Situation: A company has a crowd sourcing solution which is co-creational. You ask a question and get multiple answers. The company then uses technology to select the best answers. The challenge is developing a business model. What parameters are predictable and dependable? How do you develop a revenue model?
Advice from the CEOs:
Revenue is always, in the end, a matter of value received – both potential and actual.
High dollar per click comes from delivering better responses, particularly if you can demonstrate higher sales conversion rates.
High value responses are valuable. If you can deliver these consistently, consider charging a subscription instead of pay-per-click. Pay per click is fine for attracting first-time users, but move to subscription for ongoing access.
Limit your initial audience to crowd source participants who have knowledge and experience – like CXOs on LinkedIn. Create relevant communities.
In addition to best practice answers, provide an opportunity for participants to share failures – experiences from which they learned. Simply Hired created an early, and lasting audience by creating a companion site called Simply Fired when they started. Based on the responses to this site, they created a Top Five Reasons for getting fired, with inappropriate behavior and sexual harassment at the top. This exercise helped them to create a lasting presence.
Make your site clean and show clear steps to a revenue model for users. This will take time and you won’t see results immediately. Over time it will pay off for you.
Situation: An organization that provides an online network for senior financial executives has an immense amount of content on its web portal. To improve the user experience of their target audience, they want to simplify access to this knowledge. How do you simplify access to knowledge?
Advice from John Kogan:
We have a rich portal with an immense amount of content potentially valuable to senior corporate finance[K1] executives. We have many ways to access this content – perhaps too many. Our objective is to get the highest quality answers in front of the user with the least effort on their part. Google has done a very good job of pulling the best content to the top given a million possibilities to each query. If we can do this, we become the Google of finance and accounting!
Most people know what they want when they come to a site. We have started by creating a clean user experience to allow them that good “line of sight” to what they want.
Our objective is to help the user identify the right content with the smallest number of queries. From the user perspective, exposing the wrong content is a waste of time. We want to show them high quality, compelling content which directly addresses their need.
To develop quality content, you must have an open mind. It’s not about what we want to say, but understanding the user’s needs and addressing these. You have to be guided by the data to tell you what’s happening on the site and what the user wants to see, and then provide them relevant information.
Achieving this means that we must find people who are smarter than us in these areas and gain their input. In the end, your company is no better than the ideas that you can either dream up or gather from others. We constantly seek fresh perspectives from investors, advisors, users and potential users.
Finally, you must take action on the data you gather. Too many companies suffer from information paralysis. The solution is Vision plus Will plus Doing it!
Interview with Skip Brand, CEO, Martini Media Network
Situation: Thanks to the rise of social media, the 10-20 million individuals who were the influencers with the most purchasing power have increased to 70 million. Within the influencer group, there is a sub group deemed “uberinfluencers” who have the most influence. How do marketers reach the uberinfluencers and why are they so important?
Advice from Skip Brand:
Uberinfluencers increasingly spend more time online, are twice as likely to make a purchase, and spend three times as much per acquisition when they do purchase. Also, they always share new product experiences with friends and family via different social media (Facebook, Twitter, Blog’s, etc). For the first time, consumers control a brand’s reputation and are able to set the brand’s tone and image. This is why marketers need to focus more dollars to get in front of this audience.
Uberinfluencers spend more time online than the general US population. They are brand savvy, digital savvy and socially networked.
They have diverse and specific interests and leverage the Internet extensively to connect with their passion areas. Niche sites appeal to this audience because of the specificity and existence of community. If you better understand where these people spend their time at work and play –you are better positioned to leverage their influence.
The company that wants to reach and leverage these uberinfluencers needs to be scalable, exciting and relevant.
For this audience, small is beautiful and also scalable. Let’s use the example of golf, a passion for many uberinfluencers. Your site should feature the highest quality courses and equipment if you want to reach 50% or more of this target audience. It must be easy to navigate, provide enough information to make them feel comfortable about product selection, and have a social component to help them broadcast your message.
Uberinfluencers spend time on sites that are exciting, engaging and which have a single share of voice. This means one focused ad per page instead of multiple ads.
Particularly in a recessionary market the site must work diligently to maintain relevance by continually enhancing site content to provide a fresh experience with every visit.
Marketers should put uberinfluencers at the center of their media buy and strategy.
To attract and leverage this audience you must maintain a maniacal focus. Reach out to them using social networking tools, which find uberinfluencers where they work and play on the web. Let’s illustrate this with an example.
Let’s say that your uberinfluencer is a digital media executive. You will find them on social networking sites because they are living what they are doing. Put the right message in front of them. If they buy they will spend more, but it’s even better if they tell 10 friends about you.
Once you start figuring out the keys that attract uberinfluencers, they will start telling each other about you and news of your product will spread across the web, in turn maximizing your revenue!