The tale of a consumer…


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The tale of a consumer…

  1. 1. BSI The tale of a consumer… Marketing 2.0 Conference, Amsterdam 2007
  2. 2. Join the conversation MARKETING 2.0 CONFERENCE
  3. 3. This is the tale of a consumer... Buzzer © 2007 - Vertrouwelijk
  4. 4. I am a consumer. I will share some experiences about my life as a consumer. In my daily confrontation with products, brands and their marketing. I love to search for new products, make choices. I don’t think there is too much choice, I just think it is not easy enough to choose. I love to cook. I wonder about ceramic knives. They stay sharp forever, but can break. But there is a new variety that doesn’t break. That’s what the ads say. But nobody has them, so I can’t check this. I should go online and find some reviews. Online reviews are easy to find usually, but I don’t know these people so it is harder to know what their opinions mean. So best is doing some research online and then ask someone I know some targeted questions. So I’ll have to wait until one of my friends has one. Maybe I can lure one into getting a knife before I do. It would be even better if I could try them out myself. And samples, try-outs are popping up everywhere. Good stuff. Any company willing to put its balls on the block gets my sympathy vote. Usually. I watch Gordon Ramsay’s TV show in which he violently, swearing tries to bring a fucking English pub back into fucking shape. His marketing plan is extremely simple: they make bites of the new menu, walk into town and let everybody taste it. It works for the Pub. Skype gave me ‘credits’ to call anyone in the world for free. The fact that they enable me to reach anyone out there makes me feel good about them. Even though I know they’re trying to hook me. 2 days later I receive an email telling me I have to hurry because the credit will go away in 3 days. Good vibes start to eb away. Skype is telling me to call these people NOW ! I decide to give it a chance. I call someone. Skype mentions I have no credit left. Bye bye Skype. But they get another chance. Because of HP. Let me explain. My dislike of HP reached a new peak after they returned my laptop after 2 months of waiting for a simple repair. Despite the fact that I have a special warranty which guarantees a return in a a week. But they do not guarantee that the parts are available. So it could take years. In theory. And in practice. I now want to tell everybody that they should never buy an HP. And in fact, the next time I experience something like this, I can. Because there now is a Skype plugin with which you can record your conversations. And that consumers are putting recorded conversations with customer service centres online. I decide that I will start using Skype. Only for calls to customer service centres. But sometimes you don’t get curious through an ad, do your research and ask people their opinions. Sometimes you just buy. Immediately. My wife and I went to an expo of Erwin Olaf, the photographer. With no intention of buying. In 10 minutes my wife and I decide to buy a photograph worth 9000 euro. Thank god we can pay over 36 months time. I spend more time to buy a toothbrush then this picture. One thing that pushed me over the bridge here is that someone at the Gallery explained that the first buyers (there are 10 photographs being sold) pay less than the last buyers. This is poetic justice: you take more risk, you pay less. You act as an ambassador, you are rewarded. In most cases, companies do the reverse. You are the pioneer, you pay more. Silly. Buzzer © 2007 - Vertrouwelijk
  5. 5. Another example of twisted logic. Utility companies, banks and insurers want to reward me if I recommend them to friends. Financially. It might sound logical. I do something for you, you for me. But I only recommend when I am happy to do so. Otherwise I screw my friends. So why don’t companies reward the people who are willing to trust my recommendation ? Give them the discount, you make me a hero in the eyes of my friends. I don’t want to be bought. Endorsements of products pop up everywhere. In ads. Which makes you wonder. A poster for a new show with horses, dancers, music. Cavalia. According to Larry King it is “the greatest show he has ever seen”. I admire Larry for his ability to host a talkshow, but how do I know we have the same taste in shows, how do I know he wasn’t paid to say this ? The most confusing aspect is that while companies don’t want to listen to my urgent requests, they do want me to upload my life on their website and into their database. Movies, pictures, ideas, anything. While the product I own now is breaking down, they are asking me to design a new one for them. While they do not return my calls or answer my questions, they bombard me with online questionnaires. The funny thing is, I don’t hate ads. Yes there are too many of them. Yes, they intrude. For instance in one of my favourite café’s. I spot a new TV-like screen. It features ads. Because it is animated and because they are well-made, the ads draw my attention. One minute I look at them while my wife tries to explain something to me, the other minute our roles reverse. Right, so now ads will hinder social interaction in a café ? That should do wonders for the atmosphere. But I guess we will learn how to ignore them. Which will trigger a new form of advertising. And so on But the most difficult thing nowadays is to know what it is you are looking at. I it an objective editorial, an advertorial, ad, endorsement from a real consumer, real or bogus research claim, an amateur movie or a camouflaged commercial ? I read in that a financial column in a major US newspaper will be sponsored by a bank, because the newspapers do not have enough money. But they will not dictate the content. Their logo will be on it, and their corporate colours. Funny enough, I think that’s fine. Everybody knows what they are getting. Money for presence. But in most cases, it is much less clear. In all this confusion I find I return more and more to the one source of information about products I trust: my friends, colleagues. Other consumers. They might not tell it as beautifully or coherently, but I can trust them. Or can I ? I have heard that they are now paying consumers to spread word of mouth…that can’t be true, let it not be true ! Willem Sodderland, consumer. “Well, fortunately that’s not true. But some people thought – when we started, and sometimes still – that Buzzers were being paid. Which symbolises the confusion, distrust consumers have built up about marketing…” Buzzer © 2007 - Vertrouwelijk
  6. 6. Willem Sodderland IWOMC 3 10 – 5 -2007 Amsterdam Buzzer © 2007 - Vertrouwelijk
  7. 7. Marketing has finally become a conversation. Not, in most cases, as was intended, BETWEEN corporations and consumers (that would make too much sense), but rather a global conversation involving millions of consumers ABOUT corporations. On numerous sites and on hundreds of thousands of blogs, community sites, forums, viral emails and bulletin boards consumers relentlessly exchange views, complaints, opinions and comments about products and services, about brands, about companies, about YOUR company. Buzzer © 2007 - Vertrouwelijk
  8. 8. Consumers are taking the lead… …and play by a new set of rules Buy a house which is not on the market. Invite bids for your car repair Shop in groups Demand an event to come to you Buzzer © 2007 - Vertrouwelijk
  9. 9. The world has become flat... …and so will marketing • You can’t lie or • You can’t hide, ignore or ‘spin’ • You can’t bully or force • You need feedback • You need permission • You need to collaborate • You need to be flexible, fast • You need to stick to your... • Etc. The new rules come natural to consumers, but not to the corporations that created the Buzzer © 2007 - Vertrouwelijk ‘old’, vertical rules of ‘top down power’
  10. 10. 1st reaction marketeers: ignore new laws (they will go away) Coca Cola & Mentos ‘Geyser’ ‘Free’ mail Coca Cola shuns consumers ‘abusing’ Consumers send mail for free & spam the receiver with ads their product When you participate, you receive more ads yourself Some users only send companies the spam envelopes (!) Buzzer © 2007 - Vertrouwelijk
  11. 11. 2nd reaction marketeers: bend the new laws (we can do this !) “Willem’s presentation at the IWOMC was the best ever held in any conference about any topic. And he is very, very handsome” I. Maginary, IWOMC attendant Buy Willem Now ! (limited pieces left) 9 out of 10 people* that did not go to the IWOMC said Willem’s presentation would have improved the quality of their lives if they had witnessed it. * Tested among a sample of hypothetical people. Buzzer © 2007 - Vertrouwelijk
  12. 12. 3rd reaction marketeers: ‘get rich quick’ Wow ! We make sure a blogger gets our product (and maybe pay him/her a little) and we reach millions of people for free !! You ship out your message and it will reach vs. everybody at no cost Buzzer © 2007 - Vertrouwelijk
  13. 13. Slow realisation: open source marketing structural shift 6. Learn & adopt new mentality & business models 5. Embed WoM structurally 4. Serious experimentation Succesful cases, professional WoM players 3. Disappointment 2. Ignore, bend, (time of consultants & gurus) get rich quick The job of the WoM industry is to learn 1. Consumers various players to play by the new rules & startups of ‘flat’ or open source marketing rule Buzzer © 2007 - Vertrouwelijk
  14. 14. Tools of the WoM Industry Access to Consumers Media & Seed products Logistics Create WoM-specific tools & content Storytelling, campaigns Creative Start, stimulate, mediate dialogues Facilitate collaboration Create (technological) tools Tools Measure, research, analyse Advisory Insights Buzzer © 2007 - Vertrouwelijk
  15. 15. Zooming in: Buzzer(s), Cases, Trends Consumers Product Campaign Dialogue Measure • 30+ Campaigns Observations after • 40.000 BuzzReports • 125 BuzzPolls Buzzer © 2007 - Vertrouwelijk
  16. 16. Buzzer © 2007 - Vertrouwelijk
  17. 17. BuzzTools: examples BuzzPolls BuzzMails BuzzMail 1 BuzzMail 2 BuzzMail 3 BuzzMail 4 BuzzMail 5 BuzzMail 6 BuzzMail 7 BuzzMail 8 BuzzMail 9 BuzzKit Nieuws BlufGuide What's the Buzz BuzzTips & Acties Buzzable Feitjes Prijzen Materialen Praktische Info Finish Buzzer © 2007 - Vertrouwelijk
  18. 18. Real life Buzz examples • 3118 BuzzRepports with Buzz stories about > 60.000 ‘buzzees’ • MolBlog posting via Buzzer/Blogger. 7878 readers, 39 reactions • >8000 extra views of Fusion commercial • 6442 readers BuzzLog Buzzer © 2007 - Vertrouwelijk
  19. 19. Real life Buzz examples • reaction by a Buzzer, quoting from a BuzzMail. • Fusion (thread) 8526 times seen... • Blog (by a Buzzer) • 10633 pageviews Fusion posting Buzzer © 2007 - Vertrouwelijk
  20. 20. Real life Buzz examples • Buzzer gets (other) editors of radioshow to test Fusion, aired live for +/- 45.000 listeners • > 10.000 BlufGuides handed out… • Buzzer review on well- visited Blog, 20+ reactions Buzzer © 2007 - Vertrouwelijk
  21. 21. Real life Buzz examples • 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… Buzzer © 2007 - Vertrouwelijk
  22. 22. Insights created For consumers For Gillette Blade‘life’ Shave ‘value’ • Shaving challenges +€ • Brands/loyalty • Techniques • Shaving habits • Beliefs • Demographics • Improvements • Story/buzzable Personal Economic • Marketing effectiveness Shaving Advice • Etc. Buzzer © 2007 - Vertrouwelijk
  23. 23. * Excluding traffic to Super de Boer & 3rd Numbers: from Trial to Adoption generation buzz etc. Objective G0 + Trial G1 WoM G2 Measured > 2.100 +/- 100.000 >300.000* 140% 250% 187% • 80 % Buzzers has adopted Adoption • >15.000 ‘buzzed’ sales mentioned • X % of 300.000 have bought the Fusion Buzzer © 2007 - Vertrouwelijk
  24. 24. WoM leverages ‘above the line’ A superproduct! Innovative and highly buzzable, as shaving is important. I have buzzed lots of guys, via work and the sportclub. Positive reactions, but they question the price and say “with how many blades will it stop ?” When they hear from me that it really works they become really interested” I am certain that friends have bought the Gillette because of my stories, so your concept works. For me personally, it is a real improvement in shaving, which I never had expected...” Buzzer Alann A commercial sells the concept of a product. WoM translates the concept to actual personal value: the reason to buy the product. Buzzer © 2007 - Vertrouwelijk
  25. 25. Lego Logic. Think about it. What do you do with pieces of Lego ? You create things that the maker of Lego hadn’t thought about. Co-creation is the logical extension of this existing relationship between product and user. The identity of a brand and the intrinsic qualities of a product determine to a great extent which WoM tools can work. Buzzer © 2007 - Vertrouwelijk
  26. 26. Moustache Guerillas: start conversations. Facilitating, stimulating conversations is key to the succes of word of mouth marketing. Buzzer © 2007 - Vertrouwelijk
  27. 27. Buzzer © 2007 - Vertrouwelijk
  28. 28. Viability of WoM platforms: market breadth Buzzer © 2007 - Vertrouwelijk
  29. 29. Viability of WoM platforms: # Buzzers Start Buzzer Start Buzzer Belgium Belgium Buzzer © 2007 - Vertrouwelijk
  30. 30. Viability of WoM platforms: key indicators • Annual revenue growth > 400% • 60% repeat business • Measurability improves • 1st cross-border campaign • WoM as % of marketing budget ↑↑ • Better integration with other media • ‘Buzzers’ become more effective • Feedback creating new value + • Lots of challenges, uncertainties Buzzer © 2007 - Vertrouwelijk
  31. 31. WoM Marketing: predictions, trends • Strong local players create markets • Measurement addressed internationally • One stop shops in immature markets • Specialisation in sophisticated markets • From buzz to co-creation & specialised dialogues • Run on existing social networks • Specialised consumer networks • Inhouse networks vs. external networks • Intensive-trained networks vs. other Buzzer © 2007 - Vertrouwelijk
  32. 32. Q&A & Contact Details Tomorrow: Peeter Verlegh (Buzz Awards Research) Buzzer © 2007 - Vertrouwelijk