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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.

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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  • 1. 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. Buzzer©2009-confidential Word of Mouth in the Stone Age Word of Mouth The act of consumers providing information to other consumers.
  • 3. Buzzer©2009-confidential 2002: Discovering word of mouth.
  • 4. 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. 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. Buzzer©2009-confidential Traditional vs. Social Marketing Attention Relevance Credibility Interaction+
  • 7. 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. 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. 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. Buzzer©2009-confidential 1600 Hairdressers &
  • 11. Buzzer©2009-confidential Buzzer: Product, Story & Buzz Product- experience & BuzzTools Generate Trial & Buzz Feedback on Product & Marketing
  • 12. Buzzer©2009-confidential Buzz(er) without limits.
  • 13. Buzzer©2009-confidential Word of Mouth is marketing super power. Buzz…  Customised story  Credible sender  On demand  High attention  Dialogue
  • 14. Buzzer©2009-confidential But WoM is not perfect. Buzz…
  • 15. Buzzer©2009-confidential How can we help WoM ?
  • 16. Buzzer©2009-confidential Build buzz into the product. Whipped Cream...? Capuccino- Something !
  • 17. Buzzer©2009-confidential The right Buzzers &
  • 18. Buzzer©2009-confidential Personal stories Upload your photo and receive the picture printed On the photoprinter you consider buying
  • 19. 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. Buzzer©2009-confidential Wear a moustache. You don’t have to start a conversation, everybody else will ! Canon… The conversation starter
  • 21. Buzzer©2009-confidential Take away barriers. Play “Most Embarassing Moments” Dove Hairminimising: feel less need to shave your armpit.
  • 22. Buzzer©2009-confidential Deeper product experience. . User Manuals do not necessarily give you the best product experience. .
  • 23. Buzzer©2009-confidential Using social triggers. A custom Facebook application creates a mosaïc of your Friends’ pictures, promoting two digital cameras
  • 24. Buzzer©2009-confidential Claim experiences & Off/Online Flow
  • 25. 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. Buzzer©2009-confidential WoM Strategy: Monitoring Listening, capturing insights SMM Tools SMM Tools
  • 27. 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. 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. Buzzer©2009-confidential Other Objectives & Metrics Consumer Reviews in Google↑ Net Promoter Score Promoters Passives Detractors Before After NPS +2 +40
  • 30. 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. 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. Buzzer©2009-confidential Actionable Insights 3.756 BuzzReports BuzzPolls Line Extensions Packaging Change Usage Tips Recipe Suggestions
  • 33. Buzzer©2009-confidential WoM ≠ ‘Like’ & ‘Fans’
  • 34. Buzzer©2009-confidential The iFake. Actors in queue TMobile hires actors to stand in line for an iPhone shop.
  • 35. 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. Buzzer©2009-confidential WoM = Ethics! = Disclosure
  • 37. 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 ` Word of mouth from marketeers ! Blogs
  • 38. 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. Buzzer©2009-confidential Q & (hopefully) A
  • 40. 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. 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. 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. 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. 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. Buzzer©2009-confidential Buzzable Books StorytellingVirality Word of Mouth Consumer Behaviour
  • 46. Buzzer©2009-confidential More ? @sodderland