Marketing Meets Social Meets R&D

 of Mindjumpers Social Media Group in her post, Case of Creative Crowdsourcing: Let Your Fans Guide Your Brand, highlights how crowdsourcing gives a voice to your fans to inspire brand loyalty.

“Do Us a Flavor” 

PepsiCo’s Frito-Lay division launched it’s “Do Us a Flavor” campaign launched in July, 2012. Lay’s is asking its US website, fans to “come up with the next great Lay’s flavor.” They invite users to name their flavor, pick out what ingredients will go into it and share their inspiration online or by text message. The payoff? The person who submits the winning flavor can win $1 million dollars or 1% of the chips’ 2013 net sales (the greater).

This campaign,  first launched in the UK in 2008 and then in several other countries across Europe, Asia, Africa and South America.  The campaign was successful in more than 14 countries, generating more than 8 million chips flavor ideas globally. It resulted in the creation of numerous new flavors, including: Chili & Chocolate, Caesar Salad, Late Night Kebob,  Thailand’s hot and spicy crab, Turkey’s haydari and India’s mastana mango.  Salman Amin, Executive Vice President Sales and Marketing, PepsiCo says he decided to launch the campaign in the U.S. because:

Judging from the success of these contests worldwide, we feel confident that the response will be incredibly enthusiastic here in the U.S. Consumers love to create new products and fervently support brands and companies that demonstrate they truly value their opinions. Moreover, everyone loves potato chips—each of us has a favorite taste that came from years of experimentation, and we all like contests with big prizes that reward our creativity.

Takeaways

  • Engagement People like to have their voices and opinions heard. By asking fans to submit a flavor, Lay’s makes them feel special, while an incentive to participate can generate even more engagement.
  • Attention News spreads fast among engaged fans as their participation shows in their Facebook newsfeeds.
  • Personal relationship You build a stronger relationship with customers by making them feel part of the company’s core processes. Guillaume Jesel, a Senior Vice President for global marketing at MAC describes the strategy as letting “the consumers take the steering wheel for a while.”
  • Problem solving Crowdsourcing provides you a quicker and lower cost way to decide on your next product, inspired by consumers’ needs and wishes.
  • Replicate success A winning idea in one market may work in many other markets as well with similar preferences.

Other successful crowdsourcing campaigns that have helped brands design their new products include:

Several have led to incredible levels of consumer engagement:

How Crowdsourcing Works

  1. You identify a problem
  2. You broadcast the problem
  3. The “crowd” (fans) submit solutions
  4. You and the crowd vet the solutions
  5. You reward winning solvers.
  6. Everybody profits

Dion Hinchcliffe of ebiz explains that internet startups that have had considerable success with crowdsourcing over the last few years, including with its more serious cousin peer production, have recently focused on creating the tools and communities for enterprises. They include the online design service Crowdspring, and other early providers such as Amazon’s excellent Mechanical Turk and Innocentive. The economics and results of crowdsourcing are often compelling. LG recently designed a new phone this way for just $20,000 (details and submissions here). Crowdsourcing services include idea generation, design work, execution of business processes, testing services, and even customer support, all of which can now be connected, often programmatically, directly to a company’s supply chain. While companies such as Netflix (the Netflix Prize) and Emporis have built their own internal crowdsourcing capabilities internally, most companies rely on commercial services  for the necessary ingredients of effective crowdsourcing, including configurablearchitectures of participation, legal constructs, customer support, and communities of users ready to contribute.  Crowdsourcing campaigns typically pay by the unit of work (such as a successfully completed task) or for a successful solution to a problem, usually in the form of a prize.

Why Use Crowdsourcing?

The reasons for a business to use crowdsourcing are varied:

  • The ability to offload peak demand
  • Access to cheaper business inputs
  • Generating better results
  • Tackling problems that would have been too difficult to do otherwise.

A challenge is the swamping of inputs – the richness and variety of contributions, while wonderful, can require considerable review to find the best ones.  Crowdsourcing services now address this with filters and controls, such as Kluster’s ability to more readily tune the “relative influence” of various types of participants.

Five Functional Business Areas Suitable for Crowdsourcing

Here are examples of some of the business uses of crowdsourcing today:

1. Problem Solving

Innocentive, the leading open innovation service, has over 180,000 contributors who can work on problems in science, manufacturing, biotech, medicine and many other fields. They offer rewards ranging from $5,000 up to $1 million for solutions to submitted problems.  An article in The Economist reports a 74% ROI for crowdsourcing over central production methods. Other options include GuruStormsPhiloptima and PlanetEureka.

2. Design

Crowdsourced design services like Crowdspring provide marketplaces to allows for crowdsourcing Web designs cheaply and quickly. Others, like Denook, offer design for other things like apparel. BootB, can help companies crowdsource marketing and creative work. General purpose tools like Kluster can help companies strategically farm specific design decisions across their own private or public community. Services such as Elance provide on-demand design work, but are not structured to create multiple competing inputs.

3. Work

For many kinds of simple tasks, there are highly granular on-demand work marketplaces. Mechanical Turk and CrowdFlower are two of the top solutions in this area. A good example is CastingWords, one of the best audio transacription web services, which breaks up recordings into tiny pieces and distributes them across the world to Mechanical Turk workers for conversion to text. For IT shops TopCoder offers crowdsourcing for software development from , the “world’s largest competitive software development community with 220,326 developers representing over 200 countries.

4. Testing. “Users as testers” assures broadbased and thorough user input from customers. Services such as uTest are bringing crowdsourcing to testing of software and other services.

5. Support. Online customer communities are a growing source of crowdsourced customer service and support for companies that understand how to grow and nurture them. Services such as FixyaGetSatisfaction and CrossLoop crowdsource customer support to get the answers to questions companies have that are often more accurate than what the companies can generate internally by themselves.

Like many aspects of digital business, crowdsourcing is a very recent development that is still in its early stages. Creative companies have an opportunity to use it to link marketing more closely to research, development, design and customer service, forging competitive marketplace advantages.