Harnessing the Power of Today’s Consumer Communities | Technology

Erin Byrne | Lynn O’Connor Vos

Today’s Conversation

• • • • • • Current Digital Communications Landscape Mass Consumerization of Healthcare Learning from Other Industries Progress in the Optical Industry Exercise Final Thoughts

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Current Digital Communications Landscape

who is in control?

“The power is with the consumer. Consumers are beginning, in a very real sense, to own our brands and participate in their creation. We need to begin to learn to let it go…” –

A.G. Lafley, CEO, P&G

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this is now…

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the return to a more intimate customer interaction Merchant to Customer Mass Marketing Dialogue Age We are here

Pre 1930’s 1930’s - Present Time

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Present

outdated model of influencing CGM: Uncontrolled Marketing Messages: Controlled Media Reporting: Controlled 7

new model of influencing CGM: Uncontrolled Marketing Messages: Controlled Media Reporting: Controlled 8

consumer-generated media

• Any type of message, communication or media that is created by individuals, distributed and archived online, and freely accessible to anyone for informational or entertainment purposes. Relevant to brands / companies. Fastest growing segment of the Web, with more than 1 million new articles posted every 24 hours.

Blogs Video / Graphics Social Networks Newsgroups Discussion Forums Product Reviews Personal Web Pages 50% of U.S. online adults are content creators (Pew Research)

• • • • • • Focus group of thousands • Entirely unaided • Large sample sizes Real-time Niche and mainstream Audiences naturally segment according to psychographics, life stages and affinity Source for mainstream media Highly searchable content

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rise in social networking and blogging Doubling

■ ■ ■

70+ million Weblogs tracked Doubling in size approximately every 6 months Consistent doubling over the last 42 months The blogosphere is over 60 times larger than it was 3 years ago

Source: technorati.com

50+ million people read blogs everyday

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digital media opportunities surround consumers Home On-the-Go 11 Work

New players 12

how do they filter? trust.

Recommendations from consumers Newspapers Consumer opinions posted online Brand websites Television Magazines Radio Brand sponsorships Email I signed up for Ads before movies Search engine ads Online banner ads Text ads on mobile phones

0% 78% 18% 26% 38% 34% 63% 61% 60% 56% 56% 54% 49% 49% 20% 40% 60% 80% 100%

26,486 Internet USERS IN 47 markets from Europe, Asia Pacific, Americas and Middle East

Mass Consumerization of Healthcare

Dr. Google will see you now

“In fact, the biggest trend in American healthcare is DIYDs –Do-It-Yourself-Doctors . These are people who research their own symptoms, diagnose their own illnesses, and administer their own cures. If they have to call on doctors at all, they either treat them like ATM machines for prescriptions they already ‘know’ they need, or they show up in their offices with full-color descriptions of their conditions, self diagnosed on WebMD.”

— Mark Penn, Microtrends, 2007 15

where consumers are getting health information Other, 6.00% Newspaper and magazines, 6.10% Television, 6.10% Internet 45.20% Family and friends, 12.90% Healthcare Professional, 23.00%

Source:

Prospectiv Report

, 2007

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search is where it starts Don’t know or no answer, 5% Other, 3% Web site known to provide health information, 27% Search Engine 66%

Source: Pew Internet & American Life Project, “Online Health Search 2006,” October 2006

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where do they go for info?

Types of Web Sites Used by US Internet Users Who Search Online for Healthcare Information General health

54%

Specific ailment-focused

37%

Product Specific Website

4%

Only 4% favor product sites, not only because of the “trust” issue, but because these sites are NOT optimized for search Source:

eMarketer

, 2007

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after gathering health information online, consumers are likely to interact with a doctor

Activities Conducted Due to Information Gathered Online

people trust other people

87% of consumers trust peer generated content!

Only 3% question its trustworthiness… Recent studies indicate that much of this “trusted” information is inaccurate!

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online health communities 21

who is the online healthcare info seeker?

• • • • Men and women, skew female 40 – 65 – Highly educated – – Internet savvy, 6+ years Typical healthcare seeker has searched for at least 5 health topics • About 1/3 have searched for 7 health topics • 2/3 start at a search engine Social Networking among online Hispanics tripled between 2005 and 2006 The Internet represents 17% of the typical day for African-Americans, up from 10.7% a year ago

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Source: Pew, 2005, Hispanic Social Computing Takes Off, Forrester, June 22, 2007, Media Day, 2008, African-Americans and the Internet, Pew

is relevant to the optical industry?

“eyewear, eyecare, eye doctor, eye glasses, eye health, eye exam” How many blog posts in the last 30 days?

How many Google searches this week?

What is most influential eye health resource on the Internet?

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Sermo: growing at nearly 2,000 MDs per week

• • • • • 290,000 minutes MDs spent on Sermo last week (5-10 min sessions) User demographics in “sweet spot” of manufacturers – – Registering 3:1 >45 years old to <45 years old Large cohorts of subspecialties First and only real time authentication and credentialing capability for physician access Groundbreaking agreement with the AMA – – AMA publications now include “Discuss on Sermo Link” AMA members instantiated as Sermo members (>135,000 MDs) Well into collaborative relationships with the CDC, FDA, and many physician professional societies

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social media and brands 27

Learning from Other Industries

social media and brands 29

social media and brands 30

social media and brands 31

social media and brands 32

social media and brands 33

ding, you are now free to be social

2 million downloads $150 mm in ticket sales 260 posts 6200 comments Company decisions 4 optimized releases $2.5 mm in sales

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Progress in the Optical Industry

communicating in a new way 37

Transitions lenses | enhanced web experience 38

Transitions lenses | social media outreach 39

Facebook|YouTube engagement 40

thinkaboutyoureyes.com

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integrated creative 42

video engagement 43

video engagement 44

video engagement 45

Exercise

how can you participate?

Low Degree of Control

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High

Final Thoughts

creating positive buzz is key

• • • Two-thirds of US economy driven by WOM Positive correlation to business growth Brand advocacy even more important than brand image or brand satisfaction • 10% influence purchasing behavior of other 90% • 91% likely to buy on recommendation • 92% prefer WOM recommendation to an ad NAPA Consulting Group

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three opportunities online Informational Transactional Social 50

but you no longer own your brand positioning… INFLUENCE Instead of Control REAL-TIME Branding Invest in RELATIONSHIPS Not Transactions Risk is in NOT Participating

Consumers filter out marketing messages, but drop filters for marketing conversations Identify what messages you want to

amplify

or

minimize

versus where you can

influence

versus

control

Uncontrolled messages are trusted more than controlled Push messages may drive a one time action, whereas dialogue can build advocacy Focus group of thousands Companies must create trust between their brands and stakeholders Invest in building relationships to generate self propagating conversations and brand loyalty Allows you to be more influential in controlled media

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Follow blogger etiquette and be transparent Conversations are happening with or without you Companies who do not participate risk being seen as irrelevant and out of touch Online influence yields greater traditional media results

what are marketer’s doing about it?

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Questions?