“…the average American talks each day about roughly ten
brands, and that the typical brand conversation lasts between three and five
minutes. More that two thirds of these conversations involve a recommendation
to buy, consider or avoid the brand,” from The Face-to-Facebook, Ed Keller and
Brad Fey, 2012
“Typically, messages passed within tight,
trusted networks have less reach but greater impact than those circulated
through dispersed communities,” quoted by Keller & Fay from a 2010 McKinsey
study on Word of Mouth.
The impact of positive word of mouth about products and
services on purchase decisions and opinions is growing. This has been a disputed trend for some time
now. Some simply say that word of mouth
has been around since the dawn of time and there’s nothing much new to respond
to. Others claim that the efficacy of traditional marketing has forever slipped
off of a cliff never to regain its footing. The truth lies in the middle –
things have changed, word of mouth is more important today.
Often attributed to
the flood of marketing and media messages beyond a manageable flow, a
skepticism and distrust for institutions, and the added social connectivity to
our network of close and weak ties via social media and mobile access, word of
mouth or earned personal media is increasingly seen as the future of marketing.
Still brands remain preoccupied with mastering social media and more recently
with developing efficacy models that blend the performance of owned, earned and
paid media. Very few admit that the real interest in social media is due to the
earned media or word of mouth potential by disruptive ideas and customer
engagement programs. Even those that are trying to measure owned, earned and
paid start by treating the earned media – the positive word of mouth and even
recommendations of friends and family – as just more media with an impression
value. That’s crazy.
Still, I get it. We learned how to scale
advertising. We are just learning how to scale word of mouth. That means we
have an institutionalized machine to create, distribute and measure
advertising. While we create methods for scaling the use of word of mouth, we
will be required to compare that efficacy with advertising. But brand marketers
should be looking at the real shift in the marketplace. That is the word of
mouth. Within that simple discipline lies some of the most important concepts
to modern marketing: influencer marketing, influencer scoring, community
management, brand advocacy, content marketing, fan management and more. How
should brand marketers get smart about word of mouth?
Read Face-to-Face Book
One of the best reads this year on Word of Mouth is The
Face-to-Face Book by Ed Keller and Brad Fey. Ed Keller can be one cranky bloke. He wants a
fight. He knows that 80-90% of word of mouth happens offline in face-to-face
conversations and he’s tired of all of the fanfare falling to the 8% that
happens online.
The thesis of the book is solid if told in provocative way.
Integrated programs that feature compelling advertising, products that have
talk value, and a art-and-science-driven approach to sparking word of mouth online
and offline will drive sales.
Along the way he bashes social media. The Pepsi Refresh
Project is called out as failure of marketers too ready to believe that social
media could replace advertising. Certainly Pepsi came to the conclusion
eventually that they were under-spending in advertising. Regime change. Budgets
shifted. But social media did not get taken out of the mix. It remains relevant
to Pepsi and thousands of other marketers around the world. Social media may
get out-sized attention from brands, but what if we just used social media as a
synonym for word of mouth? Isn’t the shift that media has become more social?
There is no good argument for why brands do not focus on
generating relationships that drive positive word of mouth online and offline.
Keller and Fay do a great job of uncovering facts and ideas that marketers need
to be successful in this space.
Influencers do exist
and are important
“The average American keeps in close personal contact –
meaning real-world offline communications – with approximately 16 friends,
family and acquaintances. Infleuncers, meanwhile, have a social network that is
twice as large: thirty-three friends, family and acquaintances with whom they
communicate often.”
“Whereas the average American has about 65 conversations per
week about brands, Conversation Catalysts (their phrase for influencers)have
nearly two and a half times as many: 150 conversations per week.”
"Pursway’s analysis (a research company) finds that these
influencers can generate ten times more sales within their social circle than
an average consumer.”
People talk about
products, experiences and about advertising
“…word of mouth basics – being recommendable, easy to talk
about, worth talking about, and something people feel proud to share with
others – are far more important drivers of word of mouth than being new,
unique, innovative or entertaining.”
“Yes, great experiences get people talking. Innovative
products do, too. But to a surprising extent, ads are a tremendous source for
conversational fodder (25%)”
The scale of social
networks mask the real numbers
Here’s a place where my conclusions diverge from Keller and
Fay. Their basic premise is sound: that of all the people who friend a Facebook
brand page, only a minority are active. I see that as a community ‘power-law’
and not a hidden defect of social networks as part of a marketing model. You
simply must think of segmenting fans, followers and then counting on action
from an active minority.
Facebook routinely says that about 16% of a brand page
fanbase sees an update in the news feed of the brand. Keller and Fay’s
“informal experiment” in the book points to 10%. Either way, we know that the steady flow of
Facebook updates is never seen by all and we should plan accordingly.
“…a fall 2011 study found that of the total number of
(Facebook) fans, only a very small percentage (typically 1 percent or fewer)
are active.”
Integrated social
media works well
Even while the authors emphasize the importance of
advertising to drive word of mouth and that the offline word of mouth dwarfs
online, they also acknowledge that social media done well can drive big
results.
“The campaign’s success (Old Spice) was immediately
interpreted as yet another victory for social media over traditional media. But
you don’t have to look too hard to see that’s not entirely the case. Put
simply, the success would not have been possible without an integrated approach
that involved smart consumer research, and an excellent creative idea delivered
in a heavy broadcast presence with a smart social media component.”
As brand try and get the most out of social media, they will
likely come to realize that a more holistic effort to drive word of mouth is
really what they are after. Keller and Fay’s book, Face-to-Facebook is an
important read along that journey.
Key word of mouth event in November 2012
You can dive into an immersive two days on this subject at
the Word of Mouth Marketing Association’s Summit in Las Vegas. Join Ed, Brad,
myself, and a few hundred-brand marketers to see and learn best practices from our
peers. See the Summit Agenda and
register here.