From the marketing trenches...

A Word on Word Of Mouth Marketing

                                                                         

I'm likely in the minority here, but I'm not buying Word of Mouth marketing (WOM) as the next big marketing idea. In fact, I don't even buy WOM as a marketing "tool".

I've read the articles, the books and, recently, viewed the videos from WOM Marketing Association's (WOMMA) Orlando conference. And I'm even more convinced that WOM marketing is the outcome of a well thought-out and executed marketing strategy...with one key ingredient: the product or service marketed is worth talking about.

Too many of these WOM articles and proponents imply WOM about a product or service can be "created", manipulated, and even bought. Given the amount of information available to all of us as consumers, and the cynicism directed towards marketing and advertising in general these days, I think it is just the opposite. You CAN'T create, manipulate or even buy-off people genuinely telling others how great your product is (i.e. WOM).

In one of the WOMMA podcasts, prominent customer relationship consultant Don Peppers, stated that WOM marketing is made up of these three things: employee empowerment, employee ownership, and excellence in service.

Agree, these are necessary components of a successful company and a memorable customer experience. Add in a product/service worth talking about and you have a formula for your customers going out and telling people how great you are (i.e.WOM):

Product/service worth talking about +  Memorable Experience = WOM

Great marketing is built on two foundations: 1. A great product and 2. Employees who live the brand. WOM is the result of great marketing.

A great analogy for WOM marketing is the tried and true "tail wagging the dog"...When do dogs wag their tails? When you pet them, talk nicely to them, play with them (experience) and when you feed them something unexpected, like a steak bone (great product). Skipping these inputs and going straight for the tail will not yield the results you want.

So it is with WOM. Take care to develop the product, deliver a memorable experience and watch the tails start wagging.

Your Brand = Your Employees. Redux.

                                                                

Photo courtesy of Getty Images

In an earlier post, I pointed to SAS airline's take on customer touch-points. They had 10 million customers last year that came into contact with at least 5 SAS employees for an average of 15 seconds. The CEO called them "50 million moments of truth".

Here's another company that understands your brand = your employees.

Zappos, a leading online shoe retailer with sales of $370 million, has been sending it's 300+ employees to what is essentially a customer service boot camp. According to Internet Retailer magazine,

Rather than commit large amounts of time and money to interactive marketing, Zappos likes to invest in better customer service programs, Hsieh says. “We started the program in June as a way to train employees about our culture and how we handle customer loyalty,” says Hsieh. “Now we are to the point where all our employees are taking the course.”

Is it any wonder, then, that Zappos generates more than 60% of their revenue from repeat customers? Or that Zappos is growing at an annual rate of 100%?

Every touch a customer has with your employees, no matter how small, is...the...brand.

Zappos gets it.

Great title. I should have stopped there.

Doesn't this sound like a good book, "Balls! 6 Rules for Winning Today's Business Game"? And, better yet, it is written by a CMO of a mid-sized company...a true "in the trenches marketer". So you can imagine my disappointment after parting with $20 and then reading passages like these:

We often play music in our booth at trade shows, and it's usually a rotation of theme songs. At our company, you have to earn your theme song and once you have one, you have to embrace it. When your theme song plays (at the trade show booth), you have to dance and slide down our firefighter's pole--even if you're pitching a prospect. Let me tell you, the "dancing pitch" is one helluva way to get a potential client's attention.

It got worse...

One year our trade show theme was Innovation and Talent, or IT for short. We dressed any staff member who wasn't selling in either an "I" or a "T" costume and made sure they walked the show floor--a lot.

And then downright ridiculous...

Our theme was "Dream Big! Make Your Wishes Come True"...to take it to the extreme we bought inexpensive but large fairy wings, blue wigs, plastic tiaras, and magic wands. During nonexhibit hours, our sales reps dressed up as fairy god-mothers and "magically" appeared before prospects during lunches or evening receptions...

So I just saved you $20. You're welcome.

Your company's 15 seconds...fame or shame?

"Last year, each of our 10 million customers came in contact with approximately five SAS employees, and this contact lasted an average of 15 seconds each time. Those 50 million 'moments of truth' are the moments that ultimately will determine whether SAS will succeed or fail as a company."
Jan Carlzon, CEO, Scandinavian Airlines

Two simple yet powerful concepts.

Here's an example of two simple yet powerful marketing concepts. 1. Promote your category (not just your company) and win. It's like the old saying, "A rising tide lifts all boats". 2. Conversations with your prospects should be about them, not you.

Last year Fidelity Investments doubled their number of new household accounts. In the past, Fidelity started a conversation with the marketplace like this "For over 50 years, Fidelity...". In other words, the beginning of the conversation was about them...Fidelity.

They have changed their strategy and it's working. Instead of telling prospects about Fidelity, they are beginning a conversation with their category (investing for individuals) and acknowledging that it is a category that causes much confusion. They went from "we're Fidelity" to "You need help? We can help you." And instead of "pick Fidelity for your IRA", "Why should you have an IRA? Because $3,000 today becomes $300,000 in 30 years."

By promoting their category and starting a conversation with their prospects, Fidelity has become the choice for many. And why not? As a customer, wouldn't you rather deal with someone who begins their conversation talking about you rather than themselves?

A winning 2005 campaign.

There were many memorable marketing campaigns in 2005, but here's one that stands out...kudos to a company and agency who understand people consider facts but BUY on emotion. This is such a simple yet powerful marketing concept.

Cadillac, along with agency Leo Burnett, realized it was considered a luxury brand but didn't get any credit for the performance aspects of their cars. Competitors like BMW were winning based on a public perception of luxury and power.

To combat this, Cadillac and Leo Burnett came up with a brilliant marketing idea. Instead of talking about 0 to 60 in five seconds, let people experience 0 to 60 in five seconds. They produced a number of five second television commercials doing just that (and changed the way networks think about selling ads at the same time). The campaign also incorporated other ways to experience just how fast 60 seconds is.

Simple, but brilliant. For the first time, people were exposed to the performance side of Cadillac. But not with facts and figures about torque and horsepower, but by experiencing the power of 5 seconds.