The document discusses how word of mouth marketing is well-suited for a bad economy. It provides 12 reasons why word of mouth deserves consideration, such as its ability to stimulate action, target influencers, and be more cost effective and measurable than traditional advertising. The top 3 objectives for word of mouth initiatives are listed as generating awareness/buzz, increasing referrals/leads/members, and participating in conversations.
4. Yikes, Advertising is taking it on the chin... - Group M forecasts media spending down 3.2% in 2009 - Zenith Optimedia forecasts 5.7% down in 2009 - Morgan Stanley could envision a +10% drop in spending depending on the economy
12. Word of Mouth is Catching On…in All Its Forms Buzz Marketing Social Media Customer Collaboration Brand Communities Influencer Marketing User Generated Content Influencer Marketing Social Networks Referral Programs Grassroots/Cause Marketing Experiential Marketing Viral Marketing
13. Fact - Most Traditional Media is an Inefficient Cost… … Word of Mouth is a Wise Investment
14. 12 Reasons Why Word of Mouth Deserves Your Consideration In This Economy
15. Advertising Attention Deficit Hurdles 3,000 ads get pushed at us each day - 6 times the volume vs. 40 years ago…the tougher it is to breakthrough, the more we do and invest
23. Ad inflation is running wild In a down economy, advertising is a tougher discretionary expense to justify
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25. In a bad economy, few markets increase, it’s a battle for share growth
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27. In today’s connected economy, grassroots influence is key Less than 10% of your customer base controls a big chunk of what the rest of us buy, think and do… why not target them?!
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29. Need for ROI for marketers in a bad economy is a mantra
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31. Trust has eroded in our institutions, a bad economy will accelerate this contempt … but we still trust our friends and “people like me” Source: Edelman Trust Barometer
34. The Customer is the New Battleground Word of Mouth gets you closer to your customer frontlines Percentage of executives who believe the Customer Experience is the new battleground - 95% Percentage that believe they are delivering a positive customer experience - 80% Percentage of their customers who agree - 8%
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36. CEOs are Expecting More From their Marketers – Marketers need to be Leaner and Keener Word of Mouth accommodates those needs
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38. Marketers want WOM for a variety or reasons Internal External Hard Measure Soft Measure Awareness/Buzz 35% Referrals/Leads/Members 32% Participate in a conversation 26% Drive brand loyalty 32% Seed influencers 32% Launch a product 22% Build a better customer experience 21% Accelerate sales 19% Target tough to reach audience 19% Generate user generated content 19% Support a cause 6% Support a cause 6% Deliver visitors/traffic 17% Enhance credibility 14% Get Insight /solutions 10% Provide learning 6% Source: Agent Wildfire Question - What are the top 3 objectives for launching a word of mouth based initiative?
39. Don’t skate to where the puck is , skate to where it is going to be
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41. A Palette of New Strategies & Tactics Await Source: Agent Wildfire What forms of word of mouth will experience the most growth in the next few years ? (top 3 choices) Social media marketing 37% Social network marketing 35% Mobile marketing 34% User-generated Content 31% Influencer marketing 28% Brand communities 20% Customer forums 17% Branded entertainment 16% Cause-related marketing 14% Brand microblogging 14% Buzz marketing 13% Corporate/brand blogging 11%
42. Recap – The 12 Reasons Why Word of Mouth (WOM) is Primed for this Economy 1 ) WOM Gets Noticed 2) WOM Taps Participation Values 3) WOM Stimulates Action 4) WOM has Longevity 5) WOM has Less Cost/More Value 6) WOM is a Competitive Advantage 7) WOM Targets Influence 8) WOM is More Measurable 9) WOM is More Trusted 10) WOM is More Customer Centric 11) WOM Provides More 12) WOM is the Future ChristaJean