Word of Mouth marketing strategy
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Transcript of Word of Mouth marketing strategy
Word of Mouth – A Prescription for a Bad Economy
It looks like we’re in the big R…
2009 Anticipated Declines:
- 15% Newspapers- 13% Consumer Magazines- 10% Radio- 4% Network TV
Smart Marketers are Now Rethinking Traditionally Held Views...
AnotherChange
You Can Believe
In Is Coming
…
Word of Mouth is Catching On…in All Its Forms
Buzz Marketing Social MediaCustomer Collaboration Brand Communities
User Generated Content
Influencer Marketing Social Networks Referral Programs
Grassroots/CauseMarketing
ExperientialMarketing
Viral Marketing
The Fastest Growing Marketing/Media Segments
Expected 5 year Compound Annual Growth Rate
Word of Mouth 27%Internet/Mobile 14%Branded Entertainment 13%Custom Publishing 11%Others 10%
Fact - Most Traditional Media is an Inefficient Cost…
…Word of Mouth is a Wise Investment
7 Reasons Why
Word of Mouth
Deserves Your
Consideration
In This Economy
Reason #1 – Word of Mouth Gets Noticed
- 4% any ad recall from last TV show watched (down from 34% in 1965)
-70% of people frequently consume multiple media simultaneously
- 93% of people believe word of mouth is the most reliable way to find out information about products and services
Reason #2 – Word of Mouth Stimulates Action
- 90% - proportion of people who canskip ads, do skip ads
- 70% - percentage of people affected byword of mouth conversations
- 37% buy it/try it- 24% consider it- 9% avoid it
Reason #3 – Word of Mouth is a Competitive Advantage
- Only 1-2% of marketing budgets are currently spent directly on creating word of mouth
-Year Round Community - $100-500 - Word of Mouth Campaign - $40-150 -Blog /Social Media Outreach $30-100 against the Typical Research
- A 7% increase in positive word of mouth equates to 1% business growth
Reason #4 – Word of Mouth Targets Influence
- With rare exception (i.e. magazines), mainstream media has a tough time targeting audiences and specifically influencers
- 70% of Wikipedia’s content is produced by 1.7% of its audience
- Top ranked Influencer belief – “I love talking to others about things I’ve just discovered”
Reason #5 – Word of Mouth is More Trusted
60% of people have a much more negative view of marketing and advertising than a few years ago
27% trust manufacturers
14% trust ads
8% trust celebrities
Word of mouth is the #1 trusted source, up 50% vs. a generation ago
61% of people claim to buy the same brands as their friends
82% trust their friends
Entertainment Value Information Value
Entertainment Value Informational Value Explicit value (rewards) Intrinsic value (feeling of belonging) Experiential value (immersion) Social value (making connections) Talent value (expressing skills/creativity) Service value (adds to the product) Collaborative value (1+1=3)
Mass Media Provides:
WOM Provides:
Reason #6 – Word of Mouth is More Customer Centric
Reason #7 – Word of Mouth is the Now & the Future
Marketers plan on spending more/less in 2009:
More LessNewspaper 5% 32%Radio 5% 33%TV 4% 37%Magazines 3% 39%Social Media 23% 16%
58% of marketers agree thatword of mouth influence will overtake traditional media influence within a generation
73% of marketers believe marketers will become much more important in an organization by leveraging word of mouth strategies and tactics
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Integrated Brand Community-building Influencer-driven Challenge/interventionGrassroots sponsorship/cause-driven
Offline Experiential Buzz/Guerrilla
Online Social Media Production/Outreach Viral User-generated
We plan, seed, incubate execute, measure, live and breathe the spectrum of word of mouth
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