demystifying word of mouth (part 1) - why customers talk

Demystifying

Word ofMouthErnest Dichter

With Marketing Legend

PART ONE

Why Customers Talk

Word OfMouth

Referralsare a

Recurring3 Step Process

Talking about

These st eps are :

Listening to

Acting on the Referral

AND

In this 3 part series, find out why each step

happens

and

how to use this knowledge to acquire more

customers through word of mouth

referrals...

With the help of marketing legend,

Ernest Dichter

Why customers

talk

PersonalExperience

Personal Experience with a product spurs customers

to talk about them.

“… it is talk about the product which confirms for the

speaker his ownership and joy in the product, or his discovery of it.”

Ernest Dichter writes

49%Of participants in a study by the New York Times said

that they shared to inform others of products they care about and to

potentially change opinions or encourage action. I’M ALL ABOUT THIS BASS

SOURCE:

http://www.mediabistro.com/alltwitter/

social-sharing-psychology_b53786

CrossFit ballooned from 13 gyms to 7,000, -without

traditional advertising-

in just 9 years

And that’s how it happenedSOURCE:

http://www.channelsignal.com/fresh-signal

s/by-the-numbers-the-growth-of-crossfit

SelfConfirmation

There are

8 types of

self-confirmation sought through talking about products and

services, notably:

Ernest Dichter notes that customers share to feel good about

themselves.

Ernest Dichter notes that customers share to feel good about

themselves.

Showing Connoisseurship

Having InsideInformation

Spreading the “Gospel” by Converting the Listener to Use the Product

Independent musicians are dominating the

music industry controlling 34.5%

of the business, more than any major label.

le Connoisseurship.

SOURCE: http://nypost.com/2014/01/02/indie-artist

s-are-new-no-1-in-music-industry/

Twitter users share to feel more involved with the world.

Twitter users share to define their identity

69%68%

OF

OF

68%

Being Nice

Some referrals are made because sharing something helpful

feels like an act of

niceness

“Here the prevailing attitude is the need and intent to help, to share with the other person enthusiasm in, and benefit s of, things enjoyed. Products serve mainly as instruments which help to express sentiments of neighborliness, care, friendship, and love.”

Ernest Dichter explains:

Tupperware has been relying on

neighbourliness and niceness as it’s sales weapon since 1948.

66 years later, they turn an annual revenue of 2.3 billion dollars.

SOURCE:

http://en.wikipedia.org/wiki/Tupperware

78%of twitter users share content to

nourish relationships

SOURCE: http://www.mediabistro.com/alltwitter/

social-sharing-psychology_b53786

Influencedby Advertising

Advertising can spark word of mouth by being entertaining or controversial.

“Since it is difficult for consumers to avoid

exposure to advertising, many

people have turned to accepting it for it s

independent attraction and

entertainment value. Thus entertainment value and originality of ads have become

topics of talk.”

Ernest Dichter found:

Old Spice’s viral “The Man Your Man Could Smell Like” campaign generated a 2700% increase in Twitter followers, a 60%

increase in Facebook Fans, a 150%

increase in Youtube followers and a 107%

increase in sales.#Winning

SOURCE: http://www.jeffbullas.com/2011/08/30/11-social-media-

marketing-lessons-from-the-old-spice-campaign/

Old Spice’s viral “The Man Your Man Could Smell Like” campaign generated a 2700% increase in Twitter followers, a 60%

increase in Facebook Fans, a 150%

increase in Youtube followers and a 107%

increase in sales.

Audiences chose to watch ads

4.6 billion times in 2012

SOURCE:

http://adage.com/article/digitalnext/ten-

stats-change-video-2013/238915/

In SummaryCustomers talk about a product

because:

1. To share personal experience

2. For self confirmation

3. To be nice

4. They’re influenced by advertising

Coming soon: Demystifying Word of Mouth

PART 2:

Why People Listen to Referrals

Word of mouth has been shown to

improve marketing effectiveness by up to 54%!

Visit

for more tips andstrategies on using word

of mouth to acquire more customers!

SOURCE:

http://blog.getambassador.com/word-of-mou

th-marketing-statistics/

Blog.ReferralCandy.Com