The word on the street is not what it used to be!
Over 80% of consumers trust word of mouth, say experts
By Denise Winterman |
Word-of-mouth marketing, the latest advertising boom in the
The average Briton is bombarded with more than 3,000 adverts a day. From
It's relentless and we are starting to turn off and tune out. Only 14% of regular campaigns now have any effect, according to Marketing Week. To put it simply, we've grown tired and cynical of traditional advertising tactics.
I'm a talker naturally so word-of-mouth marketing was right up my alley Rani Schlenoff |
But what we do trust is a personal recommendation. Positive word-of-mouth has always been the advertisers' Holy Grail. On a credibility scale it comes top and traditional commercials come bottom, says advertising author Tom Himpe.
Now, word-of-mouth (WOM) marketing, already established in the
WOM is when unpaid volunteers are sent new products and, as they go about their everyday lives, are encouraged to tell their family and friends - even strangers - what they think of them. The products can be anything from mobile phones to sausages.
'Honest' message
WOM marketing companies are at pains to insist it isn't viral or buzz marketing because the volunteers - known as agents, advocates, ambassadors or transmitters - must state they are part of a marketing campaign. It is about harnessing "honest word of mouth", say companies.
Agents are not scripted, or commanded to spread only a positive message. And they are not paid. Instead, they get free samples, and what the industry calls "social currency" - the thrill of being among the first to try a new product.
It's flourishing in the
Youngsters are more brand aware |
One of the leading
But why do it? It's easy to understand when the products are the latest mobile phone or fashionable jeans; less so when they are razors, toothbrushes, sweeteners or sausages.
That doesn't seem to put people off: in the
The company now estimates it has a network of more than 250,000 ambassadors. It doesn't even officially launch here until Tuesday but already 260 Brits have inquired about becoming agents.
While it may feel like big business is muscling into yet another area of people's lives, WOM is actually a result of consumer power say experts.
Blurred boundaries
"Consumers are now in control, brands lost the marketing fight," says Tom Himpe, author of Advertising Is Dead, Long Live Advertising!
"Companies cannot dictate what is being said about their products and the internet allows the voice of disgruntled customers to go global. The consumer is no longer passive and it is a vulnerable situation for brands."
This communication revolution and increased cynicism has forced the industry to go back to its grassroots.
"The industry has always been fascinated with word of mouth and desperate to use it, " says Dave Balter, the founder and CEO of BzzAgent and co-founder of WOMMA.
COMPANIES THAT USE WOM Penguin AOL Nestle Philips Hershey SOURCE: BzzAgent |
"For the last 50 years consumers have been told every product is better, cheaper, faster, cleaner, that they will love it. They just don't buy that sort of message any more, they want to find out for themselves.
"Using WOM agents allows consumers to feel involved in the products they are being sold and companies to connect with them."
But declaring your interest as a word-of-mouth agent is surely a conversational bombshell. Does this not corrupt any recommendation? Not according to research.
People don't seem to care, what matters is that they trust the person and believe they have their best interests at heart, according to a study by Professor Walter J Carl, of North Eastern University, in Massachusetts. This is what makes WOM so potentially lucrative Who else is going to be honest if not your friends and family?
"The beauty of WOM is that it's open, raw, real and direct," says Mr Himpe. "Negative or positive, at least the message is genuine. It's not just the brand talking."
Negative WOM
Rani Schlenoff is an advocate for BzzAgent in the
"After the initial shock of me injecting myself into their lives, they are usually very happy to hear what you have to say."
But there are questions hanging over the industry. There's a fine line between someone recommending a product they've been given, and one they've bought. When it's crossed it is no longer genuine word-of-mouth, say some commentators.
Socialising or selling? |
And isn't it all a bit sneaky? WOMMA has drawn up a code of ethics but the industry is self-regulating, so we have to take its word that agents are being open. The Advertising Standards Agency (ASA) has no rules covering the industry.
But the bottom line for some is the question of selling out. Time with friends and family is sacred and shoehorning a sales pitch in at every opportunity is extremely unpalatable. But that often comes down to age, says Mr Himpe.
"For some adults it would feel like selling your soul but for today's young people such boundaries are blurred. Brands are part of their lives in a way they have never been for generations before them."
But companies that think they've found the Holy Grail perhaps shouldn't get complacent. Research shows that positive word of mouth goes out to five people but negative word of mouth goes out to 10... and with much more passion.
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