close
you are viewing category
word of mouth
There are not many industries that have a more passionate following than the car industry. Everybody knows someone that is involved in it, and lately we all know how it has suffered. While most people have been focused on if GM will file chapter 11 and will Chrysler be speaking Italian by the end of the year the marketing of the automotive industry continues to develop at quite a rate. After all we all still need cars right?
One interesting company is Driva Studios who have modelled every single car for sale in the United States in 3d and have produced an unparrelled library of to be quite frank stunning car and truck images, aimed at dealerships, solution providers and portals. What has drawn my attention to this development is their deployment mechanism. They ahve built a full CDN to deliver video and images anywhere at fast speeds which I feel bears well for future developments the company may undertake considering they are part of the Dealership Driver group of companies there should be no limit to the gadgets they can develop.
Being a Brit, I sit in these situations quite separate from the world going on around me, watching and listening to the local characters with fascination. So, Nascar was discussed, the love of Bar-B-Q and other general topics that surround what happened on a particular drunken night back in 2001. None of this surprised me at all in anyway and I actually enjoyed hearing this different perspective on the world. Just as I thought the conversation could get no more stimulating an interesting topic was launched. The people collectively started speaking about Indian culture, music, communities and media. This seemed slightly out of place until it became apparent that this collective knowledge base was exclusively garnered from social media platforms and especially consisted of video content. All participants were in their twenties and all used social networking to communicate and organize offline events with each other and without exception all used social media videos as an on demand educational resource. The people at this large table showed an interest in viral shock engaging content but also said the search for information was the largest way in which they used social media content. I took away a true appreciation of the global reach and diversity of people who are taking this new media channel and using it in ways of furthering bonds and knowledge of the world around them. I walked away with a couple of bang-rah artists I need to look up and a new network of people. 
Last night I went to a birthday party for a good friend. It was strangely held in a pool hall somewhere in rural florida. The music was 1980's house music and the dress code was come as you are, even if you haven't gotten round to washing your clothes yet this year. You know the kind of place?
I attended the IWOMC conference in Paris hosted by ESCP-EAP (European School of Management) and Nils Andres Brand Science Institute. My schedule has been crazy since I got back but over the next few days I will be making a few posts with some of the concepts delivered on both WOM and Web 2.0. I recommend next years event to anyone wanting cutting edge information as well as well rounded approach to delivering excellent content and great networking opportunities.
From an Emerging Media stand point many new concepts that further layout the future for Web 2.0 were delivered and even though I am very experienced in this field the new demographical data and analytics shared, really shared light on how niche markets are capitalizing on engaging their audiences and creating experiences. A great example would be OSOYOU which is a British social media community specifically geared to women and shopping. I Would suggest you check it out to see how affiliate marketing can be used effectively to engage audiences, create social groups and most importantly build monetization in to social resources.
Creating word of mouth hasn't changed, as always it is about creating engaging content, products or services that are worth talking about. It's also about being involved in news worthy causes or challenging the norm in some way. Viral and buzz marketing are just two attempts at engaging people but any brand worth its salt would be wise to not get to hyped in thinking that the internet is the only channel to generate true wom.
Brand managers everywhere have a duty to remain channel agnostic, and concentrate on the ability to have the conversation being the guide to the most effective messaging channels.
It is good to note print is not dead and the radio still has an audience and advocates and thus a value, the internet is a new channel not a replacement for everything that has come before it.
QG Partnership is growing and has today released it's plan to open a new subsidiary agency dedicated to Word of Mouth Marketing. We cannot yet fully divulge the full nature of our project but you can get clues by popping over to WOM Creative every now and again. More information will follow. WOM Creative
Today I bought my tickets and made my reservations for the 2008 IWOM conference in Paris. It is being held in early May and if you are really interested to see how Emerging Media can benefit your campaigns I would make sure you are there! More info can be found at http://www.iwomc.com
Satmetrix, a leading enterprise customer loyalty metrics firm has tackled and started researching the economic viability of Word-of-Mouth Marketing. The results look promising for well planned strategic WOM marketing campaigns and gives definite warnings for poorly deployed ones.
"When customer experiences are positive -- and loyalty is high -- we expect customers to spend more on average and to generate new business via positive word-of-mouth. Conversely, when customer experience is poor and loyalty is low -- we expect lower purchasing value (perhaps even defection), as well as the potential loss of new business through negative word-of-mouth," said Dr. Vince Nowinski, principal methodologist at Satmetrix.
Applying this framework to the computer hardware industry, Nowinski and his team discovered that each Promoter was worth approximately $2,634. Promoters spend $203 more than the industry average of $1,615 and account for roughly one-half of a new customer acquired through positive word-of-mouth. In comparison, each Detractor can cost a business 0.84 percent of a new customer through negative word-of-mouth. The lost business associated with their negative referrals subtracts nearly the entire value of their purchase behavior, leaving a total customer worth for Detractors of just over $100, accounting for $2,500 less than Promoters.
"While Detractors spend lags the average customer by only $158, their negative word-of-mouth behavior represents a significant hidden cost and net drain on future revenue," said Nowinski.
What becomes evident in this report is that companies who attain the true "conversation" with their audience and who can cultivate a transparent relationship based on common interests (Their products and services) will reduce detractors as this new ethical approach matures.
I am still left with many questions though...Was there a difference between media channels? Did offline relationships produce fewer detractors and more promoters? Is there a definable personality trait that separates detractors from promoters? Moreover, who is working on cultivating relationships with detractors to turn them in to promoters? Detractors are obviously passionate about their role in spreading the word about a particular company, wouldn't they make great advocates!
If you would like to read the full article: http://www.streetinsider.com
