Wednesday, October 27, 2010

Mouth propaganda

The answer to my last blog post is not TV, newspaper ads or direct mail. These seemed like wallpaper. I shut my sensors off and did not notice them. The reach and reliability of these messages is not what a marketer dreams of. Not any more.

I analyzed what were the messages that reached me, during this dark time of no internet and the only ones that really affected me were simple recommendations. From friends and family. This is no new revelation. For centuries there has been recommendation letters for recruitment and then there were bibles like "The Tipping Point" and "Buzzmarketing". Online marketing platforms use them, catalogues use them etc. but it is fascinating that mechanically forced recommendations do not work anymore. If a friend sends me an e-mail recommending me to go to a spa or buy a new and better frying pan - I delete the mail. It is already spam for me. It does not matter it came from a friend.

If my relatives and friends discuss over dinner-table that SEB and Swedbank are no good anymore for pension fond portfolio management, and they are moving over to LHV, although they take bigger fee, then this is what I want for my brand. I did not notice the TV ads LHV was running, but I immediately started to think, if the information came from people close to me.

It seems like a spontaneous talk, that cultivated during dinner chit-chat. But was it really? LHV has lately very vigorously spread into ATL and we can see that taking over pension fonds is their goal of the year. And they have invested in it. I'm anxiously waiting for the results as luckily these are measurable. So is it really possible to create massive WOM without ATL support?

Here is a nice graph by Nielsen to make the trust levels very clear. Basically now people believe the talk of the stranger more than TV ads or brand websites. That's the power of online forums. The power of free speech. 



To make the merger of business and anthropology make wonders, keep in mind the core principle. You have to earn peoples trust to be effective. The closer/ must respected the recommendation source is to you, the better it works. Please also note that if I see a friend recommending me something every day, it is wallpaper. If I see it once a year, I take it as gold, depending how close/ reliable the person is to me.

The key is to create outstanding experiences in the first place. If the product/ service is not outstanding, then there is no reason to buzz about it. If it is outrageously outstanding then the word will spread around organically, if not, then ATL support is needed, to spread to masses. There is no suits-all solution for all brands and every brand should find out the solution best for their brand.

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