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LAUREN GILLETT
COLIN GROUT
LAURA MITCHELL
RYAN BOYD
Electronic Word of Mouth#eWoM450
Agenda
What is eWoM to You?Evolution of eWoMWhat is eWoM?eWoM ContentThe People InvolvedCase StudiesClass ActivityeWoM & ViralityeWoM & Community Building
What is eWoM to You?
Examples?
Experiences?
Experiment Send out a positive or negative tweet to a company At the end of our presentation we will see if
The companies replied Their reply was effective or ineffective
LAUREN GILLETT
Evolution of eWoM
Evolution of eWoM
“Word of Mouth” is the passing of information from person to person using oral communication
Storytelling is the oldest form of word of mouth communication
We rely on word of mouth communication to transmit and receive information
Evolution of eWoM
eWoM emerged with WEB 2.0 technologies
eWoM is a way people communicate with companies and other consumers to Help with buying decisions Provide feedback
Most eWoM does not take place on the company’s website, rather through social media channels
eWoM is still trying to be understood by companies. New Messy Changing
Evolution of eWoM
Storytelling Personal Networks Public Networks
(Offline) (Online)
STORYTELLING
PERSONAL NETWORKS
PUBLIC NETWORKS
COLIN GROUT
What is eWoM?
What is eWoM?
“Any positive or negative statement made by potential, actual, or former customers about a product or company, which is made available to a multitude of people and institutions via the Internet” (Hennig-Thurau, et. al, 2007)
Main Elements of eWoM
1) Statement: positive, negative or neutral
2) Communicator: statement creator (potential, actual or former customer)
3) Object: product, service and/or company
4) Receiver: multitude of people and institutions
5) Environment: the Internet, social media(Lindholm, 2009)
Satisfaction
Customers need to be satisfied to remain loyal and make referrals
Companies must exceed customer expectations to leave them satisfied
eWoM is still relatively new which process to be a challenge to companies
Many factors contribute to customer satisfaction Outcome Response Channel
COLIN GROUT
eWoM Content
Positive vs. Negative eWoM
Positive feedback usually stems from customer identification with the company In some cases they still aren’t fully satisfied Committed
Negative eWoM usually consists of concerns with products or services Negative comments give firms the best opportunity to
achieve satisfaction
Responding to both types of feedback is equally important
Positive Feedback
Negative Feedback
Challenges with eWoM
Still new to firms
Consumers can post dishonest feedback
Some people will not be satisfied regardless
Online identities can easily change
Some issues cannot be solved online, which can decrease satisfaction
LAUREN GILLETT
The People Involved
Malcolm Gladwell’s Three Personality Types
1. Connectors
Have a lot of social connections
People with a knack for making friends and acquaintances
People who understand the concept of a “weak tie”
2. Mavens
“Information specialists”
The people we rely upon to connect us with new information
Accumulate knowledge and share it with others
Start word of mouth “epidemics”
3. Salesmen
Persuaders
Charismatic people with powerful negotiation skills
Makes other people want to agree with them
Factors that Influence Impact
Stickiness Factor Specific content of the message that makes its impact
memorable
Power of Context Human behavior is sensitive to and strongly
influenced by its environment
Augie Ray’s Peer Influence Pyramid
1. Social Broadcasters
Few in number, larger in scale
The top bloggers, most connected people, have the most followers online
Have scale but lack trust
Better suited for awareness
2. Mass Influencers
Make up for 16% of the pyramid, but have 80% of the influence
“You ignore the minority that creates the majority of the influence”
3. Potential Influencers
Average consumers
“Where the trust is”
Online networks reflect their offline networks
80% of the total pyramid
How to Reach Online Influencers
Social Broadcasters:
Build Relationships
Develop genuine, customized offers
How to Reach Online Influencers
Mass Influencers:
Give them something to talk about
Provide content they cannot resist sharing Stickiness factor
Don’t forget about offline influence
How to Reach Online Influencers
Potential Influencers:
Make things “drop dead easy”
Keep them engaged between campaigns
LAUREN’S POSITIVE CASE STUDIES
Case Studies
Dan Mangan (Singer)
100.5 Peak FM
Whole Foods
Whole Foods
LAUREN’S NEGATIVE CASE STUDIES
Case Studies
Whole Foods
SFU
Future Shop
Future Shop
LAURA MITCHELL
Case Studies
McDonalds Talks
McDonalds Twitter Hashtag
McDonalds Twitter “Bashtag”
Content > Interacting
More Content
Starbucks Listens
Starbucks Twitter
PersonalizedToneHuman Interaction
Transparency & Human Interaction
Integration
Negative eWoM for Starbucks
Starbucks Response
Starbucks Response continued
Starbucks Facebook Page
LAURA MITCHELL
Class Activity
RYAN BOYD
eWoM & Virality
Virality
Viral Marketing forces consumers to spread messages because of…
Virality Examples
E-trade: http://goo.gl/uyQSj
Pedigree: http://goo.gl/5N7Fw
Telus: http://goo.gl/SZx3D
Go Daddy: http://goo.gl/knJ5Y
Subway: http://goo.gl/0mSxY
E-trade
Problem with Virality
The problem with virality is it forces messages to consumers Babies and E-trade have nothing in common So do Telus and Animals And based on the commercial, I don’t even know what
Go Daddy is trying to advertise
People do talk about and spread these messages to their friends, but not for the reasons these companies want
What do companies want?
Consumer-Driven Marketing
“A method of promotion that relies on customers helping to market an idea, product, or service by choosing to share something with their friends”
Consumer-Driven Marketing
The participants are active
The content is share-worthy
Simply, Consumer-Driven Marketing is people sharing stuff about your brand to their friends
How and Why People Share
It is important for companies to understand How & Why people share content with their friends
The six reasons why people share
1. To Express Themselves…
2. To Belong…
3. To Be Bad…
4. To Do Good…
5. To Be Recognized…
6. To Build Relationships…
Consumer-Driven Marketing
1) Express themselves2) Belong3) Be bad4) Do good5) Be recognized6) Build relationships
Companies want to enable, encourage and reward sharing
Durex’s “Lovebox”
• Engaged new market segment• Started conversation with previously silent/embarrassed segment
• Express Yourself• Building Relationships
The Ad: http://goo.gl/wqZkH
Old Milwaukee is Expressing themselves Being bad And being recognized for both
Old Milwaukee Super Bowl Ad
Old Milwaukee Ad: Twitter
Aired only in second smallest market in US Population: 15,000
1,600 mentions on Twitter
Nationally televised commercials # of mention’s 1,200 Hulu 1,000 Career Builder 900 Lexus 500 Century 21 350 Cadillac
Old Milwaukee Ad: YouTube
Old Milwaukee ad viewed over 1,000,000 times
Cost $1,500 to air in 2nd smallest market
Budweiser’s “Eternal Optimism” ad viewed 419,000 times
Cost roughly $3,500,000 to air nationally
Old Milwaukee Ad
The GoodGenerated share-worthy content that fans
passed on to their friends, improving Old Milwaukee’s brand
The BadFailed to capitalize on all of the attention by
creating an online presence with social media for fans to continue to enjoy related content
eWoM & Community Building
Power of Content (Stickiness Factor)
Content is an important part of eWoMIf you are generating content, it should be
original and “share-worthy” so that people will want to pass it on to their friends and online networks.
Need to understand WHY and HOW people share content
It should reflect the core values of your brand without seeming overt
Playboy
TOMS
Engagement
You have to understand your audience in order to engage with them
Psychographics vs. Demographics
Listening to your audience to see what they are interested in
IKEA
How To Engage Your Audience (Henrik Werdelin)
1. Make them show they are early adopters
2. Make them seem funny or interesting
3. Allow people to add their personal touch to your story
4. Make people better storytellers by giving them templates to guide them
CNN News to Me
Generation vs. Interaction
Risk of Generation
The Control in Interaction
Skepticism
“It is well-established in the literature that people perceive consumer recommendations as more trustworthy than those of experts.” (2011, O’Reilly & Marx)
Platform Dependent
LISTEN!
Consumers < Fans
Transparency
Experiment Results?
Did the company reply?
Was their reply effective or ineffective?
Keep it up online!
Conversation will continue on Twitter!
#eWoM450 (Please don’t make it a Bashtag!)
Facebook Group
QUESTIONS?
Thanks class for your participation!
