Getting Into Word-of-Mouth Conversations
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The document discusses how to manage word-of-mouth conversations. It notes that most word-of-mouth is stimulated by everyday conversations rather than marketing efforts. Research with the company BzzAgent found that word-of-mouth conversations most often occur between friends and family at home, and discuss life, buying products/services, arts/entertainment, and technology. Understanding these conversational contexts can help marketers better incorporate word-of-mouth into their strategies.
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Getting Into Word-of-Mouth Conversations
- 1. BSI Getting Into the Conversations – How to Manage Word-of-Mouth Conversations Marketing 2.0 Conference, Hamburg 2005
- 2. BSI Join the conversation MARKETING 2.0 CONFERENCE www.marketing2conference.com
- 3. Getting Into the Conversation: How to Manage Word-of-Mouth Communication and Influence Walter J. Carl, Ph.D. Northeastern University 1. International Word-of-Mouth Marketing Conference 6-7 October 2005 – Hamburg, Germany © Walter J. Carl, Ph.D. Northeastern University.
- 4. Conversation, Interrupted © http://www.kennys.ie/Exhibitions/2002/p-oconnell/In%20Deep%20Conversation.jpg
- 5. Percentage of WOM conversations stimulated by marketing organization’s promotional efforts… Source: Mangold, Miller, and Brockway (1999). The Journal of Services Marketing.
- 6. Top 2 WOM Stimulants 1. Conversational Partner’s 50.3% Felt Need 2. Coincidental WOM 18.4% Source: Mangold, Miller, and Brockway (1999). The Journal of Services Marketing.
- 7. It’s Not About Marketing • Effective WOM marketing… – is not rooted in the marketing of a particular organization, brand, product, or service. – is based in the everyday relationships, conversations, and relevancies of people discussing other matters.
- 8. Analogy: Social Support • Social support involves comforting others, giving advice, and supportive interaction. • Research has shown importance of everyday, routine conversations. Source: Leatham & Duck (1990). In Personal Relationships and Social Support.
- 9. What Do The Conversations “Look Like”? • Participants • Topics • Locations • Activities Conversational Geography of Word-of-Mouth
- 10. Research Partner: BzzAgent, Inc. • Agency works with volunteers who receive samples or discounts for products along with an information booklet. • Agents share opinions with others, report on those interactions, and receive personalized feedback on those reports from Agency. • Agents earn points for reporting, though most are not redeemed. • Agency compiles report for brand company.
- 11. Offline v. Online * Out of 2,088 WOM-Episodes © Walter J. Carl, Ph.D. Northeastern University.
- 12. Participants © Walter J. Carl, Ph.D. Northeastern University.
- 13. Topics Top Four Life/ Living 24.9% Buying Products/ 23.1% Services Arts/ 12.3% Entertainment Technology/ 10.6% Science © Walter J. Carl, Ph.D. Northeastern University * Out of 2,088 WOM-Episodes
- 14. Locations Top Three Home 39.7% Work 21.6% Commercial 13.7% © Walter J. Carl, Ph.D. Northeastern University * Out of 2,088 WOM-Episodes
- 15. Activities Top Five Eating 23.2% Working 12.5% Browsing Net 8.8% Childcare 7.7% Watching TV 7.4% © Walter J. Carl, Ph.D. Northeastern University * Out of 2,088 WOM-Episodes
- 16. Putting It All Together… Topics Participants Locations Activities
- 17. Putting It All Together… • Friends and family members are most often surprised to Topics Participants Locations Activities hear about the health benefits Product X. • Product Y commonly gets discussed with strangers and Topics Participants Locations Activities acquaintances on public transportation. • Brand Z often gets talked about when people are Topics Participants Locations Activities interested in buying a related product or service.
- 18. Knowledge of Conversational Geography Can Result In… • Re-design of product Participants Topics packaging; Locations Activities Topics • Encouraging other customers Participants Locations Activities to talk about the product in the Topics same way; Participants Locations Activities • Seeding a product in particular kinds of social networks, locations, venues, etc.
- 19. Key Take-Away Point Participants Topics • Marketers need to better Locations Activities understand the context of WOM conversations and how the brand-related content is woven into the everyday talk that is already going on.
- 20. WOM: The End of Marketing & Advertising? • ~40% of WOM episodes contained reference to at least one additional media form © http://www.artchive.com/artchive/b/botticelli/birth_of_venus_detail.jpg
- 21. References to Other Media Forms Top Six TV Ad 16.1% Magazine Ad 8.1% Newspaper Ad 7.3% Web Ad (Banner) 7.0% In-Store Ad 5.8% TV Show 5.8% © Walter J. Carl, Ph.D. Northeastern University * Out of 2,088 WOM-Episodes
- 22. Credibility Effect of WOM How WOM Affects Perception of Information Learned from Other Media Sources © Walter J. Carl, Ph.D. Northeastern University * Early Results – Do Not Cite
- 23. Key Take-Away Point • Incorporate WOM into existing initiatives to leverage credibility effect.
- 24. Case Study: VW’s Alpha Drivers • WOM & loyalty program developed by BzzAgent & Arnold. • Screened and invited 5,000 Passat owners and brand advocates. • 12-week campaign. • Dedicated website to interact with VW & talk up 2006 Passat. • Gained special access, including web cast with Exec. VP Len Hunt and 24-hour test drive.
- 25. Through VW of America’s exclusive Alpha Driver’s program… I’ve been able to procure myself a nice little 24-hour test drive… I wonder if gas is included?
- 26. I’m part of the VW Alpha Drivers program. The new Passat is luxurious. The new Passat is a very nice car that is probably worth the money, but…
- 27. OK, I’m part of Volkswagen’s Alpha Drivers Network… … they send me swag and I get to promote it for them… Somebody at VW’s ad agency needs a time out.
- 28. Key Take-Away Point • Become a participant in the conversations by… – Involving consumers early on – Providing behind-the-scenes access – Creating space to respond to feedback and facilitate C2C Participants Topics conversations Locations Activities – Learning from offline and online conversations
- 29. Wrap Up Participants Topics • Understand conversational Locations Activities and relational contexts of WOM • Incorporate WOM into marketing mix to leverage credibility effect • Become a participant in WOM conversations
- 30. Presenter Information Walter J. Carl, Ph.D. Department of Communication Studies 101 Lake Hall Northeastern University Boston, MA 02115 617-373-4075 Please contact me if your company is interested in collaborating on w.carl@neu.edu future WOM and http://www.waltercarl.neu.edu buzz marketing research projects. http://www.wom-study.blogspot.com
- 31. Top Five WOM Stimulants For Service-Related WOM Episodes Conversational Partner’s Felt Need 50.3% Coincidental WOM 18.4% (Dis)Satisfaction with Service 8.8% Observance of Purchase or Its Outcome 6.5% 2+ Collectively Trying to Select Service 6.1% Source: Mangold, Miller, and Brockway (1999). The Journal of Services Marketing.
- 32. Filtering Participants • Demographics & Psychographics • Reichheld’s “Net Promoter” Score – How likely is it that you would recommend [company X] to a friend or colleague? • MediaLab’s “Transmitters” – How often do you talk about it? – How many people do you tell? – How much information can you give? – How likely can you convince them?