BrandSavant

Gaining Insight From Social Media Data

Flipping the Funnel:
The Four Levels of Influence

by Tom Webster on November 12, 2011

Image: "Station Bullhorn," by Nate Beaty

My thinking on influence continues to evolve, in no small part due to some excellent exchanges I’ve recently had with my own group of “influencers.” Specifically, I recently attended a session on online influence at Blogworld given by my friends Chuck Hemann and Matt Ridings. The session was fascinating because Chuck and Matt come at the problem from two different directions – and the good news for marketers is that those directions are not mutually exclusive.

Where Matt spun me around was with this subtle point – we are consumed with focusing on influencers, but ignoring the influenced (and you should download his excellent presentation here.) As Matt noted, finding people at the moment they are actually being influenced online is really about identifying a future customer at the point of need, and turning them into an *advocate.*

Who Are The ‘Influencers’?

One of my “primary influencers,” Tamsen McMahon (who was also at this session) is fond of noting that “we are all influencers.” We all hold sway over some group of people, about some topic, in some context. Yet, the current crop of automatic influence measures will never do a *great* job at picking up on this subtlety, because they are engineered to look at aggregated data and predict a specific response. In essence, they are built to look at an abstraction – my online “activity” – and extrapolate a predictive measure: how well or poorly I am likely to disseminate a given message, or encourage a given action, based upon my previous behavior.

There is merit to predictive measures, and I’m not going to bash them here – they are getting better. But it strikes me, taking a cue from Matt, that we are looking at abstractions and “hoping” for a specific, when we could just as easily (more easily, in fact) look for specifics and then reward future, similar behaviors. In my day job, we know that one of the best predictors of future voting behavior is whether or not you voted last time. Influence works in a similar fashion – we need only flip the funnel around. Rather than (or in addition to) attempting to predict specific future behavior from a mass of general data, we could also look for specific instances of *actual* influence being wielded in situ, and then reward/encourage future behaviors accordingly. To go back to my voting analogy, the best way to determine whether or not I am an influencer about, say, cars is to observe me actually influencing someone to test drive or consider a given car, and not merely by the fact that I talk about cars and generate retweets.

The ‘Influenced’

I’ll give you a specific example that occurred online last week between Matt Ridings and I (and Matt, to his endless credit, worked it directly into his Blogworld talk. Have I mentioned yet that you should follow him on the Twitter?) Last week, I observed Matt on Twitter asking for a recommendation about comfortable earphones. We are close friends, so he knows that I am a bit of an audiophile (and by “a bit” I mean I have a problem.) I replied to him that he should try equipping his earphones, whatever the model, with foam tips from a company called Comply – I use their tips on all of my in-ear ‘phones, because they are super comfortable and preserve the sound quality.

The attentive folks at Comply were clearly monitoring these conversations, and they helpfully popped in to hook Matt up with some to try. Comply was listening at the point of need, and they acted to provide a sample to a potential customer. As Matt points out, however, there is a more subtle point to be made with this first level of interaction – by listening to Matt at his point of need, and solving his problem (hopefully with a great product), they might have just created something beyond an “influencer,” they might have just kindled the spark of an advocate. Matt may or may not be a topical influencer about audio, but if he has a great experience with Comply, he will certainly be a compelling online advocate for their brand.

Rewarding Matt at the time of need, however, is just the first level of this model of influence. Matt is dead on that focusing on the influenced is an incredibly efficient way of building advocacy. None of the online influence measures would have tagged me as influential about audio – I simply don’t talk about them online that much. But my friends know that I have a wealth of knowledge about audio, and I’ve recommended countless products over the years. My aggregate behavior would never predict this specific interchange; yet, there it is. A few tweets online, and a product is sold. Does Klout think I am influential about headphones? Nope. Am I? Demonstrably.

Finding this specific interactions – the “have you actually voted in the past” of online influence – is an easy and efficient way to identify influencers. This isn’t about predicting whether or not I might wield influence about headphones, it’s observing directly that I was the catalyst for an action that the brand cared about. Comply doesn’t need to look at my aggregate profile and “hope” I’ll talk about their specific product, because now they know that I can and will actually move their product. I’m an advocate.

Cultivating The Advocate

As Tamsen pointed out in our Blogworld exchange, however, rewarding Matt and responding to that exchange was just the surface level. Tamsen (who, besides wielding considerable “clout” with me, is also the VP of Digital Strategy at Allen & Garritsen and a supah smaht cookie) noted that the second level of engagement for Comply would have been to reward me for my advocacy – or at least to have provided some form of incentive to encourage future recommendations. Had Comply simply butted in and pushed their product without my recommendation, it would have been seen by Matt as intrusive. But my advocacy warmed up the prospect, so to speak, so the “intrusion” was welcomed. Finding an actual, brand-specific influencer for Comply should be gold to them, and they should do more to cultivate those specific relationships where they are discovered.

Purists might point out that this kind of “incentivized” advocacy could be seen as my simply being bought and sold asking an affiliate marketer. But, that’s really my problem, isn’t it? After all – in this model – the proof is in the pudding. I either encourage trial or I don’t, right? If I am no longer seen as influential about this brand, it wouldn’t be be because I am compensated, per se. It would be because I stopped being a compelling advocate and encouraging online interactions similar to the one I had with Matt. That would only happen if somehow my friends and online connections questioned my integrity. That’s kind of a “life” problem that I don’t anticipate having.

The Story

Still, I’m not angling for free Comply products. No, my reward is the same as anyone else’s who genuinely and passionately recommends a product to a friend: that they tried the product and loved it, thereby making the recommender (me) feel smart and loved. Right? So the “reward” I really want is for Matt to hop back on the Twitters and tell the world that he tried a product based upon my recommendation, and it was awesome – making me, by the transitive property of awesome, also awesome. This would make me happy – but (and this is the third level of influencer engagement here) it would also make Comply happy. I’ve shared my story with Matt, so the next step is for Comply to help Matt “complete the sentence” by providing an incentive to (publicly) thank me for my awesome recommendation. Products aren’t sold in social media on features – they are sold on stories.

Sharing those stories online brings in the silent audience – the people lurking, following me or Matt – who quietly file this anecdote away until they reach their point of need. It’s a simple matter for a company to add “how did you find out about us” to their order page (and, by the way, to reward customers somehow for sharing that data) or to do some other form of primary market research. Doing so might allow Comply to see that my little online exchange with Matt might have actually led to 25 or 30 sales. Who knows. And encouraging Matt to close the loop on this “story” more than doubles the chance that future, prospective customers will observe this advocacy.

The Shift

Once that “story” has been completed, there is a lasting social record of my ability to recommend a brand in a specific category, and instigate an action that brand cares about (i.e., more than a “retweet.”) This interaction is public, and valuable to Comply. It’s more than that, however, and that is where a shift in perspective is required to access the fourth level of this particular model. Comply operates in a category with partners (earphone manufacturers) and competitors (Monster, for one). If I were the maker of a high-end earphone (say, Sennheiser), I would be doing more than simply monitoring social media for mentions of my brand, or even my competition – I’d be searching specifically for interactions just like the one that Matt had (and setting up that kind of smarter research station is the kind of work I *love* to do.) Again, no aggregate, predictive measure would discern that I am an influencer about headphones, but Sennheiser could easily see from the public record of my dealings with Comply that, actually, I am.

Sennheiser could then do the work to determine whether or not I would be a good potential “influencer” or even advocate for their brand as well. And that is a straight-up influencer campaign. Allow me to sample the product, blow me away (that’s super important) and then cultivate a relationship. If the product is great, the interaction positive and a relationship maintained, Sennheiser stands a decent chance of being in my consideration set the next time someone asks me to recommend some headphones. The only difference here is that they didn’t approach it from the fat end of the funnel by using a predictive tool to find people online who are active and talk about headphones – they used a diagnostic tool to find someone who can get someone else to try a headphone or headphone related product.

Beware False Choices

Again, predictive tools have their place, and I am suggesting a different way, not a replacement way. And the top of the funnel methods (using automated influence lists) are really better suited for awareness, while the approach described in this post is more about trial and conversion. So I’m not setting the two approaches in conflict, and neither should you. And in both cases, you should check your work. If you are interested in a pretty useful, do-it-yourself way to approach measuring your efforts, I wrote a post on a true measure of influence a few weeks ago that I think you’ll find useful.

I’m not in the business of running influencer campaigns (and Matt Ridings has forgotten more about that then I’ll ever know) so I’ll leave the details to you. I am, however, in the business of asking better questions for businesses in order to get better results. Tying research – doing your own work – to these efforts is crucial in the development of a learning organization, and it is the learning organization that succeeds while the others use the same tools and information that everybody else has. Ask better questions, make smarter decisions – but above all, check your work. That is the only way to lift the “influencer” campaign from a mere tactical interaction, to one that actually might just alter how you do business and affect the theory of the firm. Darwin would approve.

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  • http://www.techguerilla.com/ Matt Ridings – Techguerilla

    I think the notion of ‘flipping the funnel’ here is exactly right (do I have to pay Joe Jaffe a royalty now?).  What we’re really talking about if done correctly is building *your own* predictive tools….in a very simple way.  Think of it this way, if I start compiling a list of those people who I *know* compel purchase behavior such as Comply should do with you.  Then add a second bucket of people who I *think* will compel future behavior of others as well, like me in this example since they know I’m now a fan.  Their objective should be to move me along the funnel until I’m in the same bucket as you (a ‘known’ advocate who actively moves the needle).  That is an advocacy program (influencer program based on a long tail essentially).  One last point on this for any brands reading this, keep in mind that for every 1 time you see Tom advocating on your behalf on Twitter there are *dozens* of instances offline you’re not seeing.  Spotting that activity is *gold*.

    However, and this is where it gets fun in my world, as those buckets grow in size I can eventually get to enough data where some very real, very cool, profiling and behavioral analysis can take place.

    What traits do the people in these buckets share that differentiates them from the population at large?  What types of behaviors/conversations do they tend to share?  And once I do the detective work there, I can apply any findings to searching for and finding prospects to populate a list much more like the typical influencer campaigns everyone is used to….except vastly more intelligently.  They’re what I call Social Hunter/Gatherer Programs - http://www.brasstackthinking.com/2010/05/social-hunter-gatherer-programs/ (hope it’s cool I posted a link here?)

    Thanks for the kind mention btw. (don’t let his humble nature fool you folks, he’s a genius at this stuff regardless of whether he does it in his day job or not)

    Cheers,

    -Matt

  • http://twitter.com/webby2001 Tom Webster

    This is why you piss me off, Ridings. You are smarter than I am.

  • http://infinityconcepts.net/resources/blog/ George

    Hi Tom, great post.

    This is one of the best thought pieces that I’ve ever read on social media and influence that.  I appreciate the depth that you go into and the higher level of vocabulary used to do it.

    Keep on asking the hard questions, too many people are will to accept soft answers without any real substance and limited relevance.

    Thanks,
    -George

  • http://www.312digital.com Sean McGinnis

    Yes, but he’s clearly NOT an audiophile….yet! ;)

  • Nate

    Thank you for the thoughtful analysis (and ideas for improvement), Tom.
    I enjoyed reading about my strategy and how Comply is handling influence.

  • http://twitter.com/susanborst susan borst

    Really interesting post and I will definitely be downloading the Blogworld presentation you mentioned.

    I’m glad Matt Ridings gave a shout out to Joseph Jaffee’s “Flip the Funnel.” In it, a key hypothesis is that “the real role of social media is retention – not acquisition” which speaks to the point above about focusing on the “influenced” (vs. the influencers.)  With those already influenced, Jaffe argues that “customer service becomes not a, but THE, key strategic differentiator.  The difference between the winners and the losers…will be customer service.” 

    Another way to look the notion of “flipping the funnel of influence” is seen in   @Mack Collier ‘s “Think Like a Rockstar” presentation. In this he makes the point that unlike marketers whose focus is usually to acquire new customers/influencers, rock stars focus on existing brand advocates. Rock stars look for ways to shift control to fans and embrace them – the way Lady Gaga celebrates her “little monsters” who will spread the word more effectively than trying cultivate new fans and, importantly, will spend more money.  
    - Steven Stills got it right when he wrote “Love the One You’re With.”

    There is no doubt that the linear, triangular  purchase funnel is dead.  I like the term “tumbler effect” to describe how the internet has forever changed the consumer decision journey.  I’ve learned in my own shopper research that brands in one’s consideration set actually increase prior to purchase and this has big implications for brands as they evaluate their competitive landscape, communication and media strategies.  

  • Mack Collier

    Susan thank you for the Think Like a Rockstar mention!  A point I mentioned in Chuck and Matt’s Blog World session on Influence/rs is that while we focus on the ‘reach’ of an influencer, we can’t discount the PASSION that fans have.  That’s the missing ingredient that is often overlooked, is it better to connect with an ‘influencer’ that has 40,000 followers and a mild interest in your product, or a fan than only has 500 followers but that absolutely loves and breathes your product and brand? The fan has a far greater level of motivation to promote you to others.

    Is that level of motivation enough to overcome the much larger reach of an influencer even if they have less motivation?  I think it depends, but it’s a point worth considering that at some point, greater passion trumps greater reach.

  • http://www.mltcreative.com Billy Mitchell

    If Comply hasn’t thanked you yet, they have a hearing problem. The irony of it all. Aren’t they on the twitter?
    Thanks for the influential insights and the recommendation to follow Matt Ridings @techguerilla 

  • Jeff

    Tom, 
    I recently stumbled upon your blog and find it very engaging.  Some of your ideas and thoughts remind me of an amazing presentation that Gary Vaynerchuk gave earlier this year at a Wine Marketing Conference on Millennials. We videotaped the event and it can be seen at this link http://www.nomacorc.com/marketing-to-the-next-generation-of-wine.phpI’m not promoting this event that I developed- but the content of Gary’s speech speaks to many issues that marketers need to follow and understand.  A key theme of Gary’s dynamic speech is about building those relationships with potential customers or clients as if dating…building engagement slowly and over time. If you have an hour and a cup of coffee (tea or cabernet), sit back and enjoy this. He is a remarkably entertaining and insightful marketing genius. Cheers. 

    Jeff Slaterhttp://www.momentslater.blogspot.com/

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