wom marketing by WOMlabo

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What highly influences a purchase decision is WOM suggestions from other loyal customers. At WOM labo, we call this loyal customer Brand Ambassador (BA). By making WOM by BAs accessible to potential targets through the WEB, it enables to speed-up a purchasing decision.

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wom marketing by WOMlabo

  1. 1. Paradigm Shift of Marketing WOM Marketing -WOMlabo Credential- June 2010 www.womlabo.com
  2. 2. About WOM labo project What we do -WOMlabo- 1. Develop a WOM promotion platform 2. Structuralize a communication plan with WOM platform 3. Analyze WOM insights 4. Trainings, seminars, and introductory sessions 5. Whitepapers about WOM 6. Effectiveness measurement on WOM http://www.womlabo.com Confidential Page1 1
  3. 3. Introduction to our WOM Marketing Activity Our WOM marketing program is introduced in 3 countries in Asia. 日本 (JAPAN) Publication in Japan ”図解でわかるくちコミマーケティング” (Graphic explanation of word-of-mouth marketing) “『くちコミニスト』を活用せよ!” (Strategic Use of word-of-mouth with KUCHI-COMINISTs) 2003 2007 中国 (CHINA) Publication in China “口碑营销/市场营销新概念系列” (Word-of-mouth marketing) 2006 韓国 (KOREA) Publication in Korea 2004 2 Confidential Page2
  4. 4. Introduction to our WOM Marketing Activity -Article- ビジネスリスクマネージメント 2007年11月 YOMIURI ADリポート 2005年4月 サンケイリビング別冊 クチコミックス 2006年6月 Nikkei Marketing-Watcher 2010年6月 3 Confidential Page3
  5. 5. Change in customer's media spending time Breakdown of the time spent on media in one week Source: Brand Ambassador メディア接触時間 Contact frequency in 1 week Research by Kokokusha, January, ‟09 PS、Wii等でゲームをす N = nationwide 1,698 る テレビでDVDを観る 1.1% NintendoDS、PSP、 1.7% 携帯ゲームを利用する 携帯電話で 1.5% モバイルサイトを見る 2.9% 地上波のテレビを ライブで見る (録画ではない) The Internet インターネットを使う 29.3% (その他) 33.9% 22.4% インターネットで動画を 録画したテレビ番組を 見る 見る 3.0% 6.3% インターネットでコミュニ BS/CS等の ティ(ブログ/SNS/掲示 有料チャンネルを見る 板等)を見る 2.6% 8.5% フリーペーパを見る ラジオを聴く(室内) 1.3% 3.5% 折込チラシを見る 4.5% ラジオを聴く(車内) 雑誌を見る 新聞を見る 6.6% 2.1% 2.7% Confidential Page4
  6. 6. Media Environment that surrounds consumers Today, it‟s B2C2C = the Era of Multilateral Communication Today, in addition to information transmitted through mass media, “live information” transmitted by consumers, called CGM, have effects on one‟s purchase activities. Brand Ambassador(BA) = Information Advocates who are high in brand from an entity loyalty among customers magazine Potential customers Potential customers Potential customers SNS general general consumers consumers general consumers 5
  7. 7. The Concept of our WOM marketing 『Leverage the WOM of loyal customers in marketing』 What highly influences a purchase decision is WOM suggestions from other loyal customers. At WOM labo, we call this loyal customer Brand Ambassador (BA). By making WOM by BAs accessible to potential targets through the WEB, it enables to speed-up a purchasing decision. Loyal customer = Brand Ambassador (BA) Potential customers Potential customers Potential customers Confidential Page6
  8. 8. Functions of our WOM Platform Functions of WOM Platform 1. Gather BAs’ WOM of high loyal customers from among existing brand users. 2. Analyze the cause for BAs to suggest by WOM and leverage them in marketing. 3. Spread by making BAs’ WOM accessible to potential consumers. Loyal customer = Brand Ambassador (BA) 1: Gather BAs 2: Analyze WOM by BAs Potential customers Potential customers 3: Spread WOM by BAs Potential customers Confidential Page7
  9. 9. Functions of WOM Platform Brand Ambassador: Definition At WOMlabo, Brand Ambassadors are existing customers of a brand who are highly loyal to the product/service, and who are also influencers to people they know. (In case of a new product, people who are interested to the brand and have high interest in making a purchase.) Not only BAs have communicative powers, but they also have experiences in using the brand, and are high in loyalty toward. BAs aresegmented by utilizing a program such as below. ■Characteristics Brand Ambassadors are: ① Highly influential. ② Highly loyal. (In case of a new product, have high interests in making a purchase.) ③ Highly suggestive (WOM-advocative) about the brand. Y axis ① degree of influence toward others BA (Brand Ambassador) Z axis No yes X axis ② loyalty/intention to use a brand ③ degree of suggestive-ness about a brand Confidential Page8
  10. 10. Functions of WOM Platform Y axis: Influencer Barometer Q: More likely to tell others of useful knowledge/info. Q: More likely to be asked for an advice Q: Active in seeking information etc. Brand Ambassador Q: Account with mixi/twitter/facebook update frequency, # of my mixi/follower/RT/friends Q: Blogs – write/comment/view update + contact, frequency/PV Q: iPhone ownership / since when frequency + applications Proof for Degree of Influence to Others X axis: Usage Intention+U&A Q: HP Purchase Frequency: 1+ times / week, etc. Brand Loyalty + Intention Barometer Z axis : Suggestive-ness Barometer Confidential Page9
  11. 11. WOM research Wom research 2003 Wom research 2004 Wom research 2006 Wom research 2007 + Wom Research2007 English Version Wom research 2010 Down load here http://www.womlabo.com/case02.html Confidential Page10
  12. 12. BRAND AWARENESS BRAND AWARENESS -Media by which customer knew brand that you bought- wom wom 1 .See in the shop 23.6% wom wom 2.Television 17.7% 3. Net search (Yahoo, Google, etc) 16.8% 4. Netcomuunity 16.3% Kuchikomi research 2010 Limited User Date executed: February, 2010 Research subject: 865 males/females over age 20 WOMlabo researched the effect of wom Research region: all Japan New research report the following site http://www.kokokusha.co.jp/service/kuchikomi.html Confidential Page11
  13. 13. PURCHASING purchasing decisions wom wom 1. Shop 23.7% wom wom 2. Internet (communities/blogs) 20.2% 3. TV 19.1% 4. Retail outlet promotions: 17.0% Limited User Kuchikomi research 2010 Confidential Page12
  14. 14. Which was the most Influenced WOM,when you decided the brand? wom wom 1. Face-to-Face 59% 2. Net community 51.8% 3. sns(kakaku.com/@cosme) 25.4% Kuchikomi research 2010 Confidential Page13
  15. 15. Tuszumi Model TSUZUMI Model is a graphic explanation of ‘word of mouth' BRAND AWARENESS ①Shop 23.6% ②TVCM 127.7% ③SNS/Blog 16.3% Target Customer PURCHASING Potential customer ①Shop 23.7% B to C ②SNS/blog 20.2% ①TV 19.1% customer WOM had influence Kuchi-Cominists on a purchase decision YES 64% C to C ●Experience of recommending commodities to wom wom someone by WOM 45.7% wom wom Kuchikomi research 2010 Confidential Page14
  16. 16. About Loyalty Program Extract Brand Ambassadors, and offer a platform to spread WOM. ブランドアンバサダーを選出し、ブランドアンバサダーからくちコミが広がるプラットホームを提供します。 BRAND AWARENESS Target ATL Branding, Media planning interesting Events BTL comparing Corporate WEB, campaign WEB, OOH customer Feel affinity, transmit WOM purchase Brand Ambassador (BA) extract WOM BRANB AMBASSADOR WOM Layalty ↓ Develop wom Talk-able programs Potential Potential customer customer Potential customer WOM Consumers Consumers Confidential Page15
  17. 17. 2. Type of WOM Confidential Page16
  18. 18. Type of WOM by WOMMA WOM Marketing methods defined by WOMMA(USA) 1. バズマーケティング (Buzz Marketing) 2. バイラルマーケティング (Viral Marketing) 3. コミュニティマーケティング (Community Marketing) 4. 草の根マーケティング (Grassroots Marketing) 5. エバンジェリストマーケティング (Evangelist Marketing) 6. プロダクトシーディング (Product Seeding) 7. インフルエンサーマーケティング (Influencer Marketing) 8. コーズマーケティング (Cause Marketing) 9. カンバセーションクリエイション (Conversation Creation) 10. ブランドブログ (Brand Blogging) Source: Types of Word of Mouth Marketing (WOMMA) Confidential Page17
  19. 19. Two important WOM techniques Organic WOM type 1.Evangelist Marketing  leverage Kuchi-Cominists Definition: To nurture evangelists and supporters (advocates) who will take action towards leadership. Advantage: Firmly facilitates positive transmission by provoking WOM in a natural way. Disadvantage: Can take longer process to nurture consumers. Amplified WOM type 2.Viral Marketing  leverage viral contents Definition: To leverage public entertainments and news for sparking a conversation. Advantage: Heightens marketing impact by effectively mixing with other media. Disadvantage: Cases with less transmission than expected, depending on the content / scheme. Confidential Page18
  20. 20. Two important WOM techniques 1.Organic WOM type  Evangelist Marketing Thoroughly nurture fans in triggering WOM 2.Amplified WOM type  Viral Marketing Evoke a topic for a domino effect for WOM to spread 1.Organic WOM type 2.Amplified WOM type Naturally triggering WOM WOM by sparking a conversation *Leverage Kuchi-Cominists 1. Organic WOM type example Reach (# of people *KEPCO Happy-e supporters *TEPCO Switch! Supporters engaged) *Hurley Davidson (HOG) *Be tactful depending on the product TIME elapse Confidential Page19
  21. 21. Mapping the WOM Landscape Offline Offline Offline Organic Amplified KEPCO Happy-e- Supporter Amplified Organic WOM type WOM type Online Online Amplified Organic Viral marketing Online Reve21 Confidential Page20
  22. 22. Organic WOM type Evangelist Marketing example Ⅰ WOM marketing CASE STUDY of ALL-DENKA Kepco Confidential Page21
  23. 23. Confidential Page22
  24. 24. Happy-e-Supporter WOM Marketing Objective 1. Facilitate a deeper comprehension about All-Denka to existing customers in developing a platform for them to recommend to potential customers. Those with higher loyalty have more chances to actively recommend to others 2. Extract dissatisfactions and questions about All-Denka from existing customers and deliver correct information to them. 3. Develop a channel where KEPCO and local consumers can directly communicate by having a conversation. Today, power companies have less chances of directly facing consumers. All-Denka especially requires such an opportunity to extract voices from local consumers, and leveraging those into marketing. Confidential Page23
  25. 25. Test research All-Denka is highly visible 98% 98% Potential AWARENESS customers Prospects 2 objectives; 1. Consumers don’t recognize the degree of Customers KUCHIKOMI NISUT inconvenience in the current situation. 2. Consumers don’t understand how a life wom wom can change with All-Denka. Degree of satisfaction with All- 94% wom wom Denka customers is very high SATISFACTION 94% KUCHIKOMI  POSSIBILITY WITH KUCHIKOMI MARKETING Confidential Page24
  26. 26. Loyalty Analysis program EMOTIONAL LOYALTY y Emotional Favorable Loyalty Loyalty Yet-to-have Pretended Loyalty Loyalty x z LOYALTY BEHAVIOUR REFERRAL RATE Confidential Page25
  27. 27. EMOTIONAL SELECTING LOYALTY BRAND AMBASSADOR 11 10 9 Emotional 8 Favorable 7 Loyalty Loyalty 6 5 4 3 2 未ロイヤル 偽ロイヤル 1 層 層 0 -1 0 1 2 3 4 5 6 7 8 9 10 11 -1 LOYALTY ACTION Confidential Page26
  28. 28. SELECTING Brand AMBASSADOR = Happy-e-Supporter WAKAYAMA-Prefecture (KEN) Expand the number of happy-e-Supporters 2002  200 ppl. 2006  503 ppl. 2009  700 ppl. Confidential Page27
  29. 29. kuchikomi STATISTICS Happy-e-SUPPORTER 1 ALL-DENKA (TOTAL ELECTRICITY) INFORMATION SEMINAR 2 INFORMATION EXCHANGE 3 INFORMERCIAL 4 MATSUSHITA FACTORY VISIT 5 IH COOKING SCHOOL 6 The Salon Confidential Page28
  30. 30. 1.NETWORKING EVENTS BA seminar BA party Confidential Page29
  31. 31. 2. Infomercial TV WAKAYAMA TOTAL ELECTRICITY SERIES BRAND Ambassador appears in TV program TV Wakayama 5-minute “All-Denka Home Visitation” 1 show / week X 10 times series (120 seconds/show) Confidential Page30
  32. 32. 3.IH COOKING SCHOOL 4.MATSUSHITA FACTORY VISIT Confidential Page31
  33. 33. 5. The Salon - See, Touch and Try for Brand AMBASSADOR Confidential Page32
  34. 34. Happy-e-Supporter: Transition in Loyalty Start: December, ‟03 ROI analysis: March, ‟05 Applicants in July, ‟07 # of supporters: 203 # of supporters: 466 Additional 87 people Start: December, „03 11 323 people in Wakayama Pref. 10 Y axis: Emotional Loyalty 11 12 10 9 10 9 8 8 8 7 7 6 6 6 5 5 4 4 4 3 2 3 2 1 2 0 0 -2 0 2 4 6 8 10 12 -1 0 1 2 3 4 5 6 7 8 9 10 11 1 -1 -2 0 -1 0 1 2 3 4 5 6 7 8 9 10 11 -1 X axis: Loyalty Action Emotional Fans Favorable 76.5%(484 Loyalty Loyalty disposition of All-Denka 14.7%(93) customers as of Aug., „09 ●Average Emotional 8.21pt Behavioral 2.45pt Yet-to-have Pretended Loyalty Loyalty 8.4%(53) 0.5%(3) Confidential Page33
  35. 35. Effects of WOM Activities: Number of Information Offers # of information # of contract # of supporters 情報件数 成約件数 サポーター数 700 575 568 600 469 477 500 437 509 387 400 356 324 252 274 300 200 134 96 107 100 73 74 74 37 0 H15 H16 H17 H18 H19 H20 Confidential Page34
  36. 36. Effects of WOM Activities: Number of Information Offers 20% Conversion Rate Number of our customers whom we got = Number of supporter information cards Conversion Rate for All-Denka 2004(H16) 27.6% 2005(H17) 26.6% 2006(H18) 21.1% 2008(H20) 21.0% 2009 (H21) 21.0% *KPI (Key Performance Indicator) Key barometer for business management Confidential Page35
  37. 37. Amplified WOM type Viral Marketing example Ⅱ.Amplified WOM CASE Structure to evoke WOM and to spread WOM mainly on the WEB Viral Marketing Confidential Page36
  38. 38. Amplified WOM Campaign Planning Step1: Planning Step2: StoryTelling Step3: Seeding & Spreading Campaign planning Expression X channel strategy Execution and spread WOM Consolidated [Trick for viral effects: Story Campaign development] Planning (creative strategy) Campaign site Viral movie, etc. Blog parts, gadgets, etc. X [Trick for viral effects: “Telling” architecture] (media & seeding strategy) Optimization on movie-sharing site Blogger seeding Inserts on other CGM media Confidential Page37
  39. 39. Reve21 Challenge for hair growth!
  40. 40. Message to the target -Reve21 challenges to reveal the truth of hair growth- We Can Change Your Hair Life! あなたの髪の運命は、変えられる。 Reve21 now challenges the reality! http:www.365real.jp Confidential Page39
  41. 41. Promotion: Overall Picture Reve21 official site TOP Implement contents which Movie ads focuses on the point target users want to know the most. (ie. Whether or not it really works for one‟s hair growth.) lead link Promotion site TOP Males 20s-40s クチコミ発生 Kuchi-Coma クチコミ発生 Listing サイトへの接触 Secondary Target lead Primary Target クチコミ発生 & Potential customers Display ads クチコミ発生 クチコミ発生 クチコミ発生 lead *Documentary-like Friends, people they know Exterior TOP page design contents for the look & feel of reality. Leads to a trial Aim for a spread on CGM by creating movies for blogs and external distribution. Seeding strategy on bloggers lead Confidential Page40
  42. 42. Promotion: Movie on Hair Growth Progress 1-year blogs on the progress of hair growth Movies on hair grown progress Transition by 365-day documentary movie Confidential Page41
  43. 43. Accomplishments [Movie Viewership] Goal Result Performance Rate 693,600 times 1,110,900 times 160% [Site Leads] Goal Result Performance Rate 12,440 clicks 102,130 clicks 821% [Conversion] 5 times more than average advertising on the WEB Confidential Page42
  44. 44. KOKOKUSHA Corporate Profile Kokokusha Co., Ltd. President: Hitoshi Yuzawa (Representative Director) Registered Address: 1-2-14 Yuraku-cho, Chiyoda-ku Tokyo Founded: May 1, 1888 Incorporated: August 29, 1947 Employees: 253 Capital: ¥ 84 million Banks: Mizuho Bank, Sumitomo Mitsui Banking Corporation,Bank of Tokyo-Mitsubishi UFJ Business Outline : Advertising for newspapers, magazines, TV, radio, the Internet, transportations and the outdoors; sales promotion; PR; events; research; planning; production; and all other marketing services Company Addresses ●Tokyo Headquarters: 6-8-7 Ginza, Chuo-ku, Tokyo 104-8111 +81-333750090 ●Nagoya Branch: 3-1-1 Sakae, Naka-ku, Nagoya, Aichi 460-0008 +81-522611051 ●Osaka Branch: 1-5-17 Dojima, Kita-ku, Osaka 530-0003 +81-663445371 ●Sapporo Branch: 6-2 Kitagojo-Nishi, Chuo-ku, Sapporo, Hokkaido 060-0005 +81-112714571 ●Hiroshima Branch: 3-2-31 Ote-machi, Naka-ku, Hiroshima 730-0051 +81-822440755 ●Fukuoka Branch: 1-6-8 Tenjin, Chuo-ku, Fukuoka 810-0001 +81-927311511 ●West Tokyo Sales Center: 2-15-12 Sakai, Musashino, Tokyo 180-0022 +81-422500565 ●Sendai Office: 1-3-9 Hon-machi, Aoba-ku, Sendai, Miyagi 980-0017 +81-222256851 ●Education Solution Center: 6-8-7 Ginza, Chuo-ku, Tokyo 104-8111 +81-335750087
  45. 45. http://www.womlabo.com Thank you WOMlabo Representative Masayuki Nakajima(中島正之) +81-(0)3-3575-0062 mnaka@kokokusha.co.jp Confidential Page44

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