Download pdf - Creating Conversation Worthy BUZZ

source | Nielsen study (August 2010)

PEMCO:

Vice Pres & CMO

WOMMA:

Board President

WOMMA advances and

advocates the discipline of

credible word of mouth

marketing.



Social

Media

Social Engagement

Social Business

What comes to mind?


Social

Media

Social Engagement

Social Business

What comes to mind? Hint:

One is noun.

One is verb.

One is an adjective.

Shows

Action

Media Engagement Business

Includes all value

exchanges that

enrich relationships

between customers

and company.

93% of US consumers have

at least one brand-related

conversation face-to-face

every day.

source | Keller Fay & Yahoo! study (June 2010)



conversation voice-to-voice

every day.




conversation online

every day.



Social Media Voice of the Company

Top-Down Control

Company-Generated Messages

Infrequently Updated

Socially Engaged Voice of the Customer

Bottom-Up Messaging

Consumer-Generated Messages

Continuously Updated


Top-Down Control




Bottom-Up Messaging




Top-Down Control




Bottom-Up Messaging




Top-Down Control




Bottom-Up Messaging



23% of people’s time

spent on the Internet is on

Social Media websites


65% are on Twitter

54% are on Facebook

29% use YouTube

33% maintain a blog

2010 – Fortune 100 Companies…

source | Burson-Marsteller & Digital Media Study (February 2010)

source | Burson-Marsteller & Digital Media Study (February 2011)

2011 – Fortune 100 Companies…

77% are on Twitter

61% are on Facebook

57% use YouTube

36% maintain a blog

The average number of

Twitter accounts Fortune 100

firms maintain is 5.8

source | Burson-Marsteller “Global Social Media Check-Up” report (February 2010)

Fortune 100 firms are

tweeting, on average,

25 to 30 times per week


84% of Fortune 100

businesses with a Facebook

page are actively using it


(NOTE: Up from 59% in 2010)

Fortune 100 firms average

4 updates per week to their

Facebook page


“… companies that are both

deeply and widely engaged in

social media surpass their peers in

terms of both revenue and profit

performance by a significant

difference.”

source | Starbucks Facebook Page (May 26, 2010)

22,300,000+ Facebook fans

22,313,818 Facebook fans

“It isn’t a marketing initiative.

It isn’t a PR initiative. It’s

cultivating and creating great

consumer value and great

customer relationships” Alexandra Wheeler

digital strategy director, Starbucks

source | Starbucks Q3’09 - Earnings Call Transcript, July 21, 2009

22,313,818 Facebook fans Howard Schultz

Chairman & CEO, Starbucks

“The key here is that we are

connecting directly with our

loyal customers who will be

driving our future growth.”

Word of Mouth is the primary

factor behind 20% to 50%

of all purchase decisions.

source | “A New Way to Measure Word-of-Mouth Marketing” (McKinsey Quarterly, April 2010)

54% of US adults identified

old-fashioned Word of Mouth

as most important influencer

of purchase decisions.

source | “Digital Marketer Report, Experian – 2011

Where does

WOM fit in your

marketing

strategy?

Where does

WOM fit in your

business

strategy?

PEMCO’s BHAG:

Big Hairy Audacious Goal

76% of consumers believe

companies are untruthful in

their advertising.

source | Bold Mouth’s “Perceptions, Practices, and Ethics” report (2006)

source | Bold Mouth’s “Perceptions, Practices, and Ethics” report (2006)

Advertised In Reality

78% of global

consumers say they

trust recommendations

from other consumers

source | Nielsen’s “Trust in Advertising” Report (2007)

source | PEMCO Mutual Insurance Co, “Market Metrics – 2010”

Reason 2001 2002 2005 2007 2008 2009 2010

Price 60% 62% 50% 50% 36% 40% 33%

Referral and/or

Recommendation

10% 12% 17% 20% 22% 22% 32%

Liked the agent 15% 11% 9% 9% 9% 9% 13%

Good service 33% 23% 5% 4% 9% 4% 10%

Local company <1% <1% <1% <1% 9% 6% 7%

Referrals as important as price

The typical American

mentions specific brand

names 60 times per week in

offline & online conversations.

source | Keller Fay “ Talk Track” report (2010)

source | Keller Fay “ Talk Track” report (2009)

68% of WOM conversations

are mostly positive

8% of WOM conversations

are mostly negative

source | http://www.flickr.com/photos/boudster/3716337113/

Public Displays of Affection



conversation online every

day.


Public Displays of Affection

source | http://www.flickr.com/photos/

Public Displays of Aggravation




day. Public Displays of Aggravation

67% of companies are

using Twitter to respond

to people’s tweets (NOTE: Up from 38% in 2010)


Decide to listen

Decide to be affected

Decide to respond

Decide to be engaged

Consumers are talking about you…

Listening is

marketing’s

greatest opportunity.

Listening is

your company’s

greatest opportunity.

Use the

available

search

functions




day. Public Displays of Affection




day. Public Displays of Affection




day. Public Displays of Aggravation

Customer

reviews and

stories affect

operations.

• Start every meeting with a

customer story!

“When consumers write

reviews online ... the

average grade is 4.3 stars

out of 5.”

source | Wall Street Journal article (Oct. 5, 2009)

Create a

place to

welcome

feedback

Create a

place to

welcome

feedback

When Layne’s son was hit by a drunk driver, dealing with

their insurance company was a major headache. It was in stark

contrast to the service he’d always received at PEMCO. Layne

knows good service when he sees it – and PEMCO’s been stellar.

When Paul learned that his dream home had been burglarized and

stripped of $10,000 of new hardware, he didn’t know where to turn.

Though an unfortunate setback to the project, PEMCO helped make

a quick decision and the project moved forward on time.

Respond with timely

appreciation, empathy,

sincerity and authenticity.

“When you hit a wrong

note, it’s the next

note that makes it

good or bad.”

source | Slide used with permission of John Moore, BrandAutopsy

Two great ways to respond

to even the most

challenging assertions.

Thank You

and

We’re Sorry

Feb 22nd - 3:18 to

Feb 23rd - 4:05 p.m.

24 hours

47 minutes

Sorry!

Use humor

that gives,

not takes!

Use humor

that gives,

not takes!

Listen

Participate

Encourage

Enable

Engage

at every

touch

point

+

Partnership

Keep the

Advocacy

Engine

In motion

Don’t let your first day of social be “not so good”

source | Scott Adams Dilbert Cartoons @dilbert.com | 09-13-10

Know your talkers

Give them something

Make it easy to share

And always remember…

Word of mouth marketing basics…

to talk

about

Let’s Connect Twitter: @NW_Mktg_Guy

Facebook: Rod Brooks

Linked In: Rod Brooks

Blog: www.rodbrooks.com