Presentation to Kingston University (UK) students in the final year of a virtual marketing degree programme. The presentation looks at the rise in online power of consumers and how this shapes buying decisions. A UK gym (health club) case study is used.

1. Start the digital dialogue The wisdom of the online crowd © Ray Algar – Oxygen Consulting 2008

2. Themes we will explore

3. The democratisation of publishing

4. How consumers now collaborate

5. How consumers now buy

6. Companies used to just shout and interrupt consumers

7. Companies used to just shout and interrupt consumers One way for news flow about brands

8. The web changed the rules

9. Business is now open

10. How we now buy

12. Consumers love this new power

13. It can influence the next US President

15. They can vent their rage

16. Does the company take part in the conversation?

18. Consumers talk back – with passion!

20. The online conversation about health clubs

23. “ It has a great range of facilities available, staff are really friendly and helpful, I would thoroughly recommend it”

24. “ The Management team are extremely poor, they only have their own interests at heart and do not support the members”

28. “ Because I supposedly didn't give 30 days' written notice, I'm being forced to pay another month for a membership I'm not using”

30. Customer Type Positive opinion Negative opinion Current 40% 60% Past ? ? Prospective ? ? All types 36% 64%

31. Positive opinion Negative opinion Past members 5% 95%

32. Positive opinion Negative opinion Prospective members 47% 53%

33. Do clubs care?

34. … yes, during the tour

35. ‘ the best salesman ever’

36. ‘ I remember how friendly the sales lady was in trying to get me to join up’

37. … but after the honeymoon period

38. ‘ After the initial session, they have never checked how I was over two years of membership’

39. ‘ Clubs are not interested in their members’

40. Membership factors: 87% negative

41. ‘ I was not aware of the 12-month contract until I tried to cancel’

42. Chandler wants to leave the gym

43. Friends video

45. Would you recommend this club to your family and friends?

46. 1 in 10 (10%) promoter rate for 6 large club chains

47. 22% highest chain

48. 7% lowest chain

49. Little positive word of mouth

50. Little positive word of mouth

52. Who is Ray Algar?

53. Presentation www.oxygen-blog.blogspot.com Articles www.oxygen-consulting.co.uk

54. Questions