“ Mass marketing today is a mass mistake. ” Larry Light, CMO McDonalds, 2004 “ For the first time the consumer is the boss, which is fascinating, frightening, scary and terrifying, because everything we used to do, everything we used to know, will no longer work. ” Kevin Roberts, CEO, Saatchi & Saatchi, 2005 “ People want to be heard. They want to matter. Most Marketers don’t understand this because they are too fixated on the false assumption that people want to listen… presumably to Super Bowl ads. ” Matt Galloway, buzz-o-phone, 2006 Communication is changing.
Communication is changing. This is the scenario faced by brands today . Source: Deutsche Bank Study, GfK Study, Nielsen Media Research Study, Mediaedge:cia Study. Just 18% of the advertising invested on TV offers a positive ROI. Only 12-13% of consumers remember a TV commercial. 3.000 promotional messages impacts to each person daily . The proliferation of advertising makes consumers less receptive to the thousands of messages that they are bombed every day.
An introduction to marketing Word-of-Mouth. Word-of-mouth is a private way to exchange information and the older and most honest way of publicity . It’s the most powerful marketing form that exists. It gets peoples attention, spread awareness, shape perceptions, forms an opinion and leads to sales. It gives people a reason to talk about products and services, making those conversations easier to happen. It works from people to people, consumers to consumers .
An introduction to marketing Word-of-Mouth. Which of the following would encourage you to buy a product? Source: BMRB Omnibus survey/MEC MediaLab
An introduction to marketing Word-of-Mouth The most impressive fact is that just a few companies are taking advantage of this marketing opportunity . McKinsey has identified that 2/3 of the EU economy is influenced by Word-of-mouth .
It’s a Word-of-Mouth Marketing Agency that allows marketing managers to take advantage of the natural word-of-mouth potential, and put it to work for it’s brand, in a controlled, reproduced and measurable way. “ Embaixadores.com ” translates to “ Ambassadors.com ”
Embaixadores.com The power of Word-of-Mouth What does this means to you? Word-of-Mouth will always be the best way to communicate your brand. Friends will always take recommendations from friends...
Embaixadores.com What we do Word-of-Mouth Marketing Influencer marketing Ambassador Programs Buzz Generation Strategy Social Media Strategy Viral Marketing Monitoring and tracking Finding out what’s being said about your brand Letting customers tell your story Creating and energizing brand advocates Building and seeding online campaigns with viral potencial Creating opportunities to WOM Identify and Engage key communities, influencers and opinion leaders
It’s an on-line community , of loyal and passionate consumers and, best of all, well informed , formed by opinion leaders and brand fans , allowing brands to establish real dialogs with their true admirers and giving them the possibility to recommend their products .
Embaixadores.com members <ul><li>Psychographic segmentation (ex.) </li></ul><ul><li>Interests, activities and habits </li></ul><ul><li>Relationships </li></ul><ul><li>Consumption behaviours </li></ul><ul><li>Brands that easily recommend </li></ul><ul><li>Demographic segmentation (ex.) </li></ul><ul><li>Age </li></ul><ul><li>Sex </li></ul><ul><li>Location </li></ul><ul><li>Job </li></ul>More than 25.000 members
Ambassador Programs Embaixadores.com members <ul><li>They are all volunteers . We don’t pay people to talk. We provide them a platform where they can be heard and be a voice back to the brand. </li></ul><ul><li>What they share in common: </li></ul><ul><li>They like to be the firsts to try products and services. </li></ul><ul><li>They like to share their honest opinions about brands, products and services that they use, with their friends, family and colleagues. </li></ul><ul><li>They like do give feedback to the companies behind the products and services that they use. </li></ul><ul><li>Because we keep extent demographic and psychographic information on the members, we can match the right ambassadors with the right brands. </li></ul>
Tell us who is your target. We work with ambassadors from all ages and interests . From housewives to CEOs, from students to seniors. What we do is to identify the ambassadors according to the right demographic and psychographic profile for the brand. Then these people will try the products, recommend them to their family, friends and colleagues, that in their turn will recommend to theirs. The result is exponential . How does it work a Campaign? * Studies demonstrate that if a consumer has a good experience with a product, he will talk about it in an average of 15-20 of his friends (Tarp Customer Loyalty Research).
Creating a Word-of-mouth marketing campaign 1 2 3 4 5 Ambassadors selection Trial and training Multiply Feedback Measure / results <ul><li>Limited number; </li></ul><ul><li>It depends on the ambassadors profile and available resources; </li></ul><ul><li>The recruitment will be held in the Embaixadores.com community, presently with almost 20.000 members and according to the identified profile for the target audience (influencers or trend setters). </li></ul>
Creating a Word-of-mouth marketing campaign 1 2 3 4 5 Ambassadors selection Trial and training Multiply Feedback Measure / results <ul><li>We will pass the trial barrier, placing the product “in the hands” of the right consumers, accelerating the first trial; </li></ul><ul><li>Normally through ambassadors trial kits that contain physical products or services for experimentation, free coupons, information materials (leaflets), gifts and a campaign digital guide. </li></ul>
Creating a Word-of-mouth marketing campaign 1 2 3 4 5 Ambassadors selection Trial and training Multiply Feedback Measure / results <ul><li>Normally through ambassadors trial kits that contain materials to help to spread the word (coupons, free samples, leaflets, etc.); </li></ul><ul><ul><li>Each ambassador should make the most word-of-mouth possible and distribute all the available materials among his friends, family and colleagues (discount coupons and leaflets). </li></ul></ul>
Creating a Word-of-mouth marketing campaign 1 2 3 4 5 Ambassadors selection Trial and training Multiply Feedback Measure / results <ul><li>Reports on the conversations that happen about the brand (who, where, when, how and what) ; </li></ul><ul><li>Pre and post questioners ; </li></ul><ul><li>Campaign blog . </li></ul>
Creating a Word-of-mouth marketing campaign 1 2 3 4 5 Ambassadors selection Trial and training Multiply Feedback Measure / results Level 0: Level 1: Nível 2: 200 (ambassadors) 4.000 (people they know) 80.000 (people that will talk about it) Reach potencial (ex:) <ul><li>Reach (number of impacted people – Level 0, 1 and 2); </li></ul><ul><li>Recommendation level and positive conversations; </li></ul><ul><li>Comments and suggestions (throughout the campaign blog); </li></ul><ul><li>Product bought and buying intentions; </li></ul><ul><li>ROI and conversation unit cost. </li></ul>
WOM International Case Study P&G Introduced Olay Skin Adapt to Turkish Women by WOM <ul><li>Olay brings this fantastic innovation, their new Skin Adapt Cleansers range after Olay's Global Skin care research discovered that over 90% of women agreed that they suffer from the unpredictability of their skin. Up to 39% reported their facial skin comprises both dry and oily parts -- requiring a cleansing solution that will benefit all areas of the face. The Olay Skin Adapt Cleansing range with its unique responsive formula, purifying complexes for deep cleansing and hydrators to replenish dry areas will leave skin balanced and beautiful. </li></ul><ul><li>Before the October 2008 launch in the Turkish market; 1000 Women, between the ages of 18-30 with combination skin, living all across Turkey were invited to the campaign. </li></ul><ul><li>Campaign Objectives: * Overcoming the barriers to trial and adoption by placing the product in the hands of the right consumers. Speeding up the "first trial" * Determine the motives and environment to help create word of mouth about the product. * Spread the advergame (created for the launch of the product) solely by the power of our members, one month prior to media buying . * Measure the results of the WOMM campaign. </li></ul><ul><li>Results: * Almost half of the FMs were not aware of "Olay" brand and more than 50% of them never tried Olay products before the campaign and after the campaign, 31% of these people became brand evangelists. * 49% of the FMs chose to buy an extra Olay product other than the foaming wash they were sent. * The campaign generated more than 65,000 word of mouth interactions, in person. * One member influenced 18 more friends about the Olay Skin Adapt Face Wash. * Active members shared their experiences in their blogs and forums which was a great use of CGM (Consumer Generated Media) * The maximum number of people reached by one FM is 2001. * The results from reports about product performance was used in the product's own web site. </li></ul><ul><li>Credits: </li></ul><ul><li>Client: Procter & Gamble Budget: Undisclosed Date of Campaign: October 2007-January 2008 </li></ul>
WOM International Case Study <ul><li>The Gap Ambassador Program, a viral marketing campaign, was designed to drive awareness and trial of Gap's new denim fits through word of mouth influence and testimonials of brand Ambassadors. </li></ul><ul><li>To connect deeper with women and strengthen brand loyalty through meaningful, one-on-one interactions, Gap selected 100 women throughout the company's top 10 markets and anointed them brand Ambassadors. </li></ul><ul><li>Once identified, Gap Ambassadors were given an assortment of tools to use to communicate within their social circles: a website, emails, evites, and invitations to their own style party. </li></ul><ul><li>The marquee event of the program was a private style party hosted by Gap for each Ambassador and 30 of her closest friends. The parties were designed to drive awareness and trial of Gap's new denim fits in a fun, hip, and most importantly, relaxed environment. After each event, guests were given their favorite pair of jeans, 10 friends and family discount cards, a special 20% discount offer just for them, and a much sought after gift bag. </li></ul><ul><li>Jeans Sales: </li></ul><ul><li>In every one of the top ten markets, the most popular fit at style parties started selling out at regional levels and were eventually unavailable countrywide. This resulted in a 100% distribution rate for several of the new fits. </li></ul><ul><li>Viral Offers: </li></ul><ul><li>25% off Ambassador Membership Card (multiple use) - Circulation: 100 - Redemption Rate: 577% </li></ul><ul><li>20% Discount Card (for party attendees) - Circulation: 4000 - Redemption Rate: 97% </li></ul><ul><li>10% Friends and Family Viral Discount Card (one time use) - Circulation: 30,000 - Redemption Rate: 20% </li></ul>Gap Ambassador Program <ul><li>By creating a word of mouth campaign that went beyond traditional marketing and engaged women on a deeper emotional level, Gap was successful in not only selling jeans and increasing overall sales, but shifting female perception from "Gap has jeans" to "Gap has my FAVORITE jeans." </li></ul><ul><li>Credits: Client: Gap Budget: Undisclosed Date of Campaign: August 2005 to October 2005 </li></ul>
WOM International Case Study <ul><li>The power of brand messengers: </li></ul><ul><li>200 evangelists were recruited for product seeding. </li></ul><ul><li>Evangelists were encouraged to purchase the Hamsville Bacon at the grocery story and have a party, inviting friends and neighbors to socialize and sample the product. </li></ul><ul><li>The evangelists passed along a survey (printed on cards) to their friends and neighbors who attended their party. </li></ul><ul><li>AML tracked the feedback data and also did a second research survey with respondents two months later. </li></ul><ul><li>Results were as follows: </li></ul><ul><li>- WOM occurrences of 1 evangelist: 325.9X - Buying Action: 58.4% - Referral member: 6,484 people - Total WOM Reach: 65,197.9 Reach - Now, the Hamsville Bacon is the leading brand in bacon category in Korea. </li></ul><ul><li>Of course, we execute a lot of word of mouth programs, like community marketing, viral marketing, buzz marketing. In this case, I got the results from the "KitchenForum" project in one campaign using two waves of surveys. After this project, we executed the KitchenForum (meaning Rice, Bacon & Kimch Party) every three months. </li></ul><ul><li>Hamsville bacon is currently the No. 1 brand -- even though it entered the market later than its competition. And Hamsville bacon is now prepared for the 2007 Integrated Word-of-Mouth Marketing, which will also help it grow. </li></ul><ul><li>Credits: Client: Hamsville Bacon (by CJ corp.) Budget: $50,000 Date of Campaign: May 2005 </li></ul>Launching Hamsville Bacon in Korea
If you are looking to create online Word-of-Mouth , a WOMCast is the solution for your brand. A real innovative way to get viral and spread the word. WOMCast is an area of Embaixadores.com dedicated to the discover and sharing of the best online contents. It’s a collections of the best websites, online promotions, ideas, links, trends, news, digital contents, among other things. WOMCast is a new online media channel where brands can release their contents and create real dialogs with their real fans. Promote your website in a WOMCast and discover what your ambassadors have to say about your website and receive immediate feedback. The WOMCast
How does it work a WOMCast 1 2 3 4 Visibility and communication Participation Multiply Measure / Results Open to all people, including non members of the community. When a WOMCast starts, all the community gets in touch with the content (currently more than 25.000 members).
Visibility and communication How does it work a WOMCast 1 2 3 4 Participation Measure / Results Multiply The visit to the brand website (content) is open to everyone. The participation in the mechanic is exclusive to the community members, as there are normally offers to draw among the members that participate. The participation usually involves the website visit, voting and recommending to friends.
Multiply Participation How does it work a WOMCast 1 2 3 4 Visibility and communication Measure / Results In each WOMCast normally there are send-to-a-friend mechanics (viral marketing)
How does it work a WOMCast 1 2 3 4 Measure / Results Participation Visibility and communication Multiply <ul><li>Reach (number of total website visits); </li></ul><ul><li>Score; </li></ul><ul><li>Suggestions and comments (blog); </li></ul><ul><li>Friend recommendations and visits throughout recommendations. </li></ul>
Embaixadores.com power An advertising alternative , seen as boring and abusive; low cost and differentiated marketing campaigns. Unparalleled quality of relationships . Effectiveness and high ROI . 1.000 ambassadors 20.000 people they know 400.000 people impacted
Are you ready to put Embaixadores.com to work for your brand?