WOM 101 - Understanding the Basics of Word of Mouth Marketing

Joel John! Warady! Moore! @joelwarady! @BrandAutopsy!

New Marke)ng & Communica)ng Demands  MORE THAN NEW IDEAS It Demands a Reinven)on of the  En)re Organiza)on 

“Human Beings are Powered   by Emotion Not by Reason”  How does this change the way you market your corporate brand?

  What is it? ◦ It is the development of new way of living...

Rela)onships  Trust  Word Transparency  of Emo)onal  Mouth Ties  Community  Familiarity 

It is a Dialogue… Not a Monologue.

Give Them Options

Let Them Talk

The typical American mentions specific brand names 60 times per week in offline and online conversations source | Keller Fay “ Talk Track” report (2010)

Word of Mouth is the primary factor behind 20% to 50% of all purchase decisions. source | “A New Way to Measure Word-of-Mouth Marketing” (McKinsey Quarterly, April 2010)

Word of Mouth Marketing is more than getting customers talking and recommending. source | Keller Fay “ Talk Track” report (2010)

Conversations help solve common business problems. source | Keller Fay “ Talk Track” report (2010)

BUSINESS PROBLEM: Acquiring New Customers

BUSINESS PROBLEM: Providing Customer Service

“We will always do what we can to better serve each and every customer, regardless of the way they approach us (or their number of followers).” Marty St. George Sr. VP Marketing source | Advertising Age article (June 21, 2010)

“We find customers are a bit surprised that we were interested and we paid attention. It gives people a sense of not just talking to a big corporation but individuals.” Debbie Curtis-Magley Public Relations Manager source | Advertising Age article (June 21, 2010) source | Keller Fay & Yahoo! study (June 2010)

BUSINESS PROBLEM: Repairing Brand Image

BUSINESS PROBLEM: Developing New Products

BUSINESS PROBLEM: Improving Employee Engagement

BUSINESS PROBLEM: Improving Employee Recruitment

BUSINESS PROBLEM: Improving Employee Recruitment WOM marketing communicates a company’s culture to not only customers, but also to current and future employees.

BUSINESS PROBLEM: Communicating During a Crisis

Word of Mouth works best when it is 100% credible.

Disclosure is the solution to keeping Word of Mouth Marketing credible

WOMMA Disclosure Guide

  Start with an Objec)ve    Developing a Plan   Getting Your Company Ready   Staff you will need   How to pick a Vendor   Kick-Starting   Growing And Maintaining   Widgets and OpenSocial

P  O  S  T 

  First, find a creators and influencers   Consider creating an “embassy.”   Choose just a few features to launch with, and then add more as needed.   Integrate with other marketing activities.   Reward helpful members with recognition –not money

Create Customer Evangelists •  Create Customers with Passion –  Communicate regularly –  Know your customers well enough to satisfy needs that they can’t even express –  Build a long-term relationship with the customer •  Loyal Customers vs. Evangelists –  Loyal customers buy from you on a regular basis –  Evangelists promote by word of mouth

The 5 Whys of Evangelism •  Volunteer sales person is trusted •  Independent source •  Genuine, free of hype •  Value of product or service is personalized for recipient •  Referrer explains the value until it is fully understood by recipient

Measure the Buzz Quotient •  Happy Customers tell 5-8 people •  Unhappy Customers tell 10 – 16 people •  Total # of Customers 100 •  % of satisfied customers 62% or 62 •  Satisfied referrals 62 x 5 •  Total Happy Referrals 300 •  % of dissatisfied customers 38% or 38 •  Dissatisfied referrals 38 x 10 •  Total Unhappy Referrals 380

What Do Your Customers Think? •  What do current customers say that they love about you? •  What do they say you should specifically improve? •  What do customers value most about your company? •  Do customers recommend you to others? •  What do customers say when they recommend you to others? •  How many ways do your customers have to regularly provide feedback?

Some Numbers to Know

Is a WOM Strategy Risky? What percent of WOM about brands is posi)ve,  and what percent is nega)ve?  source | Keller Fay “ Talk Track” report (2009)

To Measure Word of Mouth, Can I Focus Solely on ‘Social Media’? source | Keller Fay “ Talk Track” report (2009)

Is WOM Limited to “Hot” New Products Only? What About “Everyday” Brands? Consumers Talk About Many Categories source | Keller Fay “ Talk Track” report (2009)

Why Is It Important to Stay Engaged? •  96% of unhappy customers will never tell you •  90% of unhappy customers will never return •  For each complaint received, 26 clients actually had problems, 6 of which are serious •  70% of people with complaints will continue to do business if the problem is rectified •  68% of customers who stop doing business do so due to company indifference (Research Institute of America)

  You Don’t Own Your Brand ◦ They own your brand   Who are they??? ◦ Customers ◦ Users ◦ Lovers ◦ Haters ◦ Competitors ◦ The People of Earth

The Way We Connect is Changing

Joel John! Warady! Moore! joel@joelwarady.com john@brandautopsy.com!

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WOM 101 - Understanding the Basics of Word of Mouth Marketing

by Word of Mouth Marketing Association on Nov 18, 2010

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WOM 101 - Understanding the Basics of Word of Mouth Marketing — Presentation Transcript