps them grow
     their own social capital.
Introducing the
Social Capitalist.
     In social media, people — like
     brands — are in the business
     of collecting thumbs-up.
     Nobody will advocate a brand
     in his circle of cynical others if
     the endorsement doesn't earn
     him a social reward. And what
     triggers social rewards is much
     rather an office joke, a funny
     video or just a useful piece of
     inside information, than an ad.
     What brands need to
     critically understand is that
     in social media, brand fame
     comes as a trade-off of user
     fame.
How Can Brands
Help Their
Customers Collect
Social Rewards?
    Brands can leverage the power
    of social media only indirectly:
    by providing that users who
    share brand-related messages
    with their peers will get positive
    feedback.
    Before starting to plan a social
    media strategy, we should have
    a better understanding of the
    nature of social reward and
    of the ways in which brands
    can trigger it.
Social Capital in
Four Flavours.
     When you look at it from a
     bird's eye perspective, there
     are only four kinds of social
     reward that people can get —
     and that brands can help them
     getting.
     What flavor of reward your
     brand dispenses is not simply a
     matter of your choosing. It
     depends on the nature of the
     relationship that your brand has
     with its customers.
     So the key question is: what
     flavor of reward can your
     brand help consumers to
     win from their peers?
The Social Profile
of a Brand.
     What kind of social reward your
     brand dispenses depends on
     how it relates to its customers.
     Underlying every relationship
     are 2 dimensions:
     1. The power dimension:
     Is the brand in a dominant, or a
     supportive role for the user?
     2. The emotional dimension:
     Is the relationship colored by
     emotions, or purely rational?
     The key question guiding a
     Social Brand Strategy is:
     What is the role of your
     brand in the relationship
     with its customers?
A Navigation System
for the Clueless
Cosmonaut.
    The relationship perspective
    provides us with a basic grid for
    navigating the confusing world of
    social media.
    The grid may be simplistic. But it
    lends structure to the planning
    process and helps master some
    avoidable pitfalls.
    Social media planning will still
    be trial and error — but with
    much less error.
The Dawning of
the Social Brand
    The future is bright for brands
    that manage to earn their
    Social Surplus. Customers,
    investors and talented
    employees are gathering
    around brands that are good
    company.
    Great ideas are and will be
    the heart and soul of great
    brands. – But social skills
    are their hands and feet.
Is Your Brand
Ready for the
Conversation?
Really?!
    Are you ready for a meaningful
    conversation with dozens,
    hundreds, maybe thousands of
    involved consumers?
    For significant investments
    without immediate measurable
    returns?
    For giving away control, in
    exchange for endorsement by
    anonymous web crowds?
Sharing Surplus: The Brand is a Social Animal

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Sharing Surplus: The Brand is a Social Animal

  • 1.
  • 2. The Dawning of a New Era? In year 20 of the Internet as we know it, we see the rise of a whole new world. It's a world of exploding connectivity — which sounds great for marketers. But this world was built for people, not brands. Is your brand on Facebook, on Twitter? Are you happy with what you get? The opportunity is said to be huge. But what is it? We suggest it's: Sharing Surplus.
  • 3. He, Look at Me! I'm the Brand that Makes You Happy. Brands want to stand out from the competition and connect with consumers. That's their job. And their job description doesn't change just because people find new ways to connect — unless they change the rules of the game. Are social media a game changer for brands? Books have been written about the "new rules" in the "network economy". What's the reality?
  • 4. The Broken Economies of the Star-Brand System. Brands used to connect with consumers via one-way media. And still today, nothing reaches hearts and minds more effectively than a benefit drama in technicolor. But the costs of staging the drama and maintaining consumer's interest keep rising. Can social media fill the gap between what brands need to do and what they can afford?
  • 5. Hello, I'm Your Consumer. I Don't Want to Be a Target. "Markets are conversations" opened the Cluetrain Manifesto in 2000. Since then, social media have given consumers an even stronger arm over brands and their policies. Do brands have to be in social media to open the consumer dialogue? Turns out, people don't have so much to talk with brands — and social media might just be the new service hotline…
  • 6. The Strategy of the Clueless Cosmonaut. We are all like clueless cosmonauts, teleported into an unknown corner of the space- time-continuum. At this moment, trying to understand the grand design might not make us fit for survival. Right now, it is more important to check the oxygen supply — or selfishly ask: what's essential for the survival of my brand? And can I find some of it in social media?
  • 7. Brand Essential 1: Quality. (Since 3000 BC) Trust marks must be as old as our civilization. Specimen of quality branding can be found from the rubbles of Babylon and Pompeji to the Golden Age of Madison Avenue. Today, after Kaizen and Six Sigma, however, quality appears like a problem solved. But consumer expectations go far beyond "doesn't break" now. Their idea of quality now is built-in excitement.
  • 8. Brand Essential 2: Position. (Since 1950) The late 20th century brought moderate wealth to all — and a new challenge for brands: hyper competition. As a response, marketers looked to gain competitive advantage by better understanding the psychology of buying. "Consumer insight" became a brand's most valuable asset. This is where most brands are, today.
  • 9. Brand Essential 3: Sharing. (Since 2001) NE W Actually, it is not true. People have talked about brands, used them to demonstrate who they are or aspire to be, long before the Internet and social media. Brands have always been part of our "Social Graph" (as Mark Zuckerberg calls it). But the importance of sharing has grown in proportion with our technical reach. Where once one person's good- or bad-mouthing of a brand only reached a few mates in the pub, it can have global repercussions now.
  • 10. The Rocket Science of Branding. So we have three levels of branding: the functional (Quality); the psychological (Position); and the social (Sharing). Of these three levels, marketing is most familiar with the first two. Therefore, they receive the lion's share of attention and budgets. The third level, though not as well understood, is a missed opportunity for one simple reason: Since sharing has value for the consumer it has economic value, too. The question is how to convert it.
  • 11. The New Brand Value Equation. EURO On the first two levels of branding, we assume that the value for the consumer lies totally in owning and consuming the brand. The consumer could be alone on an island with the brand and its value would be the same. Very obviously, this is not true. An increasing share of a brand buyer's R.O.I. comes in the shape of social feedback.
  • 12. Introducing the Sharing Surplus. Why do we call the — not so new — reward that consumers get from sharing their brand choices with others, a surplus? Because, before the arrival of social media, it was only available to show-off luxury labels. And because, through the reach of social media, it has grown to an economically serious size. Sharing surplus can create windfall value for brands if they manage to tap it.
  • 13. Not All Brands Are Equally Sociable. Not all brands can benefit equally from a sharing surplus. In some product categories, consumers may always prefer to keep their choices private. But many more brands will be positively surprised by the willingness of people to placard their preferences in the digital public. It just depends on whether the sharing helps them grow their own social capital.
  • 14. Introducing the Social Capitalist. In social media, people — like brands — are in the business of collecting thumbs-up. Nobody will advocate a brand in his circle of cynical others if the endorsement doesn't earn him a social reward. And what triggers social rewards is much rather an office joke, a funny video or just a useful piece of inside information, than an ad. What brands need to critically understand is that in social media, brand fame comes as a trade-off of user fame.
  • 15. How Can Brands Help Their Customers Collect Social Rewards? Brands can leverage the power of social media only indirectly: by providing that users who share brand-related messages with their peers will get positive feedback. Before starting to plan a social media strategy, we should have a better understanding of the nature of social reward and of the ways in which brands can trigger it.
  • 16. Social Capital in Four Flavours. When you look at it from a bird's eye perspective, there are only four kinds of social reward that people can get — and that brands can help them getting. What flavor of reward your brand dispenses is not simply a matter of your choosing. It depends on the nature of the relationship that your brand has with its customers. So the key question is: what flavor of reward can your brand help consumers to win from their peers?
  • 17. The Social Profile of a Brand. What kind of social reward your brand dispenses depends on how it relates to its customers. Underlying every relationship are 2 dimensions: 1. The power dimension: Is the brand in a dominant, or a supportive role for the user? 2. The emotional dimension: Is the relationship colored by emotions, or purely rational? The key question guiding a Social Brand Strategy is: What is the role of your brand in the relationship with its customers?
  • 18. A Navigation System for the Clueless Cosmonaut. The relationship perspective provides us with a basic grid for navigating the confusing world of social media. The grid may be simplistic. But it lends structure to the planning process and helps master some avoidable pitfalls. Social media planning will still be trial and error — but with much less error.
  • 19. The Dawning of the Social Brand The future is bright for brands that manage to earn their Social Surplus. Customers, investors and talented employees are gathering around brands that are good company. Great ideas are and will be the heart and soul of great brands. – But social skills are their hands and feet.
  • 20. Is Your Brand Ready for the Conversation? Really?! Are you ready for a meaningful conversation with dozens, hundreds, maybe thousands of involved consumers? For significant investments without immediate measurable returns? For giving away control, in exchange for endorsement by anonymous web crowds?