How to brand a destination using Web 2.0

BRANDING IN THE 21st CENTURY

(R)EVOLUTION: How Croatia can move to “Your Brand 2.0”

Nick Wreden, CEOFusionBrand

February 29, 2008

Find • Grow • Measure • Profit

21st CENTURY BRANDING

“The future is here. It’s just not evenly distributed yet.”

-- William GibsonNeuromancer

BRANDS: Short shelf life Average tenure of CMOs at top firms =

22.9 months Average failure rate of brands = 40%, 49%,

54%, 60%, 80% Why??????

Concept of brand = strategic asset well-known Budgets = 1% of sales (insurance) -> 50-60%

of sales (technology) Lots of smart, creative people

BRAND FAILURE: Why? Brands fail largely because companies use concepts, strategies, and

tactics that were suited for 1988, but are doomed to fail in 2008 and beyond.

Creative-driven branding Unmeasureable strategies or concepts “Top-down,” one-size-fits-all marketing

“A name, term, sign, symbol or design, or a combination of these that identifies the goods or services or one seller or group of sellers and differentiates them from those of competitors”.

“The sum of all the images and associations customers have concerning a company”.

“Great brands are born from people who are having fun. Their excitement is reflected in the meaning of the brand”.

“A brand is a long-term profitable bond between an offering & a customer. This relationship is based on economic, emotional and/or experiential value, backed by everyday operational excellence & consistently measured, optimally by customer profitability.”

Marketing Dept.

Mass economy (1920-95)

Customer economy (1996-2008)

Demand economy (2008-??)

“Positioning”

Market research

rocess/integration

Customer databases

Personalization

Real-time enterprises

Marketing dept. Organization Supply chain

“Sell what we make”

“Sell what customers

buy”

“Provide customer

value/solution”

Sales Profitability Relationship depth

Driver:

Metrics:

Product Development

Targeting, “Positioning”

Product Strategy

Pricing Strategy

Promotion Strategy

Place Strategy

Implementation, Monitoring & Control

What two critical branding factors are missing?

Ye Olde Mass Economy

Top -dow

n, corp ora te -dri ve n

BRANDING: Mass market dying

Television

Newspapers

Magazines

Source: Forrester Research

Decreased No change Increased

PC screen

Mobile screen

TV screen

CASE: Mass market vs. customer economyDM acquisition cost = $333/ good account

Source: Netbanker

Puts prospects in charge Yields actionable data Engages prospects

Cost = $30

SUSTAIN VALUE

Improve retention

Increase customer, product & account penetration

Personalize relationships

SENSE VALUE

• Understand competitors

• Sense market trends

• Understand customers

• Identify opportunities

DEFINE VALUE

• Segment customers

• Target profitable segments

• Craft value propositions

• Validate value propositions

REALIZE VALUE

• Develop offerings

• Meet customer demands for economic, experiential, emotion value

• Measure value

Find. Grow. Measure. Profit.

BRANDING: Sign of the times“Marketing is an organi-zational function & a set of processes for creating, communicating, & deli-vering value to custo-mers & for managing customer relationships in ways that benefit the organization & its stake-holders.”-American Marketing Association, 12/07

“Marketing is the activity, set of institutions, & processes for creating, communicating, de-livering, & exchanging offerings that have value for customers, clients, partners, & society at large.”

-American Marketing Association, 1/08

BRANDING EVOLUTION

Mass economy Customer economy Demand economy

“Positioning” Peer-to-peer (P2P) branding

Customer co-creation; customers as innovators

“Brand personality,” “awareness”

Action or SALE! Integration into lives or operations

“Brand equity” Economic, experiential & emotional value

Mass marketing Segmentation Self-segmentation

Advertising/PR/etc Search enginesBanners

Widgets, gadgets/flyers, OpenSocial apps, etc

Acquisition Retention Network ambassadors

Sales Profitability Depth of engagement

Product focus CRM: How a customer looks to company

CEM: (customer experience management) How a company looks to a customer

MEASUREMENT

Metrics Comments

Mass economy

“Brand equity,” “brand personality,” “brand essence,” “position”

Unmeasureable ROI calculation impossible

Satisfaction No standard definition of satisfaction Satisfaction NOT = loyalty

Customer economy

Retention = More sales = Lower acquisition costs = Positive WOM

Customer lifetime value

20% of customers = 80% of profits 15% customers unprofitable

Profit growth Not sales, market share or shareholder growth

MEASUREMENT

Metrics Comments

Demand economy

Engagement value

Customer's knowledge, interest & involvement in category & brand

Number of posts, reviews, feedback

Connection value

Number of contacts. Degree of network involvement

Online & offline social/network activities

Network value

Value of social social/networks involved in (closed or public)

Relevance of network to your brand

Amount of interconnectivity among multiple networks

STRATEGIC BRANDING ALTERNATIVES

Creative-driven branding Data-driven branding

Relates to logos & ads Relates to ads, R&D, sales, operations, supply chains & customer relationships

Lets agency drive strategy Executive management drives strategy

Leverages visuals & messages to increase awareness

Leverages data, segmentation & customer info to increase engagement

Focuses on acquisition Focuses on acquisition & retention

Impact difficult to measure Enables measurement of spending, advertising & other marketing

No customer/prospect insight Insights in customer value, activities, referrals, retention, behaviours, etc.

Competitive advantage = ? Customer relationship is 1 competitive advantage not copied

Only 15% of companies declare data as intangible asset in books Most companies only get less than half of potential data from database

DIGITAL BRANDING EVOLUTION

Web 1.0 Web 2.0

Personal sites Blogs

Encylopedias Wikis

Hits Links

HTML SQL

Hits/Page views Cost per click/action

Downloads Podcasts/Video

Publishing Interactivity

Banners Contextual ads

Email RSS feeds

Search engine optimization Tagging

(R)EVOLUTION: Moving to “YourBrand 2.0”

Mass access

Word/print-centric

“Something for everybody”

Social networks

Video-centric

Customized content (widgets, etc)

Business networks

Knowledge-centric

Timely content

Stakeholder networks

Database-centric

Supply chain integration

INTERNET 1.0: Familiar model

Unitary (1 page, multiple data)

CHARACTERISTICS

Link-oriented

“Pull” information

Product-centric (destinations & events)

Strategy, message, USP unclear

WEB 2.0: Background"Web 2.0 is a knowledge-oriented environment where human interactions generate content that is published, managed and used through network applications in a service-oriented architecture." --IBM

1. “Networks of interest” Facebook, MySpace, etc. Social bookmarking

2. Personalization Personalized portals

“Tagging”

3. Data/content targeting Widgets Landing pages

4. Visualization Video

WEB 2.0 #1: “Networks of interest” Definition: (aka “communities of interest”)

Networks interconnect people who share a common interest or passion in information, activity or interaction undefined by sex, geography, age, etc.

May be interconnected with other networks/ communities (personal, OpenSocial)

Develop “norms” based on shared values/feelings Self-segmentation

UK study: 80% discuss brands Thousands: Facebook, MySpace, Eons,

TeeBeeDee, LinkedIn, Ning (roll-your-own)

Facebook

Viadeo

“6 degrees”

Croatia: MySpace Croatia: Facebook

MySpace (80.74%)

Facebook (10.3%)

Bebo (1.3%)

BlackPlanet (0.9%)

Xanga (0.9%)

iMeem (0.7%)

Yahoo!360 (0.72%)

Classmates (0.72%)

Hi5 (0.7%)

Tagged (0.7%)Hitwise, 3/07

POPULARITY

COMMUNITIES: Social bookmarking Internet 1.0

Directories (Google, Yahoo!, MSN, etc.) organize the Web for you (spiders/algorithms)

Social bookmarking You organize Web for yourself or community

(perceived utility vs. links) Tagging (keywords) Tag cloud: Relative importance (eg popularity)of

hyperlink represented visually Visible to others

http://tagcrowd.com

http://kevin.vanzonneveld.net/ techblog/article/ list_of_social_book marking_sites/

Social bookmark managers

WEB 2.0 #2: “Personalization” Old definition: “Supersite” (Yahoo!, MSN,

AOL) for search, news, email, shopping, map services, chat, etc.

New definition: One-stop shop for personal interests -- “my-portals,” “personalized start pages”

Netvibes, iGoogle, Pageflakes, Webwag, etc. Use of widgets, RSS For individuals or select communitiesMy Yahoo! 2000

WEB 2.0 #2: “Personalization”

Social bookmark

Stock RSS

Self-select community

Tourism Hospitality networkED (THED)

Flickr (photos)

Central file storage

News feed

Personal

21st CENTURY BRANDINGWEB 2.0 #3: Data/content targeting

Widgets: Small, interactive apps for PCs, Web (social networks, blogs, etc), mobile

AKA “gadgets” (Microsoft/Google) & “applications” (Facebook)

Video, game, calculator, sports, stock, etc. Uses RSS feeds

Free, discrete data flow from site 2 site, person to person

Brand & revenue payoffs Can carry links, logos, advertising, be emailed Viral, visibility, traffic, SEO, E-commerce

WIDGETS: Examples

Continuously updated information

Football standings, stocks, weather, product prices, etc.

Multimedia info

Video, Web links, sharing, interactivity, etc.

Webcam

Tourism, security, visual power/proof, etc.

Webcam Widget

Info Widgets

Events Widget

Poll Widget

1.0 SITE -> 2.0 SITE

Tagging!!

DATA/CONTENT TARGET: Landing pages Website page visitors arrive at when

clicking on a link Home page or any other page

Use landing pages To control where people are coming from Better measurement of ads, campaigns, etc. Easier navigation for visitors

Benefits Improve engagement Improves conversions through targeting

LANDING PAGES: Campaigns at work

Not: Fidelity.com

Measurement WITHOUT spiders!

21st CENTURY BRANDINGWEB 2.0 #4: Visualization/Video

Greater interaction with video ads than image ads Study: 8% interaction (Mouseovers, etc.) Doubleclick CTR study:

Image: 0.1-0.2%; Video: 0.4-0.74%

Study: 51% of major US corporations have online video strategy (“vidcasts”) Internal branding (training, corp. strategy, etc.) PR (Video news releases; “white papers”)

(Expertvillage.com, eHow, videojug, viewdo, etc.)

CROATIA 2.0: Strategic outline Existing Web site

Platform for branding Transition to 2.0

Landing pages (LP) Targets niche markets Uses ‘tags’ on pages

Croatia 2.0 communities/networks

High-yield segments Users can add data

Croatia 2.0 Hiking LP

Croatia 2.0 Culture LP

Croatia 2.0 Sail LP

Croatia 2.0 RE LP

Song Network..

Dance Network

Agent Network

65+ Network

Cruise Network

Sail boat Network

Mountain Network.

Camp Network

CROATIA 2.0: Cruise landing page

#1: View operators/ itineraries

#3: Connect with other passengers

Trip reviews

#4: Getting there (link to Google maps)

#2: Downloadable 3D map #5: Interactivity

Contests/surveys

External links

Formal wear

Dive sites

Legal info

Ext. communities

Grapheety, zoomandgo, tripim, etc

#6: Video

WEB 2.0: “What if they say something bad?” Negative comments WILL be made

Post with you or post elsewhere More important: How you address

HSBC eliminated overdraft fees after 6,000 customers complained on Facebook

Respond fast By engaging early, can head off problems Silence is the worst response!!!

Use as early warning/feedback system Forrester: 65% of companies surveyed tracking

social media to identify new risks & issues

Asked why M-Net had edited its discussion forum to remove comments about sexual assault, a spokesman said: "This is a serious allegation & there is no proof of this.”

“YOUR BRAND 2.0:” Tools Traditional

Dreamweaver, etc. New (Video, interaction, mash-ups)

Viewbook Splashcast Jumpcut Slide Slideshare

Mapwing Google MyMaps TouFee Webslides Many, many more

“YOUR BRAND 2.0:” Tools Social Media Releases (SMR)

Incorporate Web 2.0 & other elements that give journalists, etc tools to create multimedia story

OpenSocial Standard tools for building apps/widgets across

social networks Ajax

Programming techniques for creating interactive web apps

Update small amounts of data, not Web page

SMR example

virtualthirst.com/ virtualthirst-socialmediarelease. html

NEXT STEPS: “YourBrand 2.0”1. Abandon mass-economy ideas

“Positioning,” “brand personality,” etc. Customers define brands, based on value

2. Start measurement Data for smarter decision-making; ROI

Customers, retention, campaigns, etc

3. Develop social networking strategy Develop “personas” in social communities Create your own communities

Internal (IBM); External (supply chains)

NEXT STEPS: “YourBrand 2.0”4. Develop & expand widget use

What on site can be added/used for widgets?

5. Develop landing pages Integrate with advertising, PR, promotion

6. Develop online video strategy Don’t think press release; think video! Buy digital video cameras; expand in-house

editing etc. skills

NEXT STEPS: “YourBrand 2.0”7. Develop consumer/user marketing

strategy Encourage links, forward, invites, nudges, etc.

8. Leverage self-segmentation to target “right” social networks

Location (xianei.com = china) Interest/passion (myspace = music) Identity (ivillage = female) Lifecycle (theknot = marriage)

NEXT STEPS: “YourBrand 2.0”9. Monitor SMM (Social Media Marketing) &

SMO (Social Media Optimization) OpenSocial, SMRs, AJAX, other trends

10. Start preparing now! Research, pilots, step-by-step implementation

Inevitably, we are moving from Information Age to Social Age

Web 2.0 will transform your brand like Web 1.0 did

THANK YOU!

QUESTIONS?

Find • Grow • Measure • Profit

Asia’s leading data-driven brand consultancy

www.fusionbrand.com

“Best Business Book”

Want presentation copy? Go to http://fusionbrand.blogs.com and email me!

How to brand a destination using Web 2.0

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