The (uncomfortable) Truth The (comfortable) Illusion (about marketing)
Old versus New Truth vs. Illusion The (comfortable) Illusion Remarkable advertising sells You can target consumers Claim & seduce the market Marketing is about control Your time, place, message Push hard enough and it works The (uncomfortable) Truth Remarkable products are bought Consumers might target you Honesty invites good customers You never had control Their time, place, content Work very hard to get Pull
The RoI of Old (School) Marketing “ For consumer packaged goods the failure rate for new products is widely reported to be 70% to 90%...” The Curse of Innovation, John T. Gourville - HBS Succes rate new products Advertising ↑
Push is failing fast Consumers ‘see’ > 30.000 ads per year Advertisers are not seen as trustworthy Ads interrupt people Consumers talk about product experiences Consumers seen as most trustworthy source Opinions are easier and easier to find Consumer Consumers Advertiser WoM does reach consumers and has greatest impact on buying behaviour Vs.
WWWoM... The boost of buzz (through internet) "Advertising has been supplanted as the chief shaper of consumer attitudes by word of mouth, which today's Web-linked consumer communities have put on overdrive” C.K. Prahalad, Venkat Ramaswamy, The Future of Competition
The Breakup A short movie which describes a typical relationship between advertiser and consumer.
‘ Pull’ has become the magic word www.elkhuistekoop.nl Buy a house which is not even on the market. www.mijnautoreparatie.nl Invite bids for your car repair www.eventful.com Demand an event to come to you
Existing players are taken out of the loop. www.hurenvanburen.nl Rent equipment from your neighbours www.boober.nl Consumers loan money directly to eachother
Would you like to own… Fenerbahçe ? www.sellaband.com Discover new bands and get proceeds from their success www.myfootballclub.co.uk Own a football club and pick the team…
New rules for the democracy www.senatoronline.com.au Vote on key issues in the Australian parliament www.trotsopnederland.nl Decide how a large Dutch political party votes on key issues
The truth: the world’s most valuable brand “ Google’s position is astonishing. Every other player in the top ten has spent decades investing billions in advertising. Google’s advertising expenditure is almost exactly zero. Think about that for a second: the top brand in the world belongs to a player that…uhhh…doesn’t advertise. Google is a living example of a deeper truth: that the future of communications as advantage lies in talking less, and listening more” Umair Haque - Harvard Business Review (The Shrinking Advantage of Brands)
The Net Promoter Score: WoM & Growth “ If growth is what you’re after, you simply need to know what your customers tell their friends about you” Fred Reichheld – ‘The Ultimate Question’ - HBS Press The % of people recommending you is strongly correlated to your growth
The Truth: Advertising & Word of Mouth Advertising makes people curious Word of Mouth makes people comfortable to buy + = Adoption Word of Mouth MarCom Television Radio Print PR DM Web
How to survive in the new world ? Ignore the new rules.
Ignore (or bend) the new laws ! “ Willem’s presentation at the WOMC in Istanbul was the best ever held in any conference. And he is very, very handsome” I. Maginary, WOMC attendant 9 out of 10 people* that did not go to the WOMC said Willem’s presentation would have improved the quality of their lives if they had witnessed it. * Tested among a sample of hypothetical people. Buy Willem Now ! (limited pieces left)
How to survive in the new world ? Take baby steps and don’t be afraid to fall. It won’t hurt much.
Canon TryOut Photo – Experience the Product Upload your photo and receive the picture printed on the photoprinter you consider buying
The UPC WebCare Team – ‘Listen’ online UPC employs a team that ‘listens’ to all online conversations about UPC, answersing questions and trying to help customers
Dove Self Esteem – Engage & participate The Dove real beauty campaign invites teenagers, mothers and other women to play an active role
Puma’s Participation – Personalise Create unique shoes by choosing from 17 variables
Fiat 500 – Co-create 500 days before the launch of the Fiat 500, potential customers are invited to create accessories and themes for advertising
How to survive in the new world ? Get some help while learning how to walk.
The Case: Gillette Fusion <ul><li>Skepticism: more blades = marketing trick </li></ul><ul><li>Value perception = too expensive </li></ul><ul><li>Guys don’t talk about shaving </li></ul>Challenges
From skepticism to enthusiasm Personal Economic Shaving Advice 0. Skepticism 2. Count shaves € BuzzPoll Shave ‘value’ 3. Assign value/shave 1. Product Experience + +
Create conversations. ‘ Bluff your way into shaving’ ‘ Famous Beards’
The buzz goes on… <ul><li>Buzzer gets (other) editors of radioshow to test Fusion, aired live for +/- 45.000 listeners </li></ul><ul><li>> 10.000 BlufGuides handed out… </li></ul><ul><li>Buzzer review on well-visited Blog, 20+ reactions </li></ul>
Leverage other media... Buzzers ‘launch’ website game & draw traffic Super de Boer created a simple version of the BlufGuide on their website. Traffic site 100.000’s a week 400 Award-winning Buzzers visit the Fusion Challenge skating event & create onsite buzz…
Feedback Buzzers explained that you needed to learn how to use the trimmer Product usage tips were changed on the packaging
The Buzz Snowball G1: ‘buzzed’ > 100.000 Generation 2 > 400.000 People buzzed about the Gillette Fusion (Generations 1 and 2: offline & online) 1.500
WoM is simply creating ambassadors, right ? Ambassadors are Yes/No You can’t ‘create’ them with any certainty Will they give the right feedback ? ‘ Fans’ can have less impact than neutral consumers They might not look for the right customer Etc. Well… No. (We call our Buzzers civil marketeers)
Open Source & Word of Mouth Marketing Word of Mouth Marketing
Open source marketing as a paradigm shift 1. Consumers & startups rule 3. Confusion (time of consultants & gurus) 2. Established players ignore and bend the rules 4. Serious experimentation 6. Learn & adopt new mentality & business models 5. Embed WoM structurally Succesful cases, professional WoM players The job of the WoM industry is to teach various players to play by the new rules of open source marketing
Tools of the Word of Mouth Industry Access to Consumers Seed products Create WoM-specific tools & content Storytelling, campaigns Start, stimulate, mediate dialogues Facilitate collaboration Create (technological) tools Measure, research, analyse Advisory Creative Media & Logistics Tools Insights
The bottom line. Create remarkable stuff that people will want to talk about Make it easier to experience and talk about your products Create remarkable loyalty from people you want to listen to. Listen to know what people find remarkable (or not) Invite people to participate in your marketing and brand