www.buzzer.biz
Buzzer©2009-confidential
Word of Mouth Marketing
The greatest marketing force as a strategy.
Willem Sodderl...
www.buzzer.biz
Buzzer©2009-confidential
Word of Mouth in the Stone Age
Word of Mouth
The act of consumers providing
inform...
www.buzzer.biz
Buzzer©2009-confidential
2002: Discovering word of mouth.
www.buzzer.biz
Buzzer©2009-confidential
2010: the World of WoM
Word of Mouth Marketing
Giving people a reason to talk abou...
www.buzzer.biz
Buzzer©2009-confidential
Word of Mouth Marketing
Social marketing
Product seeding
Twitter marketing
Blog ma...
www.buzzer.biz
Buzzer©2009-confidential
Traditional vs. Social Marketing
Attention Relevance
Credibility Interaction+
www.buzzer.biz
Buzzer©2009-confidential
Seduction vs. Matchmaking
My rule of thumb is this:
Every person you turn away bec...
www.buzzer.biz
Buzzer©2009-confidential
The essence of Word of Mouth.
Advertising
makes people
curious1
Product
experience...
www.buzzer.biz
Buzzer©2009-confidential
WWWoM...
"Advertising has been supplanted as the chief shaper of
consumer attitude...
www.buzzer.biz
Buzzer©2009-confidential
1600 Hairdressers
&
www.buzzer.biz
Buzzer©2009-confidential
Buzzer: Product, Story & Buzz
Product-
experience
& BuzzTools
Generate
Trial &
Buz...
www.buzzer.biz
Buzzer©2009-confidential
Buzz(er) without limits.
www.buzzer.biz
Buzzer©2009-confidential
Word of Mouth is marketing super power.
Buzz…
 Customised story
 Credible sender...
www.buzzer.biz
Buzzer©2009-confidential
But WoM is not perfect.
Buzz…
www.buzzer.biz
Buzzer©2009-confidential
How can we help WoM ?
www.buzzer.biz
Buzzer©2009-confidential
Build buzz into the product.
Whipped
Cream...?
Capuccino-
Something !
www.buzzer.biz
Buzzer©2009-confidential
The right Buzzers
&
www.buzzer.biz
Buzzer©2009-confidential
Personal stories
Upload your photo and receive the picture printed
On the photopri...
www.buzzer.biz
Buzzer©2009-confidential
Mix Brand & Personal Storytelling.
Buzzers taste Mei Asia, share memories and smal...
www.buzzer.biz
Buzzer©2009-confidential
Wear a moustache.
You don’t have to start
a conversation,
everybody else will !
Ca...
www.buzzer.biz
Buzzer©2009-confidential
Take away barriers.
Play
“Most Embarassing Moments”
Dove Hairminimising:
feel less...
www.buzzer.biz
Buzzer©2009-confidential
Deeper product experience.
.
User Manuals do not necessarily give
you the best pro...
www.buzzer.biz
Buzzer©2009-confidential
Using social triggers.
A custom Facebook application creates
a mosaïc of your Frie...
www.buzzer.biz
Buzzer©2009-confidential
Claim experiences & Off/Online Flow
www.buzzer.biz
Buzzer©2009-confidential
How to ‘help’ WoM.
Give people a reason
to talk about you (more).
Buzzable Product...
www.buzzer.biz
Buzzer©2009-confidential
WoM Strategy: Monitoring
Listening, capturing insights SMM Tools
SMM Tools
www.buzzer.biz
Buzzer©2009-confidential
WoM Quantity & Quality
In 2008, Buzzer launched OMO Small & Mighty, a new detergen...
www.buzzer.biz
Buzzer©2009-confidential
Quantity: WoM Generations
G0
Buzzers
2.000
WoM interaction
Buzzer - Consumer
WoM
I...
www.buzzer.biz
Buzzer©2009-confidential
Other Objectives & Metrics
Consumer Reviews in Google↑ Net Promoter Score
Promoter...
www.buzzer.biz
Buzzer©2009-confidential
WoM 450.000
Total WoM
G0+G1+G2
€ 12, 2K Production
€ 14,8K
Shipping &
Handling
€ 4...
www.buzzer.biz
Buzzer©2009-confidential
More WoM Metrics
• G0 - G1 - G2
• Reports
• Online buzz tools
• G2 factor 4 (resea...
www.buzzer.biz
Buzzer©2009-confidential
Actionable Insights
3.756 BuzzReports
BuzzPolls
Line
Extensions
Packaging
Change
U...
www.buzzer.biz
Buzzer©2009-confidential
WoM ≠ ‘Like’ & ‘Fans’
www.buzzer.biz
Buzzer©2009-confidential
The iFake.
Actors in queue
TMobile hires actors to
stand in line for an
iPhone sho...
www.buzzer.biz
Buzzer©2009-confidential
WoM ≠ 9 out of 10…
“Willem’s presentation at GS1’s SMM Tag
was the best ever given...
www.buzzer.biz
Buzzer©2009-confidential
WoM = Ethics!
= Disclosure
www.buzzer.biz
Buzzer©2009-confidential
WoM can be learned, organised
Access to Consumers
Seed products
Conversation start...
www.buzzer.biz
Buzzer©2009-confidential
The Slow & Irreversible WoM Revolution.
WoM Marketing helps brands use the full po...
www.buzzer.biz
Buzzer©2009-confidential
Q & (hopefully) A
www.buzzer.biz
Buzzer©2009-confidential
• Design a campaign centred around WoM
• Address all WoM handicaps
• Present which...
www.buzzer.biz
Buzzer©2009-confidential
Crunchy Cream
Challenges:
How to get Nutella fans to open up, get curious.
How to ...
www.buzzer.biz
Buzzer©2009-confidential
Pets & Insurance
Challenges:
How the $%$#! can you create a product experience (wi...
www.buzzer.biz
Buzzer©2009-confidential
Incontinence Pads
Challenges
Who will be the perfect Buzzers ?
How can you get peo...
www.buzzer.biz
Buzzer©2009-confidential
PicChair
Challenges
How to make it more than a quaint, niche product ?
How to crea...
www.buzzer.biz
Buzzer©2009-confidential
Buzzable Books
StorytellingVirality Word of
Mouth
Consumer
Behaviour
www.buzzer.biz
Buzzer©2009-confidential
More ?
@sodderland
http://www.linkedin.com/in/sodderland
http://www.facebook.com/w...
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Word of Mouth Marketing RSM 2010

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Guest lecture & work shop on Word of Mouth Marketing for the Rotterdam School of Management, Class of 2011. By Willem Sodderland, Founder & CEO of Buzzer, Europe's leading WoM agency.

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Transcript of "Word of Mouth Marketing RSM 2010"

  1. 1. www.buzzer.biz Buzzer©2009-confidential Word of Mouth Marketing The greatest marketing force as a strategy. Willem Sodderland, Founder & CEO of Buzzer 2 November 2010 Rotterdam
  2. 2. www.buzzer.biz Buzzer©2009-confidential Word of Mouth in the Stone Age Word of Mouth The act of consumers providing information to other consumers.
  3. 3. www.buzzer.biz Buzzer©2009-confidential 2002: Discovering word of mouth.
  4. 4. www.buzzer.biz Buzzer©2009-confidential 2010: the World of WoM Word of Mouth Marketing Giving people a reason to talk about your products and make it easy to do so.
  5. 5. www.buzzer.biz Buzzer©2009-confidential Word of Mouth Marketing Social marketing Product seeding Twitter marketing Blog marketing Viral marketing Community Marketing Influencer Marketing Stealth Marketing Shilling Pop-up retail Co-creation Crowdsourcing Evangelist Marketing User Generated Content Referral Programs Marketing 2.0, PR 2.0 Product Reviews, Testimonials Advertorials & Commercial Content Social networks Branded communities Marketing 5.0 ?
  6. 6. www.buzzer.biz Buzzer©2009-confidential Traditional vs. Social Marketing Attention Relevance Credibility Interaction+
  7. 7. www.buzzer.biz Buzzer©2009-confidential Seduction vs. Matchmaking My rule of thumb is this: Every person you turn away because your product or service isn't right for them turns into three great customers down the road. Every bad sale costs you five. Seth Godin
  8. 8. www.buzzer.biz Buzzer©2009-confidential The essence of Word of Mouth. Advertising makes people curious1 Product experiences create word of mouth 2 Word of Mouth makes curious people comfortable to buy3
  9. 9. www.buzzer.biz Buzzer©2009-confidential WWWoM... "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
  10. 10. www.buzzer.biz Buzzer©2009-confidential 1600 Hairdressers &
  11. 11. www.buzzer.biz Buzzer©2009-confidential Buzzer: Product, Story & Buzz Product- experience & BuzzTools Generate Trial & Buzz Feedback on Product & Marketing
  12. 12. www.buzzer.biz Buzzer©2009-confidential Buzz(er) without limits.
  13. 13. www.buzzer.biz Buzzer©2009-confidential Word of Mouth is marketing super power. Buzz…  Customised story  Credible sender  On demand  High attention  Dialogue
  14. 14. www.buzzer.biz Buzzer©2009-confidential But WoM is not perfect. Buzz…
  15. 15. www.buzzer.biz Buzzer©2009-confidential How can we help WoM ?
  16. 16. www.buzzer.biz Buzzer©2009-confidential Build buzz into the product. Whipped Cream...? Capuccino- Something !
  17. 17. www.buzzer.biz Buzzer©2009-confidential The right Buzzers &
  18. 18. www.buzzer.biz Buzzer©2009-confidential Personal stories Upload your photo and receive the picture printed On the photoprinter you consider buying
  19. 19. www.buzzer.biz Buzzer©2009-confidential Mix Brand & Personal Storytelling. Buzzers taste Mei Asia, share memories and small games during An Evening in Asia. Extended onto the Mei Asia Blog. .
  20. 20. www.buzzer.biz Buzzer©2009-confidential Wear a moustache. You don’t have to start a conversation, everybody else will ! Canon… The conversation starter
  21. 21. www.buzzer.biz Buzzer©2009-confidential Take away barriers. Play “Most Embarassing Moments” Dove Hairminimising: feel less need to shave your armpit.
  22. 22. www.buzzer.biz Buzzer©2009-confidential Deeper product experience. . User Manuals do not necessarily give you the best product experience. .
  23. 23. www.buzzer.biz Buzzer©2009-confidential Using social triggers. A custom Facebook application creates a mosaïc of your Friends’ pictures, promoting two digital cameras
  24. 24. www.buzzer.biz Buzzer©2009-confidential Claim experiences & Off/Online Flow
  25. 25. www.buzzer.biz Buzzer©2009-confidential How to ‘help’ WoM. Give people a reason to talk about you (more). Buzzable Product (build buzz into it) Deep Product Experience (higher quality WoM) Great Buzzers (more incentive to share) Conversation Starters (more buzz occasions) Storytelling (more to share) Off – Online Flow (the story continues)
  26. 26. www.buzzer.biz Buzzer©2009-confidential WoM Strategy: Monitoring Listening, capturing insights SMM Tools SMM Tools
  27. 27. www.buzzer.biz Buzzer©2009-confidential WoM Quantity & Quality In 2008, Buzzer launched OMO Small & Mighty, a new detergent, for Unilever. Mindshare Insights conducted in-depth research on the results of the Campaign. 4 groups were compared: control groups that were exposed to advertising and sampling, the Buzzers and the people they buzzed. 100.0 212.5 375.0 512.5 0.0 100.0 200.0 300.0 400.0 500.0 600.0 Advertised Sampled Buzzed Buzzers BuyingIntention(indexed) People buzzed have 175% higher buying intention than sampled consumers“The reach of buzzing is huge” 1 >150             
  28. 28. www.buzzer.biz Buzzer©2009-confidential Quantity: WoM Generations G0 Buzzers 2.000 WoM interaction Buzzer - Consumer WoM Interaction G1 70.000 40.000 30.000 WoM Trial WoM interaction ‘Buzzee’ - Consumer WoM Reach 360.000 Factor 6 Factor 4 G2 • Factor 6 based on actual research on Buzzer campaigns • Factor 4 based on international research 432.000 Total WoM Total WoM G0+G1+G2
  29. 29. www.buzzer.biz Buzzer©2009-confidential Other Objectives & Metrics Consumer Reviews in Google↑ Net Promoter Score Promoters Passives Detractors Before After NPS +2 +40
  30. 30. www.buzzer.biz Buzzer©2009-confidential WoM 450.000 Total WoM G0+G1+G2 € 12, 2K Production € 14,8K Shipping & Handling € 49,5 K Buzzer Fee { € 76,500 3rd Party CPC = € 0,17 Cost Per Conversation
  31. 31. www.buzzer.biz Buzzer©2009-confidential More WoM Metrics • G0 - G1 - G2 • Reports • Online buzz tools • G2 factor 4 (research) G0 G1 G2 Quantity (reach) • Intensity interaction • Awareness facts • NPS • Buying behaviour Quality (impact) • Cost per Conversation • € Value/NPS↑ Management Information Bzz. Bzz. Bzz. Bzz. Bzz. Bzz. G3
  32. 32. www.buzzer.biz Buzzer©2009-confidential Actionable Insights 3.756 BuzzReports BuzzPolls Line Extensions Packaging Change Usage Tips Recipe Suggestions
  33. 33. www.buzzer.biz Buzzer©2009-confidential WoM ≠ ‘Like’ & ‘Fans’
  34. 34. www.buzzer.biz Buzzer©2009-confidential The iFake. Actors in queue TMobile hires actors to stand in line for an iPhone shop.
  35. 35. www.buzzer.biz Buzzer©2009-confidential WoM ≠ 9 out of 10… “Willem’s presentation at GS1’s SMM Tag was the best ever given anywhere. And he is very, very handsome” I. Maginary, SMMT Attendant 9 out of 10 people* that did not see the presentation said it 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)
  36. 36. www.buzzer.biz Buzzer©2009-confidential WoM = Ethics! = Disclosure
  37. 37. www.buzzer.biz Buzzer©2009-confidential WoM can be learned, organised Access to Consumers Seed products Conversation starters Storytelling, WoM campaigns/programs Facilitate collaboration Software, tech-tools Measure, research, analyse, consulting Creative Media & Logistics Platform Insights ToolsIdeas Churchofthe `customer.com Word of mouth from marketeers ! Blogs
  38. 38. www.buzzer.biz Buzzer©2009-confidential The Slow & Irreversible WoM Revolution. WoM Marketing helps brands use the full potential of word of mouth and user engagement... ...and Buzzer does this for a living ; ) 1st agency Europe Benelux, DACH 125+ Campaigns Broad Portfolio Womma Member BuzzTools & Storytelling
  39. 39. www.buzzer.biz Buzzer©2009-confidential Q & (hopefully) A
  40. 40. www.buzzer.biz Buzzer©2009-confidential • Design a campaign centred around WoM • Address all WoM handicaps • Present which choices you have made & why WoM Campaign Your mission if you decide to accept it… PetHealth Insurance Incontinence Pads PicChairCrunchy Cream Product
  41. 41. www.buzzer.biz Buzzer©2009-confidential Crunchy Cream Challenges: How to get Nutella fans to open up, get curious. How to create lots, lots of trial. With 1 large jar. Create online buzz. ? vs. Nutella Very good tasting stuff. With crunchy bits. People love it When they try. But. People who love Nutella (98,7% of the world) see no reason to try anything else.
  42. 42. www.buzzer.biz Buzzer©2009-confidential Pets & Insurance Challenges: How the $%$#! can you create a product experience (without killing pets) What story will be worth sharing ? HealthCare Insurance for Pets The current policy reimburses costs of a vet and medicine when your pet gets ill. Comparable to competition.
  43. 43. www.buzzer.biz Buzzer©2009-confidential Incontinence Pads Challenges Who will be the perfect Buzzers ? How can you get people to talk about it - and to relevant people ? Attends against leakage. Women that lose urine can use this and feel less bad about it..
  44. 44. www.buzzer.biz Buzzer©2009-confidential PicChair Challenges How to make it more than a quaint, niche product ? How to create a deeper product experience so that you see the real benefit ? How to get ‘deep’ trial among very relevant people (who would buy) Sit on my painting please. It hangs on the wall and you can sit on it when you need extra chairs.
  45. 45. www.buzzer.biz Buzzer©2009-confidential Buzzable Books StorytellingVirality Word of Mouth Consumer Behaviour
  46. 46. www.buzzer.biz Buzzer©2009-confidential More ? @sodderland http://www.linkedin.com/in/sodderland http://www.facebook.com/willem.sodderland willem@buzzer.biz slideshare.net/sodderland/rsm2010

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