The 36 Reasons Why We Word of Mouth

The 36 Reasons Why People Word of Mouth © Agent Wildfire Inc. - 2007

Word of Mouth - A Higher Form of Marketing Value

Setting WOM Wildfires - A Distinct Marketing Approach Different Brand Stories Different Approach To Market Different Audience Different Tactics Different Commun- -ication Different Outputs/ Measures

Six Core Human Instincts on Why We Talk
To Survive
To Connect
To Make Sense of the World
To Reduce Risk & Uncertainty
To Benefit Economically
To Relieve Tension

Still Need Convincing?
Word of mouth is the most persuasive influence on sales
Word of mouth is the fastest growing marketing vehicle
Word of mouth is the most trusted of 15 influences
One influencer has 182 word of mouth conversations weekly

Agent Wildfire - Tapping The Customer’s Three Roles The Need to Engage/Affiliate The Need to Create The Need to Share

Agent Wildfire’s Word of Mouth Success Formula W ord O f M outh C ategory & B rand Attributes WOM S tory & I dea WOM E xperience & E ngage-ment WOM T ools To Spread I nfluential Audience = X X X X CB SI EE T I CII

Category and Brand Situational Sweetspots
 New Stuff
- Brands/Products/Initiatives/Services
- Audiences/Unmet Needs/Benefits
 Interesting Stuff
- Compelling Org./Brand/Product Story
- Edgy, Intimate, Authentic, Remarkable
 Complex/Expensive Stuff
- Benefit(s) Requiring Credibility
- Benefit Needs Experience/ Explanation
 Everyday Stuff
- Things We Frequently Buy/Use/Consume
- Simple Pleasures/Problem Solvers
 Passion-Based or Connoisseur Stuff
- A Natural Influencer Audience
- Hobby/Leisure/Taste-Driven Pursuit

Online - Passalong Effects
Frequency:
89% share content via email
65% weekly
25% daily
               
Scope:
75% more than 6 people at a time
Influencers – 13 people at a time
Source: Sharpe Partners/Burston Martsteller
*Reminder:
more than 80% of word of mouth is in person

What We Buzz About Reasons to Forward an Email: Humour: 78% A Recommendation 50% Involve in a Competition 49% Earn yourself Benefits 15% Raise money for a charity 15% Sex 11% Make you feel appreciated 10% Join a Petition 10% Embarrass them 10% Source: Sharpe Partners/Burston Martsteller

Which Flavour of Word of Mouth Would You Choose?…

Word of Mouth Flavours
Product seeding/intervention
Influencer/ambassador programs
User generated content/media
Viral Advertising/Marketing
Advergaming/virtual worlds
Experiential marketing
Buzz/guerrilla marketing
Grassroots/Cause marketing
Social media (blogs, podcasts)
Social Networks
Brand Communities

Wiki Brands – Palette Of Tactics TRADITIONAL BRANDING TACTICS WIKI BRANDING TACTICS Openness Dialogue Authenticity Discussion Boards TV Ads Corporate Blog Broadcast Web Site Radio Ads Brand Community Experiential Marketing Sponsorship Podcasts Viral Advertising Wikis Consumer Generated Content Crowd Sourcing Innovation Co-Creation/ User Collaboration Search Engine Marketing Advergaming Customer Advisory Panels Blogger Outreach Virtual Communities Word of Mouth Marketing Influencer/VIP Insider Clubs Press Release Cause Marketing Non-Traditional Advertising Contextual Advertising Email Marketing Private Social Networks Fan Clubs Company Rating Sites Lifestyle Product Placement In-Store Display/POS Advocacy- Driven Vlogs Affiliate Programs Fan Sites Print Ads Viral Marketing Direct Mail Product Seeding Employee Advocacy Programs Mobile Marketing Stunts/ Publicity Beta Testers

Why We Word of Mouth?

Three Basic Reasons Why Ideas Spread “ It’s Who They Are” “ It’s What You Do” “ It’s Who You Are” 10 Audience Attributes 15 Buzz Firestarters 11 Inescapable Traits

The 36 Reasons Why People Word of Mouth #26 - Innovative #27 –Remarkable/ Outrageous #28 – The Best at What You Do #29 – Authentic #30 – Liberating/ Problem Solving #31 - Edgy #32 – Trustworthy #33 – Likable #34 – Easy to Talk About #35 – Ritualistic #36 - Sensory #11 – Social Currency #12 – Brand Experience(s) #13 – Fame #14 – VIP Treatment/Customization #15 – Scarcity #16 – Influence #17 – Intimacy #18 – Visibility #19 – Tight Boundaries #20 – Rallying Cause #21 – Rewards #22 – Expertise #23 – Bite-Sized Participation #24 – Network Effects #25 – Memes #1 - Passionate about the topic #2 - Logo Lovers #3 – Knowledge Seekers #4 - Social Brokers #5 – Altruism #6 – Involved/Committed #7 – Feedback Seekers #8 – Ego-driven #9 – Reciprocity Dealers #10 – Self-Expression It’s because of who you are It’s because of what you provide It’s because of them

I. It’s Who They Are – The 20-10-1 Rule                   “ A small percentage of your audience is responsible for a majority of your word of mouth” The 20-10-1 Influencer Rule In most markets, your audience comprises of: 20% - Referrers, 10% - Advocates, 1% - Zealots

The Law of The Few: “The answer is that the success of any kind of social epidemic is heavily dependent on the involvement of people with a particular and rare set of social gifts.” Malcolm Gladwell, the Tipping Point The Influencers – Word of Mouth Powerbrokers

The Influencers – 6 Archetypes 16% of Influencers “ Message Starters” 6% of Influencers “ Message Radar” 16% of Influencers “ Message Sellers” 36% of Influencers “ Message Credibility” 6% of Influencers “ Message Magnets” 19% of Influencers “ Message Spreaders”

The Who #1 - Passionate about the topic #2 - Logo Lovers #3 – Knowledge Seekers #4 - Social Brokers #5 – Altruistic #6 – Involved/Committed #7 – Feedback Seekers #8 – Ego-driven #9 – Reciprocity Dealers #10 – Self-Expressives It’s because of them

#1 - Passionate About The Topic
Insider’s Guide to Style -daily email service providing the scoop to what's hot, new, and undiscovered
Trend-savvy Audience
Spread - started from 700 initial members, now counts 1.2 million subscribers across 12 major cities
Takeaway –
“ Know Thyself & Find Your Clique”
distinctive voice
same friendly character
focus on the reader experience
consistent flow of content

#2 - Logo Lovers
Tattoo-worthy
David vs. Goliath
Pop Culture Participant
Grassroots Philosophy & Practice - “Put yourself in the mind set of the person on the street and what's important to them."
Provide variety
Find out what their customers think about proposed new products
Involve their customers with social causes.
Takeaway – “Embrace your customers – make your brand a lifestyle statement”

#3 – Knowledge Seekers
The Marketplace Authority - expert, independent non-profit with the mission to work for a fair, just, and safe marketplace
“ Test, Inform, Protect” Mission - to empower all consumers to protect themselves, influencing millions of experts and purchases
Valuable Information – 4 million members and the largest website with paying subscribers in the U.S. (+1 million)
Takeaway – “Be the Authority” - maintained lofty and strict standards

#4 - Social Brokers
Like Attracts Like - a private community where you grow a network of mutual friends, show off your personality and popularity
Social Media Juggernaut - now has 100+ million users
Be in My Black Book – started with well-connected Hollywood types 4 years ago to become the 2nd most trafficked website and the place to
Takeaway – “Wire Up for Sharability” make it easy for others to join and catch up

#5 - Altruism – Helping/Educating Peers
Altruistic Philosophy - the free encyclopedia that anyone can edit
The Powerful Few - Started in 2001, now has over 1,300,000 articles, a majority of the articles developed by less than 1% of its readers
Community Camaraderie – “We've got to respect each other, because we are each other's editors”
Takeaway - “Establish a Shared Goal” - to create a huge, high-quality free encyclopedia

#6 - Involved & Committed
Politically Concerned Audience - makes it possible for people to fight against the infuriating things that they see either destroying or about to destroy their country
Internet Efficiency + Face to Face Volunteerism
The Opinion Leading 1% of the Population - counts 3.3 million U.S. citizens as members, 69% of members are considered Influentials
Takeaway – “Become a Two Way Media/Get Commitment Upfront” – amplify involvement by using a “Strong Vision/Big Ears” approach

#7 - Feedback Seekers
Self-discovery and social network - tapping scientific research into many areas of human behavior –career, relationships, intelligence, finances, sexuality, health
Expert Validation - provide access to insights hidden within academic institutions to the average person.
My Heritage – family network promoting through visual recognition celeb. look alike tool
Takeaway:
“ Provide expert or fun validation of opinions”

#8 - Ego Driven
Community-Driven - digg is a user-driven social content website, everything on digg is submitted by the digg user community
Peer Voted Fame - other digg users read your submission and digg what they like best. If your story rocks and receives enough diggs, it is promoted to the front page for the millions of digg visitors to see
Star Power - the top 100 Digg users control 56% of Digg's frontpage content
Rising Social Media Star - launched in late 2004, now has 400,000 registered Digg users
Takeaway - “Feed and Profile Your Front Row”

#9 – Reciprocity Dealers
Clear Deal - in return for driving their web traffic, Amazon immediately pays out in either gift vouchers (to be spent in the store), cheque or direct deposit
Only as Good as The Company You Keep - owns one of the largest and most successful online affiliate programs, with over 1,000,000 members worldwide.
Incentive-driven traffic - you can earn more than 10 percent in referral fees.
Takeaway: “You Scratch My Back, I’ll Scratch Yours”

#10 – Self-Expressives
Users (illustrators and amateurs) may submit t-shirt designs online, which are then put to a public vote.
A small percentage of submissions are selected to be printed and sold through the online store. Creators of the winning designs receive cash.
Takeaway:
“ Give Your Creatives a Stage”

The What #11 – Social Currency #12 – Brand Experience(s) #13 – Fame #14 – VIP Treatment/Customization #15 – Scarcity #16 – Influence #17 – Intimacy #18 – Visibility #19 – Tight Boundaries #20 – Rallying Cry #21 – Rewards #22 – Expertise #23 – Bite-Sized Participation #24 – Network Effects #25 – Memes It’s because of what you provide

#11-Social Currency – The Inside Scoop
An Insider Destination - “…the national go-to spot for keeping up with the rich and scandalous, the media elite and the pop-culture trends of the moment." [New York Times]
Don’t be Left Out - "Everyone who is anyone in chic Manhattan is reading gawker.com -- or should be." [New York Daily News]
Juicy Content - a must-read for the inside scoop on celebrity trash, and bitchy gossip, introduced Gawker Stalker – a map of celebrity sitings in New York
Takeaway – “Dish Up and Share What’s Under the Hood”

#11 - Social Currency – Ahead of The Mainstream
Trendy - Europe’s leading fashion retailer - reflect the very latest international trends.
Tough to Imitate - fashion panache and selection at unbeatable prices. Move onto the next trend before you can be copied at a lower price.
Pent Up Demand -selected H&M stores offered an exclusive collection by fashion designer Karl Lagerfeld, it sold out within an hour; repeated with a sell-out collection by Stella McCartney in 2005
Takeaway:
“ Stay ahead of the curve”

#12 - Brand Experience
Masters of Coffee - 1,000 baristas file through a 10 seminar series Illy University of Coffee – 14 master baristas graduated last year
Quality Fanaticism - 114 quality control checks with an intensive culture of innovation into coffee – “an espresso requires 50 coffee beans and only one bad one can ruin the whole cup”
A Mark of Excellence - “Every coffee shop in New York that proudly displays the 'illy' sign promises to offer not just a great cup of coffee, but an experience. It's a pride in coffee, in the flavor and the memories of a European excursion. It's the recognition that you could take it to go, but it just wouldn't be as fun.”
Takeaway:
“ The Details Matter, Substance Triumphs Style”

#13 - Fame - Jones Soda
Consumer driven to the max –
Labels are submitted by customers
Flavour choices are reviewed by customers
My Jones – personalized batch production
Product/format customer-driven innovation ideas –Jones Map – a locator for their most zealous 3,000+ customers
Cult following, from customers to employees
Slave to the people - from Peter van Stolk “people don’t need our s---, people get fired up about Jones because it’s theirs.”
Grassroots success - Innovation lab anointed Jones Soda the brand of the future
Takeaway
“ Shine the light on your customers”

#14 – VIP Treatment – Exclusive Access
Desirable Added Value - second most important cardholder benefit
Fashion Example: American Express Holt Renfrew Platinum Card - receive priority access to limited- and special-edition Holt Renfrew items and members-only events
Club Example - American Express provides "GET:IN for IN:NYC Cardmembers," providing Cardmembers and up to three guests immediate access to skip to the front of the line at some of New York's most popular clubs and lounges
Takeaways: Establish “I Have It, You Don’t” Appeal

#14 – VIP Treatment - Customization
A Personalized Classic - order M&M's with your very own custom-printed messages on them
Options, Options - Choose your color(s), compose your message, and indicate your quantity (a 1/2-pound bag is $11.25)
An Emotional Lovemark - the most popular messages-to-date - "I love you Grandpa" and "Will you marry me?“
Personalized Avatar
Takeaway : “Tap a market of one”

#15 - Scarcity
By referral only
Develop pent-up demand and enthusiasm
Takeaway:
“ Create a lineup, tighten supply”

#16 - Influence
Community Build - Customer Innovators and Lugnuts user group community
User Collaboration - Collaborated and created demand for 40,000 high end units called Mindstorms at $199, built with no advertising
Different Rungs - community has multiple levels of involvement and feedback to the company:
- Certified Professionals – experts who work directly with LEGO employees
- Ambassadors – a rotating set of 22 hardcore global fans
- Lego Leagues – a kids community
- Local Fan Clubs/Auction Sites
- Takeaway “ - “ Crowdsource And Harness Skills of Zealots”

#17 - Intimacy – Love/Transparency
More than a Doll - “An educational toy young girls love, providing empowerment and knowledge for pre-teen girls.”
Daughter Loved/Mom Approved - moms feel good about dropping a lot of cash on low-tech, wholesome Americana
The Anti-Barbie - American Girl doesn't push girls to act older,‘ they are the chosen talisman against unwanted precocity
Takeaway:
“ Have a set of values, show them at all touchpoints”

#18 – Visibility – Halo 2 - I Love Bees -
Cross-media game that deliberately blurred the line between in-game and out-of-game experiences.
Websites thought to be involved with the game
Unexpected phone calls
Seeded Plastic honey bear jars
Halo 2 trailers at theatres flashed a link to ilovebees.com
Takeaway:
“ Don’t Just Rely on the Web, Be Everywhere”

#19 – Tight Boundaries
Dating/flirting site
By invitation only
Keep the tribe pure
Takeaway:
“ Let the castle door open slowly”

#20 Rallying Cry – Mozilla Firefox
Firefox is an open source, peer-to-peer marketing pioneer with 10% of global net users
Firefox CEO states “we want users to feel involved from the very beginning and not to be controlling.. When users get involved, something magical happens”
A volunteer network of 175,000 community users have participated in a wide range of activities:
DefendFirefox.com
“ For the Record’ SWAT team
Takeaway:
“ Build cultish devotion”

#21 – Rewards - WebKinz
My Space for Kids
Real Toy, Virtual Experience
Intrinsic & Extrinsic Rewards
Positive and Negative Incentives
Takeaway:
“ Word of mouth is not a democracy - reward different levels of participation”

#22 Share Expertise – Intuit Quickbooks
Set up a blog/forum to communicate with & learn from their 35,000 customers and full audience
Operates a Team Beta to help launch new software with 1,000 customer testers
67 significant changes were made to Quickbooks 2006 based on customer feedback
Takeaway:
“ Let your users take your knowledge and then listen”

#23 – Bite-Sized Participation
Small things lead to big things
Give something free to get something back
Free preview
Limited Time/Use
Basic version

#24 – Network Effects
The more people involved, the better it is for everybody
The value of the marketplace to a new user is proportional to the number of other users in the market
Web marketplaces and social networks
Takeaway:
“ Deliver benefits with expansion”

#25 - Memes
Meme: “A unit of cultural information, such as a practice or idea, that is transmitted verbally or by repeated action from one mind to another.”
People are talking about it in discussion groups and millions of people are caught up in the power of “Evolution”
Takeaway:
“ Have Something Important to Say, Make It Repeatable”

#26 - Innovative #27 –Remarkable/ Outrageous #28 – The Best at What You Do #29 – Authentic #30 – Liberating/ Problem Solving #31 - Edgy #32 – Trustworthy #33 – Likable #34 – Easy to Talk About #35 – Ritualistic #36 - Sensory It’s because of who you are

What Makes Stuff Word of Mouth-Able? Agent Wildfire Research Something with which you personally associate 25.7% Innovative 22.5% Exciting 13.1% Solves problems 11.0% Easy to talk about 9.9% New 8.0% Newsworthy 2.9% Exclusive 2.7% Other 2.7% Fashionable 1.3%

#26 - Innovative/Novel
Founder’s Story - James Dyson and his 5 year journey, rejection by all the big manufacturers and 5,127 prototype investment, to build the world's first cyclonic bagless vacuum
Superior Vacuum Cleaner - uncompromising functionality, great design and aspirational purchase
Clear Suction Benefit – strong enough to collect the finest particles of dust—even microscopic particles such as cigarette smoke—without clogging
Runaway Success - Now a $1 billion company with prices at double the standard prices of a vacuum cleaner
Takeaway:
“ Be different/look different”

#27 - Remarkable/Outrageous
Underdog brand built on the back of word of mouth, PR and internet, stylish stunts, outdoor advertising and interesting we promotions i.e. customizable bumper stickers with your own messages
19,000 members of the Mini2 fan club
3,300 participants in the Mini Takes The States Cross Country Rally – over 400 people will get their new Minis on the start or end of the 15 day, 19 state rally
Over 800,000 cars sold in the last 5 years since its reintroduction; highest resale percentage value of any cars
Takeaway:
“ Get noticed and talked about”

#28 - The Best At What It Does
High End Velo Greatness - Canadian cycling success story in high performance bikes
Competitive Focus - Started in 1995 in Toronto, with the mission “to help our customers win races”
Radical Pushing of the Rules - engineering led-philosophy helped produce bikes with competitive edge, now the:
Official bike of the top cycling team in the world (Team CSC) – pushed them form #14 in 2002 to #1 in 2006
The winningest bike in Ironman Triathlon history
The best selling time trial bike in the world
Rising Success - 34th fastest growing company in Canada with $11 million in sales, a 1276% five year growth rate
Takeaway:
“ Push the Envelope on Performance”

#29 - Authentic
Unique Product Ingredient - Performance wear product focus based on 100% merino, a marked advancement over traditional wool
Leapfrog Benefit - “the most comfortable, warmest and certainly the coolest looking stuff to ever come off the back of a sheep”
Provenance
Authenticity - searches for the best technology, ethical manufacturing, and environmentally sound practices before it completes its product transformation into a hand-made Icebreaker
Takeaway:
“ Be true to yourself”

#30 - Liberating/Solves Problems
Everyday Problem Solver - Canada’s Most Word of Mouthable Product (Dec’05)
True Innovation - 2004 Grand Prix innovation of the Year
Improves Lives - “I absolutely love the Magic Eraser and it's amazing ability to clean. Since it has made it's appearance in my home I've become a cleaning machine that spends a fraction of the time on cleaning, and with better results to boot!”
Takeaway:
Erase Consumer/User Pain Visibly

#31 - Edgy/Cool/Trendy
The Anti-Marketer – a scarce icon of the dissenting protest, shabby chic and fringe mentality
Alt-Culture Adoption - bike messengers in pockets of different cities have turned the brand prospects around and acted as the grassroots brand vanguard
Defending the Cause - Rebound originally started as a real or imagined rallying cry amongst its advocates that PBR might go out of business
Takeaway:
“ Find an edge, let consumers hijack it”

#32 - Trusted
A Canadian Icon - Tim Hortons, the best managed brand in Canada (52% ranking)
The Leader - Tim's has 23% of the Canadian fast food market, 62% of the coffee market
Ubiquitous - has 2,625 outlets in Canada (and one now in Afghanistan), has managed to double revenues per store over the last decade,
Part of the culture - has coined "Double, Double" as a part of the Canadian lexicon
Takeaway:
“ Consistently deliver”

#33 - Likable
Rabid Customer Evangelism - “Make the whole world a library! BookCrossing is something unique and revolutionary. Our world should know about it!”
Humble Roots/A Great Cause - free online book club, the first and only of its kind - millions of book reviews and hundreds of thousands of passionate readers
A Connection to Books - “A brand exercise in fate, karma, or whatever you want to call the chain of events that can occur between two or more lives and one piece of literature.”
Takeaway: “Be a Brand Friend”

#34 - Easy to Talk About - Nike
Joga/Touch of Gold/Join the Chain
Easy - Catch a pass from the left, juggle the ball anyway you like, and them kick it off screen to the right.
Engaging - connects countries, generates buzz and allows consumers to build something remarkable
Takeaway:
“ Create and Seed a Simple Idea/Let Consumer Own It”

#35 – Ritualistic – Rock, Paper & Scissors
Created a cult population of Rock, Paper, Scissors
Player profiler, Strategy Guide, Museum, Advanced RPS
summary of the most common abstract meanings of the throws:
Rock - Power, Strength, Aggression, Nature Paper - Passivity, Stealth, Wisdom (money sometimes as well), Literacy Scissors - Deviousness, Ingenuity, Evil, Technology
Takeaway:
“ Create your own code, behavior and talk points shared by your members”

#36 – Sensory – Daily Dose of Imagery
Visually arresting photo posted each day
One of the most powerful photoblogs in the world
Takeaway:
“ Make It Look, Smell, Feel Good”

The 36 Reasons Why People Word of Mouth #26 - Innovative #27 –Remarkable/ Outrageous #28 – The Best at What You Do #29 – Authentic #30 – Liberating/ Problem Solving #31 - Edgy #32 – Trustworthy #33 – Likable #34 – Easy to Talk About #35 – Ritualistic #36 - Sensory #11 – Social Currency #12 – Brand Experience(s) #13 – Fame #14 – VIP Treatment/Customization #15 – Scarcity #16 – Influence #17 – Intimacy #18 – Visibility #19 – Tight Boundaries #20 – Rallying Cause #21 – Rewards #22 – Expertise #23 – Bite-Sized Participation #24 – Network Effects #25 – Memes #1 - Passionate about the topic #2 - Logo Lovers #3 – Knowledge Seekers #4 - Social Brokers #5 – Altruism #6 – Involved/Committed #7 – Feedback Seekers #8 – Ego-driven #9 – Reciprocity Dealers #10 – Self-Expression It’s because of who you are It’s because of what you provide It’s because of them

Word of Mouth Watchouts
Be transparent and honest
Be conversational
Have a story to tell
Don’t make it a cattle call
Invite the right people to the dance
Provide an experience
Know who you are
Treat your word of mouth referees like valued insiders
Establish a dialogue
Give your influencers the tools to have spread
Don’t try and control it
Get feedback
Start soon

Let’s Put your Word of Mouth on an Accelerator Pedal! Who: Sean Moffitt, President/Chief Evangelist Phone: 647-436-6802 URL: www.AgentWildfire.com Join/Share: www.TheInfluencers.ca Blog: http://BuzzCanuck.typepad.com/ Learn: The Buzz Report (monthly e-newsletter) Sign up at www.AgentWildfire.com

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The 36 Reasons Why We Word of Mouth

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The 36 Reasons Why We Word of Mouth — Presentation Transcript