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BSI Word of Mouth Strategy – Insert the right shape peg

Marketing 2.0 Conference, Amsterdam 2007
Join the conversation
MARKETING 2.0 CONFERENCE
      www.marketing2conference.com
WoM Strategy: inserting the right shape peg



       Matt Rowley, Managing Partner Central




contact: matt.rowley@thecentralgroup.com
attitudes to ‘word of mouth marketing’


                                           The new strategic focus
                                           of our marketing
                                           communication.


                       A great new tactic.
                       Where can I buy WoM
                       units and what’s the ROI?

 A wild goose chase.
 What would we do
 differently anyway?




                                                                     © central 2007
WoM in healthcare


     The greatest influence on a physician adopting a new
            therapy is colleague recommendation*


   Contributing factors:
   •     Complexity - the more information that needs to be processed,
         the more useful Word of Mouth becomes
   •     Risk - higher levels of risk understandably increase our desire to
         learn from others' experience
   •     Noise - the more promotional noise there is, the harder it can be
         to make purchasing decisions and the more important word of
         mouth becomes




                                                                                                              © central 2007
*Social Relations and Innovation in the Medical Profession - Public Opinion Quarterly, 19, 1955; Elihu Katz
adoption decision cycle* - the stages

NEED                               KNOWLEDGE                             PERSUASION


                                                                                            DECISION




                                                           CONFIRMATION



                                                                                      IMPLEMENTATION




                                                                                                       © central 2007
*Adapted from Diffusion of Innovations, 5th Edition, Everett M. Rogers
adoption decision cycle* - key modes of influence

NEED                               KNOWLEDGE                             PERSUASION

        WoM                            PROMOTION                               WoM          DECISION




                                                           CONFIRMATION


                                                                         WoM
                                                                                      IMPLEMENTATION




                                                                                                       © central 2007
*Adapted from Diffusion of Innovations, 5th Edition, Everett M. Rogers
traditional “TV industrial complex”*




                                                              €
                                              Ads, reps,
      Customer and             Promotional
                                               online, BTL,
      market insight            strategy
                                             education etc




                                               WoM?




                                                                  © central 2007
*Seth Godin - The Purple Cow
WoM centered strategy




                                                            €
                 How will        Ads, reps,
Customer and
                  WoM work?       online, BTL,   Real WoM
market insight
                 WoM strategy   education etc




                 Framework fits - organisational impact?




                                                                © central 2007
the shift




 How do I get the   How do I optimise
   best ad and          colleague
    sales aid?      recommendation?
• Ultimate




       from                to




                                        © central 2007
the word of mouth interaction


              What they’re saying
                   “       “
               The WoM Story




                The talker and listener
                 Opinion Leadership




                                          © central 2007
theory into action


 Word of Mouth Stories

                           Strategic plan




           +
 Opinion Leader Strategy




                                            © central 2007
stories
stories
the Three rules of Epidemics*



          • The Power of Context
                -   “An epidemic can be tipped by tinkering
                                                                DISEASE STORY™
                    with the smallest details in the
                    immediate environment”

          • The Stickiness Factor
                -   “There is a simple way to package
                    information that, under the right           BRAND STORY™
                    circumstances, can make it irresistible.”

          • The Law of the Few
                -   “The success of any kind of social
                    epidemic is heavily dependent on the
                    involvement of people with a rare set of
                    social gifts”




                                                                                 © central 2007
*From The Tipping Point - Malcolm Gladwell
Disease and Brand Story™ example




             Disease Story™                                      Brand Story™
             “obesity is an epidemic in the                      “by targeting visceral fat in
             western world which is best                         patients with high waist
             identified using the hip/waist                      circumference, Acomplia both
             ratio measurement. There is                         reduces weight and improves
             a particularly dangerous sort                       multiple cardiovascular risk
             of metabolically active fat,                        factors”
             called visceral fat, which is
             distributed around the waist
             line. Visceral fat is a root
             cause of diabetes and
             cardiovascular disease”




                                                                                                 © central 2007
Please note this is dummy data synthesised through observation
when creating Disease and Brand Stories™….




• They need to be based in the future

yet

• realistic

yet

• ambitious




                                             © central 2007
opinion leader strategy
opinion leaders: a change in paradigm


          An opinion leader is an             “The success of any kind
          important customer that             of social epidemic is heavily
          other customers listen to           dependent on the
                                              involvement of people with a
                                              rare set of social gifts”*


           One dimensional view -             Multi dimensional view - also
           focuses purely on their            understands what makes
           influence                          them influential
                                              • Sphere of influence
                                              • Word of Mouth skills
                                              • Adoption of innovation




                                                                              © central 2007
*from The Tipping Point by Malcolm Gladwell
characterising opinion leaders


                                               WoM Skills
                                               Connectors
                                               “a special gift for bringing the world together”
                                               Mavens
                                               assimilators of vast amounts of information
                                               that they use to spot opportunities which they
                                               then enjoy passing on to others

                                               Persuaders
                                               the skills to persuade us even when we are
                                               initially skeptical of what we are hearing




                                        laggards
                       early     late
innovators  early   majority majority
         adopters




                                                                                                  © central 2007
planning
final thoughts
a final reflection




                     © central 2007
© central 2007

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BSI Word of Mouth Strategy – Insert the Right Shape Peg

  • 1. BSI Word of Mouth Strategy – Insert the right shape peg Marketing 2.0 Conference, Amsterdam 2007
  • 2. Join the conversation MARKETING 2.0 CONFERENCE www.marketing2conference.com
  • 3. WoM Strategy: inserting the right shape peg Matt Rowley, Managing Partner Central contact: matt.rowley@thecentralgroup.com
  • 4. attitudes to ‘word of mouth marketing’ The new strategic focus of our marketing communication. A great new tactic. Where can I buy WoM units and what’s the ROI? A wild goose chase. What would we do differently anyway? © central 2007
  • 5. WoM in healthcare The greatest influence on a physician adopting a new therapy is colleague recommendation* Contributing factors: • Complexity - the more information that needs to be processed, the more useful Word of Mouth becomes • Risk - higher levels of risk understandably increase our desire to learn from others' experience • Noise - the more promotional noise there is, the harder it can be to make purchasing decisions and the more important word of mouth becomes © central 2007 *Social Relations and Innovation in the Medical Profession - Public Opinion Quarterly, 19, 1955; Elihu Katz
  • 6. adoption decision cycle* - the stages NEED KNOWLEDGE PERSUASION DECISION CONFIRMATION IMPLEMENTATION © central 2007 *Adapted from Diffusion of Innovations, 5th Edition, Everett M. Rogers
  • 7. adoption decision cycle* - key modes of influence NEED KNOWLEDGE PERSUASION WoM PROMOTION WoM DECISION CONFIRMATION WoM IMPLEMENTATION © central 2007 *Adapted from Diffusion of Innovations, 5th Edition, Everett M. Rogers
  • 8. traditional “TV industrial complex”* € Ads, reps, Customer and Promotional online, BTL, market insight strategy education etc WoM? © central 2007 *Seth Godin - The Purple Cow
  • 9. WoM centered strategy € How will Ads, reps, Customer and WoM work? online, BTL, Real WoM market insight WoM strategy education etc Framework fits - organisational impact? © central 2007
  • 10. the shift How do I get the How do I optimise best ad and colleague sales aid? recommendation? • Ultimate from to © central 2007
  • 11. the word of mouth interaction What they’re saying “ “ The WoM Story The talker and listener Opinion Leadership © central 2007
  • 12. theory into action Word of Mouth Stories Strategic plan + Opinion Leader Strategy © central 2007
  • 14. the Three rules of Epidemics* • The Power of Context - “An epidemic can be tipped by tinkering DISEASE STORY™ with the smallest details in the immediate environment” • The Stickiness Factor - “There is a simple way to package information that, under the right BRAND STORY™ circumstances, can make it irresistible.” • The Law of the Few - “The success of any kind of social epidemic is heavily dependent on the involvement of people with a rare set of social gifts” © central 2007 *From The Tipping Point - Malcolm Gladwell
  • 15. Disease and Brand Story™ example Disease Story™ Brand Story™ “obesity is an epidemic in the “by targeting visceral fat in western world which is best patients with high waist identified using the hip/waist circumference, Acomplia both ratio measurement. There is reduces weight and improves a particularly dangerous sort multiple cardiovascular risk of metabolically active fat, factors” called visceral fat, which is distributed around the waist line. Visceral fat is a root cause of diabetes and cardiovascular disease” © central 2007 Please note this is dummy data synthesised through observation
  • 16. when creating Disease and Brand Stories™…. • They need to be based in the future yet • realistic yet • ambitious © central 2007
  • 18. opinion leaders: a change in paradigm An opinion leader is an “The success of any kind important customer that of social epidemic is heavily other customers listen to dependent on the involvement of people with a rare set of social gifts”* One dimensional view - Multi dimensional view - also focuses purely on their understands what makes influence them influential • Sphere of influence • Word of Mouth skills • Adoption of innovation © central 2007 *from The Tipping Point by Malcolm Gladwell
  • 19. characterising opinion leaders WoM Skills Connectors “a special gift for bringing the world together” Mavens assimilators of vast amounts of information that they use to spot opportunities which they then enjoy passing on to others Persuaders the skills to persuade us even when we are initially skeptical of what we are hearing laggards early late innovators early majority majority adopters © central 2007
  • 21.
  • 23. a final reflection © central 2007