WOM & WOMM• WOM: – Consumers providing info to each other – Intuitively, the best advertising – Only recently harnessed• WOMM: – Giving people a reason to talk – Making it easier for them
WOM & WOMM• Can‟t – Create or script WOM• Can – Make consumers happier – Listen to them – Leverage their desire to be first – Facilitate sharing – Inform influentials – Activate advocates – Recognize the power of both good and bad WOM
WOM Can’t Be Faked• Fake WOMM – Unethical – Backfires• Legitimate WOMM – Respects consumers‟ intelligence – Authentic, transparent, honest• WOM – Self-policing – Pushes marketers to satisfyOnly honest marketers with confidence intheir products should practice WOMM
Elements of WOMM• Educating people• Studying how/where/when opinions are shared• Indentifying influencers• Harnessing peoples‟ desire to be insiders• Providing tools for easy sharing• Listening and responding to supporters, detractors, neutrals
Digital Social Media …• A subset of WOMM – less than 2%• 90% of consumer conversations about brands occur offline (Keller Fay)
Product Seeding Providing samples to influential consumers FORD FIESTA MOVEMENT Managed by Undercurrent Gave 100 social media enthusiasts a Fiesta for 6 months prior to release Asked to create a mission each month, and share in social media Meals on Wheels, alligator adventures, elope Generated: 6.5 million YouTube views 500,000+ Flickr views 3 million+ Twitter impressions 50,000 opt-ins, 97% non Ford-owners Seeded, and Sold 10,000 Fiestas in first six days11
Referral Programs Creating tools that enable satisfied customers to refer their friends CHILI’S BAR AND GRILL Managed by Zuberance Identified biggest brand advocates by email, Facebook, Twitter and site surveys Engaged 125,000 advocates, who: Posted 75,000 reviews, 40,000 on Yelp Generated 9 million influence impressions Shared 110,000 free appetizer offers, yielding 50,000 new opt-ins Chili‟s was able to: Energize and reward loyalists Get referrals to their friends12
Viral Marketing Creating messages designed to be passed along, often electronically OLD SPICE Managed by Wieden + Kennedy Ran funny commercial with “Old Spice Guy” that then went viral on YouTube (over 28 million views) Followed-up with hundreds of Old Spice Guy videos in just 2-3 days, responding to fans‟ Twitter questions in near real-time Generated 135,000,000 views Sales of Old Spice body wash increased 107% the following month Went viral, multiplying their reach at little cost This is not easy13
Grassroots Marketing Organizing volunteers to engage in personal or local outreach OBAMA PRESIDENTIAL CAMPAIGN Site generated: 2 million profiles Led by Chris Hughes, a co-founder of Facebook 200,000 offline events Created the highly interactive, 400,000 blog posts my.barackobama.com: 35,000 volunteer groups User Dashboard Campaign generated: Social network 120,000,000 YouTube views Event listings 5,000,000 Facebook fans Blogs & Forums 1,000,000 text subscribers Calls to action Brought organizing volunteers to a whole new level14
Conversation Creation Initiating catchy ads, emails, promotions, etc. designed to start WOM BURGER KING’S WHOPPER SACRIFICE Managed by Crispin Porter + Bogusky Offered a free Whopper coupon to customers willing to de-friend 10 people on Facebook 23,000 coupons distributed Generated redemptions, but little engagement/conversation, questionable loyalty Did catch attention, and appeal to some15
Buzz Marketing Using high-profile entertainment or news to get people talking RED BULL STASH Managed by Archrival Hid thousands of Red Bull Energy Shot stashes across the US; posted clues on Facebook Encouraged stories and photo uploads to the site Invited finders into the “Final Stash,” a virtual scavenger hunt offering a trip to NYC Generated a surge in Facebook activity, widespread sampling, online and offline buzz Created high profile event, got people talking16
Influencer Marketing Engaging opinion leaders and communities with your brand THE TRAVEL CHANNEL Managed by Room 214 Indentified and monitored key advocates and influencers in the blogosphere Established active presences Facebook, Twitter, Digg, StumbleUpon, more Encouraged key influencers to start and join conversations Generated and tracked over 15,000 conversations 6 months, 80% favorable Reached over 200,000 online community members Engaged influencers, built community17
Evangelist Marketing Cultivating advocates to spread the word on your behalf DELL Managed by Mr. Youth Identified 2 brand advocates each on college campuses across the US Provided a Dell computer and $1-2,000 to execute a marketing plan Approved but self-designed Campus-specific Indigenous Purchase-consideration rose from 14% to 27% on activated campuses Non-activated flat Harnessed evangelists, drove toward purchase18
Brand Blogging Blogging and participating in the blogosphere PHILOSOPHY Managed by Bazaarvoice Launched a blog in advance of Mother‟s Day for consumers to upload and vote on stories of their mothers‟ philosophies Drove engagement with a $1,200 shopping spree to the story with most votes “Stories” blog made up 39% of traffic that month Its visitors generated: 81% more page-views 20% higher average order value 19% more items per order Built blog, and they came19
Community Marketing Forming or supporting communities; providing tools and content RANDOM HOUSE Managed by Affinitive Launched Random Buzzers, an online book community for teens: Connect with one another Co-create projects Engage with Random House authors Write and share reviews Read exclusive book excerpts Over 60,000 members, with: 17,500 photos 4,000 reviews 5,600 comments 50,200 forum posts Built community, and they came20
Cause Marketing Supporting social causes to earn respect and support PEPSI REFRESH In lieu of Super Bowl spending in 2010, invited consumers to suggest causes for funding Funded causes with most votes Donated at least $1 million a month Gave another $1.3 million for ideas to clean Gulf oil As of December 2010 Over 61 million votes cast $14.6 million donated for 352 ideas, including improvements to parks, playgrounds and schools Returning to Super Bowl Continuing „Refresh‟ Did good, rose in esteem21
Co-Creation Marketing Involving consumers in marketing and creative DORITOS CRASH THE SUPER BOWL CONTEST Ran contest for consumers to create 2010 Super Bowl commercials Third year in a row Drove 4000 entries with prizes for top (4) vote- getters: Trip to Super Bowl $25,000 Airing of spot Up to $2 million if spot ranks in top 3 One placed first in 2009 Invited creative, multiplied attention to ads22
In reality, most WOMM combines program-types23
In-Home Marketing Evangelist, Co-Creation, Influencer, Product Seeding, Referral, Buzz ... FEBREZE SET & REFRESH HOUSE PARTIES Managed by House Party Recruited target hosts for 6,000 parties, one with Sandra Lee Gave hosts microsites for piloting parties Sent party packs with samples and branded favors Generated over 500,000 hours of brand exposure ($9 eCPM-30‟s), among 7 million conversation partners Drove large lifts: Familiarity: 34 points Favorability: 60 points Purchase-Intent: 57 points Recommendation-Intent: 58 points Harnessed influencers & evangelists, co-created, etc.24
Unethical WOMM• Stealth – Deceiving people about the involvement of marketers• Shilling – Paying people to advocate without disclosing it• Infiltration – Taking over a forum under false pretenses• Comment Spam – Using automation („bots) to post on blogs• Defacement – Vandalizing property to promote a product• Spam – Sending bulk messages without clear permission• Falsification – Knowingly disseminating false information
Botched WOMA Food Brand Greenpeace criticized brand‟s environmental practices in YouTube video Brand forced YouTube to remove it Consumers trashed the brand on Facebook and Twitter Brand responded with anger, sarcasm, de-friending Brand caused more damage than video would have if left alone
Study After Study Builds the Case• 90% of consumers trust product recommendations from friends (Nielsen)• 61% of conversations about products impact likelihood to buy (Keller Fay Group)• Customers acquired through WOM monetize 3-5 times more (Hill/Wharton, et al)• WOM customers have nearly twice the long-term value (Villanueva/ U of Navara, et al)• Many more
WOM Drives Favorability Favorability of a Software ProductAmong House Party Participants vs. Control, at 6 and 12 Months After: 57% to 67% Higher 100% 92.7% 93.7% 89.3% 90% 89.2% 80% 70% 60% 55.5% 56.7% 50% 40% 30% 20% 10% 0% 6M 12M G0 G1 Panel G0 6M n=1270, Panel 6M n=661, G1 6M n=75, G0 12M n=965, Panel 12M n=319, G1 12M n=102. Favorability: Please indicate how favorable or unfavorable your impression is of the following product ChatThreads, Proprietary and Confidential
WOM Drives Media Receptivity Aided Ad Recall among Participants and Control, at 6 and 12 months: 38% to 64% Higher90% 82.0% 79.0% 78.0%80% 69.0%70%60% 50.0% 49.0%50%40%30%20%10%0% 6M 12M G0 G1 Panel G0 6M n=1270, Panel 6M n=661, G1 6M n=75, G0 12M n=965, Panel 12M n=319, G1 12M n=102. Which of the following features of [the product], if any, does [the brand] mention in its TV advertising? Check all that apply.
WOM Drives Purchase Purchase Rate among Participants vs. Control, at 6 and 12 months: 2-3 times higher100%90%80% 68.2%70% 62.4% 59.4%60% 52.0%50%40% 27.9%30% 20.1%20%10% 0% 6M 12M G0 G1 Panel G0 6M n=1270, Panel 6M n=661, G1 6M n=75, G0 12M n=965, Panel 12M n=319, G1 12M n=102. In the past [six/twelve] months have you already purchased [the product] ChatThreads, Proprietary and Confidential.
WOM Drives Recommendations Recommendations among Participants vs. Control, at 6 and 12 months: 5-8 times Higher80% 73.7% 71.5%70% 60.0%60%50% 48.0%40%30%20% 10.0% 9.1%10%0% 6M 12M G0 G1 Panel G0 6M n=1270, Panel 6M n=661, G1 6M n=75, G0 12M n=965, Panel 12M n=319, G1 12M n=102. In the past 30 days, have you recommended [the product] to anybody? ChatThreads, Proprietary and Confidential.
WOMM Is Taking Off• Continuing fragmentation, clutter, avoidability of traditional• Rise of digital social media – tools and usage• Increasing evidence of WOMM‟s viability and power
Despite Recession, WOMM Growing Fast Spending Growth ($M) $3,500 18.3% Growth $3,000 16.7% 14.9% Growth $2,500 Growth 12.8% 10.2% Growth $2,000 Growth $1,500 $1,000 $500 $0 2008 2009 2010 2011 2012 2013 COMBINED ANNUAL GROWTH RATE 14.5%SOURCE: PQ MEDIADoes not include in-store product sampling; coupons & loyalty programs; event marketing & sponsorships; public relations notassociated with WOM, such as crisis management; and social network and consumer-generated media advertising.
Brands WOMMing Across Categories Shares of WOM spending by category 5.8 3.2 17.4 CPG 3.3 Food & Drink 3.6 Finance & Business 4.1 Electronics & Telecom Retail 6.2 Auto & Transportation 12.2 Entertainment & Media Apparel & Accessories 7.5 Healthcare & Pharma Sports & Gaming 9.5 Travel & Leisure 8.6 Home & Garden 9.4 Other 9.2SOURCE: PQ MEDIA
Sample SuppliersAGENCIES ONLINE COMMUNITIES MEDIA MEASURERS
WOMM Over the Next Few Years• More standardized measurement• More proof of superior long-term ROI• More precise targeting – Though targeting is built-in• Better fusing of online and off• Less shilling• A staple in the marketing mix