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Word of Mouth Marketing for the Direct Marketing Association


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This "Art & Science of Word of Mouth Marketing" presentation illustrates cultural and media trends using case studies of sustainable upstarts that pose new challenges to the direct marketing industry and to the US Postal Service.

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Word of Mouth Marketing for the Direct Marketing Association

  1. 1. The Art & Science of Word of Mouth Marketing 02.12.2008
  2. 2. Word of Mouth Defined Source : WOMMA <ul><li>WORD OF MOUTH (WOM) </li></ul><ul><li>The sharing of an opinion about a product or service between two or more people. </li></ul><ul><ul><ul><li>When a marketer says something, it’s advertising or PR. </li></ul></ul></ul><ul><ul><ul><li>When a consumer says it, it’s word of mouth. </li></ul></ul></ul>
  3. 3. Amplified vs. Organic WOM AMPLIFIED A marketing campaign designed to encourage or accelerate WOM in existing or new communities. ORGANIC A natural occurrence when people become advocates because they’re happy and have a natural desire to share their enthusiasm.
  4. 4. A Mindset, A Movement <ul><li>… and Marketing Channel </li></ul>
  5. 5. Word of Mouth Has Always Mattered <ul><li>92% cite WOM as a BEST trust Word-of-Mouth for purchase ideas and information </li></ul><ul><ul><li>56% trust editorial content </li></ul></ul><ul><ul><li>55% trust advertising </li></ul></ul><ul><li>76% TRUST others opinions </li></ul><ul><ul><li>56% own past experience </li></ul></ul><ul><ul><li>15% advertising </li></ul></ul>
  6. 6. Think LESS about enhancing your BRAND image… … MORE about what’s of VALUE to WOM participants Psychology
  7. 7. Word of Mouth is Different Online
  8. 8. Online WOM is a Game Changer
  9. 9. Reputation in Ruins
  10. 10. Disproportionate Digital Influence Source : The Influentials, Jon Berry & Ed Kellerr Authors Jackie Huba & Ben McConnell <ul><li>10% </li></ul><ul><li>Americans influence the other 90% </li></ul><ul><li>1% Rule </li></ul><ul><li>For every 1 person who posts on a digital forum, at least 99 others view that content but don’t leave a trail. </li></ul>
  11. 11. The Network Affect Source : MotiveQuest, LLC Mavens – 20% of online influencers. Post very frequently and get their social worth from knowing and sharing Networked Opinion Formers – the other 80% of the online people looking for information Offline word of mouth. Get many of their options from their online friends because of the network effect
  12. 12. Mediascape: Not What It Used to Be <ul><li>WOM Matters More than Ever </li></ul>
  13. 13. New Channels of Insight & Engagement <ul><li>Video-sharing site </li></ul><ul><li>Average site visit: 48 minutes </li></ul><ul><li>100 million video streams per day </li></ul><ul><li>100,000+ videos uploaded / day </li></ul><ul><li>Fastest-growing web site in Internet history </li></ul><ul><li>61% of visitors: 35+ </li></ul><ul><li>Social networking site with 222 million members </li></ul><ul><li>More page views per day than Google and eBay combined </li></ul><ul><li>Drives more traffic to retailers than MSN Search </li></ul><ul><li>Over 50 % of users are 35 or older </li></ul><ul><li>1 in 3 are 45+ </li></ul><ul><li>Blogs: online personal journals - 112 million (12-17-07) </li></ul><ul><li>2 new blogs each second </li></ul><ul><li>Perpetual focus group </li></ul><ul><li>64 million users </li></ul><ul><li>Average site visit: 20 minutes </li></ul><ul><li>6th most visited site in the world </li></ul><ul><li>50+ of users return daily </li></ul>
  14. 14. WOM Must Be Transparent and Ethical Types of Unethical Word of Mouth Marketing Stealth Marketing: Deceiving people about marketing being involved with a communication. Shilling: Payola for product promotion without disclosing you work for a company. Impersonating a customer. Infiltration: Using fake identities in an online discussion to promote a product. Defacement: Vandalizing or damaging property to promote a product. Falsification: Knowingly disseminating false or misleading information. Spam… of any kind Source : WOMMA
  15. 15. WOM Marketing Types of Word of Mouth Marketing viral marketing buzz marketing community marketing grassroots marketing evangelist marketing product seeding influencer marketing cause marketing conversation creation brand blogging referral programs Source : WOMMA Give People a REASON to TALK … … make it EASY to tell others
  16. 16. WOM Strategies
  17. 17. Encourage Communications
  18. 18. Encourage Communications
  19. 19. Give People Something to Talk About
  20. 20. Give People Something to Talk About THINK BIG
  21. 21. Connect People & Build Community
  22. 22. Work with Influential Communities
  23. 23. Evangelist & Advocacy Programs
  24. 24. Engage in Active Listening
  25. 25. Engage in Active Listening Source: TalkTrack ™, Keller-Fay 2006
  26. 26. Give People Something to Talk About
  27. 27. Monitor and Measure Associations with “Plastic” Anya Hindmarch phenomenon Pyrex Glassware as Tupperware alternative Discussion around using canvas or reusing plastic grocery bags. Plastic Recycling habits
  28. 28. Give People Something to Talk About
  29. 29. Give People Something to Talk About
  30. 30. Make Sharing Easy
  31. 31. Co-Creation & Information-Sharing
  32. 32. ACTIONS for Change Agents
  33. 33. #1: Ask the Ultimate Question <ul><li>How likely are you to recommend Company or Product X to a friend or colleague? </li></ul>
  34. 34. #2: Listen to and Nurture Passionates
  35. 35. #3: Be Remarkable Be Interesting -- or Be Invisible! -- Andy Sernovitz Source : Purple Cow, Seth Godin Be Interesting -- or Be Invisible! -- Andy Sernovitz
  36. 36. Source : Email Experience Council #4: E-Mail: Ultimate Gen X WOM Tool?
  37. 37. #5: Get Started <ul><li>Source: Andy Sernovitz, Word of Mouth Marketing: How Smart Companies Get People Talking. </li></ul>
  38. 38. Social Media Reflects & Influences The Truth of Your Brand Adv Promo Direct PR Social Media & Online Visibility Credibility Insights Engagement Measurement
  39. 39. YOU Can Lead in New Directions!
  40. 40. Direct Marketing Resource Favs: www. SmallPlanetPartners .com February 11, 2008 blog post Workshops, Seminars & Strategy [email_address] 816.914.1490 Thank You