Ignite The Spark


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December 3 presentation by Sean Moffitt of Agent Wildfire and the Buzz Canuck blog. Posted with permission.

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  • Thank you for the chance to talk about word of mouth… Personal background: Client for many years at P&G, Molson, Guinness/Diageo, a place called Echo Having spent a wealth on traditional advertising – I’m a born-again marketer My bet is it’s a big part of marketing’s future and at the end of this presentation, you’ll grab three things: - word of mouth is really powerful and for a wide a variety of brands, I should be thinking about it as an integrated part of upcoming plans - word of mouth can be orchestrated and you can do it credibly and avoid the pitfalls, you can make it a valuable marketing touchpoint and maybe even strategy for your business - Agent Wildfire is Canada’s Expert here – they have the experience, knowledge, database, assets and team to help my business – they are not one size fits all, they have options sized for my business
  • Ignite The Spark

    2. 2. It’s Was a Long Movember… November Stretch Goal Objective Minimum Goal 1st 31st Quality Of Moustache Final Position Support Sean Moffitt’s Pity ‘Stache @ www.Movember.ca PROGRESS CHART
    3. 3. A Wishful December…
    4. 4. Our Expertise: Word of Mouth (WOM) <ul><li>We Strategize It </li></ul><ul><li>We Plan It </li></ul><ul><li>We Build It </li></ul><ul><li>We Seed It </li></ul><ul><li>We Spread It </li></ul><ul><li>We Incubate It </li></ul><ul><li>We Measure It </li></ul><ul><li>We Monitor It </li></ul>
    5. 5. Agent Wildfire – Canada’s Word of Mouth Firestarter
    6. 6. Wiki Brands - Mass Collaboration Gone Marketing
    7. 7. Why Government & Word of Mouth? <ul><li>Best way to disseminate information </li></ul><ul><li>Too many constituent audiences </li></ul><ul><li>A trust gap </li></ul><ul><li>Politically and civically aware are true influencers </li></ul><ul><li>A noble purpose </li></ul>
    8. 8. Are You Ready To Become Word of Mouth Evangelists?
    10. 10. Agent Wildfire Key Belief #1– The Power of Word of Mouth “ The clear and away strongest predictor of a company’s growth rate is “would you recommend this to a colleague or friend?” Fred Reichheld, Bain Fellow and Author, The Ultimate Question – Driving Good Profits & True Growth
    12. 12. More Than Ever, We Listen to Our Friends
    13. 13. iii. Why is Word of Mouth Back in Vogue?
    14. 15. <ul><li> 1960/70s 2007 </li></ul><ul><li>Ads Exposed to Daily </li></ul><ul><li> 700 3,000-5,000 </li></ul><ul><li>Per Capita Spending on Ads </li></ul><ul><li> $110 $865* </li></ul><ul><li>Ave No. of TV Channel/Household </li></ul><ul><li> 5.7 82.4 </li></ul><ul><li>No. of Products - Grocery Store </li></ul><ul><li> 7,000 45,000+ </li></ul><ul><li>No. of Books Available </li></ul><ul><li> 20,000 4 mil.+ </li></ul><ul><li>Day-After-Recall on TV Ads </li></ul><ul><li> 36% 3% </li></ul><ul><li>Trust Ranking of Advertisers </li></ul><ul><li> n/a 20nd out of 21 </li></ul><ul><li>US numbers, Inflation adjusted number for 2007 $465, </li></ul><ul><li>4x as much as 1972 </li></ul>“ The Perfect Brand Storm”
    15. 18. <ul><li>However, Word of mouth is: </li></ul><ul><li>Trusted </li></ul><ul><li>Time-Saving </li></ul><ul><li>Reliable </li></ul><ul><li>Providing a Benefit </li></ul><ul><li>Enjoyable </li></ul><ul><li>Acted On </li></ul><ul><li>Jumping Hurdles </li></ul><ul><li>Fueling Passion </li></ul>
    16. 19. iv. What does “Word of Mouth Marketing” mean?
    17. 20. Two Camps of Word of Mouth <ul><li>ORGANIC </li></ul><ul><li>(Baked into the product) </li></ul><ul><li>Well-differentiated product that surpasses expectations </li></ul><ul><li>Delivers a great customer experience </li></ul><ul><li>Beyond-the-call customer service </li></ul><ul><li>ORCHESTRATED </li></ul><ul><li>(Added to and surrounding the product) </li></ul><ul><li>Marketing-oriented </li></ul><ul><li>Research-oriented </li></ul><ul><li>Media-oriented </li></ul><ul><li>Post purchase experience-oriented </li></ul>
    18. 21. v. What Types of Word of Mouth Exist?
    19. 22. This is Not Your Parent’s Word of Mouth …
    20. 23. <ul><li>Viral </li></ul><ul><li>Social </li></ul><ul><li>User-generated </li></ul><ul><li>Influencer </li></ul><ul><li>Community </li></ul><ul><li>Transactional/Affiliate </li></ul><ul><li>Experiential </li></ul><ul><li>Buzz </li></ul><ul><li>Cause-Driven </li></ul>Nine Types of Word of Mouth
    22. 25. Wiki Brands – Palette Of Tactics Source: Agent Wildfire Inc. TRADITIONAL BRANDING TACTICS WIKI BRANDING TACTICS Openness Dialogue Authenticity Discussion Boards TV Ads Corporate Blog Broadcast Web Site Radio Ads Brand Community Experiential Marketing Sponsorship Podcasts Viral Advertising Wikis Consumer Generated Content Crowd Sourcing Innovation Co-Creation/ User Collaboration Search Engine Marketing Advergaming Customer Advisory Panels Blogger Outreach Virtual Communities Word of Mouth Marketing Influencer/VIP Insider Clubs Press Release Cause Marketing Non-Traditional Advertising Contextual Advertising Email Marketing Private Social Networks Fan Clubs Company Rating Sites Lifestyle Product Placement In-Store Display/POS Advocacy- Driven Vlogs Affiliate Programs Fan Sites Print Ads Viral Marketing Direct Mail Product Seeding Employee Advocacy Programs Mobile Marketing Stunts/Publicity Beta Testers
    23. 26. Gold Standard Programs Viral Cause-Related Experiential Affiliate Community Social User-generated Influencer Buzz
    24. 27. vi. What considerations should you make before choosing a form of word of mouth?
    25. 28. 9 Questions To Ask before Word of Mouth-Ing (or Take The Survey) <ul><li>Do you have a story ? </li></ul><ul><li>Is this a new initiative/audience/feature? </li></ul><ul><li>Can you customize/experienc e the offering? </li></ul><ul><li>Is the benefit complex? </li></ul><ul><li>Is there a high need for credibility ? Authenticity? </li></ul><ul><li>How frequent is the use/purchase of service/product? </li></ul><ul><li>Is there a natural influencer group/fan base? </li></ul><ul><li>What is your current reputation in this area? Resources ? </li></ul><ul><li>Do you have an appetite for risk ? </li></ul>Take the Survey @ our blog Buzz Canuck
    26. 29. vii. Are there hot button categories for word of mouth conversations?
    27. 30. Category and Brand Sweetspots  New Stuff  Interesting Stuff  Complex/Expensive Stuff  Everyday Stuff  Passion-Based or Connoisseur Stuff
    28. 31. viii. What’s word of mouth’s role in the marketing/communciations mix?
    29. 32. Word of Mouth = Action/Advocacy
    30. 33. ix. Are people catching on yet? Are marketing/communications people catching on yet?
    31. 34. <ul><li>67% of purchase decisions are primarily influenced made by word of mouth </li></ul><ul><li>93% of people trust word of mouth (up 50% vs. a generation ago) </li></ul><ul><li>Word of mouth as a marketing practice is expected to grow 30% CAGR over the next 5 years – the fastest rising segment of marketing </li></ul><ul><li>70% of Inc. 500 companies are expected to be trying some type of word of mouth program this year </li></ul>Word of mouth is the #1 influence and growth segment
    32. 35. x. Why is word of mouth posed to succeed now?
    33. 36. <ul><li>Broadcast TV hours and newspaper reading are down dramatically </li></ul><ul><li>Consumers are less engaged with the media and more connected to each other </li></ul><ul><li>Given trust erosion in public institutions, people are turning to “people like themselves” and close friends for advice </li></ul><ul><li>Digital technology/virtual networks allows us to access these people more efficiently and track their activities </li></ul>Word of mouth is getting more sophisticated
    34. 37. xi. Why do people word of mouth about products/services?
    35. 38. “ I notice and talk about products and services that are”: 32% - Exciting/buzzworthy 20% 9% 13% 13% 9% - Real problem solvers/smart ideas - Exclusive and not yet discovered 3% - Things You Personally Experience/Associate With - New or just breaking - Innovative and one-of-a-kind - Fashionable & Stylish
    36. 39. xii. Why do people get involved in word of mouth programs?
    37. 40. The Who #1 - Passionate about the topic #2 - Logo Lovers #3 – Knowledge Seekers #4 - Social Brokers #5 – Altruistic #6 – Involved/Committed #7 – Feedback Seekers #8 – Ego-driven #9 – Reciprocity Dealers #10 – Self-Expressives It’s because of them
    38. 41. The What #11 – Social Currency #12 – Brand Experience(s) #13 – Fame #14 – VIP Treatment/Customization #15 – Scarcity #16 – Influence #17 – Intimacy #18 – Visibility #19 – Tight Boundaries #20 – Rallying Cry #21 – Rewards #22 – Expertise #23 – Bite-Sized Participation #24 – Network Effects #25 – Memes It’s because of what you provide
    39. 42. #26 - Innovative #27 – Remarkable/ Outrageous #28 – The Best at What You Do #29 – Authentic #30 – Liberating/ Problem Solving #31 - Edgy #32 – Trustworthy #33 – Likable #34 – Easy to Talk About #35 – Ritualistic #36 - Sensory It’s because of who you are
    40. 43. xiii. Who spreads word of mouth?                  
    41. 44. The Influencers – 6 Archetypes “ The Ones Who Create Ideas” “ The Ones Who Spot & Scout New Stuff” “ The Ones Who Sell and Lead Opinions” “ The Ones Who Provide Credibility” “ The Ones Who Attract Attention” “ The Ones Who Connect & Spread the Word”
    42. 45. The Influencers– Canada’s Word of Mouth Network
    43. 46. xiv. What traits do influencers have?
    44. 47. Your Influencers: WOM Multipliers
    45. 48. Influencers & Civic Engagement (vs. general public) Attended public meeting - 78% (+58 pts. ) Wrote/emailed/called a politician – 68% (+56 pts.) Attended a political rally, speech, protest – 45% (+38 pts.) Active members trying to influence gov. policy - 35% (+30 pts.) Worked for a political party - 25% (+18 pts.) Source: The Influentials
    46. 49. xv. To whom do we buzz?
    47. 50. Word of Mouth Recipients 35% - Friends 24% 4% - Family 20% - Work Colleagues 9% - Neighbours - Online community members 4% - Hobby/interest/team members Source: Agent Wildfire
    48. 51. xvi. Where does word of mouth happen?
    49. 52. Word of Mouth By Numbers - Where 77% Of word of mouth is face to face. 17% 6% 76% 40-27 Of word of mouth by phone. <ul><li>Of word of mouth online. </li></ul><ul><li>Of orchestrated word of mouth is spontaneous </li></ul>Percentage of word of mouth that happens at home and work Source: North Eastern University
    50. 53. xvii. What roles can Influencers play for your business?
    51. 54. The Influencers – 6 Archetypes The Influencers– A Volunteer, Multi-Talented VIP Army Thinktank/ Sounding Board Scout/ Mystery Shopper Advisory Council/ Cause Torchbearer Seeded Adopter/ Beta Tester Customer User Consumer Collaborator/ Producer Evangelist/ Ambassador/ Advocate Community Member/ VIP Insider Influencer
    52. 55. xviii. What peer-to-peer benefits does word of mouth tap into?
    53. 56. 4 Key Peer Benefits They Produce Content for You They Engage/ Rally Behind You They Collaborate With You They Advocate You
    54. 57. xix. How does it operate differently than mass marketing?
    55. 58. Puts Mass Marketing on its Head - A Distinct Marketing Approach Different Brand Stories Different Approach To Market Different Audience Different Tactics Different Commun- -ication Different Outputs/ Measures
    56. 59. xx. Is there a magic buzz, word of mouth marketing and/or community formula?
    57. 60. Viral/Buzz Success Drivers <ul><li>Humour i.e. John West </li></ul><ul><li>Authentic & Cause-driven i.e. Dove Evolution </li></ul><ul><li>Taboo i.e. Agent Provocateur (Kylie) </li></ul><ul><li>Remarkability/creative i.e. Sony Bravia </li></ul><ul><li>Outrageous i.e. Trojan Games/Will it Blend </li></ul><ul><li>Mystery i.e. Ronaldinho </li></ul><ul><li>Celebrity i.e. Perez Hilton </li></ul>
    58. 61. Viral/Buzz Success Drivers 8. Clever Visual Idea i.e. Honda Cog 9. Schadenfeude (embarassing) i.e. Dell Hell 10. Interactive/Customized i.e. Subservient Chicken 11. Unusual Talent i.e. OK Go 12. User-generated i.e. iPod Touch Ad 13. Spoof i.e. Slob Evolution 14. Free i.e. Radiohead
    59. 62. Word of Mouth Campaign Success Formula W ord O f M outh C ategory & B rand Attributes WOM S tory & I dea WOM E xperience & E ngage-ment WOM T ools To Spread & Dialogue I nfluential Audience -C onnected/ Informed/ Involved = X X X X CB SI EE T I CII
    60. 63. Brand Community Success Formula Source: Debute
    61. 64. Brand Community Success Formula Source: Debute
    62. 65. xxi. How big of a phenomenon is this?
    63. 66. Online - Passalong Effects <ul><li>Frequency: </li></ul><ul><li>89% share content via email </li></ul><ul><li>65% weekly </li></ul><ul><li>25% daily </li></ul>                <ul><li>Scope: </li></ul><ul><li>75% more than 6 people at a time </li></ul><ul><li>Influencers – 13 people at a time </li></ul>Source: Sharpe Partners/Burston Martsteller
    64. 67. The Passalong Effect <ul><li>Passalong Jokes and Humour </li></ul>53% 50% 88% 56% 25% 24% 15% <ul><li>Passalong News </li></ul><ul><li>Passalong Recommendation </li></ul><ul><li>Passalong Competition Entry </li></ul><ul><li>Passalong Games </li></ul><ul><li>Passalong Personal Finance </li></ul><ul><li>Passalong Charity Involvement </li></ul><ul><li>Source: Sharpe Partners/Burston marsteller </li></ul>
    65. 68. xxii. How connected and prolific is our buzz?
    66. 69. A Participation Marketplace <ul><li>Number of brand conversations we have every year Source: Keller Fay </li></ul><ul><li>Number of people communicated to as a member of a word of mouth campaign </li></ul><ul><ul><li> Source: Agent Wildfire </li></ul></ul>8.5B - Number of online videos streamed online every month Source: Sharpe Partners 4,650 10&13 20-180 165 <ul><li>Average number of friends on Facebook </li></ul><ul><li>Source: Agent Wildfire </li></ul><ul><li>Bloggers average number of blogroll links and links to their blog </li></ul><ul><li> Source: Pew Internet </li></ul>
    67. 70. xxiii. How do we measure all of this?
    68. 71. The Ultimate Metric – Net Promoter Score <ul><li>Net Promoter Score </li></ul><ul><li>Would you recommend Brand X to a friend or colleague? </li></ul>Source: Netpromoter.com
    69. 72. What is the Value of a Conversation About Your Stuff? <ul><li>Incorporates the : </li></ul><ul><ul><li>Purchase Value </li></ul></ul><ul><ul><li>Advocacy Value </li></ul></ul><ul><ul><li>PR Value </li></ul></ul><ul><ul><li>Content Production Value </li></ul></ul><ul><ul><li>Insight/Collaboration Value </li></ul></ul><ul><ul><li>Lifetime Value </li></ul></ul><ul><ul><li>Customer Support Value </li></ul></ul><ul><ul><li>Cost Reduction Value </li></ul></ul>“ The Gladwell”
    70. 73. xxiv. Why build a community?
    71. 74. After joining…. <ul><li>Members Feel Validated - 89% of members believe brand is truly concerned on what they have to say </li></ul><ul><li>Members Buzz More - 82% of members are more likely to recommend the company to others </li></ul><ul><li>Members Like It - 76% of members feel more positively about the company </li></ul><ul><li>Members Buy More - Members of community g enerate 56% more revenue than non-members </li></ul>
    72. 75. XXV. What are the ethics behind orchestrated word of mouth?
    73. 76. The Honesty ROI <ul><li>Honesty of Relationship: You say who you're speaking for </li></ul><ul><li>Honesty of Opinion: You say what you believe </li></ul><ul><li>Honesty of Identity: You never obscure your identity </li></ul>Source: WOMMA’s Ethic Code
    74. 77. xxvi. What’s are the biggest hurdles to company acceptance?
    75. 78. Organizational Barriers <ul><li>Manpower restraints  </li></ul><ul><li>Fear of loss of control </li></ul><ul><li>Inadequate metrics  </li></ul><ul><li>Culture of their organizations  </li></ul><ul><li>Difficulty with internal sell-through  </li></ul>Source: Society of New Communications Research
    76. 79. xxviii. What are the biggest myths about word of mouth?
    77. 80. Word of mouth marketing myths holding companies back <ul><li>“ Word of mouth can’t be tracked” </li></ul><ul><li>“ Word of mouth can’t be generated’ </li></ul><ul><li>“ Word of mouth is too risky” </li></ul><ul><li>“ Word of mouth influencers don’t exist” </li></ul><ul><li>“ Stealth is required to make word of mouth work” </li></ul>
    78. 81. xxix. What’s the future hold?
    79. 82. Word of Mouth Industry Predictions <ul><li>Word of mouth as a strategic marketing/media discipline </li></ul><ul><li>Large agencies specializing in word of mouth </li></ul><ul><li>Social networks setting up boutique divisions </li></ul><ul><li>Companies collaborating on a shared database of influencers </li></ul><ul><li>Research companies applying word of mouth tracking and measurement </li></ul><ul><li>Mobile word of mouth marketing will become the next frontier </li></ul>
    80. 83. xxx. Who are the some of the government orgs/causes/NGOs that are doing this stuff the best?
    81. 94. Inquire: smoffitt (at) agentwildfire.com URL: www. AgentWildfire .com Join/Share: www.TheInfluencers.ca Blog: http://BuzzCanuck.typepad.com/ Explore: The Buzz Report Newsletter Signup at www.AgentWildfire.com
    82. 95. Support Movember
    83. 96. <ul><li>Viral Advertising </li></ul><ul><li>Viral Marketing </li></ul><ul><li>Advergaming/Virtual Worlds </li></ul><ul><li>Buzz Media </li></ul><ul><li>Stealth </li></ul><ul><li>Types of Word of Mouth - Viral </li></ul>
    84. 97. <ul><li>Social Media Development </li></ul><ul><ul><li>Corp./Campaign Blogs, podcasts, wikis </li></ul></ul><ul><li>Social Media Outreach </li></ul><ul><ul><li>Blogger and podcasters, widgets, avatars </li></ul></ul><ul><li>Social Networks </li></ul><ul><ul><li>Applications, mashups, groups, events, causes, cross promotion, brand identity </li></ul></ul><ul><li>Branded Social Networks </li></ul><ul><li>Social Media Monitoring </li></ul>B. Types of Word of Mouth - Social
    85. 98. <ul><li>Consumer generated media </li></ul><ul><ul><li>Video, photo, blog </li></ul></ul><ul><li>User-generated content </li></ul><ul><ul><li>Video (You Tube), photo (Flickr), rating sites (Stumble Upon/Squidoo), Wikipedia </li></ul></ul><ul><li>Crowdsourcing solutions </li></ul><ul><ul><li>Research, Ideas, Development, technology </li></ul></ul><ul><li>Advisory/Insight Panels </li></ul><ul><li>Forums/Rating Sites (i.e. Epinions, Amazon) </li></ul>C. Types of Word of Mouth – User-Generated
    86. 99. <ul><li>Product seeding/intervention </li></ul><ul><li>Sneak previews </li></ul><ul><li>Beta testing </li></ul><ul><li>Expert Panels </li></ul><ul><li>Influencer programs </li></ul><ul><li>Brand Ambassador programs </li></ul><ul><li>Testimonial programs </li></ul>D. Types of Word of Mouth - Influencer
    87. 100. <ul><li>Online-Dominant </li></ul><ul><li>Brand Communities </li></ul><ul><li>Influencer Networks </li></ul><ul><li>Customer Fan Clubs </li></ul>E. Types of Word of Mouth - Community
    88. 101. <ul><li>Affiliate marketing </li></ul><ul><li>Pyramid selling </li></ul><ul><li>Multi-level marketing </li></ul>F. Types of Word of Mouth - Transactional
    89. 102. <ul><li>Experiential </li></ul><ul><li>Buzz marketing </li></ul><ul><li>Guerrilla marketing </li></ul><ul><li>Stealth/undercover marketing </li></ul><ul><li>Shill marketing </li></ul>G. Types of Word of Mouth - Experiential
    90. 103. <ul><li>Cause marketing </li></ul><ul><li>Cause sponsorship </li></ul><ul><li>Rallying Idea </li></ul>H. Types of Word of Mouth - Cause Marketing/Sponsorship