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Influence Networks:
Measuring the Impact

Presented By: Myra Norton
What is Buzz and Why Do We Want It?
      The dominant influence on business executive decision-
      making is WOM recommendation

                                   Top Influences on Work-Related Purchases
                                         by Business Executives (
                                           y                    (2007)
                                                                     )


                                                       United States                                United Kingdom

             Colleagues’ / friends’ WOM                                             53%                                                65%
                     Sales representatives                                  39%                                       35%
         Meetings / events / conferences                                    38%                                          40%
                                         Internet                          37%                                           40%
                     Tradeshows / exhibits                                 37%                                         36%
                         Direct mail / e-mail                           32%                                   21%
                            Print advertising                           32%                                      25%
                               TV advertising                        26%                                  14%
                              Press coverage                        23%                                         24%
                           Radio advertising                       22%                                   12%




            2X                 the influence WOM has versus advertising, direct mail or press
                               coverage on executive purchase decisions

          Base 288 interviews in US /406 interviews in UK ; Source Keller Fay Group Survey for Jack Morton Worldwide, March – April 2007
                                                                                                                                             1
                     Community Analytics® CONFIDENTIAL © Community Analytics 2008. All rights reserved.
Buzz to Revenue
                                                                                                             $76 million in
                   $500,000                                                                                   IT Budgets
                  IT Budget




! The impact of this one IT
  Professional is much greater than
  the $500,000 IT budget she impacts
  within her company.

! In addition to influencing IT
  spending within her own firm, her
  influence impacts more than $200
                p              $
  million in IT spending at more than
                                                                                                           $200 million in
  40 organizations.                                                                                          IT Budgets
                                                                                                                             2
                    Community Analytics® CONFIDENTIAL © Community Analytics 2008. All rights reserved.
                      Community Analytics® CONFIDENTIAL © Community Analytics 2008. All rights reserved.
Top Purchase Influencer




                         Word of mouth
                         Word-of-mouth recommendation is
                         the top purchase influencer for
                         business decision-makers.


                          Source: Keller Fay Group and Jack Morton Worldwide, 2007


                                                                                                  3
             Community Analytics® CONFIDENTIAL © Community Analytics 2008. All rights reserved.
Predictions are Risky




                                              More than 80% of Trusted Advisor
                                              Advocates identified by the target
                                              audience themselves are either
                                              completely unknown or not
                                              currently b i t
                                                      tl being targeted b th
                                                                    t d by the
                                              client, according to multiple studies
                                              across categories, products, etc.

                                                 Source: Community Analytics 2007

                                                                                                  4
             Community Analytics® CONFIDENTIAL © Community Analytics 2008. All rights reserved.
Empirical Data is Accurate and Insightful




           C-Level executives rely on individuals
            outside of their companies and in
         less senior positions f advice when
         l        i       iti    for d i     h
        evaluating enterprise level technologies.




                                                 Source: Community Analytics 2007

                                                                                                     5
                Community Analytics® CONFIDENTIAL © Community Analytics 2008. All rights reserved.
Influence is Local




                                   More than 75% of these critical relationships
                                   are local. In spite of the evolution of the “flat
                                   world,
                                   world ” decision makers are more likely to
                                   rely on Trusted Advisors they can interact
                                   with in person on a somewhat regular basis.




                                                  Source: Community Analytics 2007

                                                                                                   6
              Community Analytics® CONFIDENTIAL © Community Analytics 2008. All rights reserved.

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Myra Norton, Community Analytics

  • 1. Influence Networks: Measuring the Impact Presented By: Myra Norton
  • 2. What is Buzz and Why Do We Want It? The dominant influence on business executive decision- making is WOM recommendation Top Influences on Work-Related Purchases by Business Executives ( y (2007) ) United States United Kingdom Colleagues’ / friends’ WOM 53% 65% Sales representatives 39% 35% Meetings / events / conferences 38% 40% Internet 37% 40% Tradeshows / exhibits 37% 36% Direct mail / e-mail 32% 21% Print advertising 32% 25% TV advertising 26% 14% Press coverage 23% 24% Radio advertising 22% 12% 2X the influence WOM has versus advertising, direct mail or press coverage on executive purchase decisions Base 288 interviews in US /406 interviews in UK ; Source Keller Fay Group Survey for Jack Morton Worldwide, March – April 2007 1 Community Analytics® CONFIDENTIAL © Community Analytics 2008. All rights reserved.
  • 3. Buzz to Revenue $76 million in $500,000 IT Budgets IT Budget ! The impact of this one IT Professional is much greater than the $500,000 IT budget she impacts within her company. ! In addition to influencing IT spending within her own firm, her influence impacts more than $200 p $ million in IT spending at more than $200 million in 40 organizations. IT Budgets 2 Community Analytics® CONFIDENTIAL © Community Analytics 2008. All rights reserved. Community Analytics® CONFIDENTIAL © Community Analytics 2008. All rights reserved.
  • 4. Top Purchase Influencer Word of mouth Word-of-mouth recommendation is the top purchase influencer for business decision-makers. Source: Keller Fay Group and Jack Morton Worldwide, 2007 3 Community Analytics® CONFIDENTIAL © Community Analytics 2008. All rights reserved.
  • 5. Predictions are Risky More than 80% of Trusted Advisor Advocates identified by the target audience themselves are either completely unknown or not currently b i t tl being targeted b th t d by the client, according to multiple studies across categories, products, etc. Source: Community Analytics 2007 4 Community Analytics® CONFIDENTIAL © Community Analytics 2008. All rights reserved.
  • 6. Empirical Data is Accurate and Insightful C-Level executives rely on individuals outside of their companies and in less senior positions f advice when l i iti for d i h evaluating enterprise level technologies. Source: Community Analytics 2007 5 Community Analytics® CONFIDENTIAL © Community Analytics 2008. All rights reserved.
  • 7. Influence is Local More than 75% of these critical relationships are local. In spite of the evolution of the “flat world, world ” decision makers are more likely to rely on Trusted Advisors they can interact with in person on a somewhat regular basis. Source: Community Analytics 2007 6 Community Analytics® CONFIDENTIAL © Community Analytics 2008. All rights reserved.