A-HA!Moving research from a cost centre

to a knowledge centre

April 2009

Peter Harris

Managing Director, Colmar Brunton

http://fc97.deviantart.com/fs28/f/2008/084/7/d/reach_for_knowledge_by_ramybws.jpg

Cost Centre

Walls Of Separation

Ivory

Tow

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Syndro

me

Corp

ora

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isconnect

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Pictures adapted from

The War Is On

“Marketers need to know what is

relevant to their consumer today and

not what was relevant in 2008… and

then focus on the critical things that

will appeal to consumers at this time”

Helen Farquhar, McDonalds

Australia Director of Marketing

The Old Way

One Way Dialogue

Little buy-in or shared learning among stakeholders

http://www.flickr.com/photos/monkeyiron/367271228/sizes/l/

Build the factory, then tear it down

What Happened, Why Now!

Social Media Happened

Creating an explosion in online conversations

From Passive Consumption to Active Participation

We need a new model

Research 2.0

Research Evolved

Who should lead and manage the conversation?

Accountants

Our Competitors Are Transforming

“More than 60% of Fortune 1000

companies will connect to or host a

form of online community by 2010.”

Gartner.com, October 6th 2008

Adidas insiders

Ambrielle Team

Generation Benz

Chrysler Listens

Brand Communities

“50% of companies that start an

online community will fail to establish

a mutual purpose ultimately eroding

customer and company value”

Gartner.com, October 6th 2008

We Need To Step Up

The New Way

Brand

Marketing Innovation

Research Retail

SalesStrategic Planning

Customer Service

HR

All departments of company can engage and benefit from the community

A private branded online community is a dialogue focused on improving your offering

Your communities conversations with your brand

Brand Community

“Private, branded, online space, where 100‟s

or 1000‟s of invited consumers or prospects

regularly spend time generating ideas, offering

advice to you and to one another, sharing

experiences and feelings, discussing trends,

and helping you figure out your marketing

and business issues.”

What is a Market Research Online Community?

37% of members contribute daily and 89% contribute

monthly

Communispace 2008

Your Source; Australians 18+; online users

Over 80% of people say they are willing to participate in

online company communities

Previewing/Input on new

product's/services

before anyone else

84%

Giving input on

advertising/marketing

campaigns

68%

Getting a behind-

the-scenes look at

the company

61%

Having a direct

impact on the

company

58%

Interacting with

company decision

makers

49%

Interacting with

other community

members

48%

Other

4%

What would be of interest if you joined a brand

community?

Your Source; Australians 18+; online users; say they are willing to participate in company online communities

Willingness spans a variety of areas

The research findings from an

online community can be more

useful for decision making than

other research for the following

reasons:

Reason # 1: Knowledge is built quickly

Reason # 2: More debate between members +

richer quality of response

Reason # 3: Closer consumer contact among

stakeholders

Reason # 4: Reduced surveying costs

Market & Customer Insight Customer-Driven Innovation Brand Advocacy

More Than Research

Cost Centre Knowledge Centre

Knowledge

GAP

Your CompanyThe Customer

Sales

Marketing

Research

Innovation

PR

Customer

Service

HR

Retail

Customer

Community

Designed to eliminate

wasted time and energy

Traditional Focus Group

Online Research Community

Significantly

Lower Costs

$8,000 to $15,000 per individual focus

group

Cost is ≤ 3 traditional focus

groups (supporting many more

research events)

Increased

Productivity to hold 12 focus groups

in 6 cities

2 weeksto hold 12 online research

community activities with no travel required

More Efficient

„The Business Case For Online Communities‟ presentation developed by Mzinga and authored by Don Tapscott (Author of Wikinomics), Barry Libert (Author, We Are Smarter Than Me‟), Aaron Strout (VP New Media at

Mzinga),

http://www.slideshare.net/whatidiscover/the-business-case-for-online-communities-presentation

Market Pricing For Online Communities

„The Business Case For Online Communities‟ presentation developed by Mzinga and authored by Don Tapscott (Author of Wikinomics), Barry Libert (Author, We Are Smarter Than Me‟), Aaron Strout (VP New Media at

Mzinga), Slide sourced to Mukund Mohan, Best Engaging Communities

http://www.slideshare.net/whatidiscover/the-business-case-for-online-communities-presentation

Demonstrated ROI

Marketing 2.0

Takeaways

1. Online communities help companies and their employees join the

conversation, literally

2. Online communities need to become the centralised hub for

business decision making, where all stakeholders collaborate in an

iterative manner, managed and led by market researchers

3. Putting an online community at the centre of your organisational

decision making is the key to getting closer to consumers and

therefore delivering competitive advantage

4. Online communities provide additional benefits of customer

collaboration and brand advocacy

5. Online communities refocus and realign the organisation around

the customer

Once this is in place and working

efficiently, it will ensure that

research moves from being a

cost centre to a knowledge centre

and business will take notice

Cost Centre Knowledge Centre

Sales

Marketing

Research

Innovation

PR

Customer

Service

HR

Retail

Customer

Community

Walls Of Separation

Ivory

Tow

er

Syndro

me

Corp

ora

te D

isconnect

Tone D

eafn

ess

Pictures adapted from

A-HA!Moving research from a cost centre

to a knowledge centre

April 2009

Peter Harris

Managing Director, Colmar Brunton

http://fc97.deviantart.com/fs28/f/2008/084/7/d/reach_for_knowledge_by_ramybws.jpg