Demystifying Word of Mouth (Part 1) - Why Customers Talk
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Transcript of Demystifying Word of Mouth (Part 1) - Why Customers Talk
Demystifying
Word ofMouthErnest Dichter
With Marketing Legend
PART ONE
Why Customers Talk
Word OfMouth
Referralsare a
Recurring3 Step Process
Talking about
These st eps are :
Listening to
Acting on the Referral
AND
In this 3 part series, find out why each step
happens
and
how to use this knowledge to acquire more
customers through word of mouth
referrals...
With the help of marketing legend,
Ernest Dichter
Why customers
talk
PersonalExperience
Personal Experience with a product spurs customers
to talk about them.
“… it is talk about the product which confirms for the
speaker his ownership and joy in the product, or his discovery of it.”
Ernest Dichter writes
49%Of participants in a study by the New York Times said
that they shared to inform others of products they care about and to
potentially change opinions or encourage action. I’M ALL ABOUT THIS BASS
SOURCE:
http://www.mediabistro.com/alltwitter/
social-sharing-psychology_b53786
CrossFit ballooned from 13 gyms to 7,000, -without
traditional advertising-
in just 9 years
And that’s how it happenedSOURCE:
http://www.channelsignal.com/fresh-signal
s/by-the-numbers-the-growth-of-crossfit
SelfConfirmation
There are
8 types of
self-confirmation sought through talking about products and
services, notably:
Ernest Dichter notes that customers share to feel good about
themselves.
Ernest Dichter notes that customers share to feel good about
themselves.
Showing Connoisseurship
Having InsideInformation
Spreading the “Gospel” by Converting the Listener to Use the Product
Independent musicians are dominating the
music industry controlling 34.5%
of the business, more than any major label.
le Connoisseurship.
SOURCE: http://nypost.com/2014/01/02/indie-artist
s-are-new-no-1-in-music-industry/
Twitter users share to feel more involved with the world.
Twitter users share to define their identity
69%68%
OF
OF
68%
Being Nice
Some referrals are made because sharing something helpful
feels like an act of
niceness
“Here the prevailing attitude is the need and intent to help, to share with the other person enthusiasm in, and benefit s of, things enjoyed. Products serve mainly as instruments which help to express sentiments of neighborliness, care, friendship, and love.”
Ernest Dichter explains:
Tupperware has been relying on
neighbourliness and niceness as it’s sales weapon since 1948.
66 years later, they turn an annual revenue of 2.3 billion dollars.
SOURCE:
http://en.wikipedia.org/wiki/Tupperware
78%of twitter users share content to
nourish relationships
SOURCE: http://www.mediabistro.com/alltwitter/
social-sharing-psychology_b53786
Influencedby Advertising
Advertising can spark word of mouth by being entertaining or controversial.
“Since it is difficult for consumers to avoid
exposure to advertising, many
people have turned to accepting it for it s
independent attraction and
entertainment value. Thus entertainment value and originality of ads have become
topics of talk.”
Ernest Dichter found:
Old Spice’s viral “The Man Your Man Could Smell Like” campaign generated a 2700% increase in Twitter followers, a 60%
increase in Facebook Fans, a 150%
increase in Youtube followers and a 107%
increase in sales.#Winning
SOURCE: http://www.jeffbullas.com/2011/08/30/11-social-media-
marketing-lessons-from-the-old-spice-campaign/
Old Spice’s viral “The Man Your Man Could Smell Like” campaign generated a 2700% increase in Twitter followers, a 60%
increase in Facebook Fans, a 150%
increase in Youtube followers and a 107%
increase in sales.
Audiences chose to watch ads
4.6 billion times in 2012
SOURCE:
http://adage.com/article/digitalnext/ten-
stats-change-video-2013/238915/
In SummaryCustomers talk about a product
because:
1. To share personal experience
2. For self confirmation
3. To be nice
4. They’re influenced by advertising
Coming soon: Demystifying Word of Mouth
PART 2:
Why People Listen to Referrals
Word of mouth has been shown to
improve marketing effectiveness by up to 54%!
Visit
for more tips andstrategies on using word
of mouth to acquire more customers!
SOURCE:
http://blog.getambassador.com/word-of-mou
th-marketing-statistics/
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