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August 2, 2011 by Mack Collier

New study suggests a passionate minority can sway the majority

Scientists at Rensselaer Polytechnic Institute have concluded that it only takes 10 percent of a population holding an unshakable belief in order to convince the majority to adopt that same belief.  In fact, the scientists found that this will always be the case.

“When the number of committed opinion holders is below 10 percent, there is no visible progress in the spread of ideas. It would literally take the amount of time comparable to the age of the universe for this size group to reach the majority,” said SCNARC Director Boleslaw Szymanski, the Claire and Roland Schmitt Distinguished Professor at Rensselaer. “Once that number grows above 10 percent, the idea spreads like flame.”

This study ties into an idea I’ve been thinking about recently; the difference between how companies market themselves versus how rockstars do.  And while my graphical skills on the computer suck, I am a bit better at freehand, so I drew a graph to demonstrate what the customer base for the average company looks like:

Obviously, the size of the market for New Customers will always be bigger than the others.  After that you get Existing Customers, then customers with Some Brand Affinity and finally, Brand Advocates.  Note also that New Customers have the least amount of Brand Loyalty, and that increases for each group with Brand Advocates having the highest levels of loyalty.

But note the disconnect between which group most companies target, versus the group that most rockstars target:

At first glance, this can seem like the smart play for companies, because they are targeting the group that’s the largest.  The problem is, this group also has the lowest levels of loyalty to the brand.  So the company may be gaining New Customers, but it’s probably losing them just as quickly, again due to a lack of brand affinity.

But note what Rockstars do;  They focus on the people that already love them.  Unlike the New Customers, this group has a strong degree of loyalty for the rockstar.  So much so, that they will go out and actively recruit people from the OTHER groups to the left to come join them.  And yes, we have stats to back that up as well:

Note that evangelists refer business equal to 45% of the money they spend.  That means that the Brand Advocates that the Rockstars target, and also going out and finding new business for the Rockstar from the OTHER groups.

Remember also the study I referenced at the start of the post: Scientists have discovered that if 10% of a population have an unshakable belief in an idea, they will eventually convince the majority to adopt their stance.  The ’10-Percenters’ are your Brand Advocates.

So let’s compare and contrast the two approaches:

Company – Targets New Customers. Loses them just as quickly as it gains them, so constantly having to reinvest in getting more New Customers to replace the ones it lost yesterday.

Rockstar – Targets Brand Advocates (Fans). Brand Advocates have a strong sense of loyalty for the Rockstar, so they not only stay as customers, they go out and actively recruit New Customers, Existing Customers, and customers with Some Brand Affinity to buy from the Rockstar.

See the difference?  While the company is engaged in an almost constant zero-sum game, the Rockstar isn’t focusing so much on expanding its customer base, but rather on delighting the people that are already delighted with the Rockstar.  Because the Rockstar understands that its next sale is just as likely to come from the efforts of its EXISTING fans as it is their own.

This also is why Steve Knox said this:

Said in terms of the above graph, that quote would be ‘Victory in marketing doesn’t happen when you get New Customers, but when you connect with your Brand Advocates.”  Because your Brand Advocates are the people that are bringing you the New Customers anyway.

Companies, y’all make this marketing stuff too hard.  It’s not about spending a lot of money trying to convince strangers to buy from you, it’s about delighting the people that already love you.

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Filed Under: Brand Advocacy, Community Building, Think Like a Rockstar

June 29, 2011 by Mack Collier

The secret to creating brand advocates

It’s not about having a transactional relationship with your customers, it’s about having an emotional one with your fans.

Thoughts?

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Filed Under: Blogging, Brand Advocacy, Think Like a Rockstar

June 28, 2011 by Mack Collier

Think Like a Rockstar: Create something amazing for the people that love you

So I was on Twitter late Friday night, and I saw this tweet from @AmandaPalmer.  It got my interest, so I did some checking.  I found dozens of tweets from Amanda’s fans either gushing about her and thanking her for letting them attend the secret show, or those that were angry that they missed it.

From Amanda’s blog, here’s how the secret show was set up:

p.s. for those of you who were waiting on more info about the SECRET-BOSTON-AREA-SHOW next saturday, we put together a little contest. if you wanna come, we’re picking about 50 lucky people who’re gonna join in on our crazy little loft party in arlington, and it’s your LAST CHANCE TO ENTER. get in on this shizzle NOW:

* head over to my profile on GetGlue. you can find it right here:http://getglue.com/recording_artists/amanda_palmer
– don’t have a GetGlue profile, yet? it takes about 20 seconds and you can do so athttp://getglue.com/signup (they also have an app for iPhone/iPad/iPod Touch, Blackberry, and Android – you can sign up on those, too)
* “Check-in” and tell us your favorite AFP-related concert memory, starting with something along the lines of I really want to see Amanda on tour this summer http://bit.ly/AFPtour or My favorite AFP-concert memory was…
– feel free to get creative about how you say that you wanna come, just make sure to include a link to the tour page
– if you haven’t ever seen me or the dolls or evelyn evelyn live, post a link to your favorite live YouTube or Vimeo clip and tell us why you’re excited to (hopefully) come
– bonus points for cross-posting to Twitter and Facebook, and for clicking “Favorite” on AFP (and other AFP-related stuff like The Dolls, Evelyn Evelyn, 8in8, etc)

and that’s it. any questions? post HERE and sean’ll get back to you, asap. we’ll be going through and contacting winners throughout tonight and tomorrow, getting e-mail addresses so that we can get your name for the guestlist, and know where to tell you the location of the show.

 

So Amanda created a free show for her biggest fans, with the requirement for getting in being that her biggest fans would have to share why they loved Amanda.  Which is something they were already doing anyway.  The lucky fans that got to attend were then treated to an amazing show, and they now love Amanda even more.  The fans that didn’t make the show are now extremely jealous of the ones that did, but still love Amanda for going out of her way to connect with her fans.

Attention big companies: You usually make this ‘marketing’ stuff a lot harder than it has to be.

I will once again go back to that wonderful quote from Steve Knox:

Think about what Amanda did here.  She didn’t use social media as a channel to generate sales, or connect with new customers.  She used social media to embrace her biggest fans, and give them a reason to love her even more.  Totally flies in the face of what most companies try to do, which is generate sales from new customers.  Instead, Amanda said she was going to create something totally amazing that customers want, but she not only wasn’t going to charge for it, she was going to give it to her existing customers.

This is why we don’t call these people ‘Amanda’s customers’, we call them ‘Amanda’s fans‘.  The next time Amanda has a paying gig, her fans that attended this show will be even more likely to pay to attend (because they love Amanda even more now) and they will be more likely to encourage their friends to come with them (because they want their friends to love Amanda like they do).  Amanda has created a way to embrace her biggest fans, and to let them do her ‘marketing’ for her.

Why is it that companies can’t get this?

To be fair, some companies are trying.  Ford recently had an event where they flew in influential bloggers to spend a day with them.  The focus was on Ford and its products, but there was also live entertainment and interesting speakers such as Malcolm Gladwell.  That’s definitely not the same as Amanda’s secret show, I think the focus with Forward with Ford was ‘how can we show you what we are doing and get you to like us more?’ while the focus with Amanda’s show was ‘how can I show you how much I love you?’

Which is a big reason why I think rockstars have fans, and companies have customers.  Because most companies view the relationship with their customers as being transactional, while most rockstars view the relationship with their fans as being emotional.

Companies, if you want to be successful, follow Amanda’s approach: Find a way to connect with your biggest advocates, and delight them.  Don’t worry about selling anything to them, create something amazing for them, and then watch as they take the initiative and promote you and maybe even gush about you to their friends and networks.  The end result is that you’ll get those sales you wanted to begin with, but the added bonus will be that you’ll also create a way to excite and delight your biggest advocates in the process.

Again, y’all make this ‘marketing’ stuff a lot harder than it has to be.

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Filed Under: Blogging, Brand Advocacy, Community Building, Social Media, Think Like a Rockstar, Twitter

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