Ignite The Spark

IGNITE THE BUZZ: THE ESSENTIAL 30 FACTS AND INSIGHTS ABOUT WORD OF MOUTH, BUZZ, SOCIAL, VIRAL & OTHER THINGS PEOPLE NOTICE & TALK ABOUT Queen’s Park Presentation December, 2007

It’s Was a Long Movember… November Stretch Goal Objective Minimum Goal 1st 31st Quality Of Moustache Final Position Support Sean Moffitt’s Pity ‘Stache @ www.Movember.ca PROGRESS CHART

A Wishful December…

Our Expertise: Word of Mouth (WOM)
We Strategize It
We Plan It
We Build It
We Seed It
We Spread It
We Incubate It
We Measure It
We Monitor It

Agent Wildfire – Canada’s Word of Mouth Firestarter

Wiki Brands - Mass Collaboration Gone Marketing

Why Government & Word of Mouth?
Best way to disseminate information
Too many constituent audiences
A trust gap
Politically and civically aware are true influencers
A noble purpose

Are You Ready To Become Word of Mouth Evangelists?

i. WORDS ARE IMPORTANT

Agent Wildfire Key Belief #1– The Power of Word of Mouth “ The clear and away strongest predictor of a company’s growth rate is “would you recommend this to a colleague or friend?” Fred Reichheld, Bain Fellow and Author, The Ultimate Question – Driving Good Profits & True Growth

ii. WORDS ARE GETTING MORE IMPORTANT

More Than Ever, We Listen to Our Friends

iii. Why is Word of Mouth Back in Vogue?

1960/70s 2007
Ads Exposed to Daily
700 3,000-5,000
Per Capita Spending on Ads
$110 $865*
Ave No. of TV Channel/Household
5.7 82.4
No. of Products - Grocery Store
7,000 45,000+
No. of Books Available
20,000 4 mil.+
Day-After-Recall on TV Ads
36% 3%
Trust Ranking of Advertisers
n/a 20nd out of 21
US numbers, Inflation adjusted number for 2007 $465,
4x as much as 1972
“ The Perfect Brand Storm”

However, Word of mouth is:
Trusted
Time-Saving
Reliable
Providing a Benefit
Enjoyable
Acted On
Jumping Hurdles
Fueling Passion

iv. What does “Word of Mouth Marketing” mean?

Two Camps of Word of Mouth
ORGANIC
(Baked into the product)
Well-differentiated product that surpasses expectations
Delivers a great customer experience
Beyond-the-call customer service
ORCHESTRATED
(Added to and surrounding the product)
Marketing-oriented
Research-oriented
Media-oriented
Post purchase experience-oriented

v. What Types of Word of Mouth Exist?

This is Not Your Parent’s Word of Mouth …

Viral
Social
User-generated
Influencer
Community
Transactional/Affiliate
Experiential
Buzz
Cause-Driven
Nine Types of Word of Mouth

Excitement Intimacy Broader Audience Targeted UGC/CGM BUZZ VIRAL SOCIAL CAUSE COMMUNITY INFLUENCER EXPERIENTIAL AFFILIATE

Wiki Brands – Palette Of Tactics Source: Agent Wildfire Inc. 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

Gold Standard Programs Viral Cause-Related Experiential Affiliate Community Social User-generated Influencer Buzz

vi. What considerations should you make before choosing a form of word of mouth?

9 Questions To Ask before Word of Mouth-Ing (or Take The Survey)
Do you have a story ?
Is this a new initiative/audience/feature?
Can you customize/experienc e the offering?
Is the benefit complex?
Is there a high need for credibility ? Authenticity?
How frequent is the use/purchase of service/product?
Is there a natural influencer group/fan base?
What is your current reputation in this area? Resources ?
Do you have an appetite for risk ?
Take the Survey @ our blog Buzz Canuck

vii. Are there hot button categories for word of mouth conversations?

Category and Brand Sweetspots  New Stuff  Interesting Stuff  Complex/Expensive Stuff  Everyday Stuff  Passion-Based or Connoisseur Stuff

viii. What’s word of mouth’s role in the marketing/communciations mix?

Word of Mouth = Action/Advocacy

ix. Are people catching on yet? Are marketing/communications people catching on yet?

67% of purchase decisions are primarily influenced made by word of mouth
93% of people trust word of mouth (up 50% vs. a generation ago)
Word of mouth as a marketing practice is expected to grow 30% CAGR over the next 5 years – the fastest rising segment of marketing
70% of Inc. 500 companies are expected to be trying some type of word of mouth program this year
Word of mouth is the #1 influence and growth segment

x. Why is word of mouth posed to succeed now?

Broadcast TV hours and newspaper reading are down dramatically
Consumers are less engaged with the media and more connected to each other
Given trust erosion in public institutions, people are turning to “people like themselves” and close friends for advice
Digital technology/virtual networks allows us to access these people more efficiently and track their activities
Word of mouth is getting more sophisticated

xi. Why do people word of mouth about products/services?

“ I notice and talk about products and services that are”: 32% - Exciting/buzzworthy 20% 9% 13% 13% 9% - Real problem solvers/smart ideas - Exclusive and not yet discovered 3% - Things You Personally Experience/Associate With - New or just breaking - Innovative and one-of-a-kind - Fashionable & Stylish

xii. Why do people get involved in word of mouth programs?

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

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

#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

xiii. Who spreads word of mouth?                  

The Influencers – 6 Archetypes “ The Ones Who Create Ideas” “ The Ones Who Spot & Scout New Stuff” “ The Ones Who Sell and Lead Opinions” “ The Ones Who Provide Credibility” “ The Ones Who Attract Attention” “ The Ones Who Connect & Spread the Word”

The Influencers– Canada’s Word of Mouth Network

xiv. What traits do influencers have?

Your Influencers: WOM Multipliers

Influencers & Civic Engagement (vs. general public) Attended public meeting - 78% (+58 pts. ) Wrote/emailed/called a politician – 68% (+56 pts.) Attended a political rally, speech, protest – 45% (+38 pts.) Active members trying to influence gov. policy - 35% (+30 pts.) Worked for a political party - 25% (+18 pts.) Source: The Influentials

xv. To whom do we buzz?

Word of Mouth Recipients 35% - Friends 24% 4% - Family 20% - Work Colleagues 9% - Neighbours - Online community members 4% - Hobby/interest/team members Source: Agent Wildfire

xvi. Where does word of mouth happen?

Word of Mouth By Numbers - Where 77% Of word of mouth is face to face. 17% 6% 76% 40-27 Of word of mouth by phone.
Of word of mouth online.
Of orchestrated word of mouth is spontaneous
Percentage of word of mouth that happens at home and work Source: North Eastern University

xvii. What roles can Influencers play for your business?

The Influencers – 6 Archetypes The Influencers– A Volunteer, Multi-Talented VIP Army Thinktank/ Sounding Board Scout/ Mystery Shopper Advisory Council/ Cause Torchbearer Seeded Adopter/ Beta Tester Customer User Consumer Collaborator/ Producer Evangelist/ Ambassador/ Advocate Community Member/ VIP Insider Influencer

xviii. What peer-to-peer benefits does word of mouth tap into?

4 Key Peer Benefits They Produce Content for You They Engage/ Rally Behind You They Collaborate With You They Advocate You

xix. How does it operate differently than mass marketing?

Puts Mass Marketing on its Head - A Distinct Marketing Approach Different Brand Stories Different Approach To Market Different Audience Different Tactics Different Commun- -ication Different Outputs/ Measures

xx. Is there a magic buzz, word of mouth marketing and/or community formula?

Viral/Buzz Success Drivers
Humour i.e. John West
Authentic & Cause-driven i.e. Dove Evolution
Taboo i.e. Agent Provocateur (Kylie)
Remarkability/creative i.e. Sony Bravia
Outrageous i.e. Trojan Games/Will it Blend
Mystery i.e. Ronaldinho
Celebrity i.e. Perez Hilton

Viral/Buzz Success Drivers 8. Clever Visual Idea i.e. Honda Cog 9. Schadenfeude (embarassing) i.e. Dell Hell 10. Interactive/Customized i.e. Subservient Chicken 11. Unusual Talent i.e. OK Go 12. User-generated i.e. iPod Touch Ad 13. Spoof i.e. Slob Evolution 14. Free i.e. Radiohead

Word of Mouth Campaign 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 & Dialogue I nfluential Audience -C onnected/ Informed/ Involved = X X X X CB SI EE T I CII

Brand Community Success Formula Source: Debute

xxi. How big of a phenomenon is this?

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

The Passalong Effect
Passalong Jokes and Humour
53% 50% 88% 56% 25% 24% 15%
Passalong News
Passalong Recommendation
Passalong Competition Entry
Passalong Games
Passalong Personal Finance
Passalong Charity Involvement
Source: Sharpe Partners/Burston marsteller

xxii. How connected and prolific is our buzz?

A Participation Marketplace
Number of brand conversations we have every year Source: Keller Fay
Number of people communicated to as a member of a word of mouth campaign
Source: Agent Wildfire
8.5B - Number of online videos streamed online every month Source: Sharpe Partners 4,650 10&13 20-180 165
Average number of friends on Facebook
Source: Agent Wildfire
Bloggers average number of blogroll links and links to their blog
Source: Pew Internet

xxiii. How do we measure all of this?

The Ultimate Metric – Net Promoter Score
Net Promoter Score
Would you recommend Brand X to a friend or colleague?
Source: Netpromoter.com

What is the Value of a Conversation About Your Stuff?
Incorporates the :
Purchase Value
Advocacy Value
PR Value
Content Production Value
Insight/Collaboration Value
Lifetime Value
Customer Support Value
Cost Reduction Value
“ The Gladwell”

xxiv. Why build a community?

After joining….
Members Feel Validated - 89% of members believe brand is truly concerned on what they have to say
Members Buzz More - 82% of members are more likely to recommend the company to others
Members Like It - 76% of members feel more positively about the company
Members Buy More - Members of community g enerate 56% more revenue than non-members

XXV. What are the ethics behind orchestrated word of mouth?

The Honesty ROI
Honesty of Relationship: You say who you're speaking for
Honesty of Opinion: You say what you believe
Honesty of Identity: You never obscure your identity
Source: WOMMA’s Ethic Code

xxvi. What’s are the biggest hurdles to company acceptance?

Organizational Barriers
Manpower restraints
Fear of loss of control
Inadequate metrics
Culture of their organizations
Difficulty with internal sell-through
Source: Society of New Communications Research

xxviii. What are the biggest myths about word of mouth?

Word of mouth marketing myths holding companies back
“ Word of mouth can’t be tracked”
“ Word of mouth can’t be generated’
“ Word of mouth is too risky”
“ Word of mouth influencers don’t exist”
“ Stealth is required to make word of mouth work”

xxix. What’s the future hold?

Word of Mouth Industry Predictions
Word of mouth as a strategic marketing/media discipline
Large agencies specializing in word of mouth
Social networks setting up boutique divisions
Companies collaborating on a shared database of influencers
Research companies applying word of mouth tracking and measurement
Mobile word of mouth marketing will become the next frontier

xxx. Who are the some of the government orgs/causes/NGOs that are doing this stuff the best?

Inquire: smoffitt (at) agentwildfire.com URL: www. AgentWildfire .com Join/Share: www.TheInfluencers.ca Blog: http://BuzzCanuck.typepad.com/ Explore: The Buzz Report Newsletter Signup at www.AgentWildfire.com

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Viral Advertising
Viral Marketing
Advergaming/Virtual Worlds
Buzz Media
Stealth
Types of Word of Mouth - Viral

Social Media Development
Corp./Campaign Blogs, podcasts, wikis
Social Media Outreach
Blogger and podcasters, widgets, avatars
Social Networks
Applications, mashups, groups, events, causes, cross promotion, brand identity
Branded Social Networks
Social Media Monitoring
B. Types of Word of Mouth - Social

Consumer generated media
Video, photo, blog
User-generated content
Video (You Tube), photo (Flickr), rating sites (Stumble Upon/Squidoo), Wikipedia
Crowdsourcing solutions
Research, Ideas, Development, technology
Advisory/Insight Panels
Forums/Rating Sites (i.e. Epinions, Amazon)
C. Types of Word of Mouth – User-Generated

Product seeding/intervention
Sneak previews
Beta testing
Expert Panels
Influencer programs
Brand Ambassador programs
Testimonial programs
D. Types of Word of Mouth - Influencer

Online-Dominant
Brand Communities
Influencer Networks
Customer Fan Clubs
E. Types of Word of Mouth - Community

Affiliate marketing
Pyramid selling
Multi-level marketing
F. Types of Word of Mouth - Transactional

Experiential
Buzz marketing
Guerrilla marketing
Stealth/undercover marketing
Shill marketing
G. Types of Word of Mouth - Experiential

Cause marketing
Cause sponsorship
Rallying Idea
H. Types of Word of Mouth - Cause Marketing/Sponsorship

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Ignite The Spark

by Dave Fleet

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