As marketers, we must find a way to capitalize on the
opportunity that social media provides.
It’s not enough to just communicate with potential consumers and hope
they happen to click to your brand, like it, and interact with it. We sometimes look at social media as
something that is connecting people around the world to our brand but we have
to look deeper than that. Social media
is connecting consumers with people in their own communities and personal
spheres. It is through interacting with
other individuals talking about your company that consumers will engage,
search, and find the specific brands and products that will be the best fit for
them.
The New Marketer
Traditional avenues of communications and advertising are
important in attracting attention and brand resonance but social media has
added a new wrinkle to the communication mix.
Powerful tools of communication are in the hands of the public now and
they can at once hurt and help your brand in an instant, depending on their own
personal experiences with it. The power
of word-of-mouth is hundred times more potent and powerful in this digital
age. “Social media has evolved from a
mere post it-answer it model…to instantaneous publish-subscribe models,”
providing an instantaneous call and response to an individual’s followers
regarding what to purchase and where to purchase. An excellent example of this kind of
connection between consumers is when an individual “stands in front of a
refrigerator in a store and check out reviews of that model; the consumer can
Twitter his network to get advice on all models, this brand, and this store
instantaneously…buying hesitancy is removed and the purchase takes place.” (Qualman, 2013, p. 83)
This is an extreme example but illustrates a great
opportunity for marketers and companies to track how people are discussing the
brand and allows them the ability to interject and take part in that
conversation. Word-of-mouth has always
been an important tool that marketers were never able to take full advantage of
until now. Word-of-mouth now exists in
the digital realm and happens in an instant.
Marketers can now physically watch and interact as it happens and
spreads. This video shows one small company,
without the resources of a major corporation, finding great success in
connecting with the word-of-mouth conversation already happening around the
subject of wine.
Jared & Subway
So how can marketers take advantage of these conversations occurring
without them? Like the people at the
Wine Library, they can jump into that conversation, searching for where people
are talking about their product and comment and interact with consumers. Subway is a major example of a company that
nearly missed the boat on an opportunity where people were already talking
about their sandwiches.
Jared’s Subway weight loss story was a major marketing win
for the company. His story presents the
sandwich maker and its low-fat sandwiches in a positive light. Since Jared started as a Subway spokesman,
sales have grown at an incredible rate.
However, when the Jared idea was first introduced to the company, Subway
rejected the entire idea behind it.
Jared was someone who “was an avid user of [Subway’s] product and
service” that the company dismissed out of hand. However, once they turned around on the idea,
the company found unprecedented success.
Subway’s Jared experience, though not taking place through
social media, demonstrates a great overall lesson that is vital we learn as
marketers in this new digital age.
Essentially, companies “need to be comfortable in knowing that not
everything related to the brand will be owned by them; their customers will
take ownership.” (Qualman, 2013, p. 85) Conversations about their products and brands
are already happening on the Web and will continue to happen with or without
their input. Marketers need to watch
this conversation happen and help guide it towards a positive view of the company
and/or brand in order to achieve success.
How can businesses use social media to steer the
conversation? Great, immediate customer
service over Twitter and commenting on blogs is a great way to increase their
own interaction with consumers talking about their brand. But how else can companies interject
themselves into conversations already happening in regards to their company/brand?
Works Cited
Qualman, E. (2013). Socialnomics: How Social Media
Transforms the Way We Live and Do Business. Hoboken, NJ: John Wiley &
Sons, Inc.
Hi Nash - Enjoyed reading your entry this week!
ReplyDeleteI agree with you (and Scott) on the point about WOM - it's critical that companies not only recognize, but participate in relevant conversations on social platforms.
As this article from McKinsey reports, "the digital revolution has amplified and accelerated its [WOM] reach to the point where word of mouth is no longer an act of intimate, one-on-one communication. Today, it also operates on a one-to-many basis" (Bughin et al, 2010).
My question to you is - why do you think WOM is so powerful? In the same article, "word of mouth is the primary factor behind 20 to 50 percent of all purchasing decisions" (Bughin et al, 2010). If the reason is because it's an authentic, or un-tainted if you will, communication - without the influence of a company - how does a company help to influence the conversation without loosing the authenticity?
Citations -
Bughin, J, Doogan, J and Vetvik, O, (2010). "A new way to measure word-of-mouth marketing". McKinsey & Company. Retrieved from http://www.mckinsey.com/insights/marketing_sales/a_new_way_to_measure_word-of-mouth_marketing
Adrienne,
DeleteI think word of mouth has always been powerful but its only now due to social media and the digital space that we can track how it flows. Also, the magnitude of it is staggering now. That quote from McKinsey is spot on. When someone talks about your product, they're not just talking to their one friend but an entire network of friends that is constantly spreading.
This is important because traditional advertising is just not trustworthy. As this Business Week article states, "traditional advertising such as TV spots and newspaper ads, as well as digital marketing such as sponsored links on Google, can build brand awareness, they increasingly do not resonate with target audiences. This is especially true among the 18-29 demographic, a group that’s notoriously suspicious of advertising and well aware of the proliferation of fake positive (and negative) reviews." (O'Connor, 2014)
I think this distrust stems from consumers being more knowledgeable about the constant advertising around them and how the deluge of it has numbed many of us to its effects. Companies can take part in this conversation by listening and being honest and open about what they are. They need to understand how people think of them and interact on that perspective.
Several McDonald's restaurants began taking Valentines Day reservations and this instantly became a viral joke on the Web. This shows a complete misunderstanding of why and how people go to McDonalds. Listening to how they talk about your brand and coming in with open and honest solutions/recommendations to people's negative feedback is the best way of maintaining these conversations while keeping a sense of independent authenticity that consumers crave from these interactions.
Works Cited
O'Connor, S. P. (2014, January 2). Word of Mouth Is the Best Ad. Retrieved from Business Week: http://www.businessweek.com/debateroom/archives/2011/12/word_of_mouth_is_the_best_ad.html
I wonder if the Mickey D's near me is already booked....
DeleteAll kidding aside - I think you bring up an interesting point about advertising not being trustworthy.
I'm of two minds on this point - in all honesty.
As a Millennial - I am suspicious of some advertising. Let's be honest - Nutella isn't a part of a "healthy breakfast" and it's made with a bit more than "a hint of cocoa". That claim cost Nutella $3 million in a law suit!
On the other hand - there are some advertisments that do resonate, especially those supplimented with third party accolades. For instance, Kia's 2013 Sportage was the 2013 "Highest Ranked Sub-Compact CUV in Initial Quality" When I see that in an ad, I'm more inclinded to believe that Kia makes safe cars.
Yes - WOM is important and influential - depending on the product though - does advertising ever become more powerful?
Citations
Boner, S (2012) "Nutella Settles Lawsuit Over 'Healthy Breakfast' Claims" LA Weekly Blog. Retrieved from http://www.laweekly.com/squidink/2012/04/27/nutella-settles-lawsuit-over-healthy-breakfast-claims
Kia, Sportage, (2013) "Awards" Kia.com. Retrieved from http://www.kia.com/us/en/content/why-kia/leadership/awards/awards-2013-sportage
Adrienne,
DeleteI think advertising can become as powerful as WOM when it uses the same open, honest conversation methods that so characterize social media. Movie advertisements, I have noticed, have started using, in addition to critical reviews, actual opinions off of Twitter, generating a positive POV from consumers more like those they hope to target.
Domino's demonstrated a great advertising campaign when it opened up about the company's flaws. This demonstrated a great amount of knowledge on how people were talking about them and what their reputation had become. This campaign was incredibly successful, due in part, because it showed Dominoes was listening to what consumers were saying and acted upon that information. It also continued that free flow of open, honest dialogue, inviting consumers to tell them about their poor Domino's experiences and showing consumers how they could fix those wrongs. It showed an authenticity that is rare for big corporations and consumers were able to recognize that. (Toporek, 2011)
Works Cited
Toporek, A. (2011, June 06). Eleven Reasons Domino’s Turnaround Campaign Worked. Retrieved from Spin Sucks: http://spinsucks.com/communication/eleven-reasons-dominos-turnaround-campaign-worked/
Hi Nash–
ReplyDeleteI owned a gift basket business for twenty four years. By far, the biggest source of new business was referral or word of mouth. As Qualman (2013, p 72) mentions, “people value the opinions of other people.” I just shopped for a grill recently from Sears and I patiently read review after review in order to come to my purchasing decision. “Businesses, both large and small have to realize that they no longer own relationships” (Qualman, 2013, p. 83). Customers are now in control.
I think the best thing that a company can do to steer the conversation is to provide great customer service and to keep an ear to the ground. Businesses should monitor social media and other communications channels, truly listen and learn. Complaints offer great insight into potential improvements. “They can be a reality check for organizations and help them identify ways to grow, develop and improve” (Lotich, 2010). Customer feedback should not only be welcomed but encouraged. In the end, actions speak louder than words. Businesses have to address their mistakes, own them, and respond immediately, and take corrective action.
I was interested as well by the Jared and Subway example. It is hard to believe that Subway almost missed the opportunity to capitalize on Jared’s story that ended up being so impactful. “The beauty of social media is that fewer of these great stories will remain hidden” (Qualman, 2013, p.82).
Lotich, P. (2010, March 1). What are the 5 benefits of customer complaints? Retrieved February 13, 2014, from http://thethrivingsmallbusiness.com/what-are-the-5-benefits-of-customer-complaints/
Qualman, E. (2013). Socialnomics: How Social Media Transforms the Way We Live and Do Business. Hoboken, NJ: John Wiley & Sons, Inc
Susan - I had no idea you owned a gift basket business!
DeleteYou must have a lot of experience with dealing with both positive (and perhaps negative) WOM / reviews.
Could you share a story about a time where you had to combat the negative effects of WOM? Or - if (hopefully) that never happened to you - a time when WOM resulted in a particularly memorable customer?
Other readers - please chime in if you've ever had experience with WOM in your organization!
Susan,
DeleteWord of mouth must have been incredibly important for a small gift basket business such as yours. Have you ever used social media to spread word about your business? Were there ways you were able to exploit the digital space? I think sites like Yelp are amazing resources, if used right, for building a small business' connections in the local community and making sure consumers come away from your business satisfied.
And I think you're very right, social media is an extension of customer service. The customer experience and the customer relationship doesn't end when they step out of your store. You need to monitor and take care of consumer concerns on a constant basis in order to help build a reputation and a clientele that will always return.
Nash and Adrienne-
DeleteAs you can imagine, dealing with food and perishable items like fruit and natural cheeses, there have been many complaints over the years.
I have always made it my goal to deal with these issues promptly and effectively. The customer is always right in my book. We have always gone above and beyond in replacing product that was less than perfect. I always recognized the fact that one unhappy customer can really have an exponentially negative affect on others. By the same token, many dissatisfied customers have told us how they would tell their friends once the problem was rectified. The tremendous loyalty we have in our customer base is a testament to proper customer service management.
We are just now implementing product review functions on our website and social media touch points. We are making every effort to provide the same high level of customer service online that we have maintained in the past.
Wow, that's great Susan. And I'm sure the lessons you are taking away from this class will be a great help too.
DeleteI also like how you say its not just the positive experiences but the way you deal with the negative ones as well that help to build loyalty to your business. That's an excellent insight.
Hey Nash
ReplyDeleteFantastic Post! Companies can steer conversations over social media but initiating them. If a company makes it a point to start a conversation on Twitter or Facebook, then people will take to it and discuss that topic. This is a good way to make sure that consumers are talking about what the company wants them to. A company cannot just sit back and watch, hoping that consumers will start talking, they need to get the ball rolling. Companies can join in conversations that people are already having as well. Facebook and Twitter make this so easy with commenting and replying.
-Michele
That's an excellent point, Michele. Chances are the conversation is already happening about your brand but initiating it is also incredibly important. I think most companies now have a social media portal for just this very thing. Sure they supply marketing content but mostly, this provides a direct communication link between the company and the consumer. Providing a forum for consumer discussion, complaints, etc. provides an outlet for consumers that companies can, in some ways, control, regulate, and keep track of easily.
DeleteMichele - that is a great point regarding taking the initiative to start the conversation on social media. This way a company can steer the discussion and focus on presenting concepts that they want the customers to believe about their product.
DeleteThere's a lot of great discussion on this forum around the importance of incorporating a WOM strategy in an organization's IMC strategy.
ReplyDeleteIn previous classes, we've talked about a handful of companies who really capitalize on this incredibly powerful marketing tool - Redbull being my most vivid example.
What companies (off the top of your head) would you say are the least successful at WOM? Has there been any negative reprocussions of their lack of engagement so far? Or is it just a matter of time before their lack of strategy catches up with them?
After reading these posts, I decided to search for some companies that do really well with WOM. While looking, I came across a blog post, Word of mouth is Not a Marketing Strategy (2013), where the author lists five reasons he feels this way.
ReplyDelete1. It's not consistent.
2. It can not be controlled.
3. People coming to you from word of mouth, want a "deal" because they've been
referred to you.
4. It's a two edged sword. (People who love you and what your company does will tell a couple of people, but have something go wrong…they’ll tell a dozen).
5. Reliance of WOM can lead to LOS (lack of sales).
I understand his point of view, but I still think word of mouth can be a good marketing strategy. Does anyone else agree with the authors opinion?
Morgan, R. (2013, December 5). Word of mouth is not a marketing strategy. [blog]. Retrieved from http://blog.theberrycompany.com/blog/marketing1/word-of-mouth-is-not-a-marketing-strategy