Social networks

Do you know which of your customers are brand advocates?

 This report from Yahoo! and ComScore Networks is simple and intuitive,  and points to a potential strategic leverage point for Banks.

  • The Internet has significantly impacted how consumers talk about and recommend brands.
  • Word of mouth — a trusted source of information — is amplified online to reach significantly larger audiences.
  • “Brand Advocates” have emerged online as primary influencers, with at least a two to one rate of converting an actual friend or family member to buy the same product or brand.
  • Brand Advocates are incredibly valuable to marketers because they are better connected consumers with a larger sphere of influence.

Source: Yahoo! – Press Release

All Banks perform some type of customer segmentation, usually based on products, or demographics.  The concept of brand advocate is not addressed there, yet according this report, they would be your best ally.

As we consider how to evolve social networks into financial services, surely working with this group would be a good place to begin.

 

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2 thoughts on “Do you know which of your customers are brand advocates?”

  1. I would suggest a slightly different learning from the one you seem to be offering.

    Yes, the concept of brand advocate is a powerful one. Yes, the internet is empowering word of mouth, and making Brand Advocates more powerful.

    And yes, Brand Advocates are important to marketers.

    But–there is real danger in thinking of Brand Advocates as a customer segment, or a target market, or as any group to be interacted with by marketing.

    For some cautionary tales, just look at the trust destroyed by P&G (no slouch at marketing) by their program for paying housewives to shill their products.

    Look at the mess the pharmaceutical industry has gotten itself into by wining and dining and paying KL’s (Knowledge Leaders).

    Imagine yourself written up in Wired, or the Wall Street Journal, as the bank who paid, tried to coopt, solicited, suborned, bribed, hustled or other negative-verbed some people to do more of what they were doing naturally. You will end up destroying far more trust than you create in a few incremental recommendations.

    It is seductive: but don’t go there. Instead, you can make open forums for people to express opinions–not much wrong there. But you’d better be prepared for what you get, and resist the temptation to influence it.

    For a great example (a positive one this time), see my blog about Chevy Tahoe and their campaign to let consumers make their own ads online, at
    http://www.trustedadvisor.com/blog/42/

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