Andrew and Alex joined Forrester for its 2008 Marketing Forum, which focused on the challenge of customer engagement in a digital media world.  This second series of articles focuses on case studies of companies using interactive applications as the hook for building communities of superfans.

Creating Brand Advocates at Nike’s Jordan Brand
Emmanuel Brown, Director of Digital and Content, Nike’s Jordan Brand

Nike’s Jordan Brand has developed a couple of immersive experiences for highly engaged fans.  The experiences start with deep insight into these “superfan” needs, and build intense community engagement for these hardcore fans, but are small scale communities relative to the scope of the Jordan Brand.  Which raises the question, are these high ROI applications for engaging and activating superfans, or are they so focused on the hard core that they are failing to engage the brand’s mass market?  Read on and share your opinion…

Emmanuel began by sharing background on Nike, whose headquarters in Beaverton, Oregon is like a Disneyland for adults, and its Jordan Brand division, where Michael Jordan (MJ) still deeply interacts with the brand, the same way that he was engaged with the game of basketball.

Mentally, or digitally, cut to a stirring, inspiring Michael Jordan video (videos can be found at Nike’s site for the Jordan Brand, Jumpman23).

The Jordan Brand.  Nike approached Michael Jordan in 1984 to have a signature shoe built around him, a completely novel concept at the time.  In 1996, the Jordan Brand was born as a division within Nike.  The brand has 110 people versus the Tiger Woods Brand’s 400 people, and both brands support the same amount of revenue.  Nine out of ten people own (or have owned) Air Jordans, and the Jordan Brand is the second in the market behind Nike itself.

The Jordan Brand’s primary consumer is the core urban male 15-20 year old, highly competitive, a leader of the team.  These guys often know what the brand is doing before the news is made public.  The secondary consumer is 12-24 year old males and females, urban and suburban, not necessarily competitive.  Their consumers’ mind space includes social media, television, and the video game space.  The Jordan Brand does a lot of marketing through video games – with them, kids can see the entire line-up.  Most kids know what products they want before they get to the store.

The engagement philosophy for the brand is (1) to engage with consumers where and when they want (online!); (2) product and service together are critical to delivering a greater experience and engagement; and finally (3) the consumer decides.

The Jordan Breakfast Club.  A key platform for engagement is the Jordan Breakfast Club.  The challenge was to establish an authentic position for Jordan in the training marketplace.  Every morning, MJ and his teammates used to wake up and complete a workout regiment before he got to eat his four course breakfast.  So the Jordan Brand went after an unmet need of the target customer around training – everyone says that training is important, but no one tells kids how to train.  The Breakfast Club includes a simple peer-based assessment and a custom designed workout program that can be printed out or downloaded onto an iPod as videos for a huge number of possible workouts.  The Jordan Breakfast Club has 20,000 plus engaged users, and tens of thousands additional views on YouTube.  The Club also did a 10-city summer tour to reach thousands more at day long training camps.  The program won a 2007 Forrester Groundswell Award.

The Jordan Flight Club.  After building the Breakfast Club, the brand started getting more information about its consumers, and next started the Flight Club.  The Jordan brand has a huge “sneaker-head” following, and the Flight Club is about limited edition, one-at-a-time, high demand products for fiercely loyal customers who are willing to pay a very high price and avoid the disappointment of trying to get limited products through retail.  The brand got a lot of feedback from consumers in designing how the Breakfast Club would work.  Members of jumpman23.com got membership offers and the opportunity to invite two more friends – in others words, an “insider” offer for loyal customers only.  Demand went through the roof, with people selling their free invitations on eBay, and over 40,000 members joining in the first 45 days.

Emmanuel’s summary:  (1) create relevant experiences beyond the product, (2) service complementary needs of the consumer, (3) empower engaged consumers to be brand advocates, and (3) create and own communities where they are relevant and authentic.  The Jordan Brand’s next big challenge is to take these opportunities in the digital space and migrate them to the physical space, like the Jordan Breakfast Club tour.

Q&A Discussion

How do you share learning from the Jordan Brand throughout Nike?  We do case studies.  Things may work differently for us versus golf, and we use best practices.

The 15-20 year old market is refreshed every 5 years, so how do you target for the future, and specifically do you market to even younger (under 15) generations?  We try to communicate in a simplified format, keep MJ’s story relevant, and make great products.  We don’t market to the younger kids, but do try to emphasize success through working hard.

What do you mean that you’ve learned the hard way about ignoring customers?  We created a website where consumers could buy one-off products, and only created 6,000 units of a product that 1.6 million consumers tried to buy, crashing the site and generating hate mail.  We use sales data and forecasting to ensure that problem is not repeated going forward.  We’d rather overstock and deal with excess inventory than to have too little product and anger consumers.

For limited editions, doesn’t it help the brand to sell out so fast?  You have to appreciate the global effect of our brand.  Kids in Australia were getting their hands on US-only products; we responded to make the products available there.   We’re pushing to think more globally and satisfy demand, offering limited products in all parts of the world.

The Breakfast Club concept sounds great, but how are you measuring the true impact?  We’re not measuring the financials, but we do track the ongoing activities of the kids who sign up.  One of the Pro teams we visited adopted the philosophy as their primary means of training!

Digital Podcast joined Forrester for its 2008 Marketing Forum, which focused heavily on the challenge of customer engagement in a digital media world. We’ll be writing about the conference over the next two weeks. Our first series of articles, like the conference, is focused on the topic of engagement. This article covers the first two presentations of the conference.

Setting the Stage
Harley Manning, Vice President, Research Director, Forrester

Harley introduces the conference’s theme by emphasizing that the imperative for marketing success going forward is customer engagement, and previews three case studies on the subject.

Traditional channels are shrinking – the 30 second spot is declining in reach and importance – yet the new channels, like YouTube, hold risk for marketers. The challenge and opportunity is to engage with customers and in return they’ll engage with your brand.

Harley shared three quick case studies of engagement:

Jordan’s Furniture: Is it a furniture store or an amusement park? Complete with a trapeze school, water display, café, IMAX theatre, and the backing of Berkshire Hathaway, Jordan’s engaged customers stroll past “finished room” furniture displays to get to lots of the good stuff. Along the way, they seem to buy a lot of furniture

Nike Running website: Articles, splashy photos, and aspirational content motivated Harley to drop a wad of cash on Nike’s best running shoes, begin running again after a lengthy hiatus, and then drop more cash on Nike apparel. Is Harley buying shoes or buying into a lifestyle?

LeapFrog: Toys that engage Harley’s son’s brain while he’s too busy having fun to notice that he is learning too. No wonder these toys sell like hotcakes.

Engagement: A New Approach To Understanding Your Customers
Brian Haven, Senior Analyst, Forrester

Two brands, two superfans, two very different reactions – one shove, and one embrace. If you want your fans to keep loving your brand, try hugging them back!

The Ikea Superfan

Brian starts by sharing a story of true engagement, and how gazing into the eyes of superfan love be hard for some corporations. Jen is an Ikea superfan from Ohio, and she singlehandedly started a movement to bring Ikea to her corner of Ohio. She started a website, scouted retail locations, and worked tirelessly to drum up support for Ikea to move in. How did Ikea management react? They warned her to stop using their trademark, were concerned when her Google rank approached that of the brand, and after actually building a store in her neck of the woods, Ikea didn’t even respond to her job application. While Ikea is a great brand that does many things right, they could have handled this superfan in a more enlightened manner.

What can we learn from Jen’s story? The traditional marketing funnel and message control is a thing of the past. Consumers can now chase down a spaghetti maze of paths to your brand, and marketers risk drowning in a sea of metrics – too often we don’t know which matter, what to do with them, and even if we did, how to track them technologically and across channels.

Even overcoming all these hurdles, the next challenge is how to make “engagement” actionable. What does engagement mean?

In simple terms, engagement is a person’s participation with a brand, regardless of channel, where they call the shots. Brian defines engagement as the 4 I’s, the level of Involvement, Interaction, Intimacy and Influence that a person has with a brand over time:

• Involvement: A person’s presence at brand touchpoints
• Interactions: A person’s actions while at the touchpoints
• Intimacy: A person’s affection for a brand
• Influence: A person’s advocacy for a brand

The Alli Superfan

Brian shares a contrasting example – Laura, who tries out GlaxoSmithKline’s “alli” weight loss system and community website. The system and site effectively engage Laura:

• Involvement through community tracking, forum tracking, registration data
• Interaction through product purchases, diet diaries, fridge photos, food journals
• Intimacy through product feedback, online ad opinions and shopping experience
• Influence through tools for advocacy.

As Laura worked with the system and the website (and lost a lot of weight!), GlaxoSmithKline decided to feature Laura, one of their most engaged customers, on the web site. This highly engaging system realized a very successful launch – in just the first six weeks, 1 million people tried product, and they rang up $155 million in sales on a $150 million ad budget.

Brian then discussed some of the steps for defining and measuring engagement (understand existing and outside data and metrics) and encouraging engagement (provide content, facilitate conversations, give customers a reason for sharing information). Engagement involves a fundamentally different relationship with customers.

And he reminded marketers to engage, embrace, and encourage the Jen’s of the world.

Q & A Discussion with Brian

How to address the fact that companies have many different departments involved in “engagement” and many different metrics are used? The marketing team needs to take lead with other parts of the company to share the vision of engagement, provide value to those groups, and bring the company together on goals and associated metrics.

How to identify and scale Superfans like Jen? Online is a great place to start. There are brand monitoring services, even Google search can be used to find the bloggers. To scale this group, first nail the customer insight, who the customers are, what they care about. Then the best way to attract, encourage and track them will depend on the answer to those questions.

How can companies engage around intangible, infrequent purchases such as insurance or other financial services? The purchase may be infrequent, but there is ongoing usage data that you can track and monitor. These customers may not be engaged Superfans like Jen, but the same principles apply.

How should Ikea have treated Jen? Not to pick on Ikea, but Jen wasn’t doing anything bad, everything she communicated about Ikea was positive. Ikea should have leaked her information about the store in advance, given her access to better technology to support the blog, talked about her on their own website. Reach out, embrace, and help your superfans! Very simple things would have meant the world to Jen, and would encourage others like her.

Are there examples where pursuing engagement has backfired? There is nothing negative about understanding who your customers are and what they care about. Overall there are negative things that can happen, but remember we’re in a different world now, and we don’t have the same control. We have to stop being scared of our customers.

What do you do about people who are negatively engaged with the brand? We call this disengagement, and it will happen whether you like it or not. The question is do you want it to happen where you can see and influence it, or spread out beyond your reach. Ultimately, brands need to pay attention to the reasons for disengagement and make their products better!

All week we ran a series of podcasts focused on how companies are trying to engage, activate and monetize fans using all kinds of social media. The reason we focus on these super fans is because they are big consumers and influentials. Scott Karp, Publishing 2.0, has an excellent article titled “Influentials On The Web Are People With The Power To Link” that is all about the power of these fans.

Influence on the web is all about connectivity — the larger the network, the more powerful the links.

He makes the point that it is the links that drive the power and influence of sites and networks. He points out that the most successful of companies is the one that has been the most prolific linker of all: Google.

And this is one of our key thoughts as well - it’s one of the major reasons we care about Super Fans, because they are linkers by nature.

Technorati Tags: super fans, links, influentials

In Digital Podcast 38, we interview David Becker, Chief Marketing Officer at ExpoTV.com. ExpoTV is all about consumer generated video product reviews both on line and on TV. ExpoTV covers just about any product you can imagine with about 250,000 reviews.

If you are interested in producing a social media marketing campaign that uses user generated content this podcast is for you. David discusses the concerns advertisers have about marketing around user generated content and some of the steps marketers can take to mitigate the risks. He provides case studies from other companies that show how they have managed to produce successful social marketing campaigns. David has suggestions about how to connect with super fans and turn them into allies that will make social marketing work for you.

 

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David Becker is ExpoTV’s Chief Marketing Officer. Prior to Expo, David served as president and COO for Beliefnet.com, a spirituality and self-help web site. David also founded Backslap Entertainment, a user-generated content production and syndication company backed by Fremantle, producers of American Idol. David was also President and COO of Uproar.com.

Technorati Tags: social media marketing, user generated content, super fans, advertising, David Becker, ExpoTV

As part of our Super Fan series, we interviewed Dean Carignan. Dean is Director, Advertising Business Strategy for Microsoft’s Entertainment & Devices Division. In this role, he develops long-range strategic plans for investments in streaming video advertising, mobile marketing, and game-based advertising. Dean also spent several years with Microsoft’s adCenter group, where he drove product strategy for Paid Search, Display Ads, and Contextual Advertising.

Dean was able to provide us with some excellent perspective on these new advertising opportunities. He is part of a group that looks at opportunities to advertise via the Xbox, Media Center, Zune and mobile platforms. We go into depth on in game advertising and how important this new segment will be. He walked us through case studies of Domino’s Pizza and P&G that describe how a well designed campaign can add to the realism of the game experience and yield results for the advertiser.

This is a must listen podcast for advertisers who are struggling to break through on television and are looking for new ways to market their products using these rapidly growing platforms.

 

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Technorati Tags: Dean Carignan, Microsoft, in game advertising, gaming, social media, super fans

As part of our Super Fan podcast series, we interviewed Jason Feffer, Founder and CEO, of SodaHead. Jason was one of the earliest employees at MySpace and experienced their rapid rise into a major social networking site. After MySpace, Jason founded SodaHead, a company in the Social Answers space. SodaHead allows users to set up opinion polls that users get to vote and comment on. It’s a fun and addictive experience, and well worth trying.

Jason’s discussion of his experience at MySpace illustrates the importance of operational optimization to drive monetization of super fans. In his new company, Jason is putting a lot of what he’s learned to use in creating a new and fun social site. SodaHead has mastered the art of lowering the difficulty and barriers to user generated content. It leads to an experience where its much easier to join in the social mix in a more meaningful way than just asking someone to be your friend. SodaHead is definitely an experience everyone should try.

 

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Jason Feffer has an exciting eight-year history of Internet startup experience leading up to his most recent startup, SodaHead.com. Mr. Feffer helped start MySpace in 2003, which sold to News Corp for $580M. During his three years at MySpace, Jason served on the executive committee and as Vice President of Operations as the membership grew to 100 million. Mr. Feffer oversaw advertising operations, revenue reporting, policy enforcement, government relations and several other departments at MySpace.

Technorati Tags: Jason Feffer, MySpace, SodaHead, social media, social networking, social media optimization, super fans

As part of our Super Fan series, we interview Tim Westergren, founder and Chief Strategy Officer of Pandora, about how Pandora works and what they are doing to engage and activate their community.

Pandora is a popular music recommendation service built on the Music Genome Project. It’s a fantastic service for discovering music and well worth a try if you have not experienced Pandora.

We discuss the importance of having a good product and connecting with fans. Tim speaks about how he has traveled the country to learn from Pandora’s fans and how he uses Town Hall meetings to get feedback directly from the fans. They started small with just six people in these Town Hall meetings and now have meetings where as many as 400 people show up to meet with Tim.

The lesson learned is that the effect of proactively communicating personally and sincerely with people is an incredibly powerful force in turning people into evangelists.

 

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Technorati Tags: Tim Westergren, Pandora, Super Fans

As part of our Super Fan Series, we spoke with Stephen Smyth, General Manager & Senior Vice President, Americas Reuters Media about how Reuters is working to build it’s audience and strengthen its relationships with Super Fans. We discussed how they think about user segments and their needs. Stephen shared how they start with the target users experience and then build the content to fit the desired experience. He highlighted a number of the more interesting initiatives Reuters has underway at Reuters Labs. Reuters Labs is where technology, user experience, content and business model meet together as Reuters explores new ways to distribute its content in applications such as Face Search, YouWitness and Context Based Video Ads.

Reuters’ history of syndication is proving a valuable capability as Reuters manages highly distributed content across their own sites, partner sites and other third party sites. They have decided who they want to target specifically and use content creatively to drive audience.

 

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Stephen Smyth is responsible for Reuters Americas consumer business, driving revenue and audience for the online, mobile, interactive TV, digital signage and online syndication services. In addition, Stephen oversees global business development as well as local programming and production, traffic and ad operations in the Americas. Prior to his current role, Stephen led Reuters mobile, video, and digital signage business globally. He was responsible for maximizing revenues and brand value from the company’s presence on these platforms and oversaw relationships with key technology providers and distribution affiliates across the globe. In addition, he headed up Reuters Labs, a public showcase of the latest consumer product innovations from Reuters. Previously, Stephen was responsible for media strategy and business development for Reuters.

Technorati Tags: Reuters, Stephen Smyth, super fans, syndication, podcast

We sat down with Will Flannery, Vice President of Advanced Services for Fox Cable Networks (FCN), and Brian Peterson, Director of Corporate Communications, to discuss the challenges of multi-channel content distribution, the importance and role of Super Fans and what we can learn about Super Fans from sports fans.

We have a great discussion about the Big Ten Network and how the Super Fans can be more like tribes than traditional segments. These Super Fans cover the entire demographic spectrum and building communities that work for them requires understanding the different use case these fans have and how to build sites, tools and conversations that recognize these different needs.

We also explore some of the organizational challenges of coordinating across the different channels, and the importance of creating complimentary experiences across channels.

 

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Here’s a bit more about Will and his responsibilities at Fox:

Will Flannery is Vice President, Advanced Services for Fox Cable Networks (FCN). He is responsible for the day-to-day distribution activities for advanced television services including high-definition, interactivity and video-on-demand services involving Fox Cable Networks, a portfolio of networks including FX, FX HD, FSN and its 19 owned-and-operated regional sports networks, National Geographic Channel, National Geographic Channel HD, SPEED, SPEED HD, FUEL TV, Fox College Sports, Fox Soccer Channel, Fox Sports en Español, Fox Movie Channel, Fox Reality Channel and the Big Ten Network. In addition, Flannery also works closely with sister units such as Fox Networks Engineering & Operations, Fox Digital Entertainment, Fox Interactive Media and Fox Mobile Entertainment on new product offerings, copyright protection, inventory sales and technical solutions.

Technorati Tags: Will Flannery, Super Fans, Social Media, Fox Cable Networks

As part of our Super Fan podcast series, I spoke with Jeffrey Bridges, founder and executive producer of Pendant Productions. Pendant is an audio production group dedicated to making radio dramas like the old radio serials of the ’30s and ’40s, only modernized for today’s audiences. Pendant had 986,000 downloads of their shows in 2007 which just goes to show how popular the productions are.

Jeffrey started Pendant in 2004 to pursue his interest in fan fiction and fan generated radio dramas. Pendant is an all volunteer effort producing more than a dozen different shows, both takeoffs on existing properties and original properties produced by Pendant.

Pendant got its start with “Star Trek: Defiant” a text based story list that Jeffrey started way back in 1995. Jeffrey got interested in producing an audio version of the stories, and was able to find enough sound effects and audio mixing programs to make it possible. He went on to produce “Star Trek: Defiant” as an audio file. Not long after starting the first Defiant audio, Jeffrey was listening to some of the old Superman radio serials from the 1940s and had the inspiration to do Superman audio too, which led to the formation of Pendant Productions in 2004.

Jeffrey told me about Pendant’s history and how they make so many great radio shows. It is a fascinating story that shows just how much Super Fans can achieve and produce.

 

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Superman: Last Son of Krypton	Batman: The Ace of Detectives
Wonder Woman: Champion of Themyscira	Supergirl: Lost Daughter of Krypton
The Pendant Shakespeare	Star Trek: Defiant
Star Wars: Blue Harvest	Seminar
This Week in Pendant	Dixie Stenberg and Brassy Battalion
The Kingery	Once Upon a Time in Vegas
Imperium: Superman, Batman, Wonder Woman Crossover	James Bond: To The End	Indiana Jones and the Well of Life
Indiana Jones and the Well of Life

Downloads are available in web-quality and CD quality. The CD quality downloads are available via BitTorrent.

Technorati Tags: super fans, podcast, pendant productions, Jeffrey Bridges, superman, batman, wonder woman, supergirl