Why Word Of Mouth Matters:The Demise Of Consumer Trust

• In 1991, American institutions enjoyed the highest levels of public trust in over 15 years

– Watergate a distant memory– Decade of Reagan optimism

• It has taken another 15 years to push public trust to new lows

– Downsizing of early 1990s.– Monica-gate. Whitewater controversy.– Religious scandals. – Enron. Bursting Stock Bubble. 9/11.

• Out of necessity, consumers have filled the “Confidence Gap” with consumer conversations

Decade & A Half Slide In Institutional Confidence

9

15

18

22

24

29

32

38

42

The Press

US Congress

Major Companies

The Presidency

OrganizedReligion

Banks/Financial

US SupremeCourt

Medicine

ScientificCommunity

Point change since 1991

% saying have “a great deal of confidence in people running institution”:

-3

-5

-8

+1

-13

-14

-18

-19

-24

Biggest drops:►Business►Politics►Press

Source: NORC, General Social Survey, 9 of 13 items shown for space reasons; data from mid-decade

New Vision of PR

21st Century IM• Influence• 1:1 communication• Third-party credibility … conversations• Entertainment• Viral messages• Digital • Cause platforms• Measurement = impact on sales• Focus on the consumer• Lead integrated big ideas

21st Century IM• Influence• 1:1 communication• Third-party credibility … conversations• Entertainment• Viral messages• Digital • Cause platforms• Measurement = impact on sales• Focus on the consumer• Lead integrated big ideas

20th Century PR• Coverage … by the pound• Mass communication • Third-party credibility … news • News • Press releases• “Hard copies”• Charity ties• Measurement = counting impressions• Focus on brands• Tactical support for the advertising

20th Century PR• Coverage … by the pound• Mass communication • Third-party credibility … news • News • Press releases• “Hard copies”• Charity ties• Measurement = counting impressions• Focus on brands• Tactical support for the advertising

The Fifth Revolution

PoliticalIndustrial Entertainmen

tPolitical

TechnologicalConsumer

Empowerment

IM’s Focus: Influencing the Empowered Consumer

credibility

conversation Expertise in communicating to multiple audiences

Power of 3rd party credibility

Story telling both on and offline

Knowledge of influencer culture

Credibility & Relevance

• Increase believability of product claims

• Reframe value• Establish the need for benefit• Grow the category• Provide reassurance

• Project aspirational image or lifestyle

• Position brand as ‘part of my life’• Make a brand locally relevant• Communicate shared values &

interest• Bring emotional equities to life

BUILDING CREDIBILITY INCREASING RELEVANCE

Five Types of Influencers

ASPIRATIONALSTHOUGHT LEADERS

ENDORSERS CATALYSTS VESTEDS

Why are they credible? Their name Their expertise Their reputation Their networks Inside knowledge

What’s their role? Tastemakers Innovators Standard setters Resources Evangelists

What’s most important? Status Substantiation Constituency Information Sales

How to appeal to them?

Help them stay ahead of the trends; pet charities

Give them something unique to talk about

Tell why their audience cares

Help them be ‘in-the-know’ and ‘first-to-know’

Give them motivation to spread the word

WHOCelebritiesStylists Socialites

ExpertsDoctorsScientists

Consumer ReportsAARP

PTA MomsRed Hat SocietyiVilliage.com

ClientsBrand LoyalistsStakeholders

ONLINE

Blogger relations

Viral marketing

Influencer e-mailing

Product reviews

Message boardseeding

Online media outreach

OFFLINE

Influencer Mailing

Network Outreach

Credentialing/3rd Party

Celeb outreach

IM Panels

IM Mapping

Street team sampling

Event Marketing

Guerilla

Target

IM MS&L Toolbox

MS&L’s Special Tools

• IM Mapping: Uncovering new opportunities among the five types of Influencers

• IM Panels: Formalizing and deploying an expert panel to gain influencer insights

• IM Issues Management Map: Creating a methodical framework to tackle the client issue

Health/HealthcarePets

EnvironmentalPhilanthropyAutomotive

Household productsFood & Cooking

Consumer ElectronicsMoms/ParentingEntertainment

Beverages/BeerLuxury Goods/Jewelry

Beauty/FashionTeens

Vertical Expertise: Online & OfflineConsumer