Buzzer & RSM MBA in 2009


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Presentation for the RSM MBA class of 2010. By Willem Sodderland, Founder & CEO of Buzzer, Europe's first and leading WoM agency.

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Buzzer & RSM MBA in 2009

  1. 1. Word of Mouth Marketing<br />The greatest marketing force as a strategy.<br />Willem Sodderland, Founder & CEO of Buzzer<br />11 November 2009 Rotterdam<br />
  2. 2. What’s wrong with this picture ?<br />Let’s discuss marketing paradigms.<br />
  3. 3. Seduction vs. Matchmaking <br />My rule of thumb is this: <br />Every person you turn away because your product or service isn&apos;t right for them turns into three great customers down the road. Every bad sale costs you five. Seth Godin<br />
  4. 4. The Breakup.<br />Advertiser & Consumer<br />
  5. 5. Word of Mouth Marketing<br />Social marketing<br />Product seeding<br />Twitter marketing<br />Blog marketing<br />Viral marketing<br />Community Marketing<br />Influencer Marketing<br />Stealth Marketing<br />Shilling<br />Pop-up retail<br />Co-creation<br />Crowdsourcing<br />Evangelist Marketing<br />User Generated Content<br />Referral Programs<br />Marketing 2.0, PR 2.0<br />Product Reviews, Testimonials<br />Advertorials & Commercial Content<br />Social networks<br />Branded communities<br />Marketing 5.0 ?<br />
  6. 6. WoM = Open Source Marketing<br />Customer Participation<br />Word of Mouth<br />Marketing<br />Open Source <br />Marketing<br />
  7. 7. Football Coaches & Car Repair Auctions<br /><br />Become a coach and trainer of a football club<br /> <br />Auction your car repair to car repairshops and pick the best ‘bidder’.<br />
  8. 8. Asus: You, me , WE PC<br />
  9. 9. Open Source Politics & Crowdfunding<br />Draft Obama<br />Initiated by volunteers <br />without Obama’s knowledge<br />
  10. 10. Challenge: how to reach the consumer<br />Advertising<br />Interruption<br />Incredible<br />Mass ‘Push’<br />Vs.<br />Individual<br />Interaction<br />Your Place & Time<br />Credible<br />Word of Mouth<br />
  11. 11. The essence of Word of Mouth.<br />1<br />Advertising makes people curious<br />Word of Mouth makes curious people comfortable to buy<br />3<br />2<br />Product experiences create word of mouth<br />
  12. 12. WWWoM...<br />&quot;Advertising has been supplanted as the chief shaper of consumer attitudes by word of mouth, which today&apos;s <br />Web-linked consumer communities have put on overdrive”<br />C.K. Prahalad, Venkat Ramaswamy, The Future of Competition<br />
  13. 13. WoM only for exceptional products...?<br />Forum for ‘Funeral Consumers’<br />“My mother will die ‘out of state’. How best to handle this, what about insurance ?”<br />Every product, service or experience will create word of mouth. <br />The question is not how you compare to the iPhone, but to your competitor.<br />
  14. 14. How to survive in the new marketing arena?<br />Ignore the <br />new rules<br />
  15. 15. The iFake.<br />Actors in queue<br />TMobile hires actors to stand in line for an iPhone shop.<br />
  16. 16. You know what, let’s<br />
  17. 17. Guaranteed positive WoM: Get Rich Quick !<br />“Willem’s presentation at the RSM MBA class was the best ever held in any class. And he is very, very handsome” <br />I. Maginary, RSM MBA participant<br />Buy Willem Now !<br />(limited pieces left)<br />9 out of 10 people* that did not see the presentation said it would have improved the quality of their lives if they had witnessed it. <br />* Tested among a sample of hypothetical people.<br />
  18. 18. How to survive in the new marketing arena?<br />Ignore the <br />new rules<br />Take the first baby-steps <br />
  19. 19. Canon: real product experiences<br />Uploadyourphoto and receive the picture printed<br />On the photoprinteryouconsiderbuying<br />
  20. 20. 3 Musketeers & 1600 Hairdressers<br />
  21. 21. How to survive in the new marketing arena?<br />Ignore the <br />new rules<br />Take the first baby-steps <br />jWalk with a destination in mind<br />
  22. 22. The Slow & Irreversible WoM Revolution.<br />1st agency Europe<br />Benelux, Germany & Russia<br />75+ Campaigns<br />Broad Portfolio<br />Womma Member <br />Specialised in <br />BuzzTools & Storytelling<br />...and Buzzer does this <br />for a living ; )<br />WoM Marketing helps brands use the full potential of word of mouth and user engagement...<br />
  23. 23. Buzzer: Product, Story & Buzz<br />Online<br />Product-experience <br />& BuzzTools<br />The brand<br />Generate Trial & Buzz<br />(The market)<br />(selected consumers)<br />Feedback on Product & Marketing<br />Offline<br />(the buzzer platform)<br />
  24. 24. Buzzer Campaign Concept<br />Buzz Boosting<br />BuzzKit<br />Stimulate, report and communicate<br />Product & Objectives<br />Equip Buzzers<br />BUZZER PLATFORM<br />Tracking<br />€<br />€<br />€<br />€<br />€<br />€<br />€<br />€<br /><br /><br /><br /><br />€<br />€<br />€<br />€<br /><br /><br /><br /><br />€<br /><br />€<br /><br /><br /><br />€<br /><br />€<br />€<br /><br />€<br /><br /><br />€<br />€<br />€<br />€<br /><br /><br />€<br /><br />€<br /><br />€<br />€<br /><br /><br /><br /><br />€<br />€<br />€<br />€<br /><br /><br />€<br />€<br />€<br />€<br />24/7 Client Cockpit <br />Buzzers buzz…<br />Selection Buzzers<br />€<br />€<br /><br />€<br /><br />€<br /><br /><br />€<br />€<br />€<br />€<br />€<br />€<br />
  25. 25. More Control, Greater Reach & Impact<br /><br /><br />Organic WoM<br /><br /><br /><br /><br />+<br /><br /><br /><br /><br /><br /><br /><br />+<br /><br /><br /><br /><br /><br />+<br /><br /><br /><br /><br /><br /><br /><br /><br /><br />+<br /><br /><br /><br />WoM 2.0<br />With faster, higher reach & impact<br /><br /><br /><br /><br /><br /><br /><br /><br /><br />+<br />+<br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />+<br />Buzzer WoM<br />+<br />+<br />+<br />BuzzTools<br />Tools to ↑ WoM, Trial & Story<br />Buzzers<br />Selected, highly<br />motivated users<br />Dialogue<br />Interaction to ↑ ínvolvement<br />
  26. 26. Buzzable Blind Tasting Session.<br />
  27. 27. Buzz(er) without limits.<br />Services<br />Food & Drinks<br />Health & Wellness<br />Web<br />Electronics<br />Entertainment<br />
  28. 28. Case: OMO Small & Mighty<br />Elements<br />2 * concentrated<br />3000 Buzzers<br />3 months<br />Create Trial<br />Beat Ariel<br />Change behaviour<br />Measure !<br />
  29. 29. Experience the product & share it!<br />Buzzers receive enough product to experience the product indepth<br />Consumers ever smarter and more critical…<br />“Consumers are bombarded with advertising, but they see through it ever faster. The product experience trumps the brand when it gets to influencing buying behaviour”<br />Guy de Sévaux - Research International <br />‘Buzzed’ people receive samples that help tell the story...<br />
  30. 30. Turn the laundry into a conversation<br />Whitewashing: a 28 page booklet filled with buzzable stories about doing the laundry. Circulation: 75.000<br />Monica Lewinsky’s dress: one of the most famous stains in history. Worth talking about…<br />
  31. 31. Conversation starters<br />T-shirts for kids with small & mighty visuals <br />that get people to ask questions<br />
  32. 32. A powerful story: make the claim real.<br />Prove convenience ? Hold your old detergent and Small & Mighty in your stretched arms and see how long you can hold both…<br />
  33. 33. Storytelling through actions<br />Photo-award: send in a picture that shows the benefits for <br />the environment of using Klein & Kräftig<br />
  34. 34. The Buzzer as Micro Marketeer<br />Buzzers make<br />25 mini-BuzzKits and hand these out with their own story<br />‘Buzzed’ consumers fill out a questionnaire online<br />
  35. 35. Show me the money.<br />1<br />&gt;150<br />In 2008, Buzzer launched OMO Small & Mighty, a new detergent, for Unilever. Mindshare Insights conducted in-depth research on the results of the Campaign. 4 groups were compared: control groups that were exposed to advertising and sampling, the Buzzers and the people they buzzed. <br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />“The reach of buzzing is huge”<br /><br /><br />
  36. 36. Campaign Impact - 4000 Buzzers<br />G0<br />G1<br />G2<br />G0+G1+G2<br />WoM <br />Interaction<br />WoM <br />Trial <br />Buzzers<br />WoM Reach<br />Total WoM<br />60.000<br />4.000<br />60.000<br />Factor 6<br />Factor 4<br />600.000<br />723.000<br />120.000<br />WoM interaction <br />Buzzer - Consumer<br />WoM interaction<br />‘Buzzee’ - Consumer<br />Total WoM <br /><ul><li>Based on a BuzzKit with 6x4 Choco Dreams
  37. 37. Factor 6 based on research into impact Buzzer campaigns
  38. 38. Factor 4 based on International research</li></li></ul><li>Cost & CPC (Cost Per Conversation)<br />Shipping & Handling<br />G0+G1+G2<br />€ 34K<br />3rd Party Cost<br />{<br />€ 15K<br />Totale WoM<br />Setup<br />(€ 104,1K)<br />€ 89,1 K<br />Buzzer Cost<br />WoM 723.000<br />€ 138,1K<br />CPC = € 0,19)<br />(Cost per Conversation)<br />
  39. 39. How do I know WoM marketing is worth it ?<br />Management Information<br /><ul><li>Cost per Conversation
  40. 40. € Value/NPS↑</li></ul>Quantity (reach)<br />Quality (impact)<br /><ul><li>G0 - G1 - G2
  41. 41. Reports
  42. 42. Online buzz tools
  43. 43. G2 factor 4 (research)
  44. 44. Intensity interaction
  45. 45. Awareness facts
  46. 46. NPS
  47. 47. Buying behaviour</li></ul>G0<br />G1<br />G2<br />G3<br />Bzz.<br />Bzz.<br />Bzz.<br />Bzz.<br />Bzz.<br />Bzz.<br />
  48. 48. WoM can be learned, organised<br />Tools<br />Ideas<br />Media & Logistics<br />Access to Consumers<br />Seed products<br />Conversation starters<br />Storytelling, <br />WoM campaigns/programs<br />Facilitate collaboration<br />Software, tech-tools<br />Measure, research, <br />analyse, consulting <br />Word of mouth from marketeers !<br />Churchofthe<br />`<br />Blogs<br />Creative<br />Platform<br />Insights<br />
  49. 49. Q & (hopefully) A<br />
  50. 50. Your mission if you decide to accept it…<br />Product<br />HealthCare<br />Insurance<br />Lego Disposables<br />Sip Beautydrink<br />The EU<br />WoM Campaign<br /><ul><li>Design a campaign centred around WoM. Apply Social Marketing Tools Thinking
  51. 51. Focus on facilitating a product experience and how buzz can travel
  52. 52. Present which choices you have made & why</li></li></ul><li>The European Union.<br />Buzzing the EU<br />Well, you know what it is. Sort of. Or is that actually the <br />challenge...?<br />Challenges: <br />What are the buzzable benefits of the EU ?<br />How can you experience these in a away that is worth talking about ?<br />
  53. 53. Pets & Insurance<br />HealthCare Insurance for Pets<br />The current policy reimburses costs of a vet and medicine <br />when your pet gets ill. Comparable to competition.<br />Challenges: <br />How to create a product experience (if you do not intend to make pets ill) ? <br />What story is interesting enough to share with others ?<br />
  54. 54. Lego & Disposables<br />Plug & Play Lego Disposables<br />Disposables that can be stuck on a tray like Lego. <br />Initial target clients airline industry, Horeca etc.<br />Challenges<br />The product is bought B-B but used by consumers. <br />What is the product experience you focus on: end-user or ‘buyer’<br />How do you get relevant WoM to reach the decision makers ?<br />
  55. 55. Drinks & Beauty<br />Sip Beautydrink<br />Nice tasting drink with natural ingredients which <br />claims that it helps improve your skin, make it <br />more beautiful. Note: the physical improvement <br />Is not tangible, scientific. <br />Challenges<br />How can the product experience still be the base for a lot of word of mouth ?<br />What is the potential for storytelling ?<br />
  56. 56. Example: Enhance Product Buzzability<br />Whipped Cream<br />Capuccino<br />Foam<br />
  57. 57. Buzzable Books<br />Paradigm Shift<br />Storytelling<br />Virality<br />Word of Mouth<br />Consumer Behaviour<br />
  58. 58. More ?<br /><br /><br /><br />