Closed loop WOM Marketing
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Here is an initial draft for "Getting Your Customers to Do Your Marketing for You" CEA sponsored webinar. Here is the link to recording http://consumerelectronics.na5.acrobat.com/p13095662/
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Closed loop WOM Marketing
- 1. Closed loop WoM MarketingThe cost effective alternative "Before if you were making a product, the right business strategy was to put 70% of your attention, energy, and dollars into shouting about a product, and 30% into making a great product. So you could win with a mediocre product, if you were a good enough marketer. That is getting harder to do. The balance of power is shifting toward consumers and away from companies...the individual is empowered... The right way to respond to this if you are a company is to put the vast majority of your energy, attention and dollars into building a great product or service and put a smaller amount into shouting about it, marketing it. If I build a great product or service, my customers will tell each other.“ Jeff Besos, Founder & CEO of Amazon
- 2. WoM is the most trusted “media” http://www.amplifiedanalytics.com 415.742.2580
- 3. Word of Mouth creates reputation http://www.amplifiedanalytics.com 415.742.2580 http://www.facebook.com/pages/Amplified-Analytics/125557687467210
- 4. http://www.amplifiedanalytics.com 415.742.2580
- 6. experts or
- 7. customershttp://www.amplifiedanalytics.com 415.742.2580
- 8. Definition of Terms - VoC Reviews are the most influential Voice of Customers Before deciding whether to purchase recommended products or services, more than four-out-of-five consumers (81%) will go online to verify those recommendations, specifically through researching product/service information (61%), reading user reviews (55%) or searching ratings websites (43%). 2010 Online Influence Tread Tracker, Cone Research
- 9. Definition of terms - CF Customer Feedback – a subset of Voice of Customer that is collected and managed by a company. http://www.amplifiedanalytics.com 415.742.2580
- 10. People communicate in unstructured language of stories – Companies “understand” numbers and structured, scalable process. http://www.amplifiedanalytics.com 415.742.2580
- 11. Role of WoM in Product Life Cycle http://www.amplifiedanalytics.com 415.742.2580
- 12. Role of WoM in Product Life Cycle http://www.amplifiedanalytics.com 415.742.2580
- 13. Role of WoM in Product Life Cycle http://www.amplifiedanalytics.com 415.742.2580
- 14. Role of WoM in Product Life Cycle http://www.amplifiedanalytics.com 415.742.2580
- 15. 10 Do’s & Don’ts of Closed Loop WoM Do not try to Control WoM http://www.amplifiedanalytics.com 415.742.2580
- 16. 10 Do’s & Don’ts of Closed Loop WoM Do not try to Manipulate WoM - authenticity is the currency of social interaction. http://www.amplifiedanalytics.com 415.742.2580
- 17. 10 Do’s & Don’ts of Closed Loop WoM Do not try to manage WOM as a CAMPAIGN http://www.amplifiedanalytics.com 415.742.2580
- 18. 10 Do’s & Don’ts of Closed Loop WoM Do threat WoM as a management process. http://www.amplifiedanalytics.com 415.742.2580
- 19. 10 Do’s & Don’ts of Closed Loop WoM Do stimulateWOM flow regardless of sentiment. http://www.amplifiedanalytics.com 415.742.2580
- 20. 10 Do’s & Don’ts of Closed Loop WoM Do actively stimulate WOM flow regardless of sentiment. http://www.amplifiedanalytics.com 415.742.2580
- 21. 10 Do’s & Don’ts of Closed Loop WoM Do manage reputation of your product /brand strategically http://www.amplifiedanalytics.com 415.742.2580
- 22. 10 Do’s & Don’ts of Closed Loop WoM Do understand the roles of the WoM channels Twitter? Facebook? Customer Reviews http://www.amplifiedanalytics.com 415.742.2580
- 23. 10 Do’s & Don’ts of Closed Loop WoM Do not buy into the theory of Generational Divide. http://www.amplifiedanalytics.com 415.742.2580
- 24. 10 Do’s & Don’ts of Closed Loop WoM Do not buy into the theory of Generational Divide. http://www.amplifiedanalytics.com 415.742.2580
- 25. 10 Do’s & Don’ts of Closed Loop WoM Do analyze WOM for the competitive products to access and improve your own position http://www.amplifiedanalytics.com 415.742.2580
- 26. 10 Do’s & Don’ts of Closed Loop WoM Do monitor VoC to measure customer satisfaction and acceptance through the product lifetime http://www.amplifiedanalytics.com 415.742.2580
- 27. http://www.amplifiedanalytics.com 415.742.2580 We shall energize our product promoters
- 28. http://www.amplifiedanalytics.com 415.742.2580
- 29. http://www.amplifiedanalytics.com 415.742.2580 4. We shall use text analytics to HEAR what is important to our product promoters.
- 30. Action plan Design Word of Mouth stimulation program Implement “listen & act” strategy Close the loop http://www.amplifiedanalytics.com 415.742.2580
Notes de l'éditeur
- There is a good research that shows:Products sell more with WOM – 20-25% more if a product has a “sufficient” number of reviews. It is more important to have “sufficient” volume of WOM, than to have only positive reviews. In fact, absence of negative opinions creates suspicions of manipulation;Reducing negative WOM generates higher growth than increase in positive WOM. This study from London School of Economics found that a 10% improvement in product reputation correlated with a $22M increase in revenue within their study group.
- There are 2 challenges arise from these findings:How to get WOM? How to measure it?WOM cannot be “faked”. Perceived authenticity and implied Trust are the most valuable and cherished attributes of WOM. In fact a few companies that tried to “Game It” either ended in court or experienced public humiliation along with significant drop in sales.Traditional Marketing approach is rich with military terminology like campaign, segmentation and market penetration the approach that would be detrimental to WOM Marketing. WOM Marketing is more analogues to Martial Arts or Dance where you anticipate and amplify the signals of your partners/customers. These are 3 practical steps to get it:Ask for itMake it easy to give and to useAct on it
- Current norm of measuring it – 5 stars approach does not make WOM easy to use and even more difficult to act on it.From the consumer perspective 5 stars only helps in 7% of instances where products are rated below 2 stars or at 5 stars. The rest of 93% you have to read many pages of text to decide whether you want to take a chance with this product. There are a lot of complains about it;From the marketer perspective it is very expensive to deal with volumes of raw data that is only meaningful in competitive context. Most companies measure customer satisfaction for their product lines or brands. Some do Market research comparing them to their competitors. However the cost, accuracy, timeliness and action ability of this research is very problematic.