GUIDE TO PRIVATE ONLINE COMMUNITIES A Publication of Riedel Marketing Group 2014 Riedel Marketing Group 1 Guide To Private Online Communities By A.J. Riedel 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. 602-840-4948 ajr@4rmg.com www.4rmg.com www.twitter.com/AJRat4RMG http://www.linkedin.com/company/riedel-marketing-group 2014 Riedel Marketing Group 2 Who Should Read This Guide 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. 2014 Riedel Marketing Group 3 Why You 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. 2014 Riedel Marketing Group 4 Why You 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. 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. 2014 Riedel Marketing Group 5 Table of Contents 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 2014 Riedel Marketing Group 6 WHY ARE PRIVATE ONLINE COMMUNITIES SO IMPORTANT? 2014 Riedel Marketing Group 7 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. 2014 Riedel Marketing Group 8 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. 2014 These Communities create the potential for genuine dialogue and relationship building with the people who buy and use your products. Riedel Marketing Group 9 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. Companies who own and use Private Online Communities develop better products and have marketing programs and packaging that are more effective. 2014 These Communities create the potential for genuine dialogue and relationship building with the people who buy and use your products. Riedel Marketing Group 10 WHAT ARE PRIVATE ONLINE COMMUNITIES? 2014 Riedel Marketing Group 11 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. 2014 Riedel Marketing Group 12 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. Built & managed for use by a single company. 2014 Riedel Marketing Group 13 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. Built & managed for use by a single company. 2014 50 to 500 members. Riedel Marketing Group 14 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. Interactive; Two-way Built & managed for use by a single company. 2014 50 to 500 members. Riedel Marketing Group communication between panel members and company. 15 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. Interactive; Two-way Built & managed for use by a single company. 50 to 500 members. communication between panel members and company. Highly engaged community members. 2014 Riedel Marketing Group 16 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. Interactive; Two-way Built & managed for use by a single company. 50 to 500 members. Not just for market research; community members participate a variety of activities. 2014 Riedel Marketing Group communication between panel members and company. Highly engaged community members. 17 What Types Of Activities Do Members Participate In? Chats groups, bulletin board discussions & forums Online surveys Product reviews Product testing eDiaries Contests 2014 Riedel Marketing Group Mini Polls 18 WHAT CAN PRIVATE ONLINE COMMUNITIES BE USED FOR? 2014 Riedel Marketing Group 19 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 2014 Riedel Marketing Group 20 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 2014 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 Riedel Marketing Group 21 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 NEW PRODUCT DEVELOPMENT Brainstorm new product ideas 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 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 2014 Determine volume potential Riedel Marketing Group 22 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 NEW PRODUCT DEVELOPMENT Brainstorm new product ideas 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 inspire new features and products Get feedback on new product ideas OPTIMIZE PACKAGING Find out how to improve existing Identify most compelling consumer products Get feedback throughout the benefit development process Test taglines Test new product concepts, prototypes, and finished products Get feedback on copy and graphics 2014 Determine volume potential 23 Riedel Marketing Group Determine best package design What Can’t Private Online Communities Be Used For? Quantitative surveys If 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. 2014 Riedel Marketing Group 24 What Can’t Private Online Communities Be Used For? Quantitative surveys If 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. 2014 Riedel Marketing Group 25 WHAT ARE THE BENEFITS OF PRIVATE ONLINE COMMUNITIES? 2014 Riedel Marketing Group 26 You’ll Develop Better Products You get closer to your consumers… 2014 Riedel Marketing Group 27 You’ll Develop Better Products You get closer to your consumers… Which gives you a better understanding of their unmet needs, unsolved problems, and biggest frustrations… 2014 Riedel Marketing Group 28 You’ll Develop Better Products You get closer to your consumers… Which gives you a better understanding of their unmet needs, unsolved problems, and biggest frustrations… Which leads you to develop new products that meet the needs of the people who will be buying and using the products… 2014 Riedel Marketing Group 29 You’ll Develop Better Products You get closer to your consumers… Which gives you a better understanding of their unmet needs, unsolved problems, and biggest frustrations… Which leads you to develop new products that meet the needs of the people who will be buying and using the products… Which leads to new product success! 2014 Riedel Marketing Group 30 You’ll Develop More Effective Marketing Programs And Packaging You get collaborate with people who will be buying the product. 2014 Riedel Marketing Group 31 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 2014 Riedel Marketing Group 32 You’ll Make Better Decisions Learn Ask Ask more Come to the right decision Learn more Probe deeper 2014 Riedel Marketing Group 33 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… 2014 Riedel Marketing Group 34 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… 2014 Riedel Marketing Group 35 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… …Decisions that make money and save money. 2014 …You make sounder, more strategic business decisions… Riedel Marketing Group 36 WHY USE PRIVATE ONLINE COMMUNITIES INSTEAD OF DOING AD HOC MARKET RESEARCH STUDIES? 2014 Riedel Marketing Group 37 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. 2014 Riedel Marketing Group 38 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. 2014 Riedel Marketing Group 39 Faster Than Ad Hoc Research Traditional ad hoc research typically takes 4 to 8 weeks to go from inception to results. 2014 Riedel Marketing Group 40 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. 2014 Riedel Marketing Group 41 WHY ARE PRIVATE ONLINE COMMUNITIES SUCH A POWERFUL TOOL? 2014 Riedel Marketing Group 42 Thoughtful and Honest Feedback People join online communities because they like to feel involved in shaping companies and products for the future and make a difference. 2014 Riedel Marketing Group 43 Thoughtful and Honest Feedback People join online communities because they like to feel involved in shaping companies and products for the future and make a difference. 2014 Riedel Marketing Group They feel privileged to be on the panel and are willing and anxious to participate. 44 Thoughtful and Honest Feedback People join online communities because they like to feel involved in shaping companies and products for the future and make a difference. Because it’s their chance to make their mark, respondents offer thoughtful and honest feedback. 2014 Riedel Marketing Group They feel privileged to be on the panel and are willing and anxious to participate. 45 Rich Deep Insight You can use a variety of techniques that enable you to get closer to your consumers and understand them better. 2014 Riedel Marketing Group 46 Rich Deep Insight You can use a variety of techniques that enable you to get closer to your consumers and understand them better. 2014 You can ask questions in new and engaging ways which provide you with more meaningful findings. Riedel Marketing Group 47 Rich Deep Insight You can use a variety of techniques that enable you to get closer to your consumers and understand them better. You can identify problems that traditional research might not uncover. 2014 You can ask questions in new and engaging ways which provide you with more meaningful findings. Riedel Marketing Group 48 Enables Iterative Testing Unlike traditional ad hoc consumer studies that are conducted with a sample purchased from an online consumer panel supplier… 2014 Riedel Marketing Group 49 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. 2014 Riedel Marketing Group 50 Drives More Thorough Quantitative Research Studies A “pre-quant” online discussion board or chat can generate very helpful directions for designing your qualitative survey. 2014 Riedel Marketing Group 51 Drives More Thorough Quantitative Research Studies A “pre-quant” online discussion board or chat can generate very helpful directions for designing your qualitative survey. You can test the questionnaire before fielding the quantitative survey. 2014 Riedel Marketing Group 52 Drives More Thorough Quantitative Research Studies A “pre-quant” online discussion board or chat can generate very helpful directions for designing your qualitative survey. You can conduct a post-quant survey to uncover the why behind the numbers. 2014 You can test the questionnaire before fielding the quantitative survey. Riedel Marketing Group 53 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 2014 Riedel Marketing Group 54 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 2014 Riedel Marketing Group 55 HOW TO GET THE MOST OUT OF YOUR PRIVATE ONLINE COMMUNITY 2014 Riedel Marketing Group 56 Keep Community Members Engaged The key to having a vibrant community that yields meaningful insights is keeping members engaged. 2014 Riedel Marketing Group 57 Keep Community Members Engaged The key to having a vibrant community that yields meaningful insights is keeping members engaged. 2014 Riedel Marketing Group Keeping them engaged saves you time and money, so it deserves a structured approach. 58 Keep Community Members Engaged The key to having a vibrant community that yields meaningful insights is keeping members engaged. Keeping members engaged begins with a defined plan for touchpoints each month. 2014 Riedel Marketing Group Keeping them engaged saves you time and money, so it deserves a structured approach. 59 Compensate Participants Fairly You will typically get better participation and better information if participants are fairly compensated… 2014 Riedel Marketing Group 60 Compensate Participants Fairly You will typically get better participation and better information if participants are fairly compensated… …But it doesn’t have to be cash. 2014 Riedel Marketing Group 61 Compensate Participants Fairly You will typically get better participation and better information if participants are fairly compensated… …But it doesn’t have to be cash. It can be products, contests, sweepstakes, gift cards, etc. 2014 Riedel Marketing Group 62 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. 2014 Riedel Marketing Group 63 Encourage Active Participation Encourage members to post comments to discussion boards, engage with other members while onsite, chat with moderators directly, use Webcams, upload photos and videos and more. 2014 Riedel Marketing Group 64 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. 2014 Riedel Marketing Group 65 Standardize Standardize often-repeated types of studies so that the organization learns over time what the answers mean. 2014 Riedel Marketing Group 66 Create a Database Create a database of normative data for the standardized studies so that results have greater value and meaning. 2014 Riedel Marketing Group 67 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). 2014 Riedel Marketing Group 68 SUMMARY 2014 Riedel Marketing Group 69 Summary Private Online Communities are extremely valuable tools for marketers and product developers. 2014 Riedel Marketing Group 70 Summary Private Online Communities are extremely valuable tools for marketers and product developers. POC’s are typically cheaper and faster than conducting ad hoc research studies. 2014 Riedel Marketing Group 71 Summary Private Online Communities are extremely valuable tools for marketers and product developers. POC’s are typically cheaper and faster than conducting ad hoc research studies. 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. 2014 Riedel Marketing Group 72 Summary Private Online Communities are extremely valuable tools for marketers and product developers. POC’s are typically cheaper and faster than conducting ad hoc research studies. 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. 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. 2014 Riedel Marketing Group 73 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. 2014 Riedel Marketing Group 74 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. 2014 Riedel Marketing Group 75 HOW TO GET STARTED 2014 Riedel Marketing Group 76 How to Get Started Before you move forward with building a Private Online Community, you need to answer two important questions. 2014 Riedel Marketing Group 77 What Do You Want To Use The Community For? 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? 2014 Riedel Marketing Group 78 What Do You Want To Use The Community For? 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 are the specific objectives? 2014 Riedel Marketing Group 79 What Do You Want To Use The Community For? 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 are the specific objectives? 2014 What is the scope in terms of duration, geography, size, profile of participants? Riedel Marketing Group 80 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. 2014 Riedel Marketing Group 81 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. 2014 If you plan to do more than 100 projects a year, then building a professional internal staff might make sense. Riedel Marketing Group 82 Considerations if You Decide to Do It Yourself Sure you can do it yourself, but do you really have the time or the right people? 2014 Riedel Marketing Group 83 Considerations if You Decide to Do It Yourself Sure you can do it yourself, but do you really have the time or the right people? 2014 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. Riedel Marketing Group 84 Considerations if You Decide to Do It Yourself Sure you can do it yourself, but do you really have the time or the right people? You will need to invest in panel management and survey software. 2014 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. Riedel Marketing Group 85 Considerations if You Decide to Do It Yourself Sure you can do it yourself, but do you really have the time or the right people? You will need to invest in panel management and survey software. 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. 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. 2014 Riedel Marketing Group 86 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. 2014 Riedel Marketing Group 87 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. 2014 You can operate with minimal staff, since most of the work is performed by your private-panel partner. Riedel Marketing Group 88 If You Decide to Outsource… Let Riedel Marketing Group build and maintain your private online community. 2014 Riedel Marketing Group 89 If You Decide to Outsource… Let Riedel Marketing Group build and maintain your private online community. 2014 We’ll take care of the nuts and bolts of panel management, member recruitment and retention, sampling, questionnaire design, tabulation, and analysis. Riedel Marketing Group 90 If You Decide to Outsource… Let Riedel Marketing Group build and maintain your private online community. We’ll take care of the nuts and bolts of panel management, member recruitment and retention, sampling, questionnaire design, tabulation, and analysis. We’ll work closely and collaboratively with you to make sure the community yields the information and insight you need. 2014 Riedel Marketing Group 91 If You Decide to Outsource… Let Riedel Marketing Group build and maintain your private online community. We’ll take care of the nuts and bolts of panel management, member recruitment and retention, sampling, questionnaire design, tabulation, and analysis. We’ll work closely and collaboratively with you to make sure the community yields the information and insight you need. 2014 Riedel Marketing Group We have more than ten years of panel management experience. 92 If You Decide to Outsource… Let Riedel We’ll take care of the nuts Marketing Group and bolts of panel build and maintain management, member your private online recruitment and retention, community. sampling, questionnaire Call or e-mail design, to get tabulation, and started today! analysis. 602-840-4948 We’ll work closely and ajr@4rmg.com collaboratively with you We have more than to make sure the ten years of panel community yields the management information and insight experience. you need. 2014 Riedel Marketing Group 93