In the past, word of mouth had a significant impact on businesses. For example, if someone was unhappy with the local butcher, they would tell their personal networks, i.e. family and friends, and this could have a serious effect on that small businessWhen companies grew into large businesses and corporations, word of mouth had less of an impact. If people were unhappy about the service they received at Walmart, telling their personal networks about it would have little impact on that companyThe emergence of web 2.0 technologies and social media sites has made electronic word of mouth possible to vast amounts of personal and public networks. Because the reach and scale of eWoM is much greater than traditional word of mouth, its impact on companies has become much more significant and it has been something that companies need to be aware of.
How word of mouth has evolved with the development of new technologies
Example of storytelling- the oldest form of word of mouth communication
Example of word of mouth communication to personal networks
Example of the electronic word of mouth communication that is afforded by social media websites such as Twitter
Retrieved from No Bullshit Marketing at http://nobullshitmarketing.blogspot.com/2011/11/what-drives-immediate-and-ongoing-word.htmlThis cartoon shows the type of impact word of mouth has. We know where eWoM came from, but what exactly is contained within that term. What is eWom
Working with this definition, we are able to break-down eWoM in different components to better understand how it works and why it is importantAlso known as Online Referrals (Canhoto and Clark, 2012)
Diagram from http://electronic-word-of-mouth.blogspot.com/2009/03/main-elements-of-ewom.htmlHere is a diagram highlighting some of the major players and elements of eWoM. There is a communicator, an object (the subject of the communication), the statement, and the receiver.
Lindholm, J. (2009, March 18). [Web log message]. Retrieved from http://electronic-word-of-mouth.blogspot.com/2009/03/main-elements-of-ewom.htmlThere are five major parts of eWoM.The Statement: the initial contact between company and consumer could be positive, negative, or neutral. Ex. McDonalds, I had the most delicious Big Mac today, or I had the most disgusting Big Mac ever today!!Communicator: Who is making the statement? Whether it be former, current, or future customer it is good to understand that as to respond as effectively as possibleObject: What is the statement about? In most cases it is about a product or service, but it could also be any sort of claim against the brand itselfReceiver: The company whose product/service is being discussedEnvironment: Where is this communication taking place? Environment is very important because responses need to be easily accessible and more often than not should all take place on the same platform. Use your environment to your advantage, understand it and know it inside out.
If consumers are satisfied with a company, they will feel more inclined to refer that company to their social circles. If a company is poor in their cyber interactions with consumers, there is no loyalty and therefore low amounts of referralsTo achieve customer satisfaction firms must try to exceed the expectations of their customers, the farther you exceed the expectations the better.eWoM is still new, so to be able to analyze what kind of responses customers are looking for in order to be satisfied is still in the early stages of research (Canhoon and Clark, 2012)Outcome, Response, and channel are three factors outlined by Canhoon and Clark that influence customer satisfaction the mostFactors such as speed, substance, resolution, are all areas that can determine whether a customer is left satisfied.
When discussing positive and negative eWoM, we are talking about the initial statement made. This can either be a negative comment towards a product or service, a positive comment, or it can sometimes be neutral.Here are some examples from translink of positive and negative feedback, and their response
Here you can see that this tweet is positive, and Translink acknowledges the comment, and re-tweets it for others to read.
Starts off as a question, but then the problem is realized and an effort is made to find a solution.
Retrieved from http://staticulator.wordpress.com/2011/08/19/challenges-as-we-know-them/
The influence of eWoM is still relatively new so firms are not at a point where they completely understand it yetConsumers can post dishonest feedback to negatively impact the firmSome people refused to be satisfied, it’s true. Firms need to recognize a lost cause when they see oneCertain issues have to be resolved by referring customers to forms or phone numbers etc.
Here we will examine the types of people that are involved in eWoM communication, looking at the 3 personality types that are outlined in Malcolm Gladwell’s book, The Tipping PointPicture retrieved from http://darmano.typepad.com/photos/uncategorized/tipping.jpgGladwell, M (2000). The Tipping Point: How Little Things Can Make a Big DifferenceNew York: Little Brown
Connectors are the people with the biggest social networks, made up of friends, and acquaintances. While they have a lot of connections, these connections are mainly “weak ties”, that is people that they don’t know very well in the offline sense, but communicate with online to share and receive information.
Mavens are the people in our social networks that we look to for new information. They are reliable sources of good information.
Salesmen are the people that are charming and charismatic online. They are persuasive with good negotiating skills and make people agree with them on various subjects.
Stickiness Factor: the content of the message is really important. If it is boring, people won’t pay attention to content that is created, but if it is something original, people will want to pass it along.Power of Context: how people’s environment dictate their behavior. For example, we speak differently to professors than we do our friends.
Augie Ray outlines his “Peer Influence Model” that describes the level of influence that different people have online.Ray, A (February 2010) “Tapping the Entire Online Peer Influence Pyramid”. Retrieved from: http://blogs.forrester.com/interactive_marketing/2010/02/my-first-forrester-report-tapping-the-entire-online-peer-influence-pyramid.html
Social Broadcasters are similar to the “connectors”. They are the people at the top of the social media pyramid, they have the most followers, but their social networks are made up of mostly weak ties. Because of this, their followers don’t always trust what the social broadcasters say. People will click the links that the SB put out, but will still do their own evaluation of the information. Because of this, SBs are better for awareness rather than preference.
The Middle Influencers only make up 16% of the pyramid, but account for 80% of the influence impressions about products and services. Because of this, they should not be ignored by companies.
Potential Influencers are at the bottom of the pyramid, and account for 80% of it. They are considered the average consumer and their online networks reflect connections that they have offline as well. Because of this, they are trusted by the people in their online networks.
Now looking at how to reach these different types of influencers.Social Broadcasters dislike traditional PR, marketing and press releases, so you should build relationships with them. They don’t want to be contacted only when you need something from them, and they want to be respected for their audience. Because of this, you should develop genuine, customized offers that they can’t refuse and that acknowledge your understanding of their uniqueness and point of view.
To reach the Mass Influencers you need to give them something to talk about. To do this you need to understand their characteristics and give them something they can’t resist sharing. You also need to acknowledge offline influences as well.
For Potential Influencers you need to make things drop dead simple. This group is not as motivated or tech-savvy as Social Broadcasters of Mass Influencers so you will need simple and relevant content for them to spread. You should also keep them engaged between campaigns.
How singer Dan Mangan engaged with his fan and created a unique experience for her by replying to her positive message
How radio station 100.5 Peak FM was able to respond to a listener, and make them feel a part of the Peak family
Whole Foods was able to show their appreciation to a student who is doing a case study on their supermarkets
Whole Foods returning the love one of their customers has sent them
However, the interactions with Whole Foods and all companies are not all positive… in this example a person (appearing to be a dog) is unhappy that Whole Foods is selling “cheap” Chinese pine nuts at a high cost
I contacted SFU with a tweet because I was unhappy with their information on student’s registration dates. They replied back showing me where I can find them, and that they will try to make it easier in the future.
Poor customer service from Future Shop led to an attempt by Future Shop to fix the problem
Very little feedback from Future Shop, having to continually reply to multiple emails leaves customers dissatisfied
McDonalds Case Study
McDonalds created their own hashtag which they hoped would encourage customers to share their pleasant stories about McDonalds.
Instead the hashtag was “hijacked” and used to bash McDonalds and all of the negative stories people have had.
By focusing mainly on generating content about themselves rather than engaging with customers online McDonalds creates the perfect opening for customer backlash through their hashtag by disregarding the negative discussions around their brand.
Here the tweeter for Starbucks expresses compassion and is honest about the difficulty of the situation and offers up a personalized response.
Here Starbucks acknowledges on their twitter site a negative situation surrounding the brand. The Tweeter also takes a human approach to the situation by apologizing for the mishap.
Here Starbucks not only acknowledges a negative experience and offers to reconcile it, but also displays good integration amongst all of its departments by referring the customer to another department where there needs can be better met.
This tweet was clearly a negative eWoM. The customer is setting out to warn fellow customers and Starbucks responds almost instantaneously, answers humanly and informs the customer that they will be informing the team and offers a solution.
Starbucks Facebook page wall is filled with eWoM from fans.
Retrieved from http://blogs.ubc.ca/selinawang0711/files/2011/11/LululemonLogo2-11.jpgRetrieved from http://coolcanucks.ca/wp-content/uploads/2010/02/dell-jpg.jpgRetrieved from http://hotcellularphone.com/wp-content/uploads/2010/07/Rogers-launches-new-unlimited-talk-and-text-brand.jpgRetrieved from http://www.86network.com/files/sketchImages/20110203_025237555_JOEY_RESTAURANTS_GREY-BLACK_FOR_WHITE_BACKGROUND.jpgRetrieved from http://www.maxagency.com/blog/wp-content/uploads/2011/07/IKEA-logo.jpgRetrieved from http://blogs.ubc.ca/weili/files/2011/11/best_buy_logo_3.coolcanucks.ca_.jpgRetrieved from http://earthdayhamilton.ca/2011/wp-content/uploads/2011/02/Tims.jpg
How viral marketing forces consumers to spread a message thanks to gimmicksRetrieved from http://www.hundredsofheads.com/UserFiles/Entities/Articles/693_Image.jpgRetrieved from http://www.hemmy.net/images/animals/cuteanimal10.jpgRetrieved from http://www.inflexwetrust.com/wp-content/uploads/2011/07/IFWT_OrbitGumGirlVBranch.png
Examples of virality
E-trade example of negative feedback
People spread these companies commercials because of gimmicks, but go viral for wrong reasons
What companies hope to accomplishSource: Kagan, M (2010) “The Ugly Truth about Viral Marketing” Retrieved from: http://www.slideshare.net/mzkagan/ugly-truth-about-viral-marketing
What consumer-driven marketing hopes to accomplish
How and why people share content
F Cancer express their hatred of CancerRetrieved from http://goo.gl/U5uvT
Kids all around Canada want to play hockey to belong to Team CanadaRetrieved from http://0.tqn.com/d/proicehockey/1/0/g/C/97179553_10.jpg
Some people just want to be bad, and want to be known for being badRetrieved from http://benmills.ca/wp-content/uploads/2011/06/vancouver_riot011.jpg
Others want to do good, and help out however they can.Retrieved from http://www.flickr.com/photos/31296974@N04/5841002950/sizes/l/in/photostream/
Companies like Coca-Cola spend millions and millions of dollars to be recognized everywhere and anywhereRetrieved from http://www.juliekatherinefrey.com/wp-content/uploads/2011/04/american-idol-soda_l.jpg
Other companies, or people, want to build relationships with their customers or significant others.Retrieved from http://i.huffpost.com/gen/292280/VANCOUVER-RIOTS-2011.jpg
Companies have to engage their audience by using these tools to encourage fans of their product to share.
Durex was able to start a conversation with a market segment (girls) on and offline who were previously silent or embarrassed to converse about the issue of carrying condomsRetrieved from http://www.condoom-anoniem.nl/store/media/catalog/product/cache/1/image/9df78eab33525d08d6e5fb8d27136e95/d/u/durex-lovebox_1.jpgRetrieved from http://www.forher.de/wp/wp-content/uploads/2010/05/love-box-durex.jpg
Old Milwaukee’s Super Bowl AdRetrieved from http://deadspin.com/5882821/we-now-have-the-will-ferrell-old-milwaukee-super-bowl-ad-in-hd-along-with-more-info-about-it
Old Milwaukee aired a Super Bowl ad, featuring Will Ferrell, in the second smallest market in the US. At a cost of $1,500 they were able to engage their audience (1,600 mentions on twitter) more than many other ad’s that aired to the 111 million viewers who watched the Super Bowl. Other ads were definitely seen more than Old Milwaukee’s, but it cost much more, and engaged far less people than it reachedRetrieved from http://www.businessweek.com/lifestyle/how-old-milwaukee-gamed-the-super-bowl-02062012.html
The Stickiness Factor is a law about the actual informational content and packaging of a message. Connections and the personal character of the people trying to spread a message can certainly help it spread, but if the message is not worth spreading, then it is doomed to failure. The stickiness factor says that messages must have a certain character which causes them to remain active in the recipients' minds. Moreover, they must be deemed worthy of being passed on.
Playboy made these towels and left them on beaches in Argentina. It’s made to resemble a cover and says “I can be the March Playmate” on it. It’s a unique way to promote the magazine.
These flags come in each box of Toms Shoes. On the box, on Toms’ website, and on their Facebook page they encourage people to take a picture with their TOMS flag and submit it online. These photos then get posted on the website and Facebook page, as well as appearing on TOMS shoeboxes. This spreads their message and raises brand awareness through online and offline channels.
People’s behavior, attitude and interests are much more important than typical demographic information. Eg: 50 year old man who uses a computer like an 8 year old.
Source: http://www.digitalbuzzblog.com/ikea-the-facebook-fan-sleepover/Ikea took advantage of a consumer driven idea and created a successful PR stunt. A group on Facebook called ‘I Wanna Have a Sleepover in Ikea’ was the inspiration for IKEA’s stunt. The company created a similar competition for 100 Facebook fans to be part of a giant sleepover at the Essex IKEA store. This stunt rewarded consumers for their brand loyalty and created demand for other events around the country. Have a look at what people are saying about your brand, and act on your findings.
Source: http://blog.hellohenrik.com/2010/02/virality-is-all-about-making-your-users-look-awesome-in-fromt-of-their-friends/ Make users feel important by giving them something to say about themselves, e.g. I am a user of this new cool software – it’s still in closed beta – but I can try to get you an invite.When adding a ‘tell/invite a friend’ into your sign-up flow be sure to spend extra time making your invite email interesting. You are essentially the ghost-writer for your users. Make them sound funny or interesting – they will want to share your story with more people.Users are more likely to spread stories that have their own personal touch. So leave room for them to add their fingerprint to your narrative easily. I guess my best example is to always allow for a bit of space when you do tweets – so people can add their own comment to your narrative. By doing that, you allow your audience to become co-senders. If that fails, then piggyback your message on to something entertaining, as a last resort, in case there is no other way to make the message itself cool to communicate. Just think of how OfficeMax have made you Elfyourself.comFacebook’s initial status update did this delicately by adding the ‘Henrik is…’ to each update. This forced users to write a certain type of update and allowed them to be more creative by working within the template of the ‘Henrik is…’ template. A new trend is to give people personal information about themselves to share via Behaviour Generated Content generation.
CNN News to Me: http://www.cnn.com/exchange/ireports/topics/forms/2007/04/news.to.me.htmlCNN “News to Me” is the first cable news show that is devoted purely to user-generated content. It showcases the best news coverage and online video submitted by users. It is an example of how CNN understands its audience and engages with “icitizens”.
Generation produces risk, interaction has more control
Brands must account for the risks involved with the generation of content. Once content reaches the internet it is in the hands of millions of internet users to regenerate, reconstruct and interpret it how they please. Hashtags that companies generate can become bashtags, and other content can be used in the same way. This is because the internet lacks the hierarchy and restrictions that typically exists in the offline world, and therefore allow consumers to be on an even playing field with the brand.
While content generation seems like a strategy which presents more control for the brand, the dissemination of content and information leaves the message in large part at the mercy on the interpretation of the reciever. When interacting with people online however you are able to renegotiate this meaning, and guage the success of the reception of the message
The modern day consumer is able to differentiate between sources online and is more skeptical of those being generated by a brand than by a fellow consumer.
Interaction vs. generation by a brand is also dependent on which social media platform is being used. Each platform, whether facebook, twitter, youtube etc. implies different levels of interaction and generation codes of conduct which the brand must adhere to to participate within the social norms of the social media website. For instance the Twitterverse highly values interaction.
Retrieved from Mo Willems at http://mowillemsdoodles.blogspot.com/2009/03/listen.html We have talked about it in lecture before. It is extremely important to listen to the community!Considering eWoM mainly takes place on Social Media, more often than not twitter, listening to what they say is important to achieve satisfaction.That’s why it is important to respond to all types of feedback. That way, customers know that you are listeningPeople do not like feeling alienated. Customers matter let them know that
When companies generate content for fans they tend to do a better job than when companies try to generate content for consumers.An example is Apple vs. Microsoft, Apple creates ad’s that are popular to their fans, and therefore their fans continue to spread positive eWoM because of ad’s like this.Retrieved from http://workbench.cadenhead.org/media/apple-pc-mac-people.jpg
Retrieved from Mariah Lincoln at http://marpr23.wordpress.com/2010/04/11/transparency-is-a-must-even-in-interviews/eWoM takes place on the social media, and due to the nature of social mediait causes companies to become transparent. Responses to feedback take place on an online forum such as twitter and other consumers are able to see the different interactions between consumer and firm. Social media provides consumers with the potential to know their companies more. Being transparent causes company to be accountable for their actions, if they are not, they will feel the wrath of online communities. Like Nestle for example, who deleted negative feedback on their facebook page. Companies are under the public eye constantly when using social media and they must act accordingly.
Transcript of "Bus450 eWoM Presentation (2012-1)"
Electronic Word of Mouth #eWoM450 LAUREN GILLETT COLIN GROUT LAURA MITCHELL RYAN BOYD
Agenda What is eWoM to You? Evolution of eWoM What is eWoM? eWoM Content The People Involved Case Studies Class Activity eWoM & Virality eWoM & Community Building
What is eWoM to You? Examples? Experiences? Experiment Send out a positive or negative tweet to a company At the end of our presentation we will see if The companies replied Their reply was effective or ineffective
Evolution of eWoM “Word of Mouth” is the passing of information from person to person using oral communication Storytelling is the oldest form of word of mouth communication We rely on word of mouth communication to transmit and receive information
Evolution of eWoM eWoM emerged with WEB 2.0 technologies eWoM is a way people communicate with companies and other consumers to Help with buying decisions Provide feedback Most eWoM does not take place on the company’s website, rather through social media channels eWoM is still trying to be understood by companies. New Messy Changing
Evolution of eWoMStorytelling Personal Networks Public Networks (Offline) (Online)
What is eWoM? “Any positive or negative statement made by potential, actual, or former customers about a product or company, which is made available to a multitude of people and institutions via the Internet” (Hennig-Thurau, et. al, 2007)
Main Elements of eWoM1) Statement: positive, negative or neutral2) Communicator: statement creator (potential, actual or former customer)3) Object: product, service and/or company4) Receiver: multitude of people and institutions5) Environment: the Internet, social media (Lindholm, 2009)
Satisfaction Customers need to be satisfied to remain loyal and make referrals Companies must exceed customer expectations to leave them satisfied eWoM is still relatively new which process to be a challenge to companies Many factors contribute to customer satisfaction Outcome Response Channel
Positive vs. Negative eWoM Positive feedback usually stems from customer identification with the company In some cases they still aren’t fully satisfied Committed Negative eWoM usually consists of concerns with products or services Negative comments give firms the best opportunity to achieve satisfaction Responding to both types of feedback is equally important
Challenges with eWoM Still new to firms Consumers can post dishonest feedback Some people will not be satisfied regardless Online identities can easily change Some issues cannot be solved online, which can decrease satisfaction
1. Connectors Have a lot of social connections People with a knack for making friends and acquaintances People who understand the concept of a “weak tie”
2. Mavens “Information specialists” The people we rely upon to connect us with new information Accumulate knowledge and share it with others Start word of mouth “epidemics”
3. Salesmen Persuaders Charismatic people with powerful negotiation skills Makes other people want to agree with them
Factors that Influence Impact Stickiness Factor Specific content of the message that makes its impact memorable Power of Context Human behavior is sensitive to and strongly influenced by its environment
Problem with Virality The problem with virality is it forces messages to consumers Babies and E-trade have nothing in common So do Telus and Animals And based on the commercial, I don’t even know what Go Daddy is trying to advertise People do talk about and spread these messages to their friends, but not for the reasons these companies want
What do companies want?Consumer-Driven Marketing “A method of promotion that relies on customers helping to market an idea, product, or service by choosing to share something with their friends”
Consumer-Driven Marketing The participants are active The content is share-worthy Simply, Consumer-Driven Marketing is people sharing stuff about your brand to their friends
How and Why People Share It is important for companies to understand How & Why people share content with their friends The six reasons why people share
Consumer-Driven Marketing1) Express themselves2) Belong3) Be bad4) Do good5) Be recognized6) Build relationships Companies want to enable, encourage and reward sharing
Durex’s “Lovebox” • Express Yourself • Building Relationships• Engaged new market segment• Started conversation withpreviously silent/embarrassedsegment
Old Milwaukee Super Bowl AdThe Ad: http://goo.gl/wqZkH Old Milwaukee is Expressing themselves Being bad And being recognized for both
Old Milwaukee Ad: Twitter Aired only in second smallest market in US Population: 15,000 1,600 mentions on Twitter Nationally televised commercials # of mention’s 1,200 Hulu 1,000 Career Builder 900 Lexus 500 Century 21 350 Cadillac
Old Milwaukee Ad: YouTube Old Milwaukee ad viewed over 1,000,000 times Cost $1,500 to air in 2nd smallest market Budweiser’s “Eternal Optimism” ad viewed 419,000 times Cost roughly $3,500,000 to air nationally
Old Milwaukee AdThe Good Generated share-worthy content that fans passed on to their friends, improving Old Milwaukee’s brandThe Bad Failed to capitalize on all of the attention by creating an online presence with social media for fans to continue to enjoy related content
Power of Content (Stickiness Factor) Content is an important part of eWoM If you are generating content, it should be original and “share-worthy” so that people will want to pass it on to their friends and online networks. Need to understand WHY and HOW people share content It should reflect the core values of your brand without seeming overt
How To Engage Your Audience (Henrik Werdelin)1. Make them show they are early adopters2. Make them seem funny or interesting3. Allow people to add their personal touch to your story4. Make people better storytellers by giving them templates to guide them