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WORD OF MOUTH
MARKETING
What it is and how to use it. A primer for
software company CEOs and CMOs who need to
drive sales with more credible marketing.
The goal of this white paper is to help you understand the
process well enough to know where to turn for help. Awareness of
word of mouth (WOM) is growing exponentially in the press and in the
marketplace…and yet its application is often poorly understood. There
are currently several versions in vogue. The major word of mouth trade
associations (www.womma.org and www.vbma.net) are still struggling
to define the ground rules for its deployment. This document offers the
author’s views shaped over the past four years by many of the major
resources impacting this powerful approach to new business. It
provides solid case studies and shows how to get started. Many
marketers refer to word of mouth as the world’s greatest sales force. It
could be!
By
Keith W. Bates
keithbates@kbates.com
COMPILED BY SPONSORED BY
www.illinoistech.org
About the Illinois Technology Association
THE ITA MISSION: The Illinois Information Technology Association exists to be a leading change agent that drives
growth, development and retention of IT-focused businesses and talent in Illinois by providing networking, advocacy,
resources and leadership. They serve members in Chicago-land and throughout the State and exist to help grow the
number of successful businesses that create, deploy and utilize information technology as a core part of their
organization. www.illinoistech.org
We represent the interests of our diverse membership at a local and national level, and work to connect member
companies with each other and the resources they need to succeed. The ITA continues on a more than twenty year
tradition of service to the technology community, and in 2005 was renamed from the Chicago Software Association
(CSA). The CSA had a solid program and had been recognized as one of the most important technology
organizations in the Midwest. ITA remains committed to continuing the good programs we began as the CSA.
What is the inspiration behind this seemingly altruistic effort? Bates was inspired by Peter Drucker, the great
management writer and thought leader, who has a goal of learning something completely new, in depth, every
decade. This decade’s learning for Bates (which began in 2001) has been word of mouth marketing and its
application to the software industry. Today the technology industry is being challenged to improve both marketing’s
efficiency and credibility while reducing costs. Word of mouth offers these solutions and Bates wants to share what
he’s learned in hopes of shortening someone else’s learning curve.
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Table of Contents
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…to add wings to your marketing, spurs to your sales
Executive Overview
Awareness of word of mouth marketing (WOMM) is increases with the square of the number of people
growing exponentially in the press and in the using it. So when you have 10 users in the world, that’s
marketplace…and yet its application is often poorly 25 times better than when there were two. And at 100
understood. The goal of this article is to help you users your network is 1000 times better than at 10. With
understand the process well enough to know where to 100 user hubs your network has a reach of 10,000
turn for help, or how to launch your own program. people. 100 hubs seems to be the magic number.
And from Justin Kirby, Managing Director of DMC Ltd., Benefits of employing WOMM
“In fact the most successful use of online viral
Perhaps the first issue to resolve, because of the nature
marketing is not as a standalone tactic but as an
of the audience for this white paper, is whether WOM
integrated part of a brand's overall marketing strategy.
lends itself better to consumer marketing or business to
One of the big mistakes brands make is thinking that an
business. The answer is “both” equally well. In the B2B
online viral campaign is an end in itself rather than
world it is particularly well suited to the pharmaceutical
recognizing that it's a means to an end. Viral marketing,
and technology industries because of the need for one
like PR, is a process not an event. Its point is to create
on one conversation about technical aspects.
a buzz in order to help build brand and shift product, not
just to create a buzz full stop. There is no point in 'going From the customers point of view word of mouth
viral' without fulfilling a wider or longer-term strategic emanates from a trusted source, is credible, friendly,
purpose. and tuned to the listener’s personal interests. It also
overcomes the four most feared words in advertising,
Metcalfe’s law, the power behind viral marketing “I don’t believe you”.
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Stories and Case Studies to be estimated before a commitment is made … but
this cannot be accomplished until the planning is done.
From Stanley Arnold’s Tale of a Blue Horse to the
incredible stories of Hotmail, Post-it Notes and a dozen
Challenges to implementation
others you’ll find inspiring success stories. Netscape,
Napster, Trivial Pursuit, and BullGuard software Both WOM and viral marketing can be a tough sell to
security all offer exciting examples of WOM. management because they reflect a major change in
the typical approach to marketing communications.
Choose the approach that best fits your needs. However they solve some big sales and marketing
There are three, and they range from Ideaviruses to problems … like qualified leads, shorter selling cycles,
Shockviruses to Influentials. and often an overall reduction in the cost of sales.
advertising. And Influentials are predicated on virusworthy product or story, databases of power
spreading the word based on either evangelists, or the influencers, messaging and assistance with accelerated
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…to add wings to your marketing, spurs to your sales
taking time to disseminate the message is delivered marketing (VM) is defined as managing digitally-
directly to those who must use the information and act augmented word of mouth, or buzz. “Digitally-
on it. Feedback is instantaneous.” augmented” simply means using the Internet to deploy
your VM program and email is the primary tool of
To quote Emanuel Rosen’s The Anatomy of Buzz, “To
choice. Word of mouth has been around since the
create buzz and use it effectively, you should have a
beginning of time but the spreading, without electronic
realistic view of the phenomenon, not glorify it. For
support, is typically both tedious and slow from a
example, some word-of-mouth enthusiasts argue that if
marketing standpoint. The Internet has changed all that.
you get good buzz, you don’t need to do any marketing.
To quote Seth Godin from his Unleashing the
This can be a major mistake. Distribution, advertising,
Ideavirus,”Stop marketing at people. Turn your ideas
promotions and other traditional marketing activities can
into epidemics by helping your customers do the
translate the goodwill surrounding your product into
marketing for you!”
sales. Good buzz is the best thing you could wish for,
but it’s just one component of your marketing mix.” BENEFITS TO MARKETERS AND BUYERS
VIRAL MARKETING EXPLAINED The simplest reason for choosing word of mouth
Conceived in 1996. Born in 2001. It’s the management marketing over traditional advertising is that it can be
mouth online. It’s word of mouth on steroids. recent study by advertising giant Euro RSCG
Worldwide states that for generating excitement about
It’s marketing’s response to the educated consumer
products, word of mouth is 10 times more effective than
and the Internet. As the ability (speed) of customers to
TV or print ads. If you can achieve focus on your
communicate with customers grows stronger, the
product’s virus-worthiness viral marketing will deliver
credibility of marketers communicating with customers th
10X the market impact at 1/10 the cost. VM turns your
grows weaker. If charging people for exposure to your
ideas into epidemics by helping your customers do the
virus is going to slow down its spread give it away!
marketing for you. It also overcomes the four most
Apple cut the price of WebObjects from $50,000 to
feared words in advertising, “I don’t believe you”.
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Why the viral marketing approach to word of mouth? In dreamed up the idea of a blue horse consistent with
a nutshell it’s the speed and low cost distribution General Foods promise that the new product line would
enabled by the Internet. And because traditional definitely be “a horse of a different color.”
advertising is costly, not terribly productive anymore, On meeting day the blue horse had been tethered
and lacking in credibility word of mouth marketing is to a tree about forty feet from the bar. After the first
becoming the best way to launch a brand. Today the round of drinks the salesmen of General Foods could
speed of information diffusion enable by the Internet is not believe their eyes. "These drinks are so damn
weakening the ability of marketers to communicate with good," one of the regional sales managers said to me,
customers and strengthening the ability of customers to "I believe I see a blue horse out there." All the others
communicate with customers. said the same thing, but none could believe what their
eyes told them.
From the customers point of view word of mouth
Finally the meeting began as General Foods
emanates from a trusted source, is credible, friendly,
announced to its salesmen that their company was
tuned to the listener’s personal interests, very efficient,
going to give them the most exciting line of products in
and offers instant feedback. In other words, dialogue,
their company's glorious history. General Foods finally
rather than monologue.
revealed it was going into gourmet foods. Everyone
WORD OF MOUTH STORIES AND CASE STUDIES quickly had a second drink. The applause was
perfunctory. Some of the applause even sounded like
From Stanley Arnold’s Tale of the Blue Horse, 1968
hissing.
comes the story of United Airlines and how they used
"This is new territory for General Foods," the
word of mouth to inspire executive secretaries to
speaker went on. You might even say that compared to
choose United over competitors when charged by their
what you’ve been selling until now, this is a horse of a
bosses to book a flight. At that time United’s public
different color.”
image seemed to lack something. Arnold’s suggestion:
At that point they responded. They had seen a
send a freshly cut, long-stemmed rose every Monday of
blue horse out there. Now they knew what it was all
every week for a year to the executive secretaries of the
about. The meeting finally picked up momentum, and to
top 1000 CEOs (fifty-two thousand roses). Plus a bud
the extent that experienced food salesmen can
vase with the first mailing. The result: doors closed
summon up enthusiasm for gourmet foods, these
previously to United salesmen were suddenly open.
salesmen were close to a level of exuberance. The
Within six months dramatic increases in ticketing
introduction of the gourmet line was dispatched beyond
occurred.
anyone's expectations.
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VIRAL MARKETING STRATEGY: Successful their tipping point costs dropped to less than $100 per
seeding is an active process. It goes well beyond the new user.
Field of Dreams cliché "If you build it, they will come."
THEN THE INTERNET ARRIVED
Rather than waiting passively for people to come to
you, you go out and plant seeds all around the forest. The Hotmail story started in 1995 with two young men
Here are a few guidelines: from Silicon Valley, each working for a different
VIRAL MARKETING TACTICS: As word about the company, but needing to collaborate on a common
coming book started to spread, demand soared, and project without using their company’s email. Suddenly
the authors decided to seed the market with 15,000 they had a bright idea…a free email service that could
copies of this preliminary report. Their publisher was be accessed through the web. With only $300,000 in
worried that Peters and Waterman were giving too VC seed money they launched the company. A word of
many. Edward Burlingame, who commissioned the mouth program launched both electronically and face-
book for Harper & Row, said that the company to-face started to spread the word. It was good old word
expected to sell around 60,000 copies in the first year, of mouth marketing at Internet speed. Within two
meaning that the 15,000 copies represented 25 percent months they had 100,000 users, and by eighteen
of that amount. But Peters believes that these copies months they had 12 million subscribers. The term viral
were important in generating word of mouth and sales. marketing evolved from this success story. Microsoft
"Within days of the book's launching, supportive bought Hotmail for $400 million and as of 2001 was
reviews appeared, and the network of 15,000 (plus at signing up a hundred thousand people a day.
In 1993 people didn’t really understand online services. for it to become yet another successful business
AOL had formed alliances with major media but the communication device. A classic ideavirus.
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million on advertising in the first half of the year, The e-mail included a link back to the SeeAmerica.org
according to CMR/TNS Media Intelligence. But airlines deals section.
do have an army of messengers in flight attendants, Campaign Insights: The campaign won a gold
gate agents, and ticket-counter people, and the key is medal at the Hospitality Sales and Marketing
to get them plugged in and on board quickly with Association International (HSMAI) annual awards
positive spin on a financial restructuring, crisis specialist ceremony held in New York in January. This is the most
say. United’s ad agency, Publicis Groupe’s Fallon prestigious Tourism Communication Competition.
Worldwide is managing the marketing plans.
Word of mouth makes the front page of the Wall Street
While Starbucks and those offering Wi-Fi at hotels and Journal: On Jan. 13, Shannon Syfrett, a 15-year- old
airports advertise their services online and through local ninth-grader at Central Academy in Macon, Miss.,
promotions, in the majority of cases word about free Wi- launched a chain letter over the Internet. E-mail chains
Fi “hot spots” spreads by word-of-mouth—and fast. that seek responses from around the world are the
latest rage in science-fair projects, as kids set out to
From iMedia Communications, Inc.
learn where and how fast information travels. Shannon
Following the Sept 11 events, travel fell drastically in
called her project "howfastorfar2003@aol.com," and
the United States and the Travel Industry Association of
she expected that in six weeks she "might get 2,000 or
America (TIA) determined that there was a need for
3,000" replies to her note asking people to write back
some immediate action to encourage Americans to
and then pass her message along. That was her first
travel again. The association conceived a "See America
miscalculation.
Day" -- which coincided with Veterans' Day - - and
The next day, Jan. 14, the request she had sent to
asked Ripple Effects Interactive (REI) to propose a
23 people generated 200 e-mail replies, an average of
cost-effective Internet-based campaign.
one every 7.2 minutes. By Jan. 16, messages had
REI determined that a grassroots e-mail campaign
arrived from 47 states and 25 countries, including
leveraging the association's members was by far the
Australia and Zimbabwe. There were 8,768 e-mails on
most cost-effective and impactful means of reaching
Jan. 24, and another 12,013 three days later. They
Americans interested in travel. As such, TIA forwarded
were now arriving one every 7.2 seconds.
to each of its 2,200 members the flash creative and
Overwhelmed and sick with the flu, Shannon shut
encouraged them to forward it to their own e-mail lists --
down her screen name for 2 1/2 days, but 9,455 e-mails
thereby hundreds of thousands of would-be travelers.
flooded in when she reopened it on Jan. 31, her log
Participants included Hotel Operators such as Ramada
shows. Messages from Libya and Iran popped up on
and Travelodge, transporters like Amtrak, and Visitors'
Feb. 2. On Feb. 4. Shannon and her parents emptied
Bureaus such as the Las Vegas CVB.
the electronic mailbox 35 times--it holds 1,000 incoming
Now, of course this all needed to be done with a
messages--but stilI, a man telephoned from France to
very little budget. Hence, the viral e-mail (although we
complain that he couldn't get his e-mail through. On
like to call it "video e-mail). We asked two things of our
Feb. 5, there were another 37,854 e-mails, one every
members:
2.3 seconds. Shannon pulled the plug, 17 days early.
1. Submit a special deal to be posted on
Altogether, she had received 160,478 e-mails from 189
SeeAmerica.org
countries and 50 states.
2. Take the viral e-mail and forward it on to their e-
mail lists (vendors, employees, customers, etc.) From George Silverman: A complicated piece of
machinery required extensive research to buy, usually
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taking about six months. It then needed to be com- . To brand BullGuard as "the young rebel" in the
pared to the alternatives, which also took months. Then security industry
it had to be tried, which took about a year. Then it had . To generate trial downloads of the BullGuard security
to be rolled out gradually, with training. Another year. software package
The whole thing was compressed into about eight Solution
weeks by holding a seminar/training program, then . Videos communicating overall USP . "Real life" web-,
following it up by audio teleconferences. The decision surveillance- or video-cam shot, making the videos
makers were given the material that would have taken appear very realistic
them months to find, shown how to evaluate it, given . Integrated into BullGuards corporate website
extensive (and flattering) competitive materials, and enhancing trial downloads.
encouraged to try one against the other-all in a carefully . Daily surveillance - clips adjusted and optimized
structured trial that kept several prospects in touch with during the first weeks after launch
each other and with customers, with a hotline to third- Results
party experts. This word of mouth, applied to several . More than 10 million views
critical bottlenecks in the decision process, cut the . Significant percentage of trial software downloads
decision time by multiples, while at the same time . Growth in search engine traffic
showing that the company had nothing to hide. . 317% growth in revenue in year one after launch
. Access to retail distribution side by side with main
Netscape Navigator: Built entirely upon word of mouth, competitors due to increased brand awareness.
Netscape captured about 90 percent of the Web . Plenty of PR and funnier company presentations
browser market before it placed its first ad. The
WHO ELSE IS DOING THIS?
company did it by giving away the first versions of its RECOGNIZE ANY OF THESE NAMES?
product, and by word of mouth, primarily on the
From "The Anatomy of Buzz" the listed companies
Internet. Netscape has now been overtaken by include: Amazon.com, AOL, Amway, Apple Computer,
Armani, AT&T, Avon, Barnes & Noble, Blair Witch
Microsoft’s Internet Explorer (which stole a process
Project, BMW, Budweiser, Car & Driver Magazine,
patented by Eolas Technologies Inc. to achieve this Charles Schwab, Cisco Systems, CNN, Coca Cola,
Compuserve, Crisco Oil, DaimlerChrysler, Dell
feat).
Computer, EBay, Edison, FedEx, Ford Mustang,
General Motors, Harper & Row, Hewlett Packard,
BullGuard develops security software for the home user Honda, Intel, Intuit, Kodak, Lotus, Macy's, McDonald's,
MCI, Microsoft, Miller Brewing, Neiman Marcus, Nike,
The following case study is presented by fellow VBMA
Nintendo, Palm Computing, Pepsi, Polaroid, Proctor &
member Claus Moseholm of GoViral.com for a Gamble, Saks Fifth Avenue, Star Wars, Sun
Microsystems, Taco Bell, 3COM, Twentieth Century
Denmark client of his www.bullguard.com/movies
Fox, Union Bank of California, Warner Brothers, Yahoo,
Background Ziff Davis.
. BullGuard is a small company operating in a battle of From "The Secrets of Word of Mouth Marketing":
Adobe, AOL, Apple, Avon, Campbell Soup, Citigroup,
the giants (Norton & McAfee)
Dell, Disney, Eudora, First USA, Google, Hotmail,
. BullGuard's marketing budget non-existent McKinsey & Company, Microsoft, Napster, Roche
Laboratories, United States Postal Service, Verizon
. Viral is inexpensive compared to other consumer
DSL, Wall Street Journal, Xerox Parco
advertising
From "The Tipping Point"; ABC News, Airwalk
Objectives Company, Audi Automobile, CBS, Centers for Disease
. To build awareness and interest towards a global Control, Century Wilshire Hotel, Coca Cola, Columbia
Record Club, Glaxo Wellcome, Gore-Tex, Hush
target group of home Internet users Puppies Shoes, New York City, Prozac, R.J. Reynolds,
Sesame Street, TV Guide, Winston Cigarettes.
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From "Unleashing the ldeavirus"; Academy of Motion value of their relationships with elite industry
Picture Arts and Sciences, Amazon, com, American
influencers. The buying decisions of your customers are
Airlines, American Express, American Greeting,
Amway, AOL, Apple, Atkins Diet, Audi, Barnes & Noble, influenced by a far broader base than media and
Budweiser, Burger King, Cisco, Clairol, Coke, eToys,
industry analysts, although each is vital to the overall
FedEx, Google, Hallmark, Harry Potter, Herman Miller,
Hotmail, Intel, Kodak, Lycos, Marlboro, Mary Kay communications mix. Today, the purchasing process is
Cosmetics, McDonalds, MCI, McKinsey, Microsoft,
influenced by a broad array of friends, colleagues and
Napster, Nike, Palm, PC Magazine, Polaroid, Post-it-
Notes, Priceline, Reebok, Rexall, Schick, Sports peers, pundits, academics, authors, researchers, and
Illustrated, Starbucks, Star Wars, Martha Stewart, 3M,
many others. What’s more, each market has its own set
Time Warner, Tommy Hilfiger, Toyota, ToysRUs,
Tupperware, Twentieth Century Fox, VW Beetle, of influencers, making it necessary to understand how
Yahoo.
to identify, and then to reach, these new influencers.
Simply put, the mantle of thought leadership and
The companies in the foregoing list were referenced in
influence has fragmented, resulting in the need to
the four books published on the topic of word of
expand your communications.”
mouth/viral marketing in 2001. I cannot verify that these
are all case studies of viral marketing, only that they Many years ago I managed the high tech public
touched the concept in some manner deemed relations firm that I founded with Rich Walker. I wish I
worthwhile by the various authors. had understood influencer relations at that time.
seems worthwhile to study them separately. Variations community. While there may be dozens of magazines
on the public relations industry concept of Influencer and mountains of analysis covering an industry, only
Relations seems to be one of the more popular but several have real influence and impact. This is true
equally powerful in a slightly different fashion are two within companies as well. A relatively few people hold
flavors of viral marketing, which I have arbitrarily divided the key to power in any organization. This is not to say
into the Ideavirus approach and the Shockvirus that these key influences are easy to reach. A memo
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The following outline is presented to you courtesy of introduced to products that require us to change our
Ketchum’s recently introduced, proprietary IRM current mode of behavior or to modify other products
(Influencer Relationship Management) program. It uses and services we rely on … such change-sensitive
a highly targeted approach rather than traditional mass products are called discontinuous innovations. The
media to identify, target and connect with individuals contrasting term, continuous innovations, refers to the
and groups that can directly affect buyer’s perceptions normal upgrading of products that do not require us to
and behaviors. change behavior."
1. Start the process of market segmentation and Ideaviruses represent discontinuous product
identification of “key three” most critical proponents; innovations. I like Geoffrey Nicholson’s (VP Technical
initial influencers, ultimate influencers, buyers and Planning/Technical Ops for 3M) statement from some
decision makers. years back that I saved. “If an idea doesn’t stop people
2. Ecosystem and mapping is based on clearly in their tracks, then maybe it’s just an incremental
determining desired mindset, actions and impact of Key change and not an innovation at all.” Ideaviruses have
Three and Initial Influencers nothing at all to do with incremental change. You must
3. Prioritization and Benchmarking. think long and hard about which approach is best.
4. Strategic Alignment (program development)
So if you don’t have a unique idea perhaps you should
5. Engagement
explore a shocking presentation…which is what many
6. Measure: With priorities, benchmarks and programs
companies in the United States and the rest of the
formalized IRM measures specific agreed upon values.
world are doing these days…
7. Manage
LAUNCHING AN IDEAVIRUS:
• THE IDEAVIRUS
To quote Seth Godin, “…to embrace ideavirus
An Ideaviruses is about the concept of the product while
marketing techniques you also have to accept a change
a Shockvirus is about the presentation of the product.
from the status quo. And many of the executives who
One is about good ideas and the other about good
are now in charge made their way to the top by
presentations. Traditionally great ideas last longer than
embracing the status quo, not fighting it.”
great presentations.
First, and often the biggest challenge is to get
Depending on where you live, although the lines are
management acceptance of Metcalfe’s law that tells us
blurring today, you may be exposed to either
that the value of a network increases with the square of
ideaviruses or shockviruses. Viral marketing in the UK
the number of people using it. So when you have 10
is a little different than the early efforts of viral marketing
users in the world, that's 25 times better than when
in the US. Their leading practitioners depend more on
there were two. And at 100 users your network is 1000
powerful graphics than unique product attributes to
times better than at 10. With 100 user hubs your
convey the power of the product. They focus more on
network has a reach of 10,000 people. For success a
“shockviruses” than “ideaviruses”, simply two schools of
large user base is imperative. 100 Network Hubs
thought. Both are effective.
seeming to be the magic number.
The Ideavirus was really the pioneering viral marketing
catalyst and traces the concept of its origin back to The challenge I’ve encountered is with startup
Geoffrey Moore’s Crossing the Chasm where he companies who don’t have a hundred users and are
discusses technology adoption, "…any time we are reluctant to give product away, or with established
companies who get a lot of money for their product and
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are reluctant to give up any income. These giveaways And the second challenge is then to assign a viral
should be considered beta sites. marketing / creative consultant to work with the
production company who understands the product and
• THE SHOCKVIRUS
market well enough to keep the viral creatives on track.
Shockviruses are typified by shocking graphics and
This person could come from the ranks of creative
tend to rely more on entertainment and visual
consultants or ad agency creative directors.
excitement for their distribution. DMC and The Viral
Factory were early proponents of this approach. Then you follow these next few steps which have much
Ideaviruses traditionally have relied more on unique in common with the Ideavirus approach.
product attributes although that is changing rapidly as I 1. Identify Regular and Mega level hubs within
write this. Other issues to contend with have to do with your Network Hubs databases.
augmenting your viral marketing. Shockviruses tend to 2. Develop virus-worthiness concept/strategy
have a shorter life than ideaviruses. But ideaviruses are around which the Shockvirus will be developed.
dependent on powerful product discontinuous 3. Write copy /design storyboards to support the
innovations while any brilliant creative director can Shockvirus and generate buzz
come up with a shockvirus. Because either approach 4. Expose the virus through regular/mega hubs.
will wear out its welcome once the newness and 5. Support the epidemic with accelerated
excitement grow old you must explore ways to contagion which can be ongoing ad and PR work or a
augment, or maintain or reinforce your message. blitz tactic.
Augmentation typically uses traditional integrated direct NOTE: Before considering a viral marketing program
marketing programs, whether ongoing or of the 90-Day please take a moment for introspection:
Blitz variety, and are often supported by public
What is the buzz that your company wishes to spread,
relations. Viral augmentation tactics also will be heavily
hopefully to epidemic proportions? In ten words or less,
dependent also on the Internet.
what makes your product virusworthy? If you can’t
What’s a 90-Day Blitz? Simply a deluge of marketing come up with an answer fix the product, or reposition
materials that acts as a quick fix for inadequate lead your marketing differentiation message.
flow. Pioneered by Ernan Roman it’s a multimedia, lead
generation activity based on response compression COSTS OVERVIEW
techniques. It is a fully integrated 3 month program that To use the Marcom Engine model I developed many
combines traditional media with interactive media to years ago is to use a six step process that is common
create a sense of event, which in turn produces a knowledge among marketers. First there’s a Planning
substantial flow of leads in a very short time with Module that delivers an audit of the market followed by
minimal commitment of financial resources. For 20 strategy development which is in turn followed by the
years it’s been a hot seller at the Bates agency. creative process. Second is the Execution Module
which develops the arsenal of marcom tools, the actual
LAUNCHING A SHOCKVIRUS: deployment of the strategy/tactics, and finally the
The first challenge to getting started with the Shockvirus tracking and maintenance of the program.
approach is locate a production firm with the creative For the PLANNING MODULE and its three components
expertise, and experience to build a virus so typical monthly fees of a marketing consultant, whether
provocative that it spreads to epidemic proportions … independent, or attached to an ad agency or PR firm
like the recent Subservient Chicken from Burger King.
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can range from a low of $5,000 to $20,000 or more for Process Reengineering (BPR) with Integrated
large companies in big markets. Marketing Communications (IMC) as well as concepts
from Geoffrey Moore‘s TALC (technology adoption life
For the EXECUTION MODULE and its three
cycle) approach in Crossing the Chasm. It drives
components costs cannot be estimated until the
revenue enhancement by fine tuning the value
planning stages, complete with media strategy, are
proposition into the most compelling reason to buy, and
completed and are more inclined to represent out of
by reducing the waste and inefficiency of the typical
pocket expenses. They can vary dramatically from one
random task approach to marketing. Plus … it is the
campaign to the next depending largely on media and
single most efficient way to manage a product launch.
the complexity of your accelerated contagion plan.
The Marcom Engine typically consists of six modules,
CHALLENGES TO IMPLEMENTATION three for Planning and three for Execution but can be
Both word of mouth and viral marketing are often a shortened for convenience to three:
tough sell to management because it reflects a major
change in the status quo. Budgeting for ads, direct mail, • Audit and Strategy: Do your homework. Build a
and websites is done every day. But word of mouth marcom team. Develop a plan. Identify network hubs
marketing? What’s that? It wasn’t invented here. • Creative and Arsenal: Develop virus-worthiness
Remember also that an ideavirus adores a vacuum. messaging, copy and art. Build the arsenal.
You’ve got to be first. If you’ve got a product and it’s not • Deployment and Monitoring: Define a media plan;
unique, consider changing the product—or the playing expose the virus through mega/regular hubs. Then
field. Your idea needs to be inherently unique, or plan support with accelerated contagion. Monitor.
positioned to appear so.
Start by creating small movements first. The big one
However, viral marketing can solve some BIG
follows. A paradox of word of mouth marketing is that
marketing problems. Like achieving quarterly revenue
before creating one contagious movement you have to
goals. Increasing the numbers of qualified leads.
create many small movements first. This means that
Shortening of selling cycles. Reducing the overall costs
before you can fan the flames you have to ignite the
of marketing. And inspiring employee and vendor
fire.
evangelism.
Igniting the fire means that first you must understand
THE DELIVERABLES FROM WOM MARKETING
the “Law of the Few”. Spreading the word depends on
Depending on whether you opt for influentials,
people who are either experts or possessed with a rare
shockviruses, or ideaviruses the deliverables may vary
set of social gifts. They’re called power influencers and
slightly but from any of the approaches you should
evangelists. And they are found as spokes in your
receive:
Network Hubs and are further refined as Regular Hubs
• Development of a newsworthy product
(non-media people), and Mega Hubs (media people).
• Database of power influencers
• Message development UNDERSTANDING NETWORK HUBS
• An accelerated contagion strategy The following section on Network Hubs was extracted
from Emanuel Rosen’s The Anatomy of Buzz, and
LAUNCHING A WOM PROGRAM
Malcolm Gladwell’s The Tipping Point, and then edited
One approach is the Marcom Engine from which
by Keith Bates.
evolves the Communications Support Plan. The
Marcom Engine blends the disciplines of Business
14
NETWORK HUBS WHERE DOES ONE FIND NETWORK HUBS?
Network hubs are individuals who communicate with There are four methods commonly used:
more people about a certain product than the average 1. Letting network hubs identify themselves. This
person does. Researchers have traditionally referred to means capturing the names of those who visit
them as “opinion leaders.” In industry they’re called your website, or ask questions via email/snail
”influencers,” “lead users,” or sometimes “power users.” mail.
2. Identifying categories of network hubs.
There are two major types of “Network Hubs”: Regular
Responses from ads in trade publications,
Hubs, acting as regular folks who serve as sources of
or attendance at conferences, trade shows.
information and influence in a certain product category
However, these efforts primarily gather titles
and may be connected to only a few other individuals--
only.
or to several dozens. And Mega Hubs, which refers to
3. Spotting network hubs in the field. To do this
the press, celebrities, analysts, and politicians. Both
you must join a community, or solicit help from
these categories have subsets, known as Mavens and
those already inside the community.
Connectors.
4. Identifying network hubs through surveys.
Mavens (those who accumulate knowledge) are Studies can be done online using such
listened to because they have demonstrated significant resources as RoperASW, Greenfield Online, or
knowledge of a certain area (at the very least, they Opinion Research. Surveys can be subdivided
have convinced others of their authority on a subject). into socio-metric, informant ratings, or self
Mavens tend to specialize in one narrow field of interest designating.
(movies, computers, corporate governance, and
litigation). HOW TO WORK WITH NETWORK HUBS
Connectors are those people in every group who are Mega hub tactics—“the media”—are well known by
more central because they are charismatic, are trusted publicity people, and I have little new to offer here.
by their peers, or are simply more socially active. What others do not usually discuss is how to go about
Connectors know lots of the right kind of people. reaching the millions of regular hubs who can spread
news about a product. So I will focus here on reaching
Let me offer an easy acronym you can use to
regular hubs.
remember them: network hubs are ACTIVE. They are
Ahead in adoption, Connected, Travelers, Information- Regular hub tactics first challenge is keeping track of
hungry, Vocal, and Exposed to the media more than them. Building a system to record information about
others. Network hubs are usually not the first to adopt a hubs is mostly a matter of making everyone at your
new product, but they are at least slightly ahead of the organization aware of them. The database you build
rest in their networks. should have telephone numbers, e-mail addresses,
regular mailing addresses, as well as information about
The fact is, not much is definitively known about
the scope and source of their influence and the nature
network hubs; moreover, the nature of network hubs
of the networks they belong to.
may differ from industry to industry. You won’t find their
names and addresses in any directory—identifying Timing is important, seeding is often required, targeting
network hubs is substantially more complex than hubs first (before PR and ads), give them something to
renting a mailing list. But the rewards for paying talk about, stimulate them to teach others, give them
attention to these people can be huge. the facts, don’t abuse the relationships, be sure people
15
see hubs using your product, and beware Mega Hub from Diffusion of Innovations, Thriving on Chaos,
bias. Secrets of WOMM, and Anatomy of Buzz - the books
are full of them.”
WARNING: FAILURE TO EXPLORE ALL THREE
WORD OF MOUTH OPTIONS COULD BE
Dr. Paul Marsden: “However, I predict that alternative
HAZARDOUS TO YOUR MARKETING HEALTH.
marketing campaign success will be measured in terms
Each of these approaches, whether Ideavirus, of the impact on customer recommendation rates and
Shockvirus, or Influentials, has different underlying the correlation between the increasing instances of
strategies, tactics and costs. Be sure to explore them these and sales, rather than being based on a simple
different in nature.
Justin Kirby in response to Keith Bates request for
RANDOM COMMENTS FROM PRACTITIONERS AND B2B examples: “Obviously (your audience) never heard
AUTHORS Plus FRIENDS AT BOTH WOMMA (Word of Phase IV research in health care marketing where
of Mouth Marketing Assn.) AND VBMA (Viral+Buzz influentials are seeded with products in the name of
Marketing Assn.)
research. It helped Prozac become the biggest selling
Linda Zimmer: “What makes metrics a tough nut to prescribed drug ever. Yes consumers use the product
but the marketing is B2B.
crack is that viral/buzz marketing must focus on all
types of modern media not just web, email, or Internet.
Justin Kirby: As you probably all know by know I
It has to reach the customer where they are, when they
recently chaired the Alternative Marketing & Advertising
want it, and in the manner in which they want it (my
Conference in Melbourne Australia mostly thanks to my
term is liquid media). That can be SMS, a podcast,
colleague Piers Hogarth-Scot at DMC Australia bringing
social networks, or smart tags. If sales is the ultimate
me up as co-founder of the VBMA. I've also chaired
goal, sales/revenue is the final measurement. But, over
Marketing Week's Non-Traditional Marketing
what period of time? During the campaign, 3 months
Conference in London in December, and been a
afterwards, one year? A great viral campaign can
panelist at Ad:Tech New York and DM Show in London
influence me to buy months down the road.
in November. As you can imagine, I've seen a Heinz 57
variety of alternative marketing techniques being
Dr. Paul Marsden: “Keith, hi - the idea that WOM is a
presented as the antidote to the fragmented and
C2C phenomenon is ill-informed and plain wrong. The
business classic Diffusion of Innovations (which author cluttered media landscape advertisers are now faced
16
ad before it hits TV, in order to create a buzz and enough, but these typically occur when capacity is
exploit the exclusivity factor. limited.
3. As an effective standalone marketing tool for
brands that either can't afford ATL marketing, or that Technology markets, for example, are almost like
require only online distribution to a widespread target presidential election campaigns, where there's no prize
group. for second place. Winner takes all. In these markets the
natural spread of word of mouth must be accelerated.
It's also worth bearing in mind that integrating online Having a good product is not enough.
viral marketing within the overall marketing mix doesn't
mean making sure the campaign's graphics and Don’t be concerned about boring expert hubs. Dell
straplines are the same across all media. It means Computer Corporation came to realize that network
telling a similar campaign story in slightly different ways hubs are willing to spend twenty minutes with an ad and
across the media used, depending on the specific go through the specs and the features. That’s why
channel and audience. Online viral marketing is simply Dell’s ads look like catalogs.
another way of telling a story, but in a manner that is
appropriate to the peer-to-peer and file-sharing What kind of products lend themselves to buzz?
activities that web users engage in. Products that somehow create high involvement among
customers: Innovative products—like Netscape, and
George Silverman, Secrets of Word-of-Mouth Complex products—like software.
Marketing: Word of mouth among business people
and professionals (such as physicians, pharmacists, The more connected your customers are to each other,
architects, and financial advisors) is very different from the more you depend on their buzz for future business.
word of mouth for relatively low-ticket consumer To see the full impact of this, look at a company like
products. The more expensive and complicated a Cisco that has always served a tightly connected
product is, the more word of mouth comes into play. customer base. Cisco sells the hardware devices that
This is true because these products are more risky in glue the Internet together; almost by definition, all of its
terms of time, money, and potential damage to customers (network administrators and information
professional reputation. High-ticket products are not as technology managers) are heavy users of the Internet.
easily tried as simple consumer products. People have "Our company started by word of mouth. There was no
to rely on other people's experience to substitute for all advertising," says Keith Fox, vice president of corporate
or part of the experience they would get in a trial. marketing at Cisco. Since 1984, buzz about Cisco has
been spreading relentlessly on the Net. Several Internet
Emanuel Rosen, The Anatomy of Buzz: My own newsgroups are dedicated to Cisco's products.
experience with buzz has been mostly in the software
industry … How do you identify network hubs? Use the acronym
ACTIVE. They are Ahead in adoption, Connected,
For buzz to spread, you need two things: a contagious Travelers, Information-hungry, Vocal, and Exposed to
product--one that has some inherent value that makes the media more than others. On the topic of connected
people talk—and someone behind the scenes who for example…network hubs in the high-tech industry
accelerates natural contagion. Yes, there are cases tend to gravitate toward other network hubs from whom
where having a great product or service alone is they can get more information (which they then will
transmit within their cluster). To find these other
17
network hubs, they go to trade shows, join user groups, companies over the years. There are two traps
and hang out in on-line forums that discuss the topics companies can fall into. The first is thinking that
they are interested in. These activities result in creating buzz is all about network hubs. If you
additional links to the outside world. exclusively focus on the two-step flow model, you can
leap to the dangerous conclusion that direct
Gabriel Weimann traces the notion of (WOM) all the communications with your customers is not important.
way back to the Bible. When Moses complained to God The second potential trap lies in a narrow interpretation
that he could no longer control the people of Israel, God of the term “network hubs.” Almost all companies try to
told him to gather “seventy men of the elders of Israel” go after network hubs. But there’s a big difference
and use them to spread the word to the rest of the between going after an elite group of forty influencers
people. and going after a broad, less visible population of four
thousand of them. Numbers make a big difference in
If you subscribe to the belief that we’re all connected by getting the word out. Many experts agree that the
a chain of no more than six mutual acquaintances then percentage of opinion leaders on average in the
you might want to consider Emanuel’s math: “Even in a population is about 10 to 15 percent. But in practice,
small network that consists of only 100 people, there marketers sometimes target just a handful of
are 4,950 possible links among them. In a network with “influencers”—not the full 10%.
just 1,000 members there are almost half a million
possible links!” The best buzz comes not from clever PR or advertising
but rather from attributes inherent to the product itself.
The spread of buzz, since it is not always easy to trace, Contagious products can be grouped into six
tends to be neglected. To learn how to help create categories, as follows:
buzz, you should be able to answer these questions: 1. Products that evoke an emotional response.
• From whom do your clients or customers typically For most products and services it is usually the
learn about your product? feeling of excitement and delight you get when
• What do people say when they recommend your your expectations are exceeded.
product? 2. Products that advertise themselves. This type
• How fast does information about your product of product creates visual buzz by generating
spread compared with other products? excitement simply by people viewing them in
• Who are the network hubs? action.
• Where doest the information hit a roadblock? 3. Products that leave traces. These are products
• How many sources of information does a that self-propagate by leaving traces of
customer rely on? Which ones are more important? themselves behind—paper trails or other
never spreads as simply as the two-step flow model 5. Products that are compatible. Products that fit
would indicate—from company to media and mega- peoples preexisting beliefs spread faster.
hubs, and from these hubs to the public. Yet the two- 6. Products that “do the rest”. Products that are
step model has been blithely assumed by countless easy to use spread faster because customers
are hungry for simplicity. Example: Kodak’s
18
first camera copy line, “You press the button, advertising can also kill buzz when people feel
we do the rest.” When a customer has to that someone is shoving the message down
explain just one step, her likelihood of their throats.
completing the ‘sales pitch’ successfully is
much higher than if she had to describe seven The six rules about ads and buzz:
steps. 1. Keep it simple. Message needs to be simple to
be easily passed along.
ALWAYS EXCEED EXPECTATIONS! 2. Tell us what’s new. Fluff doesn’t travel well.
Keep it relevant and news worthy.
Cisco Systems, for example, serves network 3. Don’t make claims you can’t support. Don’t tell
administrators who virtually live online, so you’d expect customers you care without proving it.
Cisco to use online methods to spread the word about 4. Ask your customers to articulate what’s special
its products. They do. But Cisco doesn’t limit itself to the about your product or service. Just ask!
online world. The company organizes more than one 5. Start measuring buzz. Very few ad agencies
thousand seminars every year to meet potential pretest for conversational impact. Helpful to
customers face to face, they organize networking ask two questions: Will the ad help network
events for their current customers, and they attend hubs answer questions they may get from
dozens of trade shows. Relationships with many other people in the networks? Will the ad
customers start via face-to-face communication. The stimulate members of the network to seek
Net is used to maintain those relationships. information from network hubs?
6. Listen to buzz. Monitor the network. Improve
DOES MADISON AVENUE STILL MATTER? messaging.
The truth is that very few products can rely on buzz
alone. When used correctly, advertising can help buzz. The extensive buzz about high tech products is also
However, it’s also worth noting that ads can sometimes driven by their complexity which makes them difficult to
hurt genuine word of mouth. So in this chapter I want to evaluate. Talking with current users of a certain
focus on answering three questions: software package helps customers reduce the risk
1. Can advertising stimulate buzz? Absolutely. A associated with the purchase.
good ad can help get people talking. (The
shockvirus approach). It does so by jump- Seth Godin, Unleashing the Ideavirus: Why do some
starting the process, reaching hubs, reassuring viruses burn out more quickly than others? The simplest
buyers, and getting the facts straight. reason is that marketers get greedy and forget that a
2. Can advertising simulate buzz? What about short-term virus is not the end of the process, it’s the
ads that masquerade as word of mouth? This beginning. By nurturing the attention you receive, you
is a tricky topic. You have to understand that can build a self reinforcing virus that lasts and lasts and
an ad can hardly ever enjoy the credibility of benefits all involved. Admit that few viruses last forever.
buzz. Consider the “friendly” tone, testimonial Embrace the lifestyle of the virus.
advertising.
3. Can advertising kill buzz? Although there are REPORT ON THE FIRST EVER WOMMA SUMMIT
many good reasons to advertise, advertising is Held in Chicago on March 29, 30 was the first ever
a tool that should be used very cautiously if summit meeting for the newly formed Word Of Mouth
you want to promote buzz. Because
19
Marketing Association. (Reprinted from my weblog at last minute. The last two days represented an incredible
www.keithbates.blogspot.com on March 31, 2005) learning experience even to me who has immersed
himself in word of mouth and viral marketing for the
past four years.
First WOMMA Summit (March 29-30, 2005) a One of the things I learned, somewhat to my
smashing success. Word of mouth marketing is consternation, is that Viral Marketing, which is what I
obviously an idea whose time has come. have been pursuing aggressively, is not the end-all of
WOM, but in fact a subset of this awesome
On day one of the Summit, in the opening letter from communications tactic. In a very well done hand-out
my WOMMA folder I found a message, “There’s a from Greg Wester of Soapbox Marketing he makes the
sense of history in the air. Can you feel it?” point that we, as WOM practitioners, need to go beyond
viral marketing pointing out that VM is “a form of
I felt it. And what followed was two of the most marketing reliant upon the transfer of a pre-fabricated
rewarding days I’ve had in years. marketing message between and amongst consumers,
a form of digital marketing hyped by email technology
As I wrapped up my role of moderator for the last two providers and advergame developers.” He goes on to
sessions of an incredible two days I sensed a say that “the result of this confusion is that marketers
reluctance to leave among the 350 attendees who wise enough to focus on improving word of mouth often
jammed Chicago’s Intercontinental Hotel. The heart unwisely limit their scope to ‘viral’ marketing. Word of
warming camaraderie was coming to a close as the mouth marketing includes any marketing where
world’s first-ever word of mouth marketing conference consumers are responsible for the message’s content
came to an end. WOMMA CEO Andy Sernovitz and/or message distribution. ‘Viral’ is only one form.”
(andy@womma.com) had just pulled off what seemed
like an impossible, Herculean task. This WOMMA conference was the forming of a new
industry in America, complete with ethics code,
The closing of the first day’s session, the halfway standards council, education council, and buyers
point, found nearly 300 people, not at all tired from guide … all readily available at www.womma.org.
a day’s worth of marathon speeches but full of
enthusiasm, hopping onto a bus for a long evening A blue ribbon panel of speakers included a stirring
of storytelling at the beautiful downtown Chicago presentation by Apple evangelist Guy Kawasaki, best
Reza’s restaurant on West Ontario. This event ran selling authors Emanuel Rosen, Ben McConnell and
until 10:00 (your author, a little older than most of Jackie Huba, Ed Keller, George Silverman and Mark
the crowd, went home at 9:00) Hughes … plus 47 other luminaries from the world of
marketing, advertising and public relations including my
In only a few short months of existence WOMMA (Word friend Paul Rand, head of Ketchum’s global technology
of Mouth Marketing Association) www.womma.com, practice and developer of IRM (Influencer Relations
generated over 100 charter members and rounded up Management).
attendees from all over the world (Austria, Brazil,
Canada, Poland, Singapore are only a few of the dozen An exhilarating time was had by all. In addition to the
the author can recall) to fill the Grand Ballroom. With no exciting presentations, and very-well done (and brief)
advertising, using word of mouth only, WOMMA PowerPoints, was an exciting luncheon exercise put on
outgrew the original venue and had to relocate at the by Jackie Huba, co-author of Creating Customer
20
Evangelists. Jackie and Ben have written a small perhaps most appropriately traditional Product
paperback supplement to their big book and handed out Managers should morph into, or assume the additional
copies to everyone over a box lunch on Wednesday to duties of, Word of Mouth Manager. I think the key issue
support a little exercise. Each person was assigned a is that full responsibility must reside with a single
table and then a chapter within the book to study and empowered individual who should be as close to the
discuss per a round table discussion. The comments CEO as the CMO … or closer!
and results were then gathered for review by the
WOMMA group for publishing. It made for a very vocal, Today’s blog is totally inadequate for presenting all the
fun filled lunch hour. great material that speakers shared with the audience
but a few that stood out from my own personal
One point made repeatedly that I think is important to perspective were the following:
share is the issue of whether WOM is a BtoC or BtoB
phenomenon. The answer is both! It is equally effective From Andy Sernovitz, WOMMA CEO, in his opening
whether consumer or business focused. Because the remarks: … there are two visions of the future
consumer approach is so highly visible it gets most of concerning what we do, our industry, and our jobs …
the press (Subservient Chicken, Oprah’s Pontiac’s) but and we must make a conscious choice regarding each
there were endless exciting BtoB stories covering as we move forward. Do we, as WOM practitioners,
businesses ranging from the pharmaceutical industry to want to be viewed as the voice of the consumer—or
a Chicago area Automotive Consulting Group. When manipulators? As partners in a unified WOM industry—
Emanuel Rosen announced from the stage that I was or isolated niche specialists? As marketing pros—or
developing a white paper on WOM to be published by experimenters on the edge? In order for the WOM
the newly formed ITA (Illinois Information Technology industry to grow and flourish it is obvious that we must
Association-- formerly the Chicago Software vigorously pursue the former alternative in each case,
Association), I was approached by innumerable people and vigorously reject the latter.
offering me their cards with promises of BtoB stories to
share. From Pete Blackshaw of Intelliseek, cofounder of
WOMMA: Consumer-Generated Media (CGM)
Another important point that was made is that WOM describes a variety of new sources of online information
is now a mainstream marketing tool, part of the that are created, initiated, circulated and used by
total marcom mix, not necessarily limited to the consumers intent on educating each other about
domain of PR firms, or marketing companies, or ad products, brands, services, personalities and issues.
agencies … but to anyone who has an interest in
marketing communications that can put the Ever growing in number and format on the Internet,
process in motion. It’s not always the fastest, but it CGM refers to any number of online word-of-mouth
is by far the most potent. And in fact it is typically vehicles, including but not limited to: consumer-to-
better started by an internal company evangelist consumer email, postings on public Internet discussion
and then supported, or sustained, by outside boards and forums, consumer ratings web sites or
professionals. forums, blogs (short for weblogs, or digital diaries),
moblogs (sites where users post digital
A title that should soon be appearing on the client side, images/photos/movies), social networking web sites
in addition to VP or Director of Marketing, should be and individual web sites. Although influenced or
Online Community Manager, Customer Evangelist, or stimulated by traditional marketers and marketing
21
activities, online word of mouth is nonetheless owned pay for.
and controlled by consumers, and it often carries far
higher credibility and trust than traditional media, From Rick Murray of Edelman, five words to consider:
especially as media channels become more fragmented Insight, into consumers. Creativity, bellwether of great
and less trusted. The growth of its influence poses campaigns. Integration, of PR, ads, clients.
challenges and opportunities for marketers. Measurement, because we need to know what a home
run looks like before we start the game. Courage, to
From Emanuel Rosen, ten questions to ask yourself break with tradition.
before your next marcom campaign: 1) Does this
product lend itself to WOM? 2) Are we reinforcing the From Keith Bates: If you’re reading my blog regularly
concept and the message behind the product? 3) Can you know that it was established almost two years ago
we release information gradually? 4) Are we giving our to share my knowledge and experience with both viral
customers something to talk about? 5) Do we give them marketing and word of mouth and that it’s goal has
an opportunity to get involved? 6) Are we making it been to help readers understand the process well
easy to spread the word? 7) Can we stimulate enough to know where to turn for help. Awareness of
interaction between customers? 8) Can we identify word of mouth is growing exponentially in the press and
network hubs by category? By their activism? Through in the marketplace…and now you have the best
surveys? 9) Are we seeding the networks? 10) How is resource anywhere ... www.womma.org.
this campaign going to affect the network hubs
credibility? Visit their site, join the organization. Read the
PowerPoint PDF’s soon to be available from the
Another note: For all of us who grew up in direct Summit. Tell Andy that Keith sent you. Participate, and
response you may want to know that WOM lends share your experiences so that all of us who believe in
itself particularly well to test marketing. In other the power of WOM can do an even better job for our
words build a small flame first, and then use it to clients and our customers. A big two thumbs up for
fan the flames of a conflagration…after learning WOMMA, and for Andy Sernovitz.
what your market responds to.
WOMMA published its draft Ethics Code for the
And in taking your product to market keep in mind that word of mouth marketing industry on February 9,
while case studies are important, stories resonate 2005. This is a first step in the complicated process of
better, because all people are innate story tellers. building an industry based on consumer respect and
fundamental ethical principles. The essence of the
From David Ries of DEI, eight simple rules of WOM: 1) WOMMA Code comes down to the Honesty ROI:
treat people like they’re smart and savvy—because • Honesty of Relationship: You say who you're
they are. 2) relate to people as individuals. 3) reach speaking for
people on their terms. 4) give people a way to tell you • Honesty of Opinion: You say what you believe
what they think—and take it seriously when they do. 5) • Honesty of Identity: You never obscure your
conversation/test is the new medium. 6) useful identity.
information is the currency of influence. 7) let go of For more information visit www.womma.org
corporate control of the message. 8) you get what you
22
WOM’S NATURE
as prescribed by its authors
and practitioners
Regis McKenna, Word of Mouth
Ì Malcolm Gladwell, The Tipping Point
Ì Seth Godin, Unleashing the Ideavirus
Ì Emanuel Rosen, The Anatomy of Buzz
Ì George Silverman, The Secrets of Word of Mouth Marketing
Jackie Huba/Ben McConnell, Creating Customer Evangelists
Ed Keller and Jon Berry, The Influentials
Paul Rand, Ketchum
Viral+Buzz Marketing Association
Andy Sernovitz, WOMMA
Keith Bates is personally acquainted with nearly all of the people above,
many of whom have had a powerful influence in shaping his knowledge and
opinions regarding word of mouth and viral marketing over the past four years.
23
Regis McKenna,
Word of Mouth
24
Malcolm Gladwell,
The Tipping Point
In this brilliant and groundbreaking book, New Yorker writer Malcolm
Gladwell looks at why major changes in our society so often happen
suddenly and unexpectedly. Ideas, behavior, messages, and products, he
argues, often spread like outbreaks of infectious disease. Just as a single
sick person can start an epidemic of the flu, so too can a few fare-beaters
CONTENTS
and graffiti artists fuel a subway crime wave, or a satisfied customer fill the
1. The Three Rules of empty tables of a new restaurant. These are social epidemics, and the
Epidemics.
moment when they take off, when they reach their critical mass, is the
2. The Law of the Few: Tipping Point.
Connectors, Mavens,
and Salesmen
Gladwell introduces us to the particular personality types who are natural
3. The Stickiness pollinators of new ideas and trends, the people who create the phenomenon
Factor: Sesame Street,
Blue's Clues, and the of word of mouth. He analyzes fashion trends, smoking, children's
Educational Virus television, direct mail, and the early days of the American Revolution for
4. The Power of clues about making ideas infectious, and visits a religious commune, a
Context (Part One):
Bernie Goetz and the successful high-tech company, and one of the world's greatest salesmen to
Rise and Fall of New show how to start and sustain social epidemics.
York City Crime
5. The Power of What You'll Learn In The Tipping Point:
Context (Part Two):
The Magic Number Directions for reaching a Tipping Point. You'll learn how the three rules of
One Hundred and Fifty the Tipping Point -- the Law of the Few, the Stickiness Factor, and the
6. Case Study: Power of Context -- offer a way of making sense of epidemics.
Rumors, Sneakers,
and the Power of How to choose the people who will spread the epidemic. Spreading the
Translation
word depends on people who are either experts or possessed with a rare
7. Case Study: Suicide,
Smoking, and the set of social gifts. You'll learn how to identify mavens, connectors, and
Search for the Unsticky salesmen (persuaders).
Cigarette
8. Conclusion: Focus, The importance of memorable product exposure. The Presentation is
Test, and Believe everything. If your product is not inherently exciting you must position your
message so that it is, and has the ability to move people.
25
Seth Godin,
Unleashing the Ideavirus
If you don't have time to read the whole book, here's what it says:
Marketing by interrupting people isn't cost-effective anymore. You can't afford
to seek out people and send them unwanted marketing messages, in large
groups, and hope that some will send you money. Instead, the future belongs
to marketers who establish a foundation and process where interested people
What You’ll Learn can market to each other. Ignite consumer networks and then get out of the
In Unleashing The
Ideavirus way and let them talk.
Why ideas matter. In this Why Ideas Matter. The holy grail for anyone who traffics in ideas is this: to
section you'll learn about unleash an ideavirus. An idea that just sits there is worthless. But an idea that
the holy grail for people
who deal in ideas, how to moves and grows and infects everyone it touches ...that's an ideavirus. An
create an environment ideavirus is a big idea that runs amok across the target audience. Word of
where consumers market
to each other, the key mouth is not new it's just different now. Ideaviruses give us increasing
steps to building a virus, 6 returns, word of mouth dies out, but ideaviruses get bigger. And finally,
reasons why ideaviruses
are so important, 5 things ideaviruses are the currency of the future. While ideaviruses aren't new,
ideaviruses have in they're important because we're obsessed with the new, and an ideavirus is
common, and 7 ways an
ideavirus can help you. always about the new.
How to unleash an The key steps for Internet companies looking to build a virus are:
ideavirus. Learn why you
must focus on "sneezers" • Create a newsworthy online experience that's either totally new or
those people best
makes the user's life much better. Or makes an offline experience
qualified to start an
epidemic, why unleashing better/faster/cheaper so that switching is worth the hassle.
and ideavirus is more than
simple word of mouth, and • Have the idea behind your online experience go viral, bringing you a
thirteen question ideavirus large chunk of the group you're targeting without having to spend a
marketers must have
answered. fortune advertising the new service.
Understanding the • Fill the vacuum in the marketplace with your version of the idea, so
ideavirus formula. How that competitors now have a very difficult time of un-teaching your
to tweak the formula and
make it work plus a look virus and starting their own.
at the eight underlying • Achieve "lock in" by creating larger and larger costs to switching
variables that impact
success. from your service to someone else's.
• Get permission from users to maintain an ongoing dialogue so you
can turn the original attention into a beneficial experience for users
and an ongoing profit stream for you.
• Continue creating noteworthy online experiences to further spread
new viruses, starting with your core audience of raving fans.
26
Emanuel Rosen,
The Anatomy of Buzz
1. What is Buzz? brand, which it spreads through invisible networks of very special people,
2. The Invisible that we talk because we're programmed to talk, and that nothing happens
Networks
3. Why We Talk without the establishment of network hubs. You'll also learn the structure of
4. Network Hubs these networks and about the energy and credibility required to make it
5. It's a Small World.
So What? work.
6. How Buzz Spreads
How to assure success. You'll learn that some products evoke and
Part Two. Success In emotional response, some advertise themselves, some leave traces, others
The Networks
become more useful as people use them, products that are compatible, that
7. Contagious Products
8. Accelerating Natural "do the rest", and the power of gossip. And you'll learn that there's still a
Contagion need for traditional advertising, promotion and PR to accelerate the whole
Part Three. process but that the timing of this stuff is critical. It's called Leapfrogging,
Stimulating Buzz and it builds momentum.
9. Working with How to stimulate the spread of buzz. You'll learn how to identify and
Network Hubs
10. Active Seeding nurture network hubs, the importance and techniques of "seeding", the
11. The Elements of a importance of having a good story. You'll learn to think of viral marketing as
Good Story
12. Viral Marketing a buzz accelerator and that very few products can rely on buzz alone. But
13. Does Madison ads can hurt as well as help. Plus skills at channel deployment. And lastly
Avenue Still Matter?
14. Buzz in Distribution examples of people who did it and how, followed by a Buzz Workshop
Channels chapter that Seth Godin says "by itself is worth the entire price of the book!"
15. Putting It Together
16. Buzz Workshop Does Madison Avenue still matter? Yes! The truth is that very few
products can rely on buzz alone. Six rules about ads and buzz: keep it
simple, tell us what's new, don't make claims you can't support, ask your
customers to articulate what's special about your product or service, start
measuring buzz, and listen to the buzz. Can advertising kill buzz? Yes, if it's
shoved down their throats, or perceived to be dishonest.
27
George Silverman,
The Secrets of Word of Mouth
Marketing
Twenty-Eight Secrets of Word-of-Mouth Marketing
28
Jackie Huba/Ben McConnell,
Creating Customer Evangelists
You are an evangelist. You tell others what movie to see, which computer to
purchase, what restaurant to visit, which dentist you prefer, which cell phone to buy,
which books to read, which clubs to join. Your recommendations are sincere.
Passionate, perhaps. Perhaps you didn't realize that you are an evangelist-a
bringer of glad tidings-but your sphere of influence, made up of friends, family,
colleagues, and professional communities, realizes it.
29
Ed Keller and Jon Berry,
The Influentials
One American in ten tells the other nine how to vote, where to eat, and what to
buy. They are The Influentials.
Who are they? The most influential Americans-- the ones who tell their
neighbors what to buy, which politicians to support, and where to vacation--are
not necessarily the people you'd expect. They're not America's most affluent 10
percent or best-educated 10 percent. They're not the "early adopters," always
the first to try everything from Franco-Polynesian fusion cooking to digital
cameras. They are, however, the 10 percent of Americans most engaged in
CONTENTS their local communities . . . and they wield a huge amount of influence within
those communities. They're the campaigners for open-space initiatives. They're
1. Who Are The
church vestrymen and friends of the local public library. They're the Influentials
Influentials?
. . . and whether or not they are familiar to you, they're very well known to the
2. The Influential
Personality. researchers at RoperASW. For decades, these researchers have been on a
3. The Influence quest for marketing's holy grail: that elusive but supremely powerful channel
Spiral: How known as word of mouth. What they've learned is that even more important
Influentials Get And
Spread Ideas. than the "word"--what is said, is the "mouth"--who says it.
4. The Message Of
SIX RULES FOR GETTING INTO THE CONVERSATION
Influentials: The Age
Of Autonomy And
The Rise Of Self- WHAT'S YOUR INFLUENTIAL STRATEGY?" If you've not asked yourself this
Reliance. question already, you should. To succeed today, you need to connect with the
5. The Influential people who are at the center of the conversation. Business, government, and
Vision: Seven Trends
nonprofit organizations need to have influential strategies just as they need
For The Future.
marketing, advertising, public relations, promotion, or Internet strategies.
6. Developing An
Influential Strategy:
Specifically, you should make sure you are reaching the decision makers who
Six Rules For Getting
Into The are influential in others' decisions. You should know where the opinion leaders
Conversation.
get their ideas--the kinds of publications they read, the programs they watch,
the radio stations they listen to, and the Web sites they go to. You should make
sure you don't have the door shut when opinion leaders come to you with a
complaint or question. You should be out in the community to make sure you're
listening to opinion leaders' concerns. You should pay attention to what's
happening in opinion leaders' lives, the issues that opinion leaders are reading
up on, the problems they are focused on, and their short-and long-term goals.
Companies should be asking themselves if their products and services,
environmental stance, and corporate practices are consonant with opinion
leaders' expectations. What the opinion leaders say and think about companies
has more of an impact on what their customers are thinking and doing than
companies realize.
30
Paul Rand,
Partner, Director, Global Technology Practice, and
Managing Director, Chicago office
Ketchum Public Relations
NEW YORK, Sept. 15, 2003 - Ketchum, capturing the growing importance
of influencers in shaping buying decisions, today launched Ketchum Influencer
Relationship ManagementSM (Ketchum IRM). The proprietary program identifies
and reaches that select group of people who, for each company or organization,
"In a time when people drown mold the perceptions and behaviors of customers and decision makers. The
in information, influentials play global initiative features a customized Web-based portal to manage and
a crucial role in how people
measure relationships with these influencers.
think and act. They serve to
filter and validate information Ketchum IRM embraces a proven seven-step process and a proprietary
for people who want trusted technology infrastructure. The secure portal database, overseen by a certified
counsel," said Paul M. Rand, a
Ketchum team, captures key data on each influencer, making it simple to
Ketchum partner and leader of
the IRM development team. manage the program's progress.
"Ketchum IRM becomes a The offering reflects Ketchum's extensive experience helping companies
marketer's new currency in work more closely with the key individuals and small groups that can affect --
strengthening relationships
positively or negatively -- broad market perceptions and behaviors quickly and
with its most powerful and
vocal advocates." directly. Several Fortune 500 companies have piloted the program successfully
to accelerate the effectiveness of their overall marketing campaigns.
Ketchum used to draw up lists
Ketchum IRM extends far beyond traditional influencers such as media,
of 2,000-3,000 names, but the
IRM system focuses on 150- government and analysts to include others whose opinions and advice people
200- "the cream of the crop," trust highly. Researchers at RoperASW indicate that consumers and buyers
said Paul Rand, director of
increasingly look to this mix of key individuals or small groups possessing
Ketchum's global technology
practice in Chicago and head
specific, relevant knowledge that can help simplify how they think and act.
of the IRM practice. 'We as an "Today, a fragmented market has made it possible for buyers and
industry are going through a decision makers to opt out of mass-market advertising, which means a different
big evolution; what typically
route must be taken to capture their hearts and minds," said Ed Keller, chief
worked in the past does not
necessarily work today," said executive officer of RoperASW and co-author of The Influentials: One American
Rand. in Ten Tells the Other Nine How to Vote, Where to Eat, and What to Buy. "The
Ketchum IRM program is a thoughtful and organized approach to help get
influencers on your side."
Directly reaching consumers, buyers and other key targets is getting
tougher. The typical consumer faces information overload, bombarded by
10,000 to 30,000 commercial messages daily, plus an additional 200 or so
personalized messages in the form of phone calls, e-mails, faxes and memos.
Add recent questioning of corporate credibility to this mix and it's easy to
see why an outbreak of recent books, articles and stories question the value of
simply using current mass-advertising and mass-marketing strategies while
highlighting the growing importance of influencers.
31
VBMA Global
(Viral + Buzz Marketing Association)
viral+buzz VBMA Manifesto 1: Mission and Affiliation
marketing association All members of the VBMA share the conviction that Viral Marketing, Buzz
Marketing and Word-of-Mouth Marketing (and other related marketing approaches
that harness network-enhanced word of mouth) are based on the principles
outlined below, and that we work constantly on improving these marketing
techniques:
32
Andy Sernovitz,
WOMMA
(Word of Mouth Marketing Association)
That said, word of mouth can be encouraged and facilitated. Companies can
WOMMA is the official
trade association for the work hard to make people happier, they can listen to consumers, they can
word of mouth marketing make it easier for them to tell their friends, and they can make certain that
industry. WOMMA’s
influential individuals know about the good qualities of a product or service.
mission is to promote and
improve word of mouth Word of mouth marketing empowers people to share their experiences. It's
marketing by:
harnessing the voice of the customer for the good of the brand. And it's
y Protecting consumers
and the industry with acknowledging that the unsatisfied customer is equally powerful.
strong ethical guidelines.
y Promoting WOM as an
Word of mouth can't be faked or invented. Attempting to fake word of mouth
effective marketing tool. is unethical and creates a backlash, damages the brand, and tarnishes the
y Setting standards to corporate reputation. Legitimate word of mouth marketing acknowledges
encourage its use.
consumers’ intelligence -- it never attempts to fool them. Ethical marketers
WOMMA members are reject all tactics related to manipulation, deception, infiltration, or dishonesty.
building a prosperous
All word of mouth marketing techniques are based on the concepts of
word of mouth (WOM)
marketing profession. customer satisfaction, two-way dialog, and transparent communications. The
Thriving markets are built basic elements are:
on best practices,
effective standards, and • Educating people about your products and services
ethical leadership. Those
are the qualities that bring • Identifying people most likely to share their opinions
WOMMA members
together -- and we hope • Providing tools that make it easier to share information
that you will join us if you
• Studying how, where, and when opinions are being shared
share these values.
33
…to add wings to your marketing, spurs to your sales
Conclusion—Call to Action
Now that we understand the concept behind word how will the perception of your message be received,
of mouth marketing and the various tools required i.e. is your product/service really innovative or just
for its implementation perhaps its time to consider incrementally better? And lastly your needs, which are
putting it work for us. influenced to a certain degree by marketing dollars
available. Would a low key, slower moving influencer
Tell me again why I need WOMM.
program do the job? Or do you want to gamble on a fast
It’s not an overnight panacea for inadequate lead flow return viral effort? Many people do both because there
but it offers a powerful resource for adding credibility to is a similarity in the startup procedure relative to the
your marketing messages … something that is sorely development of a customer and/or influencer database.
needed in a world that just doesn’t want to hear it
anymore from traditional marketers. It’s the secret Creative is king when launching WOM!
weapon behind qualified leads.
Messaging concepts, copy, graphics will largely
Why the departure from tradition? Traditional marketing determine the success of your venture … assuming you
is just not effective anymore because the speed of have something the market needs, and can get excited
information diffusion, enabled by the Internet, is about. But remember to integrate that messaging within
weakening the ability of companies to communicate an entire communications support plan … which must
with customers and strengthening the ability of embrace and include the sales force (whether direct,
customers to communicate with customers. An effective channel, or OEM) as well.
WOM campaign will establish a foundation process
where interested people market to each other. Understanding network hubs
34
A KBA COMMUNICATIONS SUPPORT PLAN FOCUSED ON WOMM
• WOM choice rationale • Tracking: monitor effect, assess
PREFACE: Keep in mind that the
• Influentials: The 90-10 Rule the return from cost of
most successful use of WOMM,
whether Influential or Viral focused, • Virals: The 3 Rules: stickiness, developing viral agent and
law of the few, context seeding.
is not as a standalone tactic but as
an integrated part of a brand’s • Developing network hubs Three: A CREATIVE REPOSITORY
overall marketing strategy. • 7 Steps to an Influentials plan IS DEVELOPED TO SUPPORT
• 7 Steps to a Virals plan THEME/IMAGE STANDARDS AND
Note also that this Communications
THE CREATIVE PLATFORM
Support Plan should be preceded by II. PLANNING COMPONENTS OF
the Market Development Strategy THE KBA MARCOM ENGINE • Craft messages for influencers.
Checklist from Paul Wiefels The • Craft integrated ad messages
Chasm Companion, a fieldbook to One: AUDIT and images across all
Geoffrey Moore’s Crossing the components of interactive and
Chasm and Inside the Tornado. Marketing Focused Checklist
traditional marketing efforts.
• Target customer / influencer
• Craft mega hub/PR messages.
Why choose word of mouth • Compelling reason to buy /
marketing? Because traditional • Craft seminar copy, speeches
influence
to various market segment
advertising is seriously lacking in • Whole product, or a component
credibility! And because the ROI leaders, white papers, etc.
• Partners and allies
metrics are poorly defined. • Distribution III. EXECUTION COMPONENTS
Word of mouth marketing, as • Pricing OF THE KBA MARCOM ENGINE
defined by Regis McKenna, the guru • Competition
of technology PR, is the planning • Positioning One: ARSENAL
and use of established person-to- Communications Focused Checklist WOM-Influentials
person relationships. • Segmentation of Network Hubs Personalized correspondence, e-
• External--one voice mail, direct response efforts,
While WOMM / Viral / Buzz are all
• Internal—shared vision samples, info kits, articles of
the same thing there are nuances
one should be aware of: interest, awards, conferences,
• WOMM leverages social Two: STRATEGY briefings, webinars, road trips, lunch
networks and dinners, group brainstorming,
Communications audience—defined testimonials, facilities visit, CEO
• Viral leverages digital networks Reason to buy—the 5 whys summit meetings at HQ.
• Buzz leverages media networks Communications Objective
Be sure to explore each carefully • Create awareness, interest, WOM-Viral advertising
then buzz among key 20 to 30 second viral, incentives to
before making a choice as they can
influentials in client community. participate, email support
be quite different in nature.
• Generate excitement, then
The differences: enthusiasm for sharing of an Two: DEPLOYMENT
online viral presentation. OF THE PROCESS
WOM-Influentials is long term and Communications Strategies
directed to known influentials within Development of Time Lines and
• Develop Strategy Statement Scheduling
both social and media networks. short forms for both Influencer
• To seeding resources for virals
WOM-Viral is short term and Relations and Viral Advertising
• To network Hubs for influencers
directed to unknown user / prospect • Key message / USP
• Place ads, mail, email,
recipients after online seeding to a • Reasons to believe
broadcast fax, telemarketing,
small known base. • Accelerated contagion / Blitz etc. (elements of 90 Day Blitz)
Influencer Relations Tactics
Deliverables required for both • Promote seminars
• Segmentation of influencers
influentials and viral recipients: • Plan for trade shows
• Influencer analysis
• Prospect database • Build chat rooms
• Benchmarking and metrics
• A noteworthy product/service Dependencies.
• Keeping in touch: personal and
• Powerful creative concepts Issues to Be Resolved.
impersonal
• Measurement & management Three: TRACKING, TESTING &
I. INTRODUCTION Viral Marketing Tactics KEEPING BUZZ ALIVE
Program Name, Brief Description, • Create “viral agent” and how to • It’s hard to get it going, still
Definitions, Target Audiences, and spread (text, image, or video). harder to maintain
Launch Date, Summary: • Seeding: ID websites, blogs, • Focus, test, and believe
people to send email to.
35