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IVA13 Social Networks Shape Behavior
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3. The Power Of Social Networks And How They Shape Consumer Behavior
George Chua, Vice President, Customer Analytics, Celcom Axiata Berhad
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4. Let’s begin with a fun exercise
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Category BMI range (kg/m2)
Very severely underweight less than 15.0
Severely underweight from 15.0 to 16.0
Underweight from 16.0 to 18.5
Normal (healthy weight) from 18.5 to 25
Overweight from 25 to 30
Obese Class I (Moderately
obese)
from 30 to 35
Obese Class II (Severely obese) from 35 to 40
Obese Class III (Very severely
obese)
over 40
5. Does obesity spread from person to person?
Nicholas A. Christakis MD, PhD. &
James H. Fowler PhD.
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6. Our friends, our friends’ friends and our friends’ friends’ friends can make
us fat
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Source: The Spread of Obesity in a Large Social Network over 32 Years, Nicholas A. Christakis, M.D., Ph.D., M.P.H., and James H.
Fowler, Ph.D., N Engl J Med 2007; 357:370-379 July 26, 2007
7. Christakis & Fowler also found that social networks have clusters of happy
and unhappy people within them that reach out to three degrees of
separation
• A person's happiness is related to
the happiness of their friends,
their friends’ friends, and their
friends’ friends’ friends
• In fact, each additional happy
friend increases a person's
probability of being happy by
about 9%
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8. Unhappy people and happy people tend to cluster in separate groups
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Source: Christakis, N. A., & Fowler, J. H. (2009). Connected: The surprising power of our social networks and how they shape our lives. New
York: Little, Brown and Company.
9. Studies done at a Malaysian mobile operator found that subscribers who
are in a community of churners have greater likelihood of churn
• For a post-paid subscriber who is in
a community of churners, the
likelihood of churn is about 12.7%,
which is 3 higher than a random
post-paid subscriber
• The churn likelihood of a prepaid
subscriber who is in a community
of churners is over 1.9 times higher
than a random prepaid subscriber.
• Churn contagion is stronger in the
community of post-paid subscribers
than prepaid subscribers.
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3.9%
7.0%
8.8%
6.1%
0%
5%
10%
15%
Postpaid churn Prepaid churn
(Celcom
definition)
Background churn Community lift
10. A subscriber’s community influence his churn likelihood through influencers
Jun-11
Jul-11
Aug-11
Sep-11
Source: Social network analysis on churners between Jun-11 & Sep-11 and their call graphs in May-11
11. Influencers are also far more value than the average subscriber
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y = 1881.4x + 36.507
R² = 0.0827
-MYR 100
MYR 0
MYR 100
MYR 200
MYR 300
MYR 400
MYR 500
MYR 600
0.000 0.020 0.040 0.060 0.080 0.100 0.120 0.140
TotalRevenueInTheMonthOfMay-11
Eigenvector Centrality Of Churners In June-11
Source: Social network analysis on churners between Jun-11 & Sep-11 and their call graphs in May-11
12. Time evolution of the iPhone adoption network
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Notes: One node represents one subscriber. Node color: represents iPhone model: red=2G, green=iPhone 3G,
yellow=3GS
13. 14% of people trust ads, 78%of
people trust consumer
recommendations!
Nielsen Global Trust in Advertising Survey
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14. Implications for the marketer
1. Because people can influence one another through 3 degrees, social
contagion can spread through society with great speed.
2. The key to harnessing the effects of social contagion, is to identify and
influence the influencer.
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15. Four steps of influencer marketing
1. Identify and profile* the
influencers by measuring their
degree of influence.
2. Identify and profile the
influencees who are socially
connected to the influencer.
3. Ask yourself: a) What economic
and emotional value can I provide
to both the influencer and
influencees? b) How can I help the
influencer to pass on this value?
4. Design a marketing campaign
based on your answers to 3.
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Notes:
*Profile here refers to demographic, behavioral and psychological profiles.
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2
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16. Case study on influencer marketing: Dunkin’ Donuts
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18. Insight Valley Asia 2013 | May 16 & 17 | Bangkok, Thailand | www.insightvalley.com
Thank you to our sponsor & partners!
Gold Sponsor
Supported by
Organised by
19. Insight Valley Asia 2013 | May 16 & 17 | Bangkok, Thailand | www.insightvalley.com