|Scooped by James Donnelly|
Crowd Sourcing in the Data Age
The Marketing Trend considered is the emergent “crowd sourcing” techniques that are being employed in various degrees of effectiveness. Crowd sourcing is definitely a double-edged sword, in that today’s electronic realms allows an idea to become viral and extremely effective (such as WestJet’s 35 million and counting Christmas Miracles) or disastrous as we’ve seen all too often. From a core definition, crowd sourcing is obtaining a service, idea or content by soliciting a large group of people, in particular online communities. The WestJet example demonstrated the marketing reach available via crowd sourcing, even if the result far exceeded the expectations.
The benefit of crowd sourcing in marketing is the inclusion of the customer in the process, the reduction of overall advertising cost and the marketing reach as demonstrated in Business Week. Many corporations are using online pictures and user generated content for marketing campaigns. The article illustrates how Lancome (make-up) and Coach (handbags and shoes) use customer content submitted by Twitter for marketing. Customers gain recognition for their content, are included in the branding and this quote “The path to purchase has evolved tremendously, and consumers are much more likely to trust their peers than a brand”. A key factor is that the corporations monitor the submissions and only 5% of submissions are used – this is a control of quality and content.
Although there is the danger of negative publicity, research finds that when used correctly it enables engaged customers to inspire others to try the brand. Results indicate it increases the odds of purchase from 5-12%. My perception is that it addresses the 80/20 Pareto principlewhen managed properly – if 20% of customers represent 80% of sales/profits, why not allow that engaged 20% champion the brand to like-wise minded customers?
 WestJet Christmas Miracle: real-time giving, http://www.youtube.com/watch?v=zIEIvi2MuEk
 How to Turn Selfies (and puppies) Into High-End Retail Sales, http://www.businessweek.com/articles/2014-01-21/how-to-turn-selfies-and-puppies-into-high-end-retail-sales#r=hpf-s
 Pareto Principle: How to Use it to Dramatically Grow Your Business, http://www.forbes.com/sites/davelavinsky/2014/01/20/pareto-principle-how-to-use-it-to-dramatically-grow-your-business/