This document discusses the power of word-of-mouth marketing (WOMM) and how it can be used to drive business growth through creating positive buzz. Traditional marketing is becoming less effective as consumers are overwhelmed by advertising and pay more attention to recommendations from other consumers. WOMM relies on conversations between consumers through both offline and digital networks. Successful WOMM strategies identify influential customers who will spread positive messages about a brand to their social connections through everyday conversations.

1. 1 WORD OF MOUTH MARKETING CREATINGBUZZ NAPA CONSULTING GROUP

2. 2 HOW TO USE WORD-OF-MOUTH MARKETING (WOMM) TECHNIQUES AND SOCIAL MEDIA TO DRIVE GROWTH BY CREATING A POSITIOVE BUZZ AROUND YOUR PRODUCT OR SERVICE.

3. 3 TO APPRECIATE WOMM: FIRST YOU HAVE TO UNDERSTAND WHAT’S BROKEN WITH TRADITIONAL MARKETING.

4. 4 IS YOUR CAMPAIGN HAVING A NEGATIVE IMPACT ON YOUR BRAND?

5. 5 ONLY 18% OF TV ADS GENERATE POSITIVE ROI

6. 6 84% OF B2B CAMPAIGNS RESULTED IN LOWER SALES

7. 7 100% INCREASE IN AD SPENDING JUST TO ADD 1% - 2% IN SALES

8. 8 ONLY 14% TRUST ADS

9. 9 69 %INTERESTED IN AD BLOCKING TECHNOLOGIES

10. 10 TRADITIONAL MARKETING & ADVERTISING ADVERTISING CLUTTER MEDIA FRAGMENTATION CONSUMERS TUNED OUT LESS EFFECTIVE MORE EXPENSIVE LESS TRUSTED LOWER ROI

11. 11 2. 1. …the JESUS PHONE rocks! ..i got to have an iPhone WOMM POWER

12. 12 TWO THIRDS OF U.S. ECONOMONY DRIVEN BY WOM

13. 13 POSITIVE CORRELATION TO BUSINESS GROWTH

14. 14 BRAND ADVOCACY DRIVES BUSINESS GROWTH Harvard study

15. 15 BRAND ADVOCACY EVEN MORE IMPORTANT THAN BRAND IMAGE OR BRAND SATISFACTION Harvard study

16. 16 LAW OF FEW 10% INFLUENCE PURCHASING BEHAVIOR OF OTHER 90%

17. 17 91% LIKELY TO BUY ON RECOMMENDATION

18. 18 92% PREFER WOM RECOMMENDATION

19. 19 BRAND ADVOCATES AVERAGE CUSTOMERS, CLIENTS, CONSUMERS

20. 20 WOMM CHARACTERISTICS HOMOPHILY HAWTHORNE EFFECT CONVERSATION: DIALOGUE EXPRESSION INVISIBLE NETWORKS LINKS SIX DEGREES OF SEPARATION DIGITAL MEDIA MUCH HIGHER LEVEL OF TRUST HUMILITY

21. 21 WOMM = C2C CONVERSATION Consumer-to-consumer conversation

22. 22 NOT … TRADITIONAL MARKETING & ADVERTISING

23. 23 BUZZ = INFECTIOUS CHATTER WHAT’S HOT WHAT’S ATTRACTIVE

24. 24 VEHICLE FOR CONTAGION PERSON-TO-PERSON TALKING TALKING BY PHONE SOCIAL MEDIA TOOLS SMS E-MAIL IM BLOGGING VBLOG WRITING

25. 25 WHO ARE NETWORK HUBS CONNECTORS ALPHAS OPINION LEADERS SNEEZERS PEERS

26. 26 LINKS OR NODES SPREAD BUZZ NETWORK A NETWORK B NODE TRUSTED CHANNEL

27. 27 CORRELATION BETWEEN NETWORK HUBS AND EARLY ADOPTERS.

28. 28 LINKS FUEL DIFFISUION A NETWORK OF 100 PEOPLE = 4,950 POSSIBLE LINKS A NETWORK OF 1,000 PEOPLE = 500,000 POSSIBLE LINKS Six degrees of separation concept (a/k/a small world phenomenon)

29. 29 AVERAGE PERSON HAS … 11 TO 12 INTIMATE CONTACTS 150 SOCIAL CONTACTS 500 TO 1,500 WEAK TIES

30. 30 HOMOPHILY BIRDS OF A FEATHER FLOCK TOGETHER The term homophily stems from study of social networks.

31. 31 CLUSTERS Interests hobbies beliefs age gender social class ethnicity religion values politics geography education occupation

32. 32 ALL ABOUT… INTERACTION IN & AMONG INVISIBLE NETWORKS

34. Special hook, event, promotion. AquaTeenHunger Force Boston Bomb Scare

35. Viral marketing

36. Branded material, websites, blogs, advergames, widgets, bligets, videos, utilities, collaboration tools etc. that sneezers spread. ParkRidge47, Vote Different

37. Influencer marketing

38. Identifying and finding the influencers

39. Evangelist marketing

40. Turning most loyal customers into citizen marketers

41. Street marketing

42. Interacting at popular offline places like Buzz Oven

43. Stealth / Undercover marketing

44. Bree, lonelyGirl15Buzz Oven Bree Source: Justin Kirby, & Paul Marsden (2006). Connected marketing. Oxford, UK: Butterworth-Heinemann. 198 YouTube

45. 34 WIDGET & BLIDGET

46. 35 SOCIAL MEDIA Social media describes the online technologies and practices that people use to share opinions, insights, experiences, perspectives and media itself. Social media can take many different forms, including text, images, audio, and video. These sites typically use technologies such as blogs, message boards, podcasts, wikis, and vlogs to allow users to interact. Source: Wikipedia

47. 36 BUZZ MARKETING WITH BLOGS… BLOGVERTORIAL BUSINESS BLOG FAUX BLOG 70 million blogs in just 4 years. 120K blogs being added each day.

48. 37 SEEDING… STIMULATING DISCUSSION PROMO EVENT REDUCED PRICING FREEWARE GAME DEMO TRIAL BETA

49. 38 ASK YOURSELF… How does information flow in my industry? Where do people get their information? Does information flow in a centralized way? How do consumers interact in my industry? Do they hangout in networks? How big are these networks? Is my industry conservative? What influences my customers? Who influences my customers? Is my product risky?

50. 39 BUZZ MISTAKES… FOCUSING JUST ON OPINION LEADERS (1%) NARROWLY PROFILING CONNECTORS NO STORY OVERSELLING

51. 40 BUZZ GUIDELINES SUPERIOR EXPERIENCE CONTAGIOUS PRODUCT SUPERIOR QUALITY UNDERPROMISE OVERDELIVER ANTICIPATION REACH 10% - 15% TRUTH

52. 41 IDEAL BUZZ CANDIDATES… REQUIRE NO ADVERTISING LEAVE A TRACE NETWORK EXTERNALITY INCREASE COMPATABILITY INCREASE TRANSPARENCY SELF CONTAINED

53. 42 Kameran Ahari e-marketing & strategy consultant http://gotastrategy.typepad.com Napa Consulting Group