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Closed loop WoM MarketingThe cost effective alternative
"Before if you were making a product, the right business strategy was to put 70% ofyour attention, energy, and dollars into shouting about a product, and 30% intomaking a great product. So you could win with a mediocre product, if you were agood enough marketer. That is getting harder to do. The balance of power is shiftingtoward consumers and away from companies...the individual is empowered... The
right way to respond to this if you are a company is to put the vast majority of yourenergy, attention and dollars into building a great product or service and put asmaller amount into shouting about it, marketing it. If I build a great product orservice, my customers will tell each other.
Jeff Besos, Founder & CEO of Amazon
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WoM is the most trusted media
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Word of Mouth creates reputation
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Definition of Terms - WoM
Word of Mouth anything &
everything that is being said,
privately or publicly, regardless of
media or technology, about or inreference to your product by
consumers
experts or
customers
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Definition of Terms - VoC
Reviews are
the most influentialVoice of Customers
Before deciding whether to purchase recommended products or services, more than four-out-of-five
consumers (81%) will go online to verify those recommendations, specifically through researching
product/service information (61%), reading user reviews (55%) or searching ratings websites (43%).
2010 Online Influence Tread Tracker, Cone Research
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Definition of terms - CF
Customer Feedback a
subset of Voice of Customer
that is collected and
managed by a company.
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People communicate in
unstructured language of stories
Companies understand numbers
and structured, scalable process.
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ProductLife
Cycle
Use Social
Media to
Launch
Engage
Customers
for
Feedback
Translate
Voice of
Customer
into Action
Use WoM
to Learn
customer
needs
Role of WoM in Product Life Cycle
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Product
LifeCycle
Use Social
Media to
Launch
Engage
Customers
forFeedback
Translate
Voice of
Customer
into Action
Use WoM
to Learn
customerneeds
Role of WoM in Product Life Cycle
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ProductLife
Cycle
Use Social
Media to
Launch
Engage
Customers
for
Feedback
Translate
Voice of
Customer
into Action
Use WoM
to Learn
customer
needs
Role of WoM in Product Life Cycle
http://www.amplifiedanalytics.com415.742.2580
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ProductLife
Cycle
Use Social
Media to
Launch
Engage
Customers
for
Feedback
Translate
Voice ofCustomer
into Action
Use WoM
to Learn
customer
needs
Role of WoM in Product Life Cycle
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10 Dos & Donts of Closed Loop WoM
1. Do not try to Control
WoM
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10 Dos & Donts of Closed Loop WoM
2. Do not try toManipulate WoM -
authenticity is the
currency of socialinteraction.
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10 Dos & Donts of Closed Loop WoM
3. Do not try to manage
WOM as a CAMPAIGN
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10 Dos & Donts of Closed Loop WoM
4. Do threat WoM as a
management process.
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10 Dos & Donts of Closed Loop WoM
5. Do stimulate WOM
flow regardless of
sentiment.
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10 Dos & Donts of Closed Loop WoM
5. Do actively
stimulate WOM
flow regardless
of sentiment.
Number
of
Reviews
Aggregated
CSI
Unit
Shipped
Q2 2010
Review
per unit
shipped
LG 1,058 1.55 646 0.01%Panasonic 4,370 1.56 227 0.16%
Samsung 17,648 1.48 1,448 0.10%
Sharp 1,324 1.44 176 0.06%
Sony 4,606 1.48 806 0.05%
Toshiba 3,030 1.43 402 0.06%
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10 Dos & Donts of Closed Loop WoM
6. Do manage
reputation of your
product /brand
strategically
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10 Dos & Donts of Closed Loop WoM
7. Do understand the
roles of the WoM
channels
Twitter?
Facebook?
Customer
Reviews
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10 Dos & Donts of Closed Loop WoM
8. Do not buyinto thetheory of
GenerationalDivide.
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10 Dos & Donts of Closed Loop WoM
8. Do not buyinto thetheory of
GenerationalDivide.
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10 Dos & Donts of Closed Loop WoM
9. Do analyze WOM for the
competitive products to
access and improve your
own position
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10 Dos & Donts of Closed Loop WoM
10.Do monitor VoC to measure
customer satisfaction and
acceptance through the
product lifetime
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We shall energize
our product
promoters
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4. We shall use text
analytics to HEAR
what is important to
our product
promoters.
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Action plan
Design Word of Mouth
stimulation program
Implement listen & act
strategy
Close the loop
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Advertising can help you sell goodproducts, but only your customers can
help you build a great Brand!