The document discusses word of mouth marketing and social media engagement. It provides statistics on consumer brand conversations and social media usage among Fortune 100 companies. It emphasizes the importance of listening to consumers, responding authentically to feedback, and empowering advocates. The goal is to make word of mouth and customer relationships the center of marketing strategy.

2. PEMCO:
Vice Pres & CMO
WOMMA:
Board President
source | Nielsen study (August 2010)

3. WOMMA advances and
advocates the discipline of
credible word of mouth
marketing.
source | Nielsen study (August 2010)

4. Social Social Social
Media Engagement Business
What comes to mind?
source | Nielsen study (August 2010)

5. Social Social Social
Media Engagement
Engagement Business
What comes to mind?
Hint:
One is noun. Shows
One is verb. Action
One is an adjective.
source | Nielsen study (August 2010)

8. Includes all value
exchanges that
enrich relationships
between customers
and company.

9. 93% of US consumers have
at least one brand-related
conversation face-to-face
every day.
source | Keller Fay & Yahoo! study (June 2010)

10. 45% of US consumers have
at least one brand-related
conversation voice-to-voice
every day.
source | Keller Fay & Yahoo! study (June 2010)

11. 22% of US consumers have
at least one brand-related
conversation online
every day.
source | Keller Fay & Yahoo! study (June 2010)

12. Social Media Socially Engaged
Voice of the Company Voice of the Customer
Top-Down Control Bottom-Up Messaging
Company-Generated Consumer-Generated
Messages Messages
Infrequently Updated Continuously Updated
source | Nielsen study (August 2010)

13. Social Media Socially Engaged
Voice of the Company Voice of the Customer
Top-Down Control Bottom-Up Messaging
Company-Generated Consumer-Generated
Messages Messages
Infrequently Updated Continuously Updated

14. Social Media Socially Engaged
Voice of the Company Voice of the Customer
Top-Down Control Bottom-Up Messaging
Company-Generated Consumer-Generated
Messages Messages
Infrequently Updated Continuously Updated

15. Social Media Socially Engaged
Voice of the Company Voice of the Customer
Top-Down Control Bottom-Up Messaging
Company-Generated Consumer-Generated
Messages Messages
Infrequently Updated Continuously Updated

16. 23% of people’s time
spent on the Internet is on
Social Media websites
source | Nielsen study (August 2010)

18. 2010 – Fortune 100 Companies…
65% are on Twitter
54% are on Facebook
29% use YouTube
33% maintain a blog
source | Burson-Marsteller & Digital Media Study (February 2010)

19. 2011 – Fortune 100 Companies…
77% are on Twitter
61% are on Facebook
57% use YouTube
36% maintain a blog
source | Burson-Marsteller & Digital Media Study (February 2011)

20. The average number of
Twitter accounts Fortune 100
firms maintain is 5.8
source | Burson-Marsteller “Global Social Media Check-Up” report (February 2010)

21. Fortune 100 firms are
tweeting, on average,
25 to 30 times per week
source | Burson-Marsteller “Global Social Media Check-Up” report (February 2010)

22. 84% of Fortune 100
businesses with a Facebook
page are actively using it
(NOTE: Up from 59% in 2010)
source | Burson-Marsteller “Global Social Media Check-Up” report (February 2011)

23. Fortune 100 firms average
4 updates per week to their
Facebook page
source | Burson-Marsteller “Global Social Media Check-Up” report (February 2010)

24. “… companies that are both
deeply and widely engaged in
social media surpass their peers in
terms of both revenue and profit
performance by a significant
difference.”

25. 22,300,000+ Facebook fans
source | Starbucks Facebook Page (May 26, 2010)

26. “It isn’t a marketing initiative.
It isn’t a PR initiative. It’s
cultivating and creating great
consumer value and great
customer relationships”
Alexandra Wheeler
22,313,818 Facebook fans
digital strategy director, Starbucks

27. “The key here is that we are
connecting directly with our
loyal customers who will be
driving our future growth.”
Howard Schultz
22,313,818 Facebook fans
Chairman & CEO, Starbucks
source | Starbucks Q3’09 - Earnings Call Transcript, July 21, 2009

29. Word of Mouth is the primary
factor behind 20% to 50%
of all purchase decisions.
source | “A New Way to Measure Word-of-Mouth Marketing” (McKinsey Quarterly, April 2010)

30. 54% of US adults identified
old-fashioned Word of Mouth
as most important influencer
of purchase decisions.
source | “Digital Marketer Report, Experian – 2011

31. Where does
WOM fit in your
marketing
strategy?

32. Where does
WOM fit in your
business
strategy?

33. PEMCO’s BHAG:
Big Hairy Audacious Goal

34. 76% of consumers believe
companies are untruthful in
their advertising.
source | Bold Mouth’s “Perceptions, Practices, and Ethics” report (2006)

35. Advertised In Reality
source | Bold Mouth’s “Perceptions, Practices, and Ethics” report (2006)

36. 78% of global
consumers say they
trust recommendations
from other consumers
source | Nielsen’s “Trust in Advertising” Report (2007)

37. Referrals as important as price
Reason 2001 2002 2005 2007 2008 2009 2010
Price 60% 62% 50% 50% 36% 40% 33%
Referral and/or 10% 12% 17% 20% 22% 22% 32%
Recommendation
Liked the agent 15% 11% 9% 9% 9% 9% 13%
Good service 33% 23% 5% 4% 9% 4% 10%
Local company <1% <1% <1% <1% 9% 6% 7%
source | PEMCO Mutual Insurance Co, “Market Metrics – 2010”

38. The typical American
mentions specific brand
names 60 times per week in
offline & online conversations.
source | Keller Fay “ Talk Track” report (2010)

39. 68% of WOM conversations
are mostly positive
8% of WOM conversations
are mostly negative
source | Keller Fay “ Talk Track” report (2009)

40. Public Displays of Affection
source | http://www.flickr.com/photos/boudster/3716337113/

41. 22% of US consumers have
at least one brand-related
conversation online every
day.
Public Displays of Affection
source | Keller Fay & Yahoo! study (June 2010)

42. Public Displays of Aggravation
source | http://www.flickr.com/photos/

43. 22% of US consumers have
at least one brand-related
conversation online every
day.
Public Displays of Aggravation

44. 67% of companies are
using Twitter to respond
to people’s tweets
(NOTE: Up from 38% in 2010)
source | Burson-Marsteller “Global Social Media Check-Up” report (February 2011)

46. Consumers are talking about you…
Decide to listen
Decide to be affected
Decide to respond
Decide to be engaged

47. Listening is
marketing’s
greatest opportunity.

48. Listening is
your company’s
greatest opportunity.

49. Use the
available
search
functions

50. 22% of US consumers have
at least one brand-related
conversation online every
day.
Public Displays of Affection

51. 22% of US consumers have
at least one brand-related
conversation online every
day.
Public Displays of Affection

52. 22% of US consumers have
at least one brand-related
conversation online every
day.
Public Displays of Aggravation

53. Customer
reviews and
stories affect
operations.
• Start every meeting with a
customer story!

54. “When consumers write
reviews online ... the
average grade is 4.3 stars
out of 5.”
source | Wall Street Journal article (Oct. 5, 2009)

55. Create a
place to
welcome
feedback

56. Create a
place to
welcome
feedback

57. When Layne’s son was hit by a drunk driver, dealing with
their insurance company was a major headache. It was in stark
contrast to the service he’d always received at PEMCO. Layne
knows good service when he sees it – and PEMCO’s been stellar.

58. When Paul learned that his dream home had been burglarized and
stripped of $10,000 of new hardware, he didn’t know where to turn.
Though an unfortunate setback to the project, PEMCO helped make
a quick decision and the project moved forward on time.

59. Respond with timely
appreciation, empathy,
sincerity and authenticity.

60. “When you hit a wrong
note, it’s the next
note that makes it
good or bad.”
source | Slide used with permission of John Moore, BrandAutopsy

61. Two great ways to respond
to even the most
challenging assertions.

62. Thank You
and
We’re Sorry

63. Sorry!
24 hours
47 minutes
Feb 22nd - 3:18 to
Feb 23rd - 4:05 p.m.

64. Use humor
that gives,
not takes!

65. Use humor
that gives,
not takes!

69. Listen
Engage
at every
+
touch
Enable Participate
Partnership
point
Encourage

70. Keep the
Advocacy
Engine
In motion

72. Don’t let your first day of social be “not so good”
source | Scott Adams Dilbert Cartoons @dilbert.com | 09-13-10

78. Word of mouth marketing basics…
Know your talkers
Give them something about
to talk
Make it easy to share
And always remember…

80. Let’s Connect
Twitter: @NW_Mktg_Guy
Facebook: Rod Brooks
Linked In: Rod Brooks
Blog: www.rodbrooks.com