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.

1. Word of Mouth – A Prescription for a Bad Economy A Presentation by Agent Wildfire – Canada’s Word of Mouth Experts

2. This economy is bad…like really bad…

3. It looks like we’re in the big R…

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

7. Smart Marketers are Now Rethinking Traditionally Held Views...

8. Crisis requires radical shifts in thinking

9. Another Change You Can Believe In Is Coming …

10. Here Comes the Next Wave of Marketing & Media…

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

17. One-Way Communication Hurdles Customers demand interaction and customization, Marketers require it

18. Reason #2 – Word of Mouth Taps The Values of New, Customer Participation Culture Mass Media Word of Mouth Customers Now Want: Freedom Customization Scrutiny Integrity Collaboration Entertainment Speed Innovation Participation Values Grade 2/10 2/10 3/10 2/10 1/10 8/10 5/10 2/10 Participation Values Grade 9/10 8/10 9/10 9/10 10/10 8/10 8/10 9/10 Evaluation Score 25/80 70/80

19. In a bad economy, marketing has to punch harder and create action…

21. Lifetime customer value trumps short term lift

23. Ad inflation is running wild In a down economy, advertising is a tougher discretionary expense to justify

25. In a bad economy, few markets increase, it’s a battle for share growth

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?!

29. Need for ROI for marketers in a bad economy is a mantra

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

33. Who do you trust?

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%

36. CEOs are Expecting More From their Marketers – Marketers need to be Leaner and Keener Word of Mouth accommodates those needs

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

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

43. … Don’t Despair

45. Let’s Start Your Next Brand Conversation… Inquire: info (at) agentwildfire.com Phone: 416-255-4500 URL: www.AgentWildfire.com Join: www.TheInfluencers.ca Blog: http ://BuzzCanuck.typepad.com / http://www.spreadslikewildfire.com/ Explore: The Buzz Report (e-newsletter) Signup at www.AgentWildfire.com Learn: Executive, WOM Seminars