word-of-mouth

Clues to How and Why Chatter Can Matter

People get and give advice by word-of-mouth, but how this kind of networking actually works is still a bit of a mystery. Jay Baer brings his marketing touch to the subject, offering clues to why chatter matters and how to trigger effective word-of-mouth marketing.

People get and give advice by word-of-mouth, but how this kind of networking actually works is still a bit of a mystery. Jay Baer brings his marketing touch to the subject, offering clues to why chatter matters and how to trigger effective word-of-mouth marketing.

It’s no secret we seek advice from friends, family and people we trust before purchasing products, making decisions and casting votes. Yet, how word-of-mouth actually works still remains a mystery to most marketers, decision-makers and political operatives.

Jay Baer has a new book that seeks to roll back the curtains on how people rely on word-of-mouth and how marketers can create consumers through “chatter that matters.”

Baer endeared himself to marketers with his earlier work called Youtility – the concept that marketing should focus on help, not hype. Baer contended providing useful information is the best route to attracting consumers.

In his new book, Talk Triggers, Baer and co-author Daniel Lemin attempt to provide the same level of illumination when it comes to word-of-mouth marketing. In a companion piece, Chatter Matters, Baer and Lemin analyze research data gathered by Audience Audit to assess word-of-mouth trends and preferences by different age groups and categories of purchasers. They also studied whether online or offline word-of-mouth has the most impact and the effectiveness of celebrity endorsers.

Word-of-mouth is, of course, the oldest form of recommendation and customer acquisition, and it may be more important than ever,” Baer and Lemin say. “When receiving a verbal recommendation from a friend or family member, 83% of Americans are more interested in purchasing the discussed product or service.” 

While word-of-mouth is a preferred form of advice for nearly everyone, men and women, as well as people of different ages, rely on it at varying degrees. Data in Chatter Matters indicates women rely on offline word-of-mouth from friends and family 22% more often than men. White Americans are more inclined to try a product recommended by a friend or family members than non-white Americans.

The report indicates we may give as much advice as we receive, noting “55% of Americans make product or service recommendations to other once per month.” More than 80% say they have offered recommendations.

Younger Americans are more inclined to share “overheard word-of-mouth,” according to the report. Gen Z are the most likely to share (48%) compared to Baby Boomers (38%).

Chatter Matters touches on the trust level of celebrity endorsements. Research found 25 percent of respondents don’t trust any celebrity endorsement. Of the celebrities mentioned in the survey, the highest-ranking person was Oprah Winfrey at 4%. Donald Trump weighed in at 2.8% and Warren Buffet at 2%. No one else broke the 2% threshold.

Personal recommendations appear to matter more than ones on social media. “Americans value word-of-mouth recommendations from friends and family 41% more than social media recommendations.” However, a failed relationship can sour the “trust quotient” – “66% of Americans trust an anonymous, online review more than a recommendation from an ex-boyfriend or ex-girlfriend.”

Friends with personal experience count for more than advertising when it comes to major purchases. For example, the report says, “When planning a wedding, word-of-mouth from friends is 331% more likely to be relied on than advertising.”

Choosing a restaurant is different. Overall, 50% of Americans rely on recommendations from friends and family when choosing a restaurant. However, Gen Z and Millennials are 99% more likely to rely on social and online reviews than are their Gen X and Boomer counterparts.

Word-of-mouth is much more dominant force than advertising in influencing how people vote, especially for Millennials. Baby Boomers pay more attention to news coverage to inform their voting.

Chatter Matters is what you might call the appetizer to the full meal in Talk Triggers, which offers advice and examples of how to use word-of-mouth marketing effectively.

 

The Cost-Effective Benefits of Brand Ambassadors and Influencers

If you don’t have millions to spend on paid advertising, recruiting brand ambassadors and influencers may be the most cost-effective way to build your brand in an organic, authentic and durable way. Brand ambassadors and influencers have overlapping goals and qualities, but are actually quite different.

If you don’t have millions to spend on paid advertising, recruiting brand ambassadors and influencers may be the most cost-effective way to build your brand in an organic, authentic and durable way. Brand ambassadors and influencers have overlapping goals and qualities, but are actually quite different.

Brand ambassadors and influencers can be important parts of marketing strategies. While both seek to build trust, their roles can be confused, their motivations misunderstood and their value overlooked. 

A brand ambassador is a consumer who falls in love with your product or service. An influencer is someone with a large following who recommends your product or service, sometimes for a fee. 

Both are legitimate and effective strategies. Each tends to work best at a different point in brand evolution.

Influencers can jumpstart a new brand or a new brand offering by testing a product and giving it a thumbs up. Brand ambassadors can reassure fellow consumers that the brand is retaining or recommitting to its commitment to quality and responsiveness.

Recommendations from brand ambassadors tend to spread by word-of-mouth. Recommendations by influencers are typically promoted on social media.

Celebrities fall into the influencer camp. Experts can be an integral part of a brand ambassador program, such as a dentist recommending a specific brand of electronic toothbrush or a personal trainer wearing a particular brand of workout apparel. In this sense, celebrities and experts fulfill a similar role vouching for a brand. They both may receive some form of compensation in the form of payments or discounts. Brand ambassadors may be given product discounts.

Marketers directly contact influencers to explore product tests, with the understanding the influencer will produce a review. Influencers are chosen based on whether their following matches the target demographic of a brand. Some influencers accept free samples to test; others don’t. Some influencers are paid directly; others make their money on advertising on their platforms. The review by influencers is not guaranteed to be positive. Of course, a hired celebrity with a script is a sure thing.

Brand ambassadors are cultivated, sometimes by turning angry critics into brand zealots. They tend to be recruited to tell their own story about a brand. You might call them indirect spokespersons. Influencers also can tell a story about your brand that is more of a direct recommendation on why and how to use it.

Influencers come in all sizes. They can be well-known celebrities, macro-influencers with thousands of followers or micro-influencers that are connected to a network of bloggers and social media sites. A circle of friends can be an influencer starter set. In fact, many entrepreneurs have launched successful products by getting their friends jazzed up and spreading the word. This is where influencer and brand ambassador programs overlap.

They share other characteristics, too. Both can command respect from consumers and are capable of building trust in a brand. Both share content about a brand. Both exercise a level of autonomy in what they choose to tout, which gives both a sense of authenticity. Both speak with their own voice. Their recommendations don’t reek as marketing. Sometimes, a compensated influencer evolves into an unpaid brand ambassador. 

There are significant differences. Influencers are chosen because of their expertise that has attracted a following that matches a target market. Brand ambassadors are like invited guests into your house. Influencers test your product and are paid to rave about it; brand ambassadors love your product and are eager to talk about it.

Employees are the most obvious source of brand ambassadors. Nike and Columbia Sportswear make sure their employees have access to their respective company stores so they wear what they design and market.

Influencers and brand ambassadors can show consumers how your brand performs. An influencer on YouTube can demonstrate how to prepare a Sunday dinner. A brand ambassador might offer to cook a Sunday dinner in your home.

For brands unable to sustain or even start a paid advertising presence, influencers and brand ambassadors represent a cost-effective marketing alternative. Because both rely on relationships and seek to build trust, they pair well with the zeal of contemporary consumers to engage with the brands they buy. Both are organic and conversational. They aren’t intended to reach masses overnight. They are aimed at creating a solid base of consumer loyalty on which to build a thriving business.

Gary Conkling Image.jpg

Gary Conkling is principal and co-founder of CFM Strategic Communications, and he leads the firm's PR practice, specializing in crisis communications. He is a former journalist, who later worked on Capitol Hill and represented a major Oregon company. But most importantly, he’s a die-hard Ducks fan. You can reach Gary at garyc@cfmpdx.com and you can follow him on Twitter at @GaryConkling. 

 

Marketing on a Shoestring

Small businesses and startups can get the marketing boost they need without spending a fortune.Small and startup businesses shy away from marketing because they fear they cannot afford it. However, lean marketing plans can be affordable and extremely effective.

Business owners imagine astronomically expensive ad campaigns, but a whole lot can be done for far less. In fact, the whole notion of marketing public relations is based on clever, cost-effective techniques that attract the attention of target audiences.

The first steps to success on a shoestring budget include:

  •   Clear, mutually agreed upon objectives
  •   Sharply defined target audience
  •   Fixed dollar limit
  •   Measurable outcomes 

PR Matches Strategy to Need and Budget

Advertising can build awareness, but its days of building a positive reputation are numbered.Public relations bests advertising as a way to build a corporate reputation, according to new data from the Harris Interactive Reputational Quotient study.

Advertising didn't succeed in improving positive perceptions of corporations, says Robert Fronk of Harris Interactive. "Media recall is playing a dominant role on the impact of reputations for both good and bad."

The findings are based on online responses in December from 17,000 people, between the ages of 18 and 65. Some 64 percent of respondents recalled seeing an advertisement, while 40 percent said they read about a company in print or heard about it via word-of-mouth. Only 6 percent recalled reading a blog.

Fronk cited Johnson & Johnson. Its reputation took a hit in 2011, he said, largely in response to negative media coverage and online comments about the company's product recalls and quality-control issues. The venerable company's advertising failed, he added, to prop up its reputation in the shadow of bad news.