monetizing online communities

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HOW CAN WE MAINTAIN OUR CURRENT ONLINE COMMUNITY ETHOS WHILE CREATING MORE WAYS TO SELL PRODUCTS? Monetizing Online Community

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Stop the banner madness! The best way to sell online is to integrate products into the user experience. Focus on relationships and curriculum based marketing.

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Page 1: Monetizing online communities

HOW CAN WE MAINTAIN OUR CURRENT ONLINE COMMUNITY ETHOS WHILE CREATING MORE WAYS

TO SELL PRODUCTS?

Monetizing Online Community

Page 2: Monetizing online communities

BE THE GRATEFUL DEAD,NOT METALLICA

Our focus should not be one-off customers, but loyal long-

term relationships.

Page 3: Monetizing online communities

Recognise Online Buying Behaviour

In order to sell effectively online it is vital to recognise the buying behaviour of online users. Most users do not opt-in to buy until several trips to

a website. The top selling websites provide unique reinforcing

messages each visit. And without sufficient trust users will not complete

a purchase.

Page 4: Monetizing online communities

The Influence of Peer Opinions

91% say consumer content is the #1 aid to a buying decision (JC Williams Group)

87% trust a friend’s recommendation over a review by a critic (Marketing Sherpa)

Social network users are 3x more likely to trust peer opinions over advertising when making purchase decisions (Jupiter Research)

Page 5: Monetizing online communities

Understand Decision Making

Too many choices overwhelm us. Consumers care most about safety and

reliability. Most good decisions will follow these steps: Figure out the goal(s). Evaluate the importance of each goal. Array the options. Evaluate the potential for each option to fulfil a goal. Pick the winning option. Later evaluate the consequences of the choice for future

possibilities.

Page 6: Monetizing online communities

Create Your Own Look

Page 7: Monetizing online communities

Become a popular stylist and win a prize.

Page 8: Monetizing online communities

Enhance Product Interaction

Page 9: Monetizing online communities

The Objective

An online community is the perfect environment to cultivate trust through long-term relationships and sell more products.

Enable our most vocal fans to become our word of mouth advocates.

Empower customers to co-create the sale. By putting customers first it is possible to innovate

faster and stay relevant.

Page 10: Monetizing online communities

Astor & Black Facebook Promotion

Fans are able to create their own suit combinations through an interactive tool on Facebook.

Fans share the suit combinations with their friends.

The fan with the most likes receives a free suit.

Page 11: Monetizing online communities

The authors of Wikinomics, describe prosumption as a non-passive consumer who wants to participate in the creation of products

and services.

"I never thought I'd use my computer coding skills to build something like this. But the response from our "beta" testers has been off the charts."

Page 12: Monetizing online communities

The Solution

Revenue generators to be introduced: Enhanced user experience integrating shop with

community. Create wishlist allowing users to bookmark products. Personal, custom merchandising. Retain purchase history and credit card information

for quick impulse purchases.

Page 13: Monetizing online communities

Investing in our Community Members

We need to empower our community members to take a more proactive role

By encouraging more members to get involved by editing content and managing threads it will be possible to ensure a higher level of user generated content. This content will be of higher quality and able to be

distributed in more places within the online platform and externally.

Page 14: Monetizing online communities

Enlist True Fans to Develop New Products

The first way that LEGO turned to fans to help strengthen the company and their product was through the LEGO Ambassador Program. 

The Ambassador program is made up of forty LEGO fans, aged 19 to 65, from around the world.  LEGO has built personal relationships with these fans and turn to them for ideas and advice.

Page 15: Monetizing online communities

Peer Influence Analysis

•Engaged people generate 500Bdigital influence impressions on each other about products and services every year.

•Influence is highly concentrated — 16% of the people generate 80% of the influence.

Peer Influence Analysis identifies & analyses these mass influencers by

industry.

Page 16: Monetizing online communities

Persona Creation

Metrics need to be compiled to create the personas to create new features, build enhancements and digital products by the departments responsible for reporting on: online traffic, customer service, and the current state of the online platform.

Who creates our personas? Online Marketing QA Customer Service Online Community Manager

Page 17: Monetizing online communities

Benefits

Focusing on our community to generate sales our business strategy can revolve on what we do best- create the best products and services, and other benefits include: Less reliance on traffic generating promotions. Spend more time focused on our existing online

customers. Ability to curate high quality user generated content.

Page 18: Monetizing online communities
Page 19: Monetizing online communities

Brands of Prosumption

JOIN THE LEGIONS OF CUSTOMISED DIGITAL EXPERIENCES.

Page 20: Monetizing online communities

Threadless

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Converse

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BMW

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Blurb

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STA

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DK

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WHAT IS ON THE HORIZON? WHO’S COMING UP BEHIND YOU?

The Future of Online Community

Page 27: Monetizing online communities

What can we learn from Blockbuster?

Although Blockbuster began a rentals-by-mail and streaming service belatedly in order to fight against competitors like Netflix, they didn’t come on strong enough or soon enough.

Blockbuster filed for Bankruptcy & put itself on sale for $290 million.

Page 28: Monetizing online communities

Borrow Yelp’s Advertising Model

Businesses may advertise with Yelp for preferred search result placement and extra listing features.

For the advertising fee, the business may include an individualized message and photo slide show onto the web page for its listing as well as receive reports on listing traffic.

Additionally, these advertisers, called "Sponsors" on the site, are allowed to highlight a specific review and communicate with reviewers.

Page 29: Monetizing online communities

Additional Resources & Reading

The Paradox of Choice: Why Less is More (B. Schwartz)

The Cluetrain Manifesto (R. Levine, C. Locke, D. Searls, D. Weinberger)

Groundswell (C. Li, J. Bernoff) The Persona Lifecycle: Keeping people in

mind throughout product design (J. Pruitt, T. Adlin)

Cultivating Communities of Practice (E. Wenger, R. McDermott, W. Snyder)

Page 30: Monetizing online communities

Diving into LEGO's Strategy Behind Connecting Their Amazing Network of Fans -- presented by Jake

McKee

Page 31: Monetizing online communities

EconAffinity: The Winning Balance Between Original, Syndicated and User-Generated

Content