Author Archive

The Physics of Word of Mouth Marketing

PROMO Magazine recently published an article I wrote about the natural laws that govern word of mouth marketing. To understand these natural laws, we need to revisit basic physics.

In school we learned about Isaac Newton’s three natural laws of motion. These laws explain how and why objects move. These laws can also explain how and why word of mouth marketing can move brands from being unknown to well known.

Law of Inertia
Newton’s first law of motion tells us an object at rest tends to stay at rest and an object in motion tends to stay in motion. This law of inertia applies directly to word of mouth marketing because conversation at rest tends to stay at rest while conversation in action tends to stay in action. If a company does nothing to encourage people to talk, no one will talk.

Law of Acceleration
With Newton’s first law, we learned a force is required to spark momentum. Newton’s second law, the law of acceleration, explains how much force is required to spark movement. The larger an object is, the more force needed to move the object. Conversely, the smaller the object, the less force needed to move the object.

The correlation to word of mouth marketing is simple. The larger a brand is, the more marketing muscle needed to generate conversations about the brand. On the other hand, the smaller the brand, the less marketing muscle needed to spark conversations about the brand.

The Law of Reaction
Newton’s third law of motion tells us for every action there is an equal and opposite reaction. There is a parallel natural law that governs word of mouth marketing as it relates to delivering great customer service. This marketing law states: for every action by a customer, there should be a genuine and appropriate reaction from a business. These appropriate reactions take the form of a response, a rescue attempt, or a relaying of information from a company to an individual customer.

>> READ THE ENTIRE ARTICLE

19

04 2010

School of WOM Preview | “An Ear for Complaints. A Bullhorn for Compliments.”

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SESSION:
An Ear for Complaints. A Bullhorn for Compliments.

DESCRIPTION:
Quicken Loans experienced what many businesses are experiencing, a less than stellar online reputation. Despite knowing 94% of customers would recommend Quicken Loans to their friends, online comments about the company were damaging its reputation and standing with the Better Business Bureau. Learn how this online financial services company turned the tide on a growing complaint problem with education, process improvements, online reviews, and good old-fashioned customer service.

TEACHER:
Clayton Closson (Quicken Loans)

THREE QUESTIONS:
What marketing challenge does your School of WOM session address?
CLAYTON CLOSSON (CC): “My session will address the challenge of reputation management - dealing with and (hopefully) eliminating negative reviews and encouraging positive reviews. It’s all about getting a brand’s online reputation to be aligned with their offline reputation.”

Describe the moment you knew this marketing program was making a difference.
(CC): “When we were able to see, publicly, a very unhappy client turn into a very happy client. And it was done through blog posts. From that day forward, we knew this was a place for us to invest resources.”

Share one actionable takeaway attendees will learn from your session.
(CC): “How to create and maintain a successful online reviews program.”

>> Learn more about the School of WOM and review the full agenda.

19

04 2010

WOMMA Becomes a Case Study

WOMMA goofed. We used a common trade association marketing practice of automated phone calls to increase awareness of our upcoming School of WOM Conference.

WOMMA, however, isn’t a common trade association. We strive to be the leading voice in ethical and effective word of mouth and social media marketing. We made a poor decision with the robo call tactic.

Feathers were rightfully ruffled.

Kristen Smith, WOMMA Executive Director, has issued an apology and a promise

“I learned something yesterday and was reminded of how much all of our worlds have changed. We (WOMMA) used an automated messaging system (robo call) to remind folks about our upcoming School of WOM Meeting. The message was sent to those who receive WOMMA information. Even though automated calling is a common conference awareness building tool, it shouldn’t be, especially for WOMMA. It is not who we are and it is not our brand.

Of course, no one less than Seth Godin called me yesterday and wrote a blog post about this to let me know of our mistake. For those we interrupted with our message, I apologize and it will not happen again.”

Best Regards –

Kristen Smith
Executive Director | WOMMA

A lesson learned for WOMMA.

15

04 2010

School of WOM Preview | “Using Passionate Employees to Help Launch New Business Opportunities”

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SESSION:
Using Passionate Employees to Help Launch New Business Opportunities

DESCRIPTION:
Best Buy saw an opportunity to enter the musical instruments category. However, it needed to be done in an authentic and genuine manner or else risk alienating musicians who saw Best Buy as a big box retailer. Best Buy purposely chose to empower its musical instruments employees to start conversations big and small as well as offline and online about the music inside Best Buy. Learn how Best Buy gave its employees an identity, conversation tools, and a place for their genuine voice in order to effectively enter a new business category.

TEACHERS:
Jamie Plesser (Best Buy)
Geno Church (Brains On Fire)
Eric Dodds (Brains on Fire)

THREE QUESTIONS:
What marketing challenge does your School of WOM session address?
JAIME PLESSER (JP): “The challenge for Best Buy Musical Instruments was both internal and external. Best Buy’s simple vision, ‘we’re a growth company focused on better solving the unmet needs of our customers - and we rely on our employees to solve these puzzles’ had never been more crucial in a new business category - authentic communication in the crowded musical instruments space is a hard win. People expect electronics from Best Buy, not high-end guitars, and customers weren’t going to buy those guitars from the same associate who sold them a TV. What did they do? They set the stage for success by providing a great store experience and the right products, then set their employees loose to earn credibility one relationship at a time.”

Describe the moment you knew this marketing program was making a difference.
(JP): “We knew we had struck a chord when we began to receive reactions like this one: ‘When I got home tonight there was a small brown package at my front door. When I opened it up and saw that ridiculous little blue and yellow box, I laughed. So I opened it up and after quickly glancing at everything I started to read, and after about ten minutes it all made sense. When I’m at work I am Best Buy on the outside…. But in real life, I am 100% Music on the inside. I’m proud to be Mi11 # 65 and I’m definitely spreadin’ the word.’ [Best Buy Musical Instruments Associate].”

Share one actionable takeaway attendees will learn from your session.
(JP): “Never under-estimate the value and passion your employees infuse into your brand.”

>> Learn more about the School of WOM and review the full agenda.

13

04 2010

School of WOM Preview | “David Beats Goliath”

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SESSION:
David Beats Goliath: How Word of Mouth Marketing Enables Smaller Brands to Beat Bigger Brands

TEACHER:
Joel Warady (Joel Warady Group)

DESCRIPTION:
With the consolidation of multinational CPG (consumer package goods) companies, smaller emerging brands find it increasingly difficult to spend the necessary money to fund a traditional integrated marketing program. In this session, you will learn how fast-growing, yet relatively small, CPG brands are using WOM and Social Media to level the playing field by capturing market share and shelf space against their bigger and better funded competitors.

THREE QUESTIONS:
What marketing challenge does your School of WOM session address?
JOEL WARADY (JW): “The greatest challenge for small brands is the difficulty in creating brand awareness with limited funds. This is especially true within categories where major multi-nationals are their competitors. In this session, we will discuss how small brands are able to level the playing field using Social Media, and discuss best practices that are being used. Knowing what small brands are doing, and the success they are having, will also provide great learnings for the larger brands as they develop their strategies.

Of the case studies you plan on sharing, which one is the most interesting to you and why?
(JW): “We will be looking at Enjoy Life Foods, a gluten-free, allergy-friendly CPG company. They have been extremely successful with their Social Media and WOM strategy, and have built an extremely loyal customer base as it competes head-on with companies such as General Mills, Glutino, and Hain Celestial Seasonings.”

Share one actionable takeaway attendees will learn from your session?
(JW): “We will discuss what best practices are working within a Social Media strategy, and will look at how to integrate the SM as part of an overall integrated marketing strategy. Participants will walk away with how-to knowledge that will allow them to start a new strategy or alter their current strategy resulting in a stronger ROI.”

>> Learn more about the School of WOM and review the full agenda.

12

04 2010

School of WOM Preview | “Building a Community of Customer Evangelists”

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SESSION:
Building a Community of Customer Evangelists

TEACHERS:
Jackie Huba (Ant’s Eye View)
Coni Rechner (Discovery Education)

DESCRIPTION:
Discovery created a teacher evangelist program called the Discovery Educator Network to encourage teachers to collaborate and share lesson plans using an innovative subscription video product. Because of the evangelical and loyal support from teachers, Discovery has experienced dramatic revenue increases. Learn from Discovery how to best design, deliver, and measure a customer evangelism program for maximum impact.

THREE QUESTIONS:
What “marketing challenge” does your School of WOM session address?
JACKIE HUBA (JH): “Discovery Education needed to increase usage for their United Streaming video product used by school districts so that school boards would be more likely to renew the yearly subscription. Discovery did this by finding evangelists in each school district who would train other teachers on the product and get more teachers using it.”

Describe the moment you knew this marketing program was making a difference.
(JH): “After a year of Discovery Educator Network (DEN) being in existence, usage for the United Streaming product went up 114%. Usage by schools with a DEN member was 2.5 times higher than schools with no DEN members. Subscription renewals for schools with DEN members went from 82% to 99%.”

Share one actionable takeaway attendees will learn from your session.
(JH): “Customer evangelism programs are not campaigns. They are long-lasting relationships that you form with your customers. As such, there is not a concrete ending date. Be prepared to dedicate company resources to keep the program vibrant and customers engaged.”

>> Learn more about the School of WOM and review the full agenda.

09

04 2010

School of WOM Preview | Rob Morris (Love 146)

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The Love146 story is fascinating. At WOMMA’s School of WOM Conference (May 24-26 in Chicago), Rob Morris, the president/co-founder of Love146 will share how passion, purpose, and a powerful identity can help organizations achieve more than they thought possible.

Rob’s talk is sure to be inspiring on a personal level and a professional level. There’s no doubt you will be inspired by how Love146 works to end child sex slavery in the world. You will also be inspired to learn how by changing their name from Justice for Children International to Love146, it catapulted the organization into greater awareness and catalyzed conversations about its mission.

The Love 146 story is about creating powerful movements and passionate participation to bring about change. There is much marketers from for-profit companies can learn from this non-profit organization. Here’s a tease to get you excited about Rob’s keynote…

Love146 History from LOVE146 on Vimeo.

>> Learn more about the School of WOM and review the full agenda.

08

04 2010

Reasons to Enroll in the School of WOM

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Enrollment for WOMMA’s School of WOM conference has begun. Marketing students from around the world will descend upon the Swissotel in Chicago beginning on May 24. The syllabus is set and excitement at WOMMA headquarters is building for this conference.

That said, you’ll probably need a few reasons to enroll. Here are some…

1. Expect More than “Social Media” Tips
If you want to learn how to create a Twitter account or Facebook Fan page, then School of WOM is not for you. However, if you are looking to move beyond the tactics, School of WOM will teach you the art and science of using word of mouth marketing to better engage brands with customers and customers with brands.

2. Learn How to Change when Change is Hard
The Dan Heath keynote on Wednesday is sure to give you new insights into changing how your business does business. Dan and his brother, Chip, wrote the best-selling and way-worthy book, “MADE TO STICK.” That book was about how to creating sticky ideas that fascinate people. They’ve just released a follow-up book called, “SWITCH: How to Change When Change is Hard.” This book teaches us how change happens which will give us marketers insights into how to make change happen with the projects/processes we manage.

3. Getting Customers Recommending
Jeanne Bliss earned her marketing stripes at Lands’ End where she was responsible for ensuring customer happiness. She’s worked with countless other top-notch brands and has written a great new marketing book, “I Love You More Than My Dog.” Her Monday morning keynote will share ideals and ideas from her book detailing the five decisions beloved brands make to reframe the conversation about word of mouth marketing from simply getting customers talking, to getting customers recommending.

4. Best Practices to Next Practices
As with past WOMMA conference, the agenda is stacked with best practice education on a wide-range of word of mouth and social media matters. You’ll learn proven strategies from big brands and small brands on a variety of topics including:
>> Building a Community of Customer Evangelists (Discovery)
>> Understanding the Value of Customer Relations to Spark Word of Mouth (Proctor & Gamble)
>> Using Passionate Employees to Help Launch New Business Opportunities (Best Buy)
>> Building Brand Intimacy through the Social Web (Mountain Dew)
>> Using Social Media in Crisis Communications (UNO Chicago Grill)
>> Making Your Customers Crazy for You (Spiceworks)

5. Kickass Student I.D. Cards
All students need proper ID. And these School of WOM ID cards are kickass. Enroll and you’ll get your own School of WOM ID card…
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Starting later this week, we’ll be featuring interviews with most of the School of WOM faculty members. Stay tuned to be further schooled on WOMMA’s School of WOM conference.

06

04 2010

MERLOT MONDAY | April 19 | Austin

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The Word of Mouth Marketing Association (WOMMA) is coming to Austin. On Monday, April 19, WOMMA and the Council of Public Relations Firms (CPRF) will host a MERLOT MONDAY event for marketers involved with new school social media and old school word of mouth marketing.

At the MERLOT MONDAY event, you’ll sip some wine, chat with Austin-area marketers, and learn marketing insights from Jake McKee (Ant’s Eye View), Aaron DeLucia (Porter Novelli), and Liz Arreaga (Mercury Mambo).

In-between the wine sipping and networking, we’ll break into a casual panel discussion about how best to use “social media” and “marketing media” to create a more talkable brand.

Jake will focus more on the importance of enabling/fostering community voices to make a brand more talkable. Aaron will emphasize the need to think about the entire communication cycle from pre-to-wave-to-post in order to increase the longevity of a marketing program designed to get/keep customers talking. And, Liz will discuss how shopper marketing not only makes a brand talkable but also links to driving sales.

You’ll walk away from this event more confident in your knowledge of how to integrate social media and word of mouth programming into a company’s overall marketing mix. You’ll also learn what it takes to unify various media channels to work together to create a talkable brand.

Come join us. The event starts at 5:30 and the super cool HQ of Mercury Mambo on 1107 S. 8th Street (across the street from the HighBall and right behind Gibson Bar — MAP). >> REGISTER HERE <<

05

04 2010

Employee Disclosure in Social Media

At the 2010 SXSW Interactive Conference, two sessions were held discussing the recently updated FTC Guidelines as it relates to endorsements and testimonials used online in social media. (You can review the twitter stream of each session from these hashtags: #bloggercred and #mikeylikesit.)

WOMMA has been proactive in helping marketers understand the responsibilities brands and bloggers have in complying with the FTC Guidelines. (You can learn more about WOMMA’s best practice guidance by reading our Social Media Marketing Disclosure Guide.)

There are many gray areas within the FTC Guidelines because the social media marketing space is evolving. WOMMA, in working with member companies and industry experts, shares best practice advice to help marketers navigate through the issues of disclosure. However, we recognize our advice will continue to evolve and be refined.

One area where WOMMA’s advice is certain not to change is disclosure. The matter of disclosing information that might affect the credibility of an endorsement is vital because word of mouth works best when it is 100% credible. (Again, for more background on the importance of disclosing material connections in social media places, read the WOMMA Social Media Disclosure Guide.)

A gray area discussed at SXSW session led by the FTC’s Mary Engle dealt with the confusion in applying the FTC Guides to how regular employees of companies, not company spokespeople, should disclose they are employees of a company when they use Twitter and/or Facebook to talk about their products/services of their employer.

Mary Engle, the FTC’s Associate Director for Advertising Practices, explained when company employees share good news and essentially use social media to endorse products/services their company offers, they should alert readers they are employees of the company they are talking about.

Also at this session was Aaron Hendelmen, Partner at Wilson Sonsini Goodrich and Rosati. In response to this question of employee disclosure, Aaron emphasized the importance of companies needing to have policies in place to alert employees of why disclosure is needed.

The following video taken from this SXSW session shares the perspectives of Mary and Aaron on the issue of employee disclosure in social media…

As a marketer, my takeaway and advice about this doesn’t have legal backing and might not be the official position of WOMMA. That said, I don’t believe many companies have much to fear when their non-spokesperson employees occasionally tweet about their company or update their status on Facebook with a mention about products/services their company sells.

I do believe employees who have been given the responsibility for serving as an “official” spokesperson in social media venues for a company should always identify themselves as an employee of the company. Dell does this exceptionally well on Twitter where “official” spokespeople have usernames that clearly identify themselves as Dell employees, such as @LionalatDell and @RichardatDell. “Official” Comcast spokespeople also use excellent disclosure-compliant usernames like @ComcastGeorge and @ComcastKim.

However, if a non-spokesperson employee goes way beyond occasionally tweeting to incessantly tweeting about their company’s products/services with no disclosure whatsoever… then yes, this could be a problem. And the company should have a policy in place, to Aaron’s point in the video, to address situations of a rogue twitter-happy employee on the need to (a) disclose and (b) potentially tone down the incessant nature of their company-focused tweeting.

At this stage in the evolution and development of social media marketing programs, there aren’t many definitive answers. There are lots of best practices though and WOMMA has one of the better best practice guidelines out there in Social Media.

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03 2010