Social Trends and Word of Mouth - PCEA 2013

transcript

source | Nielsen study (August 2010)

PEMCO Insurance: V.P. and CMO

WOMMA: Board of Directors

- - - - - - - - - - - Follow Rod on

Twitter: @NW_Mktg_Guy

Rod Brooks

Insurance For $1000

In the 1969

movie starring

Woody Allan

which chain

gang prisoner

complained of

being treated

inhumanely? -

Insurance For $1000

Twitter: @NW_Mktg_Guy

Twitter Hashtag:

#PCEA13

• Integrity

• Responsibility

• Courage

Know what’s important!

• Customer centric

• Relationship led

• Values based

• Challenger brand

• Hyper-local

• Integrity

• Responsibility

• Courage

Challenges: Both old and new

• Highly regulated industry

• Product perceived as a commodity

• Insurance is an unsought product

Industry 1

Environment

• Industry ad spending at astronomically high levels

• Heavy influence by peers, friends, and strangers online

• New & unfamiliar channels sustain brand conversations

• Integrity

• Responsibility

• Courage

Our Vision

Our customers say: “PEMCO gets it! They’re great to do business with, they

share my Northwest values, and I would

definitely recommend them.”

Social

Social Engagement

Social Business

What comes to mind?

One is noun.

One is verb.

One is an adjective.

Action

Media Engagement Business

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

Word of mouth is the

most powerful form of

marketing there is!

• Integrity

• Responsibility

• Courage

Most Powerful • Builds brands

• Drives Sales

• Sparks Conversations

• Integrity

• Responsibility

• Courage

Most Effective • More persuasive

• More targeted

• More relevant

54% of US adults identified

old-fashioned Word of Mouth

as most important influencer

of purchase decisions.

source | “Digital Marketer Report, Experian – 2011

What percentage of

word of mouth

happens online?

US consumers have at least one

daily brand-related discussion…

face-to-face – 93%

voice-to-voice – 45%

Online – 22%

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

23% of people’s time

spent on the Internet is on

Social Media websites

source | ComScore Data Gem - 2011)

• Integrity

• Responsibility

• Courage

source | Keller Fay “The Face-to-Face Book”(2012)

• Integrity

• Responsibility

• Courage

Are your marketing pants on fire?

?% of consumers believe

companies are untruthful in

their advertising.

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

• Integrity

• Responsibility

• Courage

76% of consumers believe

companies are untruthful in

their advertising.

• Integrity

• Responsibility

• Courage

Advertised In Reality

• Integrity

• Responsibility

• Courage

Advertised In Reality

• Integrity

• Responsibility

• Courage

Trust lives in the community.

?% of global

consumers say they

trust recommendations

from other consumers

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

• Integrity

• Responsibility

• Courage

Trust lives in the community.

78% of global

consumers say they

trust recommendations

from other consumers

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

• Integrity

• Responsibility

• Courage

Northwest values

• Integrity

• Responsibility

• Courage

Moving from money to mouth

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

Reason 2001 2002 2005 2007 2008 2009 2010

Referral and/or

Recommend

• Integrity

• Responsibility

• Courage

Northwest values

• Integrity

• Responsibility

• Courage

The people who

“link, like, and list”

us are among a

brands most valuable

marketing assets.

• Integrity

• Responsibility

• Courage

The people who

“link, like, and list”

us are among a

brands most valuable

marketing assets.

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)

2010 – Fortune 100 Companies…

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

77% are on Twitter

61% are on Facebook

57% use YouTube

36% maintain a blog

source | “Contagious – Why Things Catch On” by Jonah Berger, 2013)

77% of YouTube videos

have fewer than 500 views

Only 1/3 of 1% get more

than 1 million

84% of Fortune 100

businesses with a Facebook

page are actively using it

source | Burson-Marsteller “Global Social Media Check-Up” report (February 2011)

(NOTE: Up from 59% in 2010)

Fortune 100 firms are

tweeting, on average,

25 to 30 times per week

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

“… 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.”

Word of mouth is the

most powerful form of

social media there is!

• Integrity

• Responsibility

• Courage

Product – Service - Experience

• Integrity

• Responsibility

• Courage Awareness to Advocacy

Why Recs Matter

• Integrity

• Responsibility

• Courage When “earned” they drive

preference, purchase & referral.

Why Recs Matter

• Integrity

• Responsibility

• Courage

BIG HAIRY AUDACIOUS GOAL

• Integrity

• Responsibility

• Courage

REFERRAL BASED GROWTH

• Integrity

• Responsibility

• Courage

Five Principals: Word of Mouth Marketing

1. Word of Mouth Marketing . . .

Honest and

authentic. Brands to consumers and consumers to consumers.

. . . is Credible

Listen,

participate,

respond and

engage in conversations

. . . is Social

Transparent

& trustworthy Protects privacy among all

parties.

. . . is Respectful

Defined,

monitored, & evaluated

. . . is Measurable

Easy to share. Over and over.

. . . is Repeatable

• Integrity

• Responsibility

• Courage

Four decisions

every marketer,

every brand

. . . all of us,

can make.

1. Decide to listen

2. Decide to be affected

3. Decide to respond

4. Decide to be engaged

Listening

is a company’s

greatest

opportunity.

The typical American

mentions specific brand

names 60 times per week in

offline & online conversations.

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

XX% of WOM conversations

are mostly positive

XX% of WOM conversations

are mostly negative

68% of WOM conversations

are mostly positive

8% of WOM conversations

are mostly negative

Use the

available

search

functions

• Integrity

• Responsibility

• Courage

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

Public Displays of Affection

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

Public Displays of Aggravation

22% of US consumers have

at least one brand-related

conversation online every

Public Displays of Affection

22% of US consumers have

at least one brand-related

conversation online every

Public Displays of Aggravation

Customer

reviews and

stories affect

operations.

• Start every meeting with a

customer story!

Create a

place to

welcome

feedback

Create a

place to

welcome

feedback

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

We’re Sorry

“Show me

that you

know me

in ways

that others

don’t”

Engage your audience

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!

• Integrity

• Responsibility

• Courage

Social engagement mantra

“PEMCO’s success

depends on the

positive opinion of

people like me.

They listen,

participate,

encourage and

enable me to

share with others.”

Listen to your customers

• Integrity

• Responsibility

• Courage

Remember the basics…

Know your

talkers… Give them

something to

talk about… Make it

easy to share.

• Integrity

• Responsibility

• Courage

And remember…

• Integrity

• Responsibility

• Courage

Thank You – Lets Connect

Twitter:

@NW_Mktg_Guy

Facebook:

Northwest

Marketing Guy

Linked In:

Rod Brooks

www.rodbrooks.com