A statistic provided by
Keller Fay Group says 90 percent of people make major purchases based on a recommendation from a friend, colleague or other personal contact. The power of that referral is so important.
Let’s say I purchase a car, and I tell my friend that I had a great experience at XYZ Dealership and that I love my new minivan. The chances of that person purchasing the same minivan as I did has increased astronomically, all because of my personal recommendation.
MG: Your organization promotes the value of “talkable brands.” Could you explain this term and how companies and organizations attain a talkable brand?
KS: Last year, several WOMMA leaders were discussing what is most important to a brand overall. We narrowed in on the information that people share about that brand organically, from a story that boosts credibility to an example of great customer service—in short, the ability to be “talkable.” So we coined that term and used it from that point forward. The goal is for people to know your brand, to understand it, to experience it and to tell others. At the end of day, that’s what drives sales.
Brands that have customer service top of mind have the ability to be talkable. They recognize the importance of exceeding customer expectations, whether it’s in the B-to-B arena or B-to-C arena. Zappos is a great example. At
Zappos, customer service is number one at every touchpoint within the company. You know it as soon as you call them. They give people a reason to talk positively about them.
Smart companies have recognized that if someone has a negative experience—with their call center, for example—and that customer tweets about it, and then their friends post and retweet about it, all of a sudden that one instance has exploded into a large incident. This idea is starting to resonate with more and more organizations.
MG: Could you share a word of mouth success story?
KS: First, I want to stress that I’m not a practitioner. The stories I share come from members and other practitioners—from conference presentations, webinars and other industry channels.
There are many positive examples of companies engaging customer communities, from Coke to Kraft to American Express. These brands have harnessed power of the customer to give feedback about their products. They’ve run effective campaigns—both online and offline.
Trader Joe’s is a company that does not do any traditional advertising; they have relied primarily on word of mouth to grow their business. Customers talk about them—offline and online—because they’ve had such a phenomenal experience in their stores.
The ultimate goal is to create brand advocates—people who are willing to talk about your company or organization. These people are willing to go to bat for you, post comments about how much they like you, and even answer other people’s questions about your brand because they know it so well. Right now, the number one means of developing brand advocates is Facebook.
Skittles is a great example. The company realized that the majority of people who liked its products were more likely to go to Facebook than its website. So the company took down its traditional website and moved its primary online presence to Facebook. Brands are going where their customers are. It’s a big shift in thinking.
MG: Do you have examples that aren’t so positive?
KS: One of the biggest issues in the social media space is unethical behavior, whether intentional or not. For example, companies have been known to pay for online reviews, or have their employees post reviews. But customers don’t know the reviewers are connected to that company; there’s a lack of transparency.
So there’s groundwork to be done in educating people about the best way to behave in the space, and what is expected not only by WOMMA and our ethics code but also by the FTC. Ultimately, it’s a matter of trust. Consumers need to know that the information they’re receiving is legitimate.
MG: What advice do you have for smaller organizations that may have fewer resources for online engagement or are not finding social media to be effective?
KS: It all comes down to the question of “what is the goal?” And where is your audience? If they’re not online, what are you doing online? If they are online, where are they? Are they on Facebook? Are they on Twitter? And what are they using it for?
If an organization launches a Facebook page but uses it to push out the same messaging from their website or magazine, that’s not going to be effective and it will turn off followers. The goal is to share quality, credible content. That is what will drive people to look at your Facebook page or follow you on Twitter. It may lead them back to your website, which is fine. For example, posting a Q&A with a speaker leading up to a conference might pique readers’ interest in that event.
Just be aware of why you are using social media channels. Many companies launch a Facebook page, then decide it’s not working because they didn’t know what results they wanted. They didn’t know what the goal was.
So there are questions and thoughtfulness that needs to happen, but I don’t want to dissuade anyone from going out there because social media tools are easy to use and readily available. And if you aren’t out there, someone else will be. They’ll find a way to circumvent you, and you will no longer be relevant … you’ll no longer be the go-to resource.
MG: What were some noteworthy developments of 2010, and what’s ahead in 2011?
KS: 2010 was an exciting year. More and more people began to understand the power of social business—the power of a message spreading from one person to 3,000 people in no time. As a result, I’ve seen more nonprofits and businesses dedicating budget to social media.
Technology developments have been phenomenal as well. We’ve seen a heightened use of Twitter; growth in location-based marketing, like
Foursquare and
Gowalla; and
QR codes cropping up to connect mobile devices to restaurant menus and other media.
New technologies will continue to develop at rapid pace and on a grander scale. While this will open up new opportunities to connect with our audiences, it should give us pause. It’s important to know how these technologies apply to us and how we can effectively use them.
At WOMMA, we embrace these changes and we are dedicated to helping others embrace them too. It’s an exciting time for all of us.
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