CHAPTER 7

Some Recommendations Are More Valuable Than Others

The Oprah Effect and the Influencer Ecosystem

After years of sending samples of his book lights to the Oprah Winfrey Show, Lightwedge CEO James Bennett was told by producers to “stop sending” his free product samples to the show. Bennett jokes, “Their exact words were, ‘We have plenty of samples, thank you very much.’”

However, a few weeks after the last rejection, Bennett noticed a distinct spike on the company’s website: from an average of $3,700 in sales per day to $90,000 in sales in a single afternoon.

Bennett later discovered that a sleep expert named Dr. Michael Bruce had recently done a segment on Oprah about products that help people get a good night’s sleep, and he had brought with him a reading light made by Bennett’s Newton, Massachusetts-based company.

During one part of the segment, Oprah simply took the light out of Dr. Bruce’s hands and said, “I have to get one of these.” As a result of that brief declaration, sales exploded. Even after the spike, sales continued at more than five times the usual rate straight through the holiday season and well into February. Meanwhile, retail sales of the product at major bookstores also increased by a factor of five.

The Oprah Effect

What I know for sure is that what you give comes back to you.

OPRAH WINFREY

Now, that’s influence. In fact, the “Oprah Effect” has been credited with all kinds of unprecedented success stories, everything from helping elect President Barak Obama in 2008 to reinvigo-rating book sales for authors like Mark Nepo, who’s The Book of Awakening was featured, to launching previously little known beauty products, like those of Carol’s Daughter, into the sales stratosphere.

The Oprah Effect was a game changer not just for companies like Lightwedge and Carol’s Daughter or even Old Navy, which sold out of a particular clothing line the week it was featured on the great and mighty Oprah show, but for many individuals as well, people for whom it was a life changer.

The unprecedented influence of Oprah on her 42 million viewers meant that a single five-minute appearance or a quick blurb in her magazine or a link on her website would create unlimited potential for a company, author, or individual willing to, as Oprah always so succinctly put it, “meet opportunity with preparation.”

Of course, there is only one Oprah. But there are thousands of other “persons of influence” out there in the world, whose recommendations can help launch and sustain your business. The key is finding the right ones and actively engaging with and maintaining them.

Who’s More Powerful: An Influencer or the Average Joe?

In 2000, Malcolm Gladwell wrote his powerful tome The Tipping Point.1 Clearly, Gladwell hit a chord with his timely book, which promoted the concept that “ideas and products and messages spread like viruses do.” The messages resonate so well that The Tipping Point continues to hold a spot on the New York Times Best Sellers list as well as top rankings in the Amazon top 100 list. (In fact, it was number 1 in Amazon’s “marketing” books category the day I checked it, over a decade later.)

In his book, Gladwell promotes the idea of “the law of the few,” arguing, “The success of any kind of social epidemic is heavily dependent on the involvement of people with a particular and rare set of social gifts.”

What is the Oprah Effect, I would ask, other than a kind of “social epidemic”? Gladwell goes on to describe these people with “a particular and rare set of social gifts” in the following ways:

images Connectors are the people in a community who know large numbers of people and are in the habit of making introductions.

images Mavens are “information specialists,” or “people we rely upon to connect us with new information.”

images Salespeople are “persuaders,” charismatic people with powerful negotiation skills.

The power of Gladwell’s perceptions wasn’t as much in his presenting something new as it was in his presenting it in a new way. As evidence, as you were reading the above descriptions, you no doubt were nodding your head, putting a face with each name.

The connectors are always in the thick of things, treating life like one big cocktail party, introducing everyone to everyone and following through to make sure a connection was made.

The mavens always have the latest cell phone, tablet, movie recommendation, or tip for getting in at the best restaurant, and they always keep their finger on the pulse of a select number of products or even niches. And, finally, the salespeople in your network can always easily convince you that such and such is the must-have item, the must-see movie, or the must-eat place.

Of course, as we’ve seen throughout this book, the power of influence is nothing new. What The Tipping Point did so effectively was give those interested in marketing (and aren’t we all?) the science behind epidemics and a name for those powerful influences we needed to target to create our own.

But Gladwell wasn’t alone in studying the significance of tipping points or the phenomenon of social epidemics. Plenty of researchers have weighed in on the subject as well.

Beyond the Tipping Point: The Power of Influence

According to Forrester Research published in April 2010, people in the United States are generating more than 500 billion online impressions on each other each year. I suppose this shouldn’t really be shocking considering how much we talk about our favorite products, movies, CDs, tires, software programs, and the like.

What was interesting was how the research found that a dedicated few were influencing a majority of the whole. Forrester found that a mere 6.2 percent of online consumers were generating 80 percent of these 500 billion impressions.2 At Zócalo, we call this passionate vocal minority brand fans—people like football fans or movie fans or book fans or any other type of fan who proudly, prolifically, and passionately root for their “team,” that is, their brand.

Borrowing some of Gladwell’s groundbreaking terminology, Forrester researchers broke these brand fans down into two segments—what they called mass connectors and mass mavens (see Figure 7.1):

images

Figure 7.1 Mass Connectors (MCs) Versus Mass Mavens (MMs).
(Source: Forrester Research, Inc., Peer Influence Analysis, April 2010.)

images Mass connectors (MCs) are the 6.2 percent of the U.S. online population that generates 80 percent of all the impressions about products and services within social networks.

images Mass mavens (MMs) are the 13.8 percent of the online population that creates 80 percent of all opinions about products and services in blog posts, blog comments, discussion forum posts, and reviews. (There is an overlap of 7 million individuals, 3.7 percent of the online population, between the two groups.)3

Not surprisingly, given the breadth of its exposure for over a decade now, there have been a number of detractors to Gladwell’s influencer-based model, the most prominent being an ex-Yahoo! research scientist and author (Everything Is Obvious, Six Degrees: The Science of a Connected Age, and other books) named Duncan Watts, who contends that there really is no such person as an “influential.”

Instead, Watts argues about the power of the “average Joe” and rails against the concept of single individuals who are capable of starting trends. “A rare bunch of cool people just don’t have that power,” Watts notes in a Fast Company interview.4

Another organization, which sells a highly promoted “brand advocate platform,” goes so far as to rail against “influencers” as being overrated and having “their own agenda” while pointing out that “true influence drives action, not awareness.” As in most cases when you have polarized views, either for or against, both perspectives have elements of truth. There are, in fact, individuals whose knowledge and influence are critical to supporting an idea—and then there are those individuals, many celebrated and many not, the “average Joes” if you will, who are essential to driving large-scale adoption and recommendation.

The Influencer Ecosystem

At Zócalo Group, we have organized this confluence of influencers, adopters, recommenders, and fans, even detractors, and it looks something like the diagram shown in Figure 7.2. Think about all of the people that influence the things you talk about, consider, and even purchase. They range from your friends to “experts” to pundits and even to detractors of a brand.

images

Figure 7.2 Zócalo Group’s Influencer Ecosystem: Engage Influencers to Drive Sustainable Recommendations. (Source: Zócalo Group.)

Let me give you a recent real-life example. I love music and have accumulated more than a terabyte (thousands and thousands of tracs) of digital songs. I was looking for a new way to easily store, access, and play all this music when my buddy Joe recommended the Sonos music system. Joe’s a real audiophile, and he gladly brought me into his home to show and tell just how wonderful Sonos worked for him. He’s a true Sonos brand fan.

I’m glad Joe’s a sincere advocate. But I’m not willing to make such an investment on just his advice. I want to know what the pros think. So I go to Engadget.com (one of my favorite sites) and read a review by Terence O’Brian. It gets high marks: “Sonos is for people who have embraced the digital music revolution but don’t want to be stuck sitting in front of the computer or tethered to an iPod when the mood to groove strikes.”

So far, so good. Joe the brand fan loves it. And so does the professional audio expert. Now, what about everyday consumers or peer influencers? And who doesn’t like the product and why?

Naturally, I check some online review sites. “PeteTechGuy” in Woodside, California, gives Sonos 5.0 out of 5 stars and says, “Sonos is a dream come true.” But another reviewer does not like the product at all: “What they promised was easy set-up was not, and I contacted customer service three times and received apologies but zero solutions. I will instead purchase an iPod, which will work just great. I should have done that in the first place.” This reviewer goes beyond giving the product just a negative review. He becomes a determined detractor: “Sonos is all about $ales and not about recommending appropriate solutions.”

We call this collection of voices the influencer ecosystem. All those sources work together to impact the perceptions and buying behaviors of entire audiences. The influencer ecosystem comprises the instigators and shapers of word of mouth and recommendations. It is important for every brand to know who is in its ecosystem, what is driving them, and how to successfully interact with them:

images Brand fans. The most potent and influential advocates a brand can have. Brand fans are excited to talk about and share their love for a brand.

images Industry eminents. Influencers and thought leaders—often in a professional capacity—who have broad reach and impact over the perceptions and buying decisions of a category or industry.

images Peer influencers. Everyday people who have gained social credibility through their networks and have voiced particular interest or passion for a product, brand, or category.

images Determined detractors. People who—for whatever reason— criticize, attack, or are just vocal about their dislike for a brand. We will dig deeper into how this specific group can challenge any company and, in Chapter 12, how to combat their negative influence.

Truly successful and sustainable word of mouth and recommendation programs engage each element of the influencer ecosystem in ways that are relevant, compelling, and ultimately sharable—both online and offline. Negative word of mouth is significantly more damaging than the upside of positive word of mouth. Managing detraction is a huge issue moving forward and carries as much, if not more, influence than the first three categories.

Let’s dig deeper into each layer of the influencer ecosystem and discover what we need to do to attract these influencers, interact with them, engage them, and more.

Brand Fans

“Twihards” are just one example of some very extreme brand fans, so named for their rabid loyalty to the Twilight series of books, films, and paraphernalia. Their loyalty is not only very vocal but very visual; Twihards are the ones you see camping out weeks in advance of a new Twilight movie, featuring homemade “Team Edward” or “Team Jacob” T-shirts.

Likewise, “Parrotheads,” the ubiquitous fan base for living legend Jimmy Buffet, are just as vocal and have been around for decades, following their fearless troubadour from town to town, concert to concert, decking themselves out in fancy parrot hats and tropical shirts and tailgating in the parking lot of each concert venue much like football fans before a big game.

Despite how powerful, vocal, and omnipresent they may seem, brand fans typically only make up 4 to 7 percent of a company’s consumer population. So while 95 percent of folks who’ve seen a Twilight movie may have enjoyed it, told a few people or not, they’re generally not brand fans in that they’re not necessarily vocally supportive, let alone visibly. Rather than becoming brand fans, they’re more like “brand mehs,” collectively shrugging their shoulders and moving onto the next consumer experience.

So it’s critical that you not only identify your brand fans but actively engage them in a variety of promotions, contests, rewards, and mentions. Keeping your brand fans in mind is an important aspect of brand management, and since they are the most receptive to influence—unlike, say, our next three quadrants—they should be the first in line for your ear, your attention, your attentiveness, and your affection.

Industry Eminents

Marion Nestle runs a food blog called Food Politics. She is the Paulette Goddard Professor in the Department of Nutrition, Food Studies, and Public Health (the department she chaired from 1988 to 2003) and a professor of sociology at New York University. She’s written a number of books, from Why Calories Count to Safe Food to Feed Your Pet Right. Her column appears monthly in the San Francisco Chronicle.

And yet, despite her glowing résumé, esteemed CV, and very public persona, you’ve probably never heard of her. But as someone who works with a variety of food-centric clients, I can tell you that every one of them has heard of her, is concerned about what she has to say, and consciously covets her endorsement.

Not that she gives any. Marion Nestle is a fervent individualist and she is in nobody’s pocket. Yet she recognizes the reality of mass-produced foodstuffs and consumer marketing and speaks frequently about a variety of companies, CEOs, and products and services that either earn her scorn or tacit endorsement.

In a very real way, in a very big industry, Marion Nestle is an industry eminent: a high-placed, highly vocal, and highly esteemed voice that, much the same way as the Oprah Effect could make or break a product, can in her own unique way endorse or discount a food product, service, company, or initiative.

She is a great example to use for this tier of your influencer ecosystem because while not exactly a household name, in her particular niche she is a very, very big deal. Believe me, whether you’re dealing in tires or sneakers or sports drinks or cancer treatments or wigs or books or movies or super glue, every industry has its handful of eminents.

As one might imagine, it takes quite an impressive pedigree to become an eminent, which is why there are only between 300 and 500 of them in any particular industry at any one time. Here at Z6calo Group we have amassed a database—called Z6caloNet—of tens of thousands of top-tier experts listed on a global level, in nearly every category, including photography, sports, food, and software and technology.

Peer Influencers

As important as brand fans and industry eminents are, many consumers listen to no one other than their peers, and only their peers, be it in person or online.

In a survey of more than 1,300 people conducted by the CMO Council and Lithium, 80 percent of consumers said that they are more likely to try new things based on friends’ suggestions made in social media, and 74 percent are more likely to encourage friends to try new products.5

In the Forrester word of mouth survey “How European Consumers Share Opinions,” the researchers discovered that “European consumers prefer advice from their peers when making purchase decisions. And they trust this advice more than advertising messages or marketing communications.” The authors of the study added, “More than 90 percent of online Europeans share information and opinions with their friends and family.”6

Figure 7.3 provides an informative slide from eMarketer.com that shows the attitudes of various countries toward brand advocacy, showing who is more vocal, or more likely to be vocal, across the globe.

images

Figure 7.3

Clearly, peer influencers are a HUGE component of the influencer ecosystem, but so far we’ve discussed only the positive WOM that can serve to help companies. Now it’s time to delve into the opposite end of the spectrum and discover how a small number of “determined detractors” can do as much harm as the other three groups combined can do good.

Determined Detractors

With the good always comes the bad, and nowhere is that truism more true than when dealing with the general public, particularly when trying to ask them for money or trying to sell them something. Irate customers, naysayers, doom and gloomers, and general malcontents have always been a presence on the consumer landscape, but never have they been given such a wide and public voice as with today’s opportunities and reliance on social media.

Before the Internet, determined detractors had to be really determined to have their voices heard beyond their own backyards or see their occasional letter of complaint to the company in question achieve wide circulation. Today, in two clicks or fewer, they can spread their messages to hundreds, thousands, even hundreds of thousands, depending on their “reach.”

Between message forums and blogs and consumer review sites and even a company’s own website, these determined detractors can now do real damage to companies unwilling, unprepared, or simply unable to handle them properly.

One shining light in dealing with negative online chatter was the way Domino’s Pizza embraced critics to actually improve their product. Says the American Management Association, “Domino’s Pizza could have just promoted its new and improved product, communicating the positives without acknowledging the critics, but it chose a different route.

“The company built its entire campaign in 2010 around its ‘pizza turnaround,’ with television ads featuring focus group critics expressing their dislike for the product. The reworked recipe and self-deprecating communications campaign fueled a 14.3 percent jump in same-restaurant sales in the United States. Domino’s Pizza used the power of online interaction, where transparency and authenticity are rewarded. In kind, the pizza giant was rewarded for its candor and attention to consumer input.”7

Today, anyone who orders a Domino’s pizza can see that evidence literally plastered all over the pizza box, whether in the form of quotes from satisfied customers or admission that their crust “used to taste like the box!” Customer satisfaction ratings are plainly evident under every item on the menu with little to no filter. Marketing strategy or not, few public companies are as transparent in their customer satisfaction ratings as Domino’s Pizza. Then again, it’s easier to get good ratings when you’ve put in the effort—and expense—to earn them.

It can be continually frustrating to discover that you not only have determined detractors but in addition, they are forceful, frequent, and focused on tarnishing your reputation by any and all means possible. It can even be costly in the manpower and hours it takes to combat, control, and undo the damage they create. However, in terms of nipping such behavior in the bud, the time you spend now is far superior to the costs if this behavior is left unmatched.

Once again, prevention is key. Domino’s clearly saw the writing on the wall pre-reformation and chose to do something very drastic about it. In a very similar way, finding itself faced with new competition all the time in the “freshness” market, our client SUBWAY recently took active, even aggressive, steps to put a positive face forward, as the following case study will present.

Parting Words: The Sliding Value of Recommendations

In the final assessment, it’s important to understand that everyone’s opinion of your product, service, company, brand, image, or even CEO counts, but the fact is, some opinions count more than others.

Whether you’re the author of the Twilight novels or the CEO of Domino’s Pizza, you understand that every customer is critical to your success. However, the squeaky wheel does get the grease, and when you have folks who, for whatever reason, go out of their way to sing your praises, or even ring your bell, it’s only natural to give them a little extra consideration.

Whether it’s a vocal blogger, a food or movie critic, or just a group of women who really, really, REALLY love Robert Pattinson, knowing who they are, what to say to them, how to keep them happy, and what’s more, how to include others in their fandom is critical to your present and future success.

Becoming a social business is about being social through and through, top to bottom, at every level. It is a philosophy that becomes a mission that becomes a habit. Understanding how your influencers think is as critical as understanding who your influencers are, and why they recommend you so highly.

You must learn to understand and engage with those influencers in each area of your influencer ecosystem so that you’re able to use them when you need them. Crisis management is too far after the fact. You have to have crisis prevention through management and engagement of each of the various groups in your influencer ecosystem, constantly, all the time.

The more diligently you focus on these four groups, the fewer crises you’ll be likely to have, and you’ll lessen the need to have to do something drastic the way Domino’s did to reinvent its image. Or, as I like to say, “Better to reallocate a few resources now than reinvent your entire brand later.”

Knowing that each branch of your ecosystem requires a different type of TLC is crucial when finding, and addressing, peer influencers. For instance, brand fans are looking for a unique way to experience your brand. Unique engagements, special offers, anything “exclusive,” or any value added can help keep them happy, engaged, and spreading the word to entice, enlist, and recruit other brand fans to join them.

Industry eminents are doing this as part of their job. They have made a career out of gathering and sharing what is valuable information, and they will always be more loyal to their fan bases than yours. You simply can’t “sell” these people. However, you can gather and share information with them in an ongoing effort to strengthen your relationship. And finding the right industry eminent to endorse you rather than chasing the wrong one is not only a time-saving but also brand enhancing measure.

Peer influencers have less “buy-in” for your brand or any other brand. They are simply looking for passion points to connect with you, so they require a different kind of hand-holding than the three other groups. And no one requires more hand-holding than determined detractors!

Oprah may no longer have a show reaching 42 million viewers, but her influence still lingers as we study her “effect” long after she chose to leave her popular talk show format. What Oprah taught us, among so many other valuable lessons, was that there is power in one, but there is power in two, three, four, four dozen, and two thousand as well.

If you can’t nab the Oprah Effect, if you can’t impress an industry eminent like Marion Nestle, perhaps you can still be a brand fan favorite and share the love of a few thousand, or a few hundred thousand, peer influencers.

Remember, there is no rule that says your influencer ecosystem must flourish with all four types of inhabitants. However, you must tend and care for the delicate relationships that exist within it.