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Word of mouth marketing has been part of cultures for centuries. People share with other people and we tend to believe what our friends, family, neighbors, and now, even strangers on line have to say. The importance of referrals and recommendations is growing year over year. Isn't it time you took word of mouth and the power of the consumer seriously?
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source | Nielsen study (August 2010)
PEMCO:
Vice Pres & CMO
WOMMA:
Board President
WOMMA advances and
advocates the discipline of
credible word of mouth
marketing.
source | Nielsen study (August 2010)
source | Nielsen study (August 2010)
Social
Media
Social Engagement
Social Business
What comes to mind?
source | Nielsen study (August 2010)
Social
Media
Social Engagement
Social Business
What comes to mind? Hint:
One is noun.
One is verb.
One is an adjective.
Shows
Action
Media Engagement Business
Includes all value
exchanges that
enrich relationships
between customers
and company.
93% of US consumers have
at least one brand-related
conversation face-to-face
every day.
source | Keller Fay & Yahoo! study (June 2010)
45% of US consumers have
at least one brand-related
conversation voice-to-voice
every day.
source | Keller Fay & Yahoo! study (June 2010)
22% of US consumers have
at least one brand-related
conversation online
every day.
source | Keller Fay & Yahoo! study (June 2010)
source | Nielsen study (August 2010)
Social Media Voice of the Company
Top-Down Control
Company-Generated Messages
Infrequently Updated
Socially Engaged Voice of the Customer
Bottom-Up Messaging
Consumer-Generated Messages
Continuously Updated
Social Media Voice of the Company
Top-Down Control
Company-Generated Messages
Infrequently Updated
Socially Engaged Voice of the Customer
Bottom-Up Messaging
Consumer-Generated Messages
Continuously Updated
Social Media Voice of the Company
Top-Down Control
Company-Generated Messages
Infrequently Updated
Socially Engaged Voice of the Customer
Bottom-Up Messaging
Consumer-Generated Messages
Continuously Updated
Social Media Voice of the Company
Top-Down Control
Company-Generated Messages
Infrequently Updated
Socially Engaged Voice of the Customer
Bottom-Up Messaging
Consumer-Generated Messages
Continuously Updated
23% of people’s time
spent on the Internet is on
Social Media websites
source | Nielsen study (August 2010)
65% are on Twitter
54% are on Facebook
29% use YouTube
33% maintain a blog
2010 – Fortune 100 Companies…
source | Burson-Marsteller & Digital Media Study (February 2010)
source | Burson-Marsteller & Digital Media Study (February 2011)
2011 – Fortune 100 Companies…
77% are on Twitter
61% are on Facebook
57% use YouTube
36% maintain a blog
The average number of
Twitter accounts Fortune 100
firms maintain is 5.8
source | Burson-Marsteller “Global Social Media Check-Up” report (February 2010)
Fortune 100 firms are
tweeting, on average,
25 to 30 times per week
source | Burson-Marsteller “Global Social Media Check-Up” report (February 2010)
84% of Fortune 100
businesses with a Facebook
page are actively using it
source | Burson-Marsteller “Global Social Media Check-Up” report (February 2011)
(NOTE: Up from 59% in 2010)
Fortune 100 firms average
4 updates per week to their
Facebook page
source | Burson-Marsteller “Global Social Media Check-Up” report (February 2010)
“… companies that are both
deeply and widely engaged in
social media surpass their peers in
terms of both revenue and profit
performance by a significant
difference.”
source | Starbucks Facebook Page (May 26, 2010)
22,300,000+ Facebook fans
22,313,818 Facebook fans
“It isn’t a marketing initiative.
It isn’t a PR initiative. It’s
cultivating and creating great
consumer value and great
customer relationships” Alexandra Wheeler
digital strategy director, Starbucks
source | Starbucks Q3’09 - Earnings Call Transcript, July 21, 2009
22,313,818 Facebook fans Howard Schultz
Chairman & CEO, Starbucks
“The key here is that we are
connecting directly with our
loyal customers who will be
driving our future growth.”
Word of Mouth is the primary
factor behind 20% to 50%
of all purchase decisions.
source | “A New Way to Measure Word-of-Mouth Marketing” (McKinsey Quarterly, April 2010)
54% of US adults identified
old-fashioned Word of Mouth
as most important influencer
of purchase decisions.
source | “Digital Marketer Report, Experian – 2011
Where does
WOM fit in your
marketing
strategy?
Where does
WOM fit in your
business
strategy?
PEMCO’s BHAG:
Big Hairy Audacious Goal
76% of consumers believe
companies are untruthful in
their advertising.
source | Bold Mouth’s “Perceptions, Practices, and Ethics” report (2006)
source | Bold Mouth’s “Perceptions, Practices, and Ethics” report (2006)
Advertised In Reality
78% of global
consumers say they
trust recommendations
from other consumers
source | Nielsen’s “Trust in Advertising” Report (2007)
source | PEMCO Mutual Insurance Co, “Market Metrics – 2010”
Reason 2001 2002 2005 2007 2008 2009 2010
Price 60% 62% 50% 50% 36% 40% 33%
Referral and/or
Recommendation
10% 12% 17% 20% 22% 22% 32%
Liked the agent 15% 11% 9% 9% 9% 9% 13%
Good service 33% 23% 5% 4% 9% 4% 10%
Local company <1% <1% <1% <1% 9% 6% 7%
Referrals as important as price
The typical American
mentions specific brand
names 60 times per week in
offline & online conversations.
source | Keller Fay “ Talk Track” report (2010)
source | Keller Fay “ Talk Track” report (2009)
68% of WOM conversations
are mostly positive
8% of WOM conversations
are mostly negative
source | http://www.flickr.com/photos/boudster/3716337113/
Public Displays of Affection
22% of US consumers have
at least one brand-related
conversation online every
day.
source | Keller Fay & Yahoo! study (June 2010)
Public Displays of Affection
source | http://www.flickr.com/photos/
Public Displays of Aggravation
22% of US consumers have
at least one brand-related
conversation online every
day. Public Displays of Aggravation
67% of companies are
using Twitter to respond
to people’s tweets (NOTE: Up from 38% in 2010)
source | Burson-Marsteller “Global Social Media Check-Up” report (February 2011)
Decide to listen
Decide to be affected
Decide to respond
Decide to be engaged
Consumers are talking about you…
Listening is
marketing’s
greatest opportunity.
Listening is
your company’s
greatest opportunity.
Use the
available
search
functions
22% of US consumers have
at least one brand-related
conversation online every
day. Public Displays of Affection
22% of US consumers have
at least one brand-related
conversation online every
day. Public Displays of Affection
22% of US consumers have
at least one brand-related
conversation online every
day. Public Displays of Aggravation
Customer
reviews and
stories affect
operations.
• Start every meeting with a
customer story!
“When consumers write
reviews online ... the
average grade is 4.3 stars
out of 5.”
source | Wall Street Journal article (Oct. 5, 2009)
Create a
place to
welcome
feedback
Create a
place to
welcome
feedback
When Layne’s son was hit by a drunk driver, dealing with
their insurance company was a major headache. It was in stark
contrast to the service he’d always received at PEMCO. Layne
knows good service when he sees it – and PEMCO’s been stellar.
When Paul learned that his dream home had been burglarized and
stripped of $10,000 of new hardware, he didn’t know where to turn.
Though an unfortunate setback to the project, PEMCO helped make
a quick decision and the project moved forward on time.
Respond with timely
appreciation, empathy,
sincerity and authenticity.
“When you hit a wrong
note, it’s the next
note that makes it
good or bad.”
source | Slide used with permission of John Moore, BrandAutopsy
Two great ways to respond
to even the most
challenging assertions.
Thank You
and
We’re Sorry
Feb 22nd - 3:18 to
Feb 23rd - 4:05 p.m.
24 hours
47 minutes
Sorry!
Use humor
that gives,
not takes!
Use humor
that gives,
not takes!
Listen
Participate
Encourage
Enable
Engage
at every
touch
point
+
Partnership
Keep the
Advocacy
Engine
In motion
Don’t let your first day of social be “not so good”
source | Scott Adams Dilbert Cartoons @dilbert.com | 09-13-10
Know your talkers
Give them something
Make it easy to share
And always remember…
Word of mouth marketing basics…
to talk
about
Let’s Connect Twitter: @NW_Mktg_Guy
Facebook: Rod Brooks
Linked In: Rod Brooks
Blog: www.rodbrooks.com
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