DoGooder: A Lesson in Driving Consumer Relevance

Imagine browsing the web and being able to see ad content that appeals to you…not on one site but multiple sites you go. It’s as if the web had this sixth sense….reading your mind, appealing to your preferences…not necessarily forecasting your next move based on your past behaviour but understanding you and what you want to see.

Enter DoGood Headquarters, a browser plug-in that “turns your everyday web browsing into donations that support green initiatives and movements for positive social change”. To date almost 130,000 plug-ins have been downloaded. This innovation has been featured in top blogs, including Tech Crunch and is in the running as a SXSW Web Finalist.

I had a chance to sit down with former colleague, Head DoGooder and Co-Founder, Faisal Sethi.

Hessie Jones (HJ): Tell me about DoGood.

Faisal Sethi (FS): DoGood Headquarters is a social enterprise in the business of doing good. We’ve created a free browser plug-in that allows anyone to do some good on daily basis without any effect on their lifestyles or bank accounts.

HJ: You are a designer/creative director by trade. What compelled you to do this? How did the concept come about?

FS: I have an academic background in sociology, and as a consequence, I was, and am, fairly aware of social / environmental issues and circumstance. But, I wasn’t really doing anything about them. It is very easy to acquiesce to the daily barriers keeping us from being active on a social level, so I set out to devise a solution to help alleviate some of those constraints.

HJ: Technically, what does the widget do?

FS: The DoGooder (generally)  hides the generic advertising found on the Internet today, and shows end users campaigns related to green initiatives, philanthropic calls to action, non-profits, charities, and health and wellness ideas instead. We then donate 50% of the proceeds from said campaigns back to good causes, consequently turning everyones normal everyday browsing into a powerful funding tool for the greater good.

HJ: This is a huge disruptor for the advertising community who have paid thousands of dollars for premium placement online. How do you respond to content portals and media sites whose ad spots are being seemingly compromised?

FS: “Seemingly” is perhaps an appropriate semantic choice. Unlike ubiquitous ad blocker plug-ins, the DoGooder does not block ads, nor does it change the underlying code of a web page in any manner. Ads are still being served, and ultimately, can be viewed by the end-user at any time with the simple right-click of a mouse. Ultimately, the decision is up to them on how the choose to consume online media, including advertising. We think trusting the end-user is an empowering and novel idea. What I find interesting is that throughout history, it has been disruptive technologies that have perpetuated innovation, and ultimately allowed industries to grow in new and exciting directions.

HJ: Do you not see a legal issue overtaking legitimately bought placements and “stealing” impressions from advertisers?

FS: The issue of relevance in this context seems to be the right to use, and the legalities of, end-user technologies. There is this (general) notion that the Internet is this magical place in the clouds. The reality of the matter is that the Internet is tangible; made up of hardware, software, code and cables et al. As such, it too is bound by the mores, values and laws of the tangible world and our dominant capitalist infrastructure. In this context, not only do end users have the right to choose how they view the Internet through their own browsers and computers, technologies like the DoGooder are absolutely imperative to maintain some level of independence from the system in and of itself. On a pseudo-similar parallel, think back to Beta Max and VHS, or modern day PVR’s, or simply being able to put a sticky note on your copy of the New York Times with a note to your wife or husband before she reads it.

HJ: How have the portals or content sites responded to this?

FS: The general response has been positive. The reality of the matter is, the DoGooder will have little if any impact on portals or content sites bottom lines, but it will have a massive impact on the organizations and people of this planet that need it the most. End user’s response has been amazing, advertisers and brands seem to grasp the possibilities– good stuff all around really.

HJ: Would this not be a wake-up call to advertisers to display content that the user wants to see in sites where they navigate?

FS: For sure. I believe Google even iterated the notion that technologies like ad blockers could actually improve the quality and relevance of online advertising, thus improving an end-user’s browsing experience, and creating higher click through rates. We are already experiencing the latter.

HJ: The online display model is beginning to lose its effectiveness. The problems that Yahoo and MSN are facing is a result of where consumer mindshare is shifting. Do you see your model affecting the way people buy media or consumer mindshare?  If so how would this change the current ad model?

FS: Absolutely. The general paradigm shift we are proposing is giving the individual control over what type of campaigns they consume; focus on the end user rather than the destination, focus on a smaller, more targeted group of people which eliminates a lot of the guess work for advertisers. This will effectively increase brand equity, loyalty and trust amongst a highly engaged, and technically savvy audience that will perpetuate brand awareness in a more natural and organic manner. It’s a substantial change to the current model, but a good one we think.

HJ: I see an opportunity to capitalize on consumer preferences ie to build a database of users with specific opt-in preferences based on messages they want to see: environmental, music, sports etc. Then use the data to display relevant ads based on user preferences. This will take a while to develop, let alone build awareness. What are your thoughts?

FS: We’re already on it 🙂 We’ve been working on several iterations and models that speak specifically to your points. I think it will take some time for these concepts / technologies to become accepted as the norm on both a consumer and business level, but it seems like a very natural progression to me for a system that is growing more and more end-user centric.

HJ: Can you tell me about your current opportunities to monetize DoGood?

FS: It’s really not much different than how current traditional media buys operate, both online and off. We sell impression space for a variety of banner sizes based on CPM and CPC models. We also offer sponsorship space on DoGood campaigns that display social and environmental statistics and messaging as well. The only caveat to our model is we donate 50% of our profits back to good causes, which really is the exciting part of this for all of us.

HJ: How do you see this progressing and morphing in the future?

FS: I think it will simply continue to grow. The model has been around forever, and I don’t see it changing dramatically anytime soon. I think we may see a continuing trend toward CPA (Cost Per Action) type models, but CPM and CPC will still be the bread and butter for the foreseeable future. I think collaborating with brands on larger campaigns related to specific causes will also be something that could happen for us as well.

HJ: What is next for DoGood?

FS: We’re looking at supporting more platforms, the mobile space, and some great partnerships. I’d tell you more, but then where would that leave the element of surprise? 🙂

HJ: We look forward to the next iteration of DoGood. Good luck at SXSW

Infographics: A Day in the Internet

I guess this would be a digital day in the life! It’s unfathomable how much business and communication has moved online in the past decade. Enjoy!

A Day in the Internet
Created by Online Education

Social Economics: For All Brands, You Have No CHOICE But To Do This!

I saw a video the other day on Twitter from Crumple it Up. The original post came from Socialnomics. It finally brought to light all the reasons why brands, who still hesitate to engage in social media, should do it now. This is not a fad or a testing arena. Social media is a place that’s existed for a long time and has gone undetected by the big brands. This is a place that’s held powerful discussions that have affected the very brands that have ignored or dismissed it. This is a place that can impact every part of your organization as a whole. This is a place that will change the way you think and approach your business.

I understand why it’s difficult to enter into this space: some brands aren’t ready to face the consumer head on… one to one…in conversation.  This is not a medium that befits a corporate PR guy, willing and ready to pull together approved responses espousing the view of the corporation to the masses. No one in the social arena pays heed to any of the corporate speak. They just want to talk and they want to be heard.

For those brands who hesitate and fear the medium, here’s what I have to say:

  • Start-ups have been engaging in social media for years and have benefited greatly. They were not endowed with huge marketing budgets so they’ve had to resort to more efficient roll-up-your-sleeves-type approaches to succeed. The key to building strong and enduring brand: do it one satisfied customer at a time!
  • People want to talk to you and they want you to listen to them. Be warned that you will hear the good and the bad. The key is learning from it and understanding its implications.
  • Confront your detractors. They are the key to making you greater. One of my clients continues to engage with the complainers, as well as the rally-the-troops-and-boycott-the-company type misfits. And they’re tackling it one issue at a time. The company has a long way to go to earn respect and confidence from its customers but the very act of engaging has mitigated customer churn. It has also provided a NEW avenue for customers to provide their views and suggestions and to feel like they’re being listened to. Once you satisfy a detractor, he will be your most avid supporter. And be ready to open the doors to a flood of new business.
  • Engage as a person. You don’t need the veil of an organized, PR-approved response — that goes nowhere in this space. It’s akin to meeting new people at a Christmas party: Introduce yourself. Tell the other person about you. Then ask about the other person. Stop and listen and understand. Remember, the corporate voice needs a human voice to be accessible and to engage in meaningful dialogue.
  • It’s not easy. It takes a lot of work. But the effort produces strong relationships that are lasting. And the money….it’ll be there as well…guaranteed!

Good luck!

CHCanada Case Study: Behold the Fruits of Transparency and Engagement

This is a true story of social media success that didn’t take long to generate signs that it was indeed working. This is one of my best examples of following social media rules of engagement to work in the brand favour. The reason this success is so profound is because its marketing team, while well versed in utilizing online (search, display, affiliate) marketing to achieve clear ROI success, did not necessarily see social media as a venue to achieve similar results.

Columbia House was a traditional direct mail company, whose strong foundation of measurability, attribution and ROI were key pillars that drove its success for many years. Technology and industry changes ie the decline of music CD consumption…Apple’s introduction of the iPod… and the subsequent move to cheaper MP3 downloads, left the music industry scrambling to monetize artists and their music. This, in turn, necessitated Columbia House to focus more efforts on movie sales. Despite its long tenure and strong presence in the movie entertainment distribution business, it had also met with criticism from users in areas regarding claims of negative option, unfair shipping charges, and challenging customer service issues.

So a new company was started in Canada –> with a new business model that responded to many of these consumer claims in hopes of starting fresh, recruiting a new support base and migrating its loyal customer base. The new company launched November 2008 and its positioning has been evident on their website to this day: “CH Canada.com Welcome to the NEW Columbia House..You spoke, we listened…No more unwanted shipments..”

Initial social insights were conducted around the brand and its competitors in the weeks before launch to validate the new business model. What CHCanada discovered was a wealth of passionate conversation both positive and negative about the very topics (…and then some) that instigated the business change. Unlike traditional research, the comments were in social media spaces for the world to see… and remained unchalleged and unresponded. The company noticed, at the same time, the number strong advocate discussions that had gone unleveraged. What CH had realized was that a comment posted many months ago could strongly influence those who had seen the discussion for the very first time. These strong conversations could very well hamper a successful launch of the new business model. In addition, as is the plight of most Canadian subsidiaries, any strong changes implemented locally were still “blips” in the overall map and did little to positively impact the overall Columbia House brand…the US parent that still retained the original business model.

The key to ensuring a successful launch of CHCanada.com was to provide voice in the social sphere and prove to its customers that it had truly changed before it could hope to acquire new customers. So CHCanada began engaging in conversation. We quickly identified three forums where strong discourse existed about Columbia House. The most difficult efforts included confronting its detractors. Honesty, transparency, and humility were the order of the day. Applying this strategy has allowed forum members to welcome CHCanada to the thread. By letting forum members understand what CH had done to change, and by openly asking people for their honest opinions and questions, CH has been able to eventually build trust as evidenced by the length and tenure of each CHCanada.com thread—> all of them with a range of 700 – 1200 posts starting from as early as January 2009. Along the way, not all forum members were not so quick to welcome CHCanada with open arms. It’s not surprising they “googled” each of our names to validate who we were and what we were saying. From time to time we have been met with accusations of SPAM and have been banned from sites. But overall, our presence in key forums has made an incredible impact on CHCanada’s reputation, its organic search listings, and has resulted in ever increasing positive sentiment in favour of CHCanada vs. its US parent. This topic cloud is indicative of the positive consumer perceptions surrounding the brand.
septtopiccloud
Within a short period of time, CHCanada was able to translate its participation into strong business results. Rob Weatherall, Marketing Manager of CHCanada has indicated, “Entering into the realm of social networking I knew this was something that needed to be done but was quite skeptical what impact it would have on my business. Within a couple of months of launching our program with Isobar, I clearly saw the positive impact this media was going to have. Social networking not only provided an open line of communication with customers, it also provided a product/offer testing arena, an ever-ready focus group, a source of testimonials, and for this business – our highest value customers.”

Highest value customers –>traditionally resulting from strong customer relationship management but developed over a long period of time. Now imagine applying the same principles to social media and experiencing the same effects in half, or even a quarter of the time! Who would ever have thought that by talking to customers, marketers would be able to take out the guess-work of their initiatives or implications of their analytics reports . Ask the customers what they want and give it to them! It’s that simple. And they will come…..And they came in droves. CHCanada initiated a free-shipping promotion in September because its customers asked for it. The result: The company witnessed the highest single sales of the year, with sales equivalent to half the month of August.

And the success continues. Twtpoll surveys have become a strong crowdsourcing vehicle to gauge consumer preferences. Responses for surveys have been strong with momentum starting from the moment of posting. Social media has allowed CH Canada a very inexpensive test-and-learn vehicle for promotions. Varying test components has allowed CH to pull off another successful FREE shipping promotion of late: resulting in the second highest sales day of the year.

Rob Weatherall summed up his experience this way: “The best form of advertising is word-of-mouth – what better way to get your message out than through social networking. Without the knowledge, expertise and passion Isobar brought to the table, this business would most likely have continued to avoid, out of ignorance, what has turned out to be an extremely smart business move”.

Taking a quote from one of the fourm members, “while i haven’t ordered from chcanada in quite some time, i still frequent the thread and certainly appreciate the comments and inititiave shown by the chcanada staff. when is the last time you saw an amazon or futureshop/BB rep come in and ask us what we like? NEVER!! “
Another one says, “ I’m amazed at how much they try to make everyone happy & take in their input. They’re doing a great job at trying to get everything right.”