The Art & Science of Word of Mouth Marketing 03.26.2008

Word of Mouth Defined Source : WOMMA WORD OF MOUTH (WOM) The sharing of an opinion about a product or service between two or more people. When a marketer says something, it’s advertising or PR. When a consumer says it, it’s word of mouth.

WORD OF MOUTH (WOM)

The sharing of an opinion about a product or service between two or more people.

When a marketer says something, it’s advertising or PR.

When a consumer says it, it’s word of mouth.

Amplified vs. Organic WOM AMPLIFIED A marketing campaign designed to encourage or accelerate WOM in existing or new communities. ORGANIC A natural occurrence when people become advocates because they’re happy and have a natural desire to share their enthusiasm.

WHY?

on business purchase decisions #1 influence Source: KellerFay Group

of B2B Advertising, Direct mail or Press coverage More than TWICE the influence Source: KellerFay Group

#1 CONSUMER TRUST

How likely are you to recommend Company or Product X to a friend or colleague? Accountability, Cultural & Operational Transformation

How likely are you to recommend Company or Product X to a friend or colleague?

A Mindset, A Movement … and Marketing Channel

… and Marketing Channel

Word of Mouth Has Always Mattered 92% cite WOM as a BEST trust Word-of-Mouth for purchase ideas and information 56% trust editorial content 55% trust advertising 76% TRUST others opinions 56% own past experience 15% advertising

92% cite WOM as a BEST trust Word-of-Mouth for purchase ideas and information

56% trust editorial content

55% trust advertising

76% TRUST others opinions

56% own past experience

15% advertising

Word of Mouth is Different Online

Online WOM is a Game Changer

Reputation in Ruins Source : TNS Media Intelligence/Cymfony

Disproportionate Digital Influence Source : The Influentials, Jon Berry & Ed Keller Authors Jackie Huba & Ben McConnell 10% Americans influence the other 90% 1% Rule For every 1 person who posts on a digital forum, at least 99 others view that content but don’t leave a trail.

10%

Americans influence the other 90%

1% Rule

For every 1 person who posts on a digital forum, at least 99 others view that content but don’t leave a trail.

The Network Affect Source : MotiveQuest, LLC Mavens – 20% of online influencers. Post very frequently and get their social worth from knowing and sharing Networked Opinion Formers – the other 80% of the online people looking for information Offline word of mouth. Get many of their options from their online friends because of the network effect

Mediascape: Not What It Used to Be WOM Matters More than Ever

WOM Matters More than Ever

New Channels of Insight & Engagement Video-sharing site Average site visit: 48 minutes 100 million video streams per day 100,000+ videos uploaded / day Fastest-growing web site in Internet history 61% of visitors: 35+ Social networking site with 222 million members More page views per day than Google and eBay combined Drives more traffic to retailers than MSN Search Over 50 % of users are 35 or older 1 in 3 are 45+ Blogs: online personal journals - 112 million (12-17-07) 2 new blogs each second Perpetual focus group 64 million users Average site visit: 20 minutes 6th most visited site in the world 50+ of users return daily

Video-sharing site

Average site visit: 48 minutes

100 million video streams per day

100,000+ videos uploaded / day

Fastest-growing web site in Internet history

61% of visitors: 35+

Social networking site with 222 million members

More page views per day than Google and eBay combined

Drives more traffic to retailers than MSN Search

Over 50 % of users are 35 or older

1 in 3 are 45+

Blogs: online personal journals - 112 million (12-17-07)

2 new blogs each second

Perpetual focus group

64 million users

Average site visit: 20 minutes

6th most visited site in the world

50+ of users return daily

WOM Must Be Transparent and Ethical Types of Unethical Word of Mouth Marketing Stealth Marketing: Deceiving people about marketing being involved with a communication. Shilling: Payola for product promotion without disclosing you work for a company. Impersonating a customer. Infiltration: Using fake identities in an online discussion to promote a product. Defacement: Vandalizing or damaging property to promote a product. Falsification: Knowingly disseminating false or misleading information. Spam… of any kind Source : WOMMA

Think LESS about enhancing your BRAND image… … MORE about what’s of VALUE to WOM participants Psychology

WOM Marketing Types of Word of Mouth Marketing viral marketing buzz marketing community marketing grassroots marketing evangelist marketing product seeding influencer marketing cause marketing conversation creation brand blogging referral programs Source : WOMMA Give People a REASON to TALK … … make it EASY to tell others

The Ultimate Goal Turn Prospects into FRIENDS … … Customers into EVANGELISTS Friends into CUSTOMERS … Source : Seth Godin

Be Remarkable Be Interesting -- or Be Invisible! -- Andy Sernovitz Source : Purple Cow, Seth Godin Be Interesting -- or Be Invisible! -- Andy Sernovitz

WOM Strategies

Encourage Communications

Encourage Communications

Give People Something to Talk About

Give People Something to Talk About THINK BIG

Connect People & Build Community

Work with Influential Communities

Evangelist & Advocacy Programs

Engage in Active Listening

Engage in Active Listening Source: TalkTrack ™, Keller-Fay 2006

Give People Something to Talk About

Monitor and Measure Associations with “Plastic” Anya Hindmarch phenomenon Pyrex Glassware as Tupperware alternative Discussion around using canvas or reusing plastic grocery bags. Plastic Recycling habits Source : Nielsen BuzzMetrics

Give People Something to Talk About

Give People Something to Talk About

Co-Creation & Information-Sharing

WIIFM?

Social Media: “ Agencies don’t get it” ADWEEK , Feb. 28, 2008 TNS Media Intelligence/Cymfony Study

Social Media:

“ Agencies don’t get it”

ADWEEK ,

Feb. 28, 2008

Do it. Share it. Think in ecosystems.

Think Substance & *New* Channels. Source : Email Experience Council

Grassroots can trump institutions

Triple Bottom Line - Time Mag The defining challenge of the 21st century will be to face the reality that humanity shares a common fate on a crowded planet. Feb. 28, 2008

YOU Can Be A Pioneer!

Willow Lundgren Workshops, Seminars & Strategy [email_address] 816.914.1490 Thank You