guide to private online communities

GUIDE TO PRIVATE ONLINE

COMMUNITIES

A Publication of Riedel

Marketing Group

2014 Riedel Marketing Group 1

Guide To Private Online Communities

A.J. Riedel is Senior Partner and Founder of Riedel Marketing Group, providing housewares companies with the market intelligence and consumer insight they need to make informed decisions.

A.J. has extensive experience with online surveys, product concept tests, market and competitive assessments, and home-use tests and has been managing the HomeTrend Influentials Panel (HIP) since it’s inception in 2004.

[email protected]

www.twitter.com/AJRat4RMGhttp://www.linkedin.com/company/riedel-marketing-group


By A.J. Riedel

mailto:[email protected]

http://www.4rmg.com

http://www.twitter.com/AJRat4RMG

http://www.linkedin.com/company/riedel-marketing-group

Anyone who is involved in the marketing or development of housewares products:

• Product managers

• Product Developers and Designers

• Marketing Managers and Directors

• Vice Presidents of Marketing and Product Development

• CMO’s

• Entrepreneurs

• Inventors

Anyone who wants to gain a better understanding of what consumers are thinking, doing, and buying.


Who Should Read This Guide

If your company is consumer-centric (or wants to transition from product-centric to consumer-centric), a private online community must be part of your marketing, social media, and product development strategy.


Why You Should Read This Guide


This guide will introduce you to Private Online Communities: what they are, what they can be used for, the benefits of establishing and using a POC, the advantages of POC’s over traditional ad hoc market research, and what you need to know about the nuts and bolts of building and managing a POC.


Why You Should Read This Guide

Why Are Private Online Communities So Important? 7

What Are Private Online Communities? 11

What Are Private Online Communities Used For? 19

What Are the Benefits of Private Online Communities? 26

Why Use Private Online Communities Instead Of Doing Ad Hoc Market Research Studies? 37

Why Are Private Online Communities Such A Powerful Tool? 42

How To Get The Most Out Of Your Private Online Community 56

Summary 69

How to Get Started 76


Table of Contents

WHY ARE PRIVATE ONLINE

COMMUNITIES SO IMPORTANT?


The dramatic growth in use of technology and social media by

consumers has led to a corresponding increase in the use

of Private Online Communities (POC’s) and their acceptance as a

valid research tool.

Why Are Private Online Communities So

Important?





valid research tool. These Communities create the potential for genuine dialogue and relationship

building with the people who buy and use your products.


Important?





valid research tool. These Communities create the potential for genuine dialogue and relationship

building with the people who buy and use your products.


Important?

Companies who own and use Private Online Communities develop better products and

have marketing programs and packaging that are more

effective.


WHAT ARE PRIVATE ONLINE

COMMUNITIES?


Pre-recruited groups of people who participate in market research

projects and other online activities on an on-going basis.

What Are Private Online Communities?





Built & managed for use by a single

company.




50 to 500 members.



company.



projects and other online activities on an on-going basis. Interactive; Two-way

communication between panel members and

company.50 to 500 members.



company.








company.

Highly engaged community members.








company.

Highly engaged community members.

Not just for market research; community

members participate a variety of activities.


Chats groups, bulletin board discussions & forums

Product reviews

eDiariesProduct testing

Mini Polls

What Types Of Activities Do Members

Participate In?

Online surveys

Contests


WHAT CAN PRIVATE ONLINE

COMMUNITIES BE USED FOR?


What Can Private Online Communities Be

Used For?UNDERSTAND YOUR CONSUMER

Learn about consumer habits and practices

Discover unmet needs and unsolved problems

Find out how consumers shop and make purchase decisions

Track customer satisfaction


UNDERSTAND YOUR CONSUMER





OPTIMIZE ADVERTISING & PROMOTION

Test taglines Get feedback on packaging & advertising

copy Develop marketing plans Get ideas for social media campaigns Measure advertising impact Test alternative ad and promo campaigns Track brand awareness and perceptions Get testimonials for ad campaigns


Used For?


NEW PRODUCT DEVELOPMENT

Brainstorm new product ideas

inspire new features and products Get feedback on new product ideas Find out how to improve existing

products Get feedback throughout the

development process Test new product concepts, prototypes,

and finished products Determine volume potential










Used For?










OPTIMIZE PACKAGING

Identify most compelling consumer benefit

Test taglines

Get feedback on copy and graphics

Determine best package design

NEW PRODUCT DEVELOPMENT

Brainstorm new product ideas

inspire new features and products Get feedback on new product ideas Find out how to improve existing

products Get feedback throughout the

development process Test new product concepts, prototypes,

and finished products Determine volume potential


Used For?


Quantitative surveysIf you need to survey a representative sample of all adults, then the private panel is of limited value since it most likely contains only your customers or

those interested in your brand.

What Can’t Private Online Communities Be Used

For?


Quantitative surveysIf you need to survey a representative sample of all adults, then the private panel is of limited value since it most likely contains only your customers or

those interested in your brand.

Many studies, however, can be conducted with the community;

it’s not a perfect sample, but often it is good enough to

provide you with the insight you need to make informed decisions.

What Can’t Private Online Communities Be Used

For?


WHAT ARE THE BENEFITS OF

PRIVATE ONLINE COMMUNITIES?


You get closer to your

consumers…

You’ll Develop Better Products



consumers…

Which gives you a better understanding of their unmet needs, unsolved problems,

and biggest frustrations…




consumers…




Which leads you to develop new products that

meet the needs of the people who will be buying and using the products…



consumers…



Which leads to new product success!


Which leads you to develop new products that

meet the needs of the people who will be buying and using the products…


You get collaborate with people who will be buying the product.

You’ll Develop More Effective Marketing

Programs And Packaging


You’ll get to collaborate with people who will be

buying the product.

Which leads to marketing programs and packaging that resonate with consumers and get them to buy the product

You’ll Develop More Effective Marketing

Programs And Packaging


Ask

Learn

Probe deeper

You’ll Make Better Decisions

Come to the

right decision

Ask more

Learn more


You’ll Make Money and Save Money

When you engage deeply with your consumers and delve intensely into what

they are doing, thinking, and feeling…





…You make sounder, more strategic business decisions…





…You make sounder, more strategic business decisions……Decisions that

make money and save money.


WHY USE PRIVATE ONLINE

COMMUNITIES INSTEAD OF DOING AD

HOC MARKET RESEARCH STUDIES?


Cheaper Than Ad Hoc Research

You only pay for sample once when you recruit the community members for the first time and then you can use them as many times as you want for as long as

they remain members.


Cheaper Than Ad Hoc Research

You only pay for sample once when you recruit the community members for the first time and then you can use them as many times as you want for as long as

they remain members. You’ll save 25–35% versus the price of traditional online

surveys.


Faster Than Ad Hoc Research

Traditional ad hoc research typically takes 4 to 8 weeks

to go from inception to results.


Faster Than Ad Hoc Research

Traditional ad hoc research typically takes 4 to 8 weeks

to go from inception to results.

With an online consumer community,

you can get results within days.


WHY ARE PRIVATE ONLINE

COMMUNITIES SUCH A POWERFUL

TOOL?


People join online communities because they

like to feel involved in shaping companies and

products for the future and make a difference.

Thoughtful and Honest Feedback





They feel privileged to be on the panel and are willing and

anxious to participate.






They feel privileged to be on the panel and are willing and

anxious to participate. Because it’s their

chance to make their mark, respondents

offer thoughtful and honest feedback.



You can use a variety of techniques that enable

you to get closer to your consumers and

understand them better.

Rich Deep Insight





Rich Deep Insight

You can ask questions in new and engaging ways which provide you with

more meaningful findings.





Rich Deep Insight

You can ask questions in new and engaging ways which provide you with

more meaningful findings. You can identify

problems that traditional research might not uncover.


Enables Iterative Testing

Unlike traditional ad hoc consumer studies that are conducted with a sample purchased from an online consumer panel supplier…


Enables Iterative Testing

Unlike traditional ad hoc consumer studies that are conducted with a sample purchased from an online consumer panel supplier…

…you can conduct iterative research studies

with the same participants.


A “pre-quant” online discussion board or chat

can generate very helpful directions for

designing your qualitative survey.

Drives More Thorough Quantitative Research

Studies





You can test the questionnaire before

fielding the quantitative survey.


Studies





You can test the questionnaire before

fielding the quantitative survey.


Studies

You can conduct a post-quant survey to

uncover the why behind the numbers.


Builds Brand Advocacy

“Communities create potential for genuine dialogue and relationship

building…if run correctly, these communities will develop into a

powerful resource that also builds

brand advocacy.” Michalis Michael, DigitalMR CEO


Builds Brand Advocacy

“Communities create potential for genuine dialogue and relationship

building…if run correctly, these communities will develop into a

powerful resource that also builds

brand advocacy.” Michalis Michael, DigitalMR CEO

“Consumers have appreciation for the brands that want their opinion.”Leah Spokojny, Online Research Strategist at GutCheck


HOW TO GET THE MOST OUT OF

YOUR PRIVATE ONLINE COMMUNITY


The key to having a vibrant community that yields

meaningful insights is keeping members engaged.

Keep Community Members Engaged




Keeping them engaged saves you time and money, so

it deserves a structured approach.





Keeping them engaged saves you time and money, so

it deserves a structured approach.

Keeping members engaged begins with

a defined plan for touchpoints each

month.



You will typically get better participation and better

information if participants are fairly compensated…

Compensate Participants Fairly




…But it doesn’t have to be cash.





…But it doesn’t have to be cash.

It can be products, contests,

sweepstakes, gift cards, etc.



Tell Community Members What to Expect

At the outset, members need to know what they’ve signed up for –how often you’ll engage with them, what topics you’ll discuss and so on.


Encourage Active Participation

Encourage members to post comments to discussion boards,

engage with other members while on-site, chat with moderators directly, use Webcams, upload photos and videos

and more.


Make It Easy to Launch an Activity

Simplify the approval process so that a group or brand team can launch a

survey or other activity with minimum paperwork.


Standardize

Standardize often-repeated types of studies so that the organization learns

over time what the answers mean.


Create a Database

Create a database of normative data for the standardized studies

so that results have greater value and meaning.


Charge The Private Panel’s Cost To A Central

Marketing Budget

Individual brands or groups should not be charged for using the community. If the studies are “free,” brands are eager to do as many studies as possible (and

thereby make better decisions).



SUMMARY

Summary

Private Online Communities are extremely valuable tools for marketers and product developers.


Summary


POC’s are typically cheaper and faster than conducting ad hoc research studies.


Summary



A POC can be a long-term resource for valuable actionable consumer insight that will help your company develop better products and more effective marketing programs and packaging, make better decisions, make money, and save money.


Summary

POC’s can be used to:

Gain a deeper more thorough understanding of your consumer

Optimize advertising and promotional programs to maximize their effectiveness

Develop new products that have a higher likelihood of marketplace success

Optimize package copy and graphics so that they grab shoppers’ attention and make them want to buy the product.


Summary

Private Online Communities are a powerful consumer insight tool because:

You get thoughtful and honest feedback

You’ll gain rich deep insight

You are able to do iterative testing

You will be able to do more thorough quantitative research studies

You build brand advocacy.



HOW TO GET STARTED

How to Get Started

Before you move forward with building a Private Online Community, you need to answer two important questions.


Is it mainly for the creation and enhancements of your products or communications? Or is it for more traditional marketing needs such as customer segmentation, pricing research, and

purchase habits, usage and attitudes?

What Do You Want To Use The Community For?




What are the specific

objectives?





What is the scope in terms of duration,

geography, size, profile of participants?

What are the specific

objectives?



If you plan to do less than 100 projects a year, you

should probably outsource to a research

company with expertise in private panel

development and management.

Should You Build And Manage Your POC

Internally Or Outsource?


If you plan to do less than 100 projects a year, you

should probably outsource to a research

company with expertise in private panel

development and management.

If you plan to do more than 100 projects a year,

then building a professional internal staff

might make sense.

Should You Build And Manage Your POC

Internally Or Outsource?


Sure you can do it yourself, but do you really have the time or the right people?

Considerations if You Decide to Do It Yourself



You will need to hire people who really understand the nuts

and bolts of panel management, sampling, questionnaire design,

coding, tabulation, quality assurance, data security, and

email deliverability.







email deliverability. You will need to invest in panel management and survey software.







email deliverability. You will need to invest in panel management and survey software.


You will need to assign one person to be responsible for scheduling, expediting, and coordinating with internal

groups or brand teams to keep research projects moving ahead.


Purchasing a turnkey private panel service frees you up to be the research

consultant within your organization, rather than the research mechanic.

Benefits of Outsourcing


Purchasing a turnkey private panel service frees you up to be the research

consultant within your organization, rather than the research mechanic. You can operate with

minimal staff, since most of the work is performed

by your private-panel partner.

Benefits of Outsourcing


Let Riedel Marketing Group

build and maintain your private online

community.

If You Decide to Outsource…




community.

We’ll take care of the nuts and bolts of panel

management, member recruitment and retention,

sampling, questionnaire design, tabulation, and

analysis.





community.




analysis.

We’ll work closely and collaboratively with you

to make sure the community yields the

information and insight you need.





community.




analysis.





We have more than ten years of panel

management experience.




community.




analysis.





We have more than ten years of panel

management experience.


Call or e-mail to get started today!

[email protected]

mailto:[email protected]

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