Also synonymous to buzz marketing, viral marketing, peer selling, word-of-mouth (WOM) has been revered by many a marketer "a must-have tool" in the marketing arsenal. It requires very little budget, and works dynamically on its own. It is said to be the inertia that drives every business to its early success.
Reality-wise, every business, either knowingly or unknowingly, generates word of mouth that is either positive - which helps build their business, or negative - which hurts it.
PalmPilot, during its hey days, caused a lot of positive buzz when it was launched that sixty five percent of customers told that they had heard about it from another person. FedEx is also famous for its legendary employee who hired a chopper just to deliver a package forgotten on the tarmac. People love a good story, and that is the essence of viral or WOM marketing.
On the other hand, I know one big hotel in Cebu known to harbor fat rats that used to wake their guests up earlier than their morning calls. Well that hotel is now close. I am not sure if they had it coming (because of the rats )or was it because of the deteriorating service that many tourists talked about? Well one thing is for sure, they're known for both.
Anyway going back, WOM is not an indirect talk or communication. If people are reading your product thru traditional media like TV, radio or a blog then it is not WOM advertising. To do buzz advertising people must have something to share or talk about like personal experiences about the product, service, business, event or program.
WOM is compelling or convincing since the disclosure about a product or service is authentic and reliable or the person talking is offering his or her own candid opinion and therefore, the marketing appears independently credible. Further, the intimacy in conversation makes WOM advertising so valuable. It opens both positive and negative attributes of what they eventually say or indicate to their friends, relatives, colleagues and associates about a product, service or business.
From the point of view of experts, the benefits of WOM is that "It is more about farming than it is about hunting." according to Ivan Misner, co-author of the New York Times bestseller Masters of Networking. Building your business through WOM is about cultivating relationships with people who get to know you and trust you. "People do business with people they have confidence in," adds Misner.
Despite its simple elegance, viral/buzz/WOM marketing is not easy. C. Whan Park a Professor of Marketing at the University of Southern California and a columnist for MarketingProfs.com, says that "good viral marketers understand three basic things: First, they know how to inspire customers to praise them. Second, they understand how to find the "champions" of the company. Third, they know how to work with them effectively."
I cannot discuss in detail these three concepts for space reasons, WOM is about a satisfied customer (who obtained the most value from your offerings) inspiring another customer. One of the best ways to do this is by offering your customer something they weren't expecting to receive.
Second, by asking a customer how he or she has heard about your product or service and the reasons for buying already gives you a champion to start with. You may request that you will use such information as a testimonial to the service or product you provide.
Third, building relationships with champions keeps them talking about your business, and also gives you a platform from which you can virally market new products and features. Building these relationships starts with thanking your champions for promoting your business. This "thanks" is most effective when done in full view of those who are not champions of your product or service.
For more information about WOM, I highly recommend these books for your reading, Marketing Management by C. Whan Park with Dr. Gerald Zaltman from Harvard University and "Word-Of-Mouth Marketing" (Paperback) by Jerry R. Wilson.
Send emails to trade.forumph@gmail.com