Recently, Grow co-founder Cassie Hughes and Esperanza Teasdale of PepsiCo Americas Beverages spoke at the Event Marketing Summit on the Power of Influence in launching, refreshing and extending brands.

Shortly before the conference, McKinsey and Company had made word of mouth marketing (and the power of influencers to ignite it) the topic of their Quarterly Newsletter, which we gave a nod to in our recent newsletter.

With 10% of the population credited with influencing the other 90% on what to purchase, consume and experience, it’s clear that effectively tapping that 10% can pay incredible dividends. The question on everyone’s mind when it comes to influencer marketing is – how do you know who is an everyday influencer?

It’s an important question, and the place where a lot of programs don’t deliver. The quality of any influencer program begins with the quality of the influencers themselves. Without thoughtful investigation and selection you could end up with what we have coined an “outfluencer.”

Let this excerpt from Cassie and Esperanza’s speech serve as a helpful guide to understanding the difference.

An ‘Everyday Influencer’ is someone who…
• Is recognized by their peers as those individuals who have their finger on the pulse of what’s going on
• Embodies and has a natural affinity for the brand, service and offering
• Has deep peer networks with which to share their experience
• Is truly passionate about being the first to discover something new and share that news with others

An ‘Everyday Influencer’ is NOT…
• Someone you have to pay to endorse your brand
• A handraiser who constantly wants to try new products for free
• A person who is repeatedly pulled from an overused database

Connected: The Surprising Power of Social Networks and How They Shape Our Lives is not a book about social media marketing, nor is it a business or marketing book at all. However, the insights and data uncovered by co-authors and noted social scientists Nicolas Christakis, M.D, Ph.D. and James Fowler, Ph.D. are a must-read for any marketer interested in igniting word of mouth and becoming the brand of choice amongst their target consumers.

The first thing to understand is that social networks have been around pretty much since human beings have. These complex systems affect us in ways we often aren’t fully aware of – from how we choose our mate to how much weight we gain to whether we vote to purchases we make to if and how much we donate to a cause.

At the heart of this effect is the Three Degrees of Influence Rule. The authors’ research has shown that the spread of influence in social networks ripples out three degrees. Essentially, we have great effect upon and are in turn affected by friends of friends of friends. So if, for example, you have 20 social contacts and those contacts each have 20 social contacts and each of those contacts has 20 contacts, you are indirectly connected to 8,000 individuals whose habits and lifestyle influence you and over whom your choices also have impact. How much impact?

According to the authors, our friend’s friend’s friend has more influence on whether we gain weight than our spouses do. Their research has shown that if a mutual friend becomes obese it nearly triples a person’s risk of becoming obese. Those closer to the center of a social network, with many friends and contacts that cross over, have even more influence.

The assumption might be that social media would explode this effect but Christakis and Fowler’s research shows that when it comes to influence, not all friends are equal. While the average Facebook user (at the time of the printing of this book in 2009) has 110 “friends,” only a subset of these are actually close friends. In their study of Facebook pages of students at a large university on average only 6%, tagged each other in photos, which, according to the authors, indicate true social closeness and intimacy.

At Grow we call this the Genuine Effect – tapping into those networks where “friend” has a meaning that lives outside of Facebook, Twitter and Linked In, applying to those individuals whom you cross paths with in the real world – from your best girlfriend to the office mate you lunch with weekly to more casual acquaintance you might bump into at a party or school fundraiser. These genuine or real world connections hold a different currency and, as outlined in Connected, are those that actually impact our choices and behavior. Noted word of mouth measurement experts The Keller Fay Group report that even in this digital age, 77% of brand conversations are still happening face to face. Having designed and implemented influencer and word of mouth campaigns for scores of brands across a range of categories and demogrpahics we have seen the Genuine Effect in action and its power to build communities of brand advocates.

A recent story in Ad Age further illustrates the difference between on and offline friends and influence. According to the Edelman Trust Barometer, the number of people who view their friends and peers as credible sources of information about a company dropped by almost half, from 45% to 25%, since 2008. With more “friends” online ever more removed, influence becomes diluted and brands should not place value on an influencer solely by his or her count of online followers and friends.

However, while social media has not expanded the Three Degrees of Influence rule it has increased the reach and speed by which this influence spreads. It is how we elected a president and raised millions for Haiti. At Grow, we bake social media into every campaign, viewing it as a publicity layer that can help amplify influencer programs vs. replace them.

So, how do marketers effectively infiltrate social networks? By identifying and authentically connecting with those everyday influencers who are deeply networked and are looked to by their peers as credible sources of information on your category and, most importantly, connect emotionally with your brand. It’s not an automated process that can be housed in a master database or built with a mass email or acquired through a Facebook ad campaign.

To truly tap the Genuine Effect you must forge a relationship with those influencers who can truly serve as an authentic mouthpiece for your brand. Some things are still best done by hand.

If you missed the flap about Amp’s new iPhone app last week it’s probably because you were following the Balloon Boy debacle, or were on vacation on a remote, tropical isle (hopefully the latter). Essentially, the app was deemed offensive to women by some and a harmless joke by others. We’re not going to weigh in on the specifics of this campaign – that’s been done ad nauseam, but how diffusion brands work with their parent companies got us thinking about how social media is impacting marketing strategies across all consumer categories.

Once upon a time (pre-social media and certainly pre-Internet) consumers weren’t generally aware of the relationship between parent brands, such as Pepsi or Unilever, and their many “children.” Estée Lauder was thought of as one beauty brand, not the “mother” of Clinique, Origins, La Mer and a host of others. This lack of visibility into the inner workings of the industry allowed parent brands to launch diffusion lines to create relevancy with and gain revenue from new audiences while retaining their loyal following.

Now consumers are not only increasingly aware of the power of their voices, as evidenced by the FTC caring enough about the blogosphere to create guidelines, they also have much more transparency into brand relationships. As such, the actions of the children will most certainly come to rest at the parents’ feet. Elevated inter-brand awareness creates a different set of challenges, and opportunities, and requires a new approach to communications that takes that transparency into account with “if/then” scenario building around edgier campaigns.

Note: Pepsi is a client of Grow Marketing, but not the Amp brand.

Ten percent of the population is credited with influencing the remaining 90% with what to purchase, consume and experience. By tapping into the right 10%, we reach the few who fuel the many.

Brands used to measuring ROI in CPM, CPC and other cost-analysis acronyms developed for traditional media and online marketing sometimes have trouble wrapping their heads around Influencer Marketing and what makes it so effective.

There are many metrics and multipliers that can help quantify the reach and impact achieved with an influencer program. However, one of the most powerful ways is to bring it down to the personal level with a simple reminder about how each of us receive and act on recommendations for an array or products and services from the go-to people in our social networks, every day. We call these “influencer moments.” Here’s how it works:

Gabrey, one of our co-founders, sees a new bakery open on our street called Pacific Puffs. Not only are the puffs themselves fantastic but two adorable brothers and their cousin went in on the shop together using their grandma’s recipe to create the decadent treats. From Gabrey’s first taste, they made their way to 4 dinner parties around the Bay Area (great hostess gift) that had around 10 attendees each. They also ended up at Grow’s offices for three meetings with clients as well as a monthly team meeting. Of course people loved the product, but they also really connected with the story. The idea of supporting a new business sharing Grandma’s family recipe with the public for the first time just makes you feel a little more invested, and connected. Yet another reason to stop there vs. any number of bakeries in San Francisco.

Has every Pacific Puffs customer shared the baked goods, and their story, with their network like Gabrey did? Probably not. But not because they didn’t enjoy their experience. Perhaps they didn’t chat up the founders and learn the bakery’s back-story, or have four dinner parties booked on their social calendar in need of a tasty hostess gift. Imagine if Pacific Puffs made a concerted effort to find other people like Gabrey, gave them a thoughtful tasting experience and created a special hostess gift offering, ideal to take to dinner parties? How much faster could their reputation spread – and sales grow?

This is one example of the viral marketing that happens in each of our lives, every day. You might be wondering how many people you can actually reach with an Influencer campaign. Does it really scale?

Here’s a small taste:
Sinupret for Kids
Pepsi’s Tava

Evidence that non-traditional marketing is on the rise: According to a recent article in BrandWeek, even “traditional media” are adopting new, experiential platforms to promote their brands.

CBS is hitting the digital ground to promote a new show in nail salons; ABC is hosting community screenings as intimate gatherings for consumers to experience the lineups. For Fox, viewership of a pilot exceeded expectations, so sporadic “pop up” screenings and partnerships throughout the summer will keep the buzz going through Fall.

The fourth major network (NBC, we had to mention them, too if we’re talking traditional media!) is launching stunts and sponsorships through social media. [They’re not all about the free content, however, because Facebook users must invite 10 of their friends to become fans in order to attain pre-launch exclusive material]. NBC is embracing word-of-mouth to generate buzz and providing incentives to pass along – both quality signs that the network is embracing non-traditional ways to engage and interact.

Forward-thinking executives from top brands in a range of lifestyle categories are recognizing that there are new ways of opening up dialogue and directly engaging consumers where they live, work and play. Where is your brand in the conversation? Are you talking, listening or standing on the sidelines? Time to jump in.