SlideShare a Scribd company logo
 	
  
How Word of Mouth
Marketing is Transforming
Brand Storytelling
By Ashu Garg
General Partner, Foundation Capital
 	
  
Word of Mouth is one of the most powerful
determinants of consumer preference
in all of marketing.
This has not changed for hundreds of years.
 	
  What has changed?
Reach:
A single consumer can reach an audience
the size of network TV.
	
  
Speed:
Perceptions can shift in an instant while
brands scramble to respond.
	
  
Channels:
There are almost as many ways to share
opinions as there are channels on TV.
	
  
Trust:
Consumers seek out the opinions of other
consumers and value the Word of Strangers
(WOS) over information from brands.
	
  
 	
  
Gone are the days of waiting six months for your
brand tracker. Today, CMOs can instantly tap into
the consumer zeitgeist to understand opportunities
for and threats to their brands:
Marketers who get in on the conversation will harness the
power of influencers to differentiate and innovate.
 	
  
Word of Mouth (WOM) is storytelling.
Real customers telling real stories about their real consumer
experiences. Word of Mouth Marketing (WOMM)
harnesses the power of WOM to improve brand perception,
reputation, and customer loyalty.
 	
  9 Reasons Why WOMM
Matters Most Today
 	
  
1.
WOM influences 50% of
purchase decisions.
Lithium social software helps companies unlock the passion of their customers. Lithium powers amazing social customer experiences for more than 300 iconic brands including AT&T, BT, Best Buy, Indosat, Sephora, Skype and Telstra. The 100% SaaS-based Lithium Social Customer Experience™
platform enables brands to build and engage vibrant customer communities to drive sales, reduce service costs, accelerate innovation and grow brand advocacy. For more information, visit lithium.com, or connect with us on Twitter, Facebook and our own
Community–the Lithosphere. Lithium is privately held with corporate headquarters in San Francisco and offices across Europe, Asia and Australia.
 	
  
2.
WOM scales like
nothing else.
Lithium social software helps companies unlock the passion of their customers. Lithium powers amazing social customer experiences for more than 300 iconic brands including AT&T, BT, Best Buy, Indosat, Sephora, Skype and Telstra. The 100% SaaS-based Lithium Social Customer Experience™
platform enables brands to build and engage vibrant customer communities to drive sales, reduce service costs, accelerate innovation and grow brand advocacy. For more information, visit lithium.com, or connect with us on Twitter, Facebook and our own
Community–the Lithosphere. Lithium is privately held with corporate headquarters in San Francisco and offices across Europe, Asia and Australia.
 	
  
3.
Customers trust their own
stories, not your brand’s.
Lithium social software helps companies unlock the passion of their customers. Lithium powers amazing social customer experiences for more than 300 iconic brands including AT&T, BT, Best Buy, Indosat, Sephora, Skype and Telstra. The 100% SaaS-based Lithium Social Customer Experience™
platform enables brands to build and engage vibrant customer communities to drive sales, reduce service costs, accelerate innovation and grow brand advocacy. For more information, visit lithium.com, or connect with us on Twitter, Facebook and our own
Community–the Lithosphere. Lithium is privately held with corporate headquarters in San Francisco and offices across Europe, Asia and Australia.
 	
  
4.
Lack of consumer trust is
bad news for brands.
Lithium social software helps companies unlock the passion of their customers. Lithium powers amazing social customer experiences for more than 300 iconic brands including AT&T, BT, Best Buy, Indosat, Sephora, Skype and Telstra. The 100% SaaS-based Lithium Social Customer Experience™
platform enables brands to build and engage vibrant customer communities to drive sales, reduce service costs, accelerate innovation and grow brand advocacy. For more information, visit lithium.com, or connect with us on Twitter, Facebook and our own
Community–the Lithosphere. Lithium is privately held with corporate headquarters in San Francisco and offices across Europe, Asia and Australia.
 	
  
5.
Real customers telling real
stories is good news for brands.
Lithium social software helps companies unlock the passion of their customers. Lithium powers amazing social customer experiences for more than 300 iconic brands including AT&T, BT, Best Buy, Indosat, Sephora, Skype and Telstra. The 100% SaaS-based Lithium Social Customer Experience™
platform enables brands to build and engage vibrant customer communities to drive sales, reduce service costs, accelerate innovation and grow brand advocacy. For more information, visit lithium.com, or connect with us on Twitter, Facebook and our own
Community–the Lithosphere. Lithium is privately held with corporate headquarters in San Francisco and offices across Europe, Asia and Australia.
 	
  
6.
Most of what customers
share is good.
Lithium social software helps companies unlock the passion of their customers. Lithium powers amazing social customer experiences for more than 300 iconic brands including AT&T, BT, Best Buy, Indosat, Sephora, Skype and Telstra. The 100% SaaS-based Lithium Social Customer Experience™
platform enables brands to build and engage vibrant customer communities to drive sales, reduce service costs, accelerate innovation and grow brand advocacy. For more information, visit lithium.com, or connect with us on Twitter, Facebook and our own
Community–the Lithosphere. Lithium is privately held with corporate headquarters in San Francisco and offices across Europe, Asia and Australia.
 	
  
7.
Superfans* have huge influence.
*	
  highly trusted, credible and influential brand & product experts	
  
Lithium social software helps companies unlock the passion of their customers. Lithium powers amazing social customer experiences for more than 300 iconic brands including AT&T, BT, Best Buy, Indosat, Sephora, Skype and Telstra. The 100% SaaS-based Lithium Social Customer Experience™
platform enables brands to build and engage vibrant customer communities to drive sales, reduce service costs, accelerate innovation and grow brand advocacy. For more information, visit lithium.com, or connect with us on Twitter, Facebook and our own
Community–the Lithosphere. Lithium is privately held with corporate headquarters in San Francisco and offices across Europe, Asia and Australia.
 	
  
8.
Social media makes WOMM
hugely effective.
Lithium social software helps companies unlock the passion of their customers. Lithium powers amazing social customer experiences for more than 300 iconic brands including AT&T, BT, Best Buy, Indosat, Sephora, Skype and Telstra. The 100% SaaS-based Lithium Social Customer Experience™
platform enables brands to build and engage vibrant customer communities to drive sales, reduce service costs, accelerate innovation and grow brand advocacy. For more information, visit lithium.com, or connect with us on Twitter, Facebook and our own
Community–the Lithosphere. Lithium is privately held with corporate headquarters in San Francisco and offices across Europe, Asia and Australia.
 	
  
9.
Social platforms deliver serious
WOMM results.
Lithium social software helps companies unlock the passion of their customers. Lithium powers amazing social customer experiences for more than 300 iconic brands including AT&T, BT, Best Buy, Indosat, Sephora, Skype and Telstra. The 100% SaaS-based Lithium Social Customer Experience™
platform enables brands to build and engage vibrant customer communities to drive sales, reduce service costs, accelerate innovation and grow brand advocacy. For more information, visit lithium.com, or connect with us on Twitter, Facebook and our own
Community–the Lithosphere. Lithium is privately held with corporate headquarters in San Francisco and offices across Europe, Asia and Australia.
 	
  
The Canon Forum grew over 5,100 users and
2.8MM page views in its first 6 months.
9.9.
Lithium social software helps companies unlock the passion of their customers. Lithium powers amazing social customer experiences for more than 300 iconic brands including AT&T, BT, Best Buy, Indosat, Sephora, Skype and Telstra. The 100% SaaS-based Lithium Social Customer Experience™
platform enables brands to build and engage vibrant customer communities to drive sales, reduce service costs, accelerate innovation and grow brand advocacy. For more information, visit lithium.com, or connect with us on Twitter, Facebook and our own
Community–the Lithosphere. Lithium is privately held with corporate headquarters in San Francisco and offices across Europe, Asia and Australia.
 	
  
BSkyB Community gets views in
excess of 1.5 million per week.
9.9.
Lithium social software helps companies unlock the passion of their customers. Lithium powers amazing social customer experiences for more than 300 iconic brands including AT&T, BT, Best Buy, Indosat, Sephora, Skype and Telstra. The 100% SaaS-based Lithium Social Customer Experience™
platform enables brands to build and engage vibrant customer communities to drive sales, reduce service costs, accelerate innovation and grow brand advocacy. For more information, visit lithium.com, or connect with us on Twitter, Facebook and our own
Community–the Lithosphere. Lithium is privately held with corporate headquarters in San Francisco and offices across Europe, Asia and Australia.
 	
  
75% of new subscriptions for community-driven
UK-based CSP giffgaff are driven by WOMM.
9.9.
Lithium social software helps companies unlock the passion of their customers. Lithium powers amazing social customer experiences for more than 300 iconic brands including AT&T, BT, Best Buy, Indosat, Sephora, Skype and Telstra. The 100% SaaS-based Lithium Social Customer Experience™
platform enables brands to build and engage vibrant customer communities to drive sales, reduce service costs, accelerate innovation and grow brand advocacy. For more information, visit lithium.com, or connect with us on Twitter, Facebook and our own
Community–the Lithosphere. Lithium is privately held with corporate headquarters in San Francisco and offices across Europe, Asia and Australia.
 	
  
The American Diabetes Association boosted
organic web traffic by 8x with trusted
user-generated content.
9.9.
Lithium social software helps companies unlock the passion of their customers. Lithium powers amazing social customer experiences for more than 300 iconic brands including AT&T, BT, Best Buy, Indosat, Sephora, Skype and Telstra. The 100% SaaS-based Lithium Social Customer Experience™
platform enables brands to build and engage vibrant customer communities to drive sales, reduce service costs, accelerate innovation and grow brand advocacy. For more information, visit lithium.com, or connect with us on Twitter, Facebook and our own
Community–the Lithosphere. Lithium is privately held with corporate headquarters in San Francisco and offices across Europe, Asia and Australia.
Content Creation Content Curation Workflow Management /
Analytics
Advocate
Management
1.
	
  
2.
	
  
3.
	
  
4.
	
  
For CMOs to thrive in today's Word of Mouth world, they
will rely on entrepreneurs & startups who build game-changing
solutions across these 4 dimensions:
 	
  It’s publish or perish for brands
in this Decade of the CMO.
 	
  
foundationcapital.com/decadeofthecmo
Learn More Now

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How Word of Mouth Marketing is Transforming Brand Storytelling

  • 2. How Word of Mouth Marketing is Transforming Brand Storytelling By Ashu Garg General Partner, Foundation Capital
  • 3.     Word of Mouth is one of the most powerful determinants of consumer preference in all of marketing. This has not changed for hundreds of years.
  • 4.    What has changed?
  • 5.
  • 6. Reach: A single consumer can reach an audience the size of network TV.  
  • 7.
  • 8. Speed: Perceptions can shift in an instant while brands scramble to respond.  
  • 9.
  • 10. Channels: There are almost as many ways to share opinions as there are channels on TV.  
  • 11.
  • 12. Trust: Consumers seek out the opinions of other consumers and value the Word of Strangers (WOS) over information from brands.  
  • 13.     Gone are the days of waiting six months for your brand tracker. Today, CMOs can instantly tap into the consumer zeitgeist to understand opportunities for and threats to their brands: Marketers who get in on the conversation will harness the power of influencers to differentiate and innovate.
  • 14.     Word of Mouth (WOM) is storytelling. Real customers telling real stories about their real consumer experiences. Word of Mouth Marketing (WOMM) harnesses the power of WOM to improve brand perception, reputation, and customer loyalty.
  • 15.    9 Reasons Why WOMM Matters Most Today
  • 16.     1. WOM influences 50% of purchase decisions. Lithium social software helps companies unlock the passion of their customers. Lithium powers amazing social customer experiences for more than 300 iconic brands including AT&T, BT, Best Buy, Indosat, Sephora, Skype and Telstra. The 100% SaaS-based Lithium Social Customer Experience™ platform enables brands to build and engage vibrant customer communities to drive sales, reduce service costs, accelerate innovation and grow brand advocacy. For more information, visit lithium.com, or connect with us on Twitter, Facebook and our own Community–the Lithosphere. Lithium is privately held with corporate headquarters in San Francisco and offices across Europe, Asia and Australia.
  • 17.     2. WOM scales like nothing else. Lithium social software helps companies unlock the passion of their customers. Lithium powers amazing social customer experiences for more than 300 iconic brands including AT&T, BT, Best Buy, Indosat, Sephora, Skype and Telstra. The 100% SaaS-based Lithium Social Customer Experience™ platform enables brands to build and engage vibrant customer communities to drive sales, reduce service costs, accelerate innovation and grow brand advocacy. For more information, visit lithium.com, or connect with us on Twitter, Facebook and our own Community–the Lithosphere. Lithium is privately held with corporate headquarters in San Francisco and offices across Europe, Asia and Australia.
  • 18.     3. Customers trust their own stories, not your brand’s. Lithium social software helps companies unlock the passion of their customers. Lithium powers amazing social customer experiences for more than 300 iconic brands including AT&T, BT, Best Buy, Indosat, Sephora, Skype and Telstra. The 100% SaaS-based Lithium Social Customer Experience™ platform enables brands to build and engage vibrant customer communities to drive sales, reduce service costs, accelerate innovation and grow brand advocacy. For more information, visit lithium.com, or connect with us on Twitter, Facebook and our own Community–the Lithosphere. Lithium is privately held with corporate headquarters in San Francisco and offices across Europe, Asia and Australia.
  • 19.     4. Lack of consumer trust is bad news for brands. Lithium social software helps companies unlock the passion of their customers. Lithium powers amazing social customer experiences for more than 300 iconic brands including AT&T, BT, Best Buy, Indosat, Sephora, Skype and Telstra. The 100% SaaS-based Lithium Social Customer Experience™ platform enables brands to build and engage vibrant customer communities to drive sales, reduce service costs, accelerate innovation and grow brand advocacy. For more information, visit lithium.com, or connect with us on Twitter, Facebook and our own Community–the Lithosphere. Lithium is privately held with corporate headquarters in San Francisco and offices across Europe, Asia and Australia.
  • 20.     5. Real customers telling real stories is good news for brands. Lithium social software helps companies unlock the passion of their customers. Lithium powers amazing social customer experiences for more than 300 iconic brands including AT&T, BT, Best Buy, Indosat, Sephora, Skype and Telstra. The 100% SaaS-based Lithium Social Customer Experience™ platform enables brands to build and engage vibrant customer communities to drive sales, reduce service costs, accelerate innovation and grow brand advocacy. For more information, visit lithium.com, or connect with us on Twitter, Facebook and our own Community–the Lithosphere. Lithium is privately held with corporate headquarters in San Francisco and offices across Europe, Asia and Australia.
  • 21.     6. Most of what customers share is good. Lithium social software helps companies unlock the passion of their customers. Lithium powers amazing social customer experiences for more than 300 iconic brands including AT&T, BT, Best Buy, Indosat, Sephora, Skype and Telstra. The 100% SaaS-based Lithium Social Customer Experience™ platform enables brands to build and engage vibrant customer communities to drive sales, reduce service costs, accelerate innovation and grow brand advocacy. For more information, visit lithium.com, or connect with us on Twitter, Facebook and our own Community–the Lithosphere. Lithium is privately held with corporate headquarters in San Francisco and offices across Europe, Asia and Australia.
  • 22.     7. Superfans* have huge influence. *  highly trusted, credible and influential brand & product experts   Lithium social software helps companies unlock the passion of their customers. Lithium powers amazing social customer experiences for more than 300 iconic brands including AT&T, BT, Best Buy, Indosat, Sephora, Skype and Telstra. The 100% SaaS-based Lithium Social Customer Experience™ platform enables brands to build and engage vibrant customer communities to drive sales, reduce service costs, accelerate innovation and grow brand advocacy. For more information, visit lithium.com, or connect with us on Twitter, Facebook and our own Community–the Lithosphere. Lithium is privately held with corporate headquarters in San Francisco and offices across Europe, Asia and Australia.
  • 23.     8. Social media makes WOMM hugely effective. Lithium social software helps companies unlock the passion of their customers. Lithium powers amazing social customer experiences for more than 300 iconic brands including AT&T, BT, Best Buy, Indosat, Sephora, Skype and Telstra. The 100% SaaS-based Lithium Social Customer Experience™ platform enables brands to build and engage vibrant customer communities to drive sales, reduce service costs, accelerate innovation and grow brand advocacy. For more information, visit lithium.com, or connect with us on Twitter, Facebook and our own Community–the Lithosphere. Lithium is privately held with corporate headquarters in San Francisco and offices across Europe, Asia and Australia.
  • 24.     9. Social platforms deliver serious WOMM results. Lithium social software helps companies unlock the passion of their customers. Lithium powers amazing social customer experiences for more than 300 iconic brands including AT&T, BT, Best Buy, Indosat, Sephora, Skype and Telstra. The 100% SaaS-based Lithium Social Customer Experience™ platform enables brands to build and engage vibrant customer communities to drive sales, reduce service costs, accelerate innovation and grow brand advocacy. For more information, visit lithium.com, or connect with us on Twitter, Facebook and our own Community–the Lithosphere. Lithium is privately held with corporate headquarters in San Francisco and offices across Europe, Asia and Australia.
  • 25.     The Canon Forum grew over 5,100 users and 2.8MM page views in its first 6 months. 9.9. Lithium social software helps companies unlock the passion of their customers. Lithium powers amazing social customer experiences for more than 300 iconic brands including AT&T, BT, Best Buy, Indosat, Sephora, Skype and Telstra. The 100% SaaS-based Lithium Social Customer Experience™ platform enables brands to build and engage vibrant customer communities to drive sales, reduce service costs, accelerate innovation and grow brand advocacy. For more information, visit lithium.com, or connect with us on Twitter, Facebook and our own Community–the Lithosphere. Lithium is privately held with corporate headquarters in San Francisco and offices across Europe, Asia and Australia.
  • 26.     BSkyB Community gets views in excess of 1.5 million per week. 9.9. Lithium social software helps companies unlock the passion of their customers. Lithium powers amazing social customer experiences for more than 300 iconic brands including AT&T, BT, Best Buy, Indosat, Sephora, Skype and Telstra. The 100% SaaS-based Lithium Social Customer Experience™ platform enables brands to build and engage vibrant customer communities to drive sales, reduce service costs, accelerate innovation and grow brand advocacy. For more information, visit lithium.com, or connect with us on Twitter, Facebook and our own Community–the Lithosphere. Lithium is privately held with corporate headquarters in San Francisco and offices across Europe, Asia and Australia.
  • 27.     75% of new subscriptions for community-driven UK-based CSP giffgaff are driven by WOMM. 9.9. Lithium social software helps companies unlock the passion of their customers. Lithium powers amazing social customer experiences for more than 300 iconic brands including AT&T, BT, Best Buy, Indosat, Sephora, Skype and Telstra. The 100% SaaS-based Lithium Social Customer Experience™ platform enables brands to build and engage vibrant customer communities to drive sales, reduce service costs, accelerate innovation and grow brand advocacy. For more information, visit lithium.com, or connect with us on Twitter, Facebook and our own Community–the Lithosphere. Lithium is privately held with corporate headquarters in San Francisco and offices across Europe, Asia and Australia.
  • 28.     The American Diabetes Association boosted organic web traffic by 8x with trusted user-generated content. 9.9. Lithium social software helps companies unlock the passion of their customers. Lithium powers amazing social customer experiences for more than 300 iconic brands including AT&T, BT, Best Buy, Indosat, Sephora, Skype and Telstra. The 100% SaaS-based Lithium Social Customer Experience™ platform enables brands to build and engage vibrant customer communities to drive sales, reduce service costs, accelerate innovation and grow brand advocacy. For more information, visit lithium.com, or connect with us on Twitter, Facebook and our own Community–the Lithosphere. Lithium is privately held with corporate headquarters in San Francisco and offices across Europe, Asia and Australia.
  • 29. Content Creation Content Curation Workflow Management / Analytics Advocate Management 1.   2.   3.   4.   For CMOs to thrive in today's Word of Mouth world, they will rely on entrepreneurs & startups who build game-changing solutions across these 4 dimensions:
  • 30.    It’s publish or perish for brands in this Decade of the CMO.