Dave Kissel  - Zocalo Group
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Dave Kissel - Zocalo Group

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Presented at Chicago AMA's BrandSmart 2010, June 24 at the UIC Forum.

Presented at Chicago AMA's BrandSmart 2010, June 24 at the UIC Forum.

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Dave Kissel  - Zocalo Group Dave Kissel - Zocalo Group Presentation Transcript

  • 10 Brazilian Congress of Digital Communications Creating Talkable Brands: Driving Sales and Recommendations Through Word of Mouth Marketing With Dave Kissel, Partner of Zócalo Group 1
  • The Power of Word of Mouth “Word of Mouth is the best medium of all” - Bill Bernbach, DDB 2
  • The Power of Word of Mouth “Word of mouth…is manna from heaven, but nobody knows how to do it on purpose. At least I don’t.” 3
  • Word of Mouth is Quickly Gaining Industry Recognition “The rewards of pursuing excellence in WOM are huge and it can deliver a sustainable and significant competitive edge few other marketing approaches can match. A New Way to Measure With so few companies actively Word-of Mouth Marketing managing Word of Mouth - the most powerful form of marketing - the April 2010 potential upside is exponentially great.” 4
  • Today’s Agenda At the end of this session, you will: Appreciate Know Explore Understand how to make your where/how Social the value of the definition of becoming a brands the most Media/WOM could a talkable brand talked about and be used to drive key talkable brand recommended in objectives of your your category brands A B C 5
  • My Company In Mexico, it translates Headquartered It’s pronounced to “Town Plaza” or in Chicago with ZO-kahl-oh “Conversation Square” Global Capabilities A Division of Ketchum, Specializing in B2B and Omnicom’s 2009 New Media B2C Word of Mouth only agency solely Agency of the Year and Public Relations dedicated to Word of (Holmes Report) Mouth Marketing 2009 Social Media Society for New Zócalo Group CEO is Communications Research Campaign of the Year, President of Word of recognized our Digital Gold Winner – B2B Footprint Index as Best Mouth Marketing (Business Marketing Social Media Measurement Association Association) 6 Suite in Industry
  • Why We Are Here • Brands want this mom* to put their products into her cart, and to do so on an ongoing basis *or whoever is your specifically-identified target consumer 7
  • What We Know • The rise of social media* and the decline of traditional advertising have made it more competitive and more confusing than ever before to find the right ways to convince (and keep convincing) this mom, and most consumers, to choose your brand •And all other social/technological innovations (i.e. Twitter, FourSquare, Mobile, etc.) 8
  • Social Media and Mobile Channels Are Increasingly The Key Arenas In Which Purchase Decisions Are Won or Lost The internet has become moms’ #1 source (77%) for recipes, significantly more than cookbooks (36%) 63% of moms use social media regularly, a 562% increase over the past few years Fifty-four percent of B2B respondents currently use social media for marketing - up 9 % from November 2008 and about 4% from June 2009, showing a steady increase in B2B participation. -- Source [NovaQuant, eMarketer] 9
  • But At The End of The Day, One Critical Insight Remains All Powerful 92% of people say that the recommendation from a friend, family member, colleague or expert is the most powerful determinant of their purchase decision. -- Roper Reports 10
  • Recommendations Play The Single Most Pivotal Role in Driving Purchase in the Food Category Recommendations are the #1 Driver of which new meals/dishes consumers buy – and are nearly three times more impactful than traditional paid advertisements. 11
  • In This Context… The True Opportunity For Your Brand Become recommended. The ability and opportunity to become a truly “talkable” and recommended brand is more critical now than ever before. It’s not It’s not It’s not It’s not enough to enough to enough to It’s not enough to just be just drive just be enough to just be covered buzz engaged just be persuaded (PUBLIC (SOCIAL received (ADS) (DIRECT) RELATIONS) MEDIA) (INTERACTIVE/ EXPERIENTIAL) 12
  • A Deeper Look at Becoming Recommended In The Frozen & Refrigerated Food Category …Through The Lens of Frozen Pizza 13
  • People Are Talking About Frozen Pizzas… Tag Cloud – Frozen Pizza – Last 30 Days Conversation in this category is often emotional and focuses on family, time, and recipes or ingredients. 14
  • Conversation is Driven By Key Category Influencers Chefs Mommy Bloggers Associations Restaurant Owners Nutrition Experts Event/Party Planners School Foodservice Food Buyers Professionals 15
  • Across Specific Vertical Channels Chefs Mommy Bloggers Restaurant Owners Event/Party Planners Food Buyers School Foodservice Nutrition Experts Associations Professionals 16
  • A Closer Look: How People Talk About the Frozen Pizza Category Frozen Pizza + Keyword Topic Analysis – Last 30 Days People are discussing specifically what they like about frozen pizza, using emotional words like Best or Favorite in the conversation. 17
  • A Closer Look: How People Talk About the Frozen Pizza Category Frozen Pizza + Keyword Topic Analysis – Last 30 Days Consumers are describing specifically when, how and with who they share frozen pizzas. 18
  • Which Brands Are Leading The Conversation? Brand Name + Frozen Pizza – Last 30 Days Market leaders, Digiorno and California Pizza Kitchen, are generating nearly two times as much dialogue than other brands. 19
  • Consumers Are Actively Talking About and Recommending Their Favorite Brands to Others On Twitter/Facebook/Blogs/Forums 20
  • But Not All Frozen Pizza Dialogue is Positive – and Negative Brand Recommendations Are Going Unchecked On Twitter/Facebook/Blogs/Forums 21
  • What Does This Mean For Your Brand • If you are a leader in your category [like CPK and DiGiorno], how do you uphold and grow your current market share; if you’re trailing, how do you differentiate from competitors in order to rise to the top? 22
  • How to Make A Brand the Most Talked About and Recommended Brand in its Category 23
  • The Influencer Ecosystem: How Sustainable Conversations and Recommendations Are Driven 24
  • The Roadmap to Creating a Truly Talkable and Recommended Brand 25
  • Know Who, What, Where, When, Why and How People are Talking about You • Assess how many people are talking about a brand • Understand how they talk about the brand • Measure if and how it’s being passed along why it’s so important • Provides insight into how a brand is talked about online, beyond its paid digital marketing efforts. • Provides a benchmark for measurement 26
  • VCA Animal Hospitals What We Can Learn From Listening • Situation Overview – VCA, operator of over 500 veterinary hospitals across the U.S., sought to launch an integrated marketing campaign to tout the impressiveness of its latest technology • What we learned by listening – VCA customers didn’t care about technology. Instead, we uncovered that the #1 driver of positive or negative recommendation was the “friendliness” of the VCA staff • Solution – VCA repositioned its approach to foster trust in its technology by simply driving awareness of its friendly, thoughtful, attentive and caring staff 27
  • Change the Conversation to the Right One Organize, prioritizesession among your key leadership, we In this facilitated and deliver your brand’s key messages todeliver your brand’s key messages to organize, prioritize and explicitly articulate the “reasons to explicitly articulate the “reasons to recommend” your brand – recommend”embedding in suitableand offline conversations. suitable for your brand – Online for embedding in Online & Offline conversations. 28
  • Focus On the Right People: Identify, Forge & Track Relationships with Industry Eminents Proprietary screening process focuses on multiple qualification criteria: – Reputation – Reach – Visibility – Accessibility 29
  • Create Content and Incite Experiences to Fuel Online/Offline Recommendations Content Creates news, information and engaging content to spark earned conversation and bring to life the reasons to share. Interactive Develops web and mobile content delivery and engagement tools that enable WOM and recommendations Experience Brings to life word of mouth through in-person experiences, whether in the street, at the store or at a friend’s house 30
  • Launch a Conversation Engine to Sustainably Engage Eminents and Consumers – Online MEASURE: Ongoing measurement tools explicitly track and measure LISTEN: Daily online tracking identifies trends, the increase in conversations & stories, posts and influencers recommendations DEVELOP: Formalize messaging and finalize relevant creative content PROTECT: Negative chatter is identified, tracked and responded to based upon a pre-determined protocol ENGAGE: Transparent requests ask influencers and advocates to discuss, post, reviews, give OPTIMIZE: New and existing content is tagged feedback, conduct contests and share to make brand discussions easily searchable recommendations with others and sharable 31
  • Cricket Wireless Using Social Media to Monitor and Solve Customer Service Complaints Situation Overview • Two blogs entries were posted within 72 hours of one another by the same author on the blog c2photo.blogspot.com • Customer was having major issues with service and could not get resolution through customer service in-store or on the phone “Do yourself a favor and avoid the drama. Avoid Cricket Wireless like the Black Death” “I am amazed that a company spending millions of dollars to build a brand has no mechanism to regulate and protect the brand from the actions of the franchisee” “Avoid Cricket Wireless like the plague!” 32
  • Cricket Wireless Using Social Media to Monitor and Solve Customer Service Complaints The Solution & Outcome • Cricket’s Customer Care contacted the blogger directly in order to discuss his service issue and rectify the problem. • By monitoring key social media channels, Cricket was able to negate negative conversations about the brand and solve customer service issues directly. “To my utter shock I actually got a live body with Cricket Wireless on the phone. She even seemed to care about the damage being done to the company’s reputation.” “They (Cricket) have a vested interest in making sure you are treated properly” 33
  • Extend the Conversation Engine to Create Original, Memorable, and Engaging Experiences – Offline In-Market WOM events are a smart way to empower your brand to reach dozens or hundreds of thousands of target consumers in34 your priority markets
  • Integrate with all other marketing disciplines to deliver the specific brand/customer experience you seek Zappos.com - The “Engaged” Brand “Zappos consistently ranks in the top 5% for customer service right along the Ritz Carlton and other luxury brands. Before they reached their 10th birthday, Zappos became the largest shoe store on the planet with over $1 billion in retail sales..” -- 4/6/2010 “You may have learned of them via Twitter and count yourself among the 400,000+ people that follow the CEO…No matter how you heard of them, we wager to guess that you did so through word- of-mouth.” -- 4/26/09 35
  • Track and Measure The Impact: Digital Footprint Index (DFI) + Word in the Square Reports – quantity of current social content and conversation – level of engagement and sharing with brand-related content – which channels conversation is occurring – where and how conversation is spreading – adoption of key messages and conversation tone 36
  • Who is Getting Recommendations Right? An Example of a Truly Talkable Brand 37
  • A Talkable Brand 38
  • Starbucks Mission Statement • To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. 39
  • How Starbucks is Bringing This Mission to Life • Brand is smartly leveraging new media channels to engage customers beyond point of sale – inspiring, leading and participating in two-way dialogues Nearly 1M actively-engaged Through a proprietary online Twitter followers community dedicated to issues customers care about In an open community for fans to share, Over 6M Facebook Fans vote and discuss suggestions 40
  • Starbucks Extends Its Efforts Offline As Well • Not only is Starbucks working online to engage consumers, but they’re offline activities are reaching people where it matters 41
  • Thus, Empowering Brand to Reap and Retain Category-Leading Outcomes… Those brands most actively engaged with consumers in social media demonstrate a positive correlation in revenue, gross margin, and net margin growth - contrary to competitors with little to no engagement Source: Wetpaint/Altimeter Group Digital Engagement Report, Ranking Top 100 Brands 42
  • In a Way That Continues to Pay Off… March 25, 2010 43
  • Considerations 44
  • The Need for Transparent Disclosure and the New FTC Guidelines • In early 2009, the Word of Mouth Marketing Association began working with its members and the FTC to submit comments regarding the Guide to Endorsements and Testimonials in Advertising on behalf of the Word of Mouth industry • WOMMA launched their own Ethics Code in 2005 to provide consumers with insight into ethical standards online • Through WOMMA’s “Living Ethics” project and in anticipation of the FTC Guide update, changes to their Ethics Code re: compensation and transparent disclosure were announced in 2009 45
  • Questions Contact Information: Dave Kissel Email: dkissel@zocalogroup.com Twitter: @DaveKissel Phone: 312.596.6276 Website: zocalogroup.com | womma.org 46