How to Fix Word of Mouth
Nate Elliott, VP and Principal Analyst
@nate_elliott
November 3, 2015
© 2015 Forrester Research, Inc. Reproduction Prohibited 3
Word of mouth marketing
isn’t working.
© 2015 Forrester Research, Inc. Reproduction Prohibited 4
Agenda
› WOM marketing isn’t working
› The state of the market
›...
© 2015 Forrester Research, Inc. Reproduction Prohibited 5
Agenda
› WOM marketing isn’t working
› The state of the market
›...
© 2015 Forrester Research, Inc. Reproduction Prohibited 6
WOM is a top driver of discovery
© 2015 Forrester Research, Inc. Reproduction Prohibited 7
Word of mouth is trusted
© 2015 Forrester Research, Inc. Reproduction Prohibited 8
WOM generates reach brands can’t
© 2015 Forrester Research, Inc. Reproduction Prohibited 9
© 2015 Forrester Research, Inc. Reproduction Prohibited 10
But word of mouth marketing
isn’t working.
© 2015 Forrester Research, Inc. Reproduction Prohibited 11
But word of mouth marketing
isn’t working.
MARKETING
© 2015 Forrester Research, Inc. Reproduction Prohibited 12
Too many brands post and pray
But this does not
generate word o...
© 2015 Forrester Research, Inc. Reproduction Prohibited 13
Or try to hijack hashtags
© 2015 Forrester Research, Inc. Reproduction Prohibited 14
Mistakes are piling up
© 2015 Forrester Research, Inc. Reproduction Prohibited 15
Mistakes are piling up
© 2015 Forrester Research, Inc. Reproduction Prohibited 16
Mistakes are piling up
© 2015 Forrester Research, Inc. Reproduction Prohibited 17
Mistakes are piling up
© 2015 Forrester Research, Inc. Reproduction Prohibited 18
Brands say it’s not delivering
© 2015 Forrester Research, Inc. Reproduction Prohibited 19
Both marketers and
vendors must do better.
© 2015 Forrester Research, Inc. Reproduction Prohibited 20
Agenda
› WOM marketing isn’t working
› The state of the market
...
© 2015 Forrester Research, Inc. Reproduction Prohibited 21
Today, we published a WOMP landscape
• WOMP = Word of Mouth Pla...
© 2015 Forrester Research, Inc. Reproduction Prohibited 22
Forrester sees three kinds of WOM
1
Customer
Advocates
Use exis...
© 2015 Forrester Research, Inc. Reproduction Prohibited 23
And we looked at three types of WOMPs
1
Customer
Advocacy
Platf...
© 2015 Forrester Research, Inc. Reproduction Prohibited 24
Marketers love to chase influencers
© 2015 Forrester Research, Inc. Reproduction Prohibited 25
But most vendors work on advocacy
© 2015 Forrester Research, Inc. Reproduction Prohibited 26
Vendors focus on activation
© 2015 Forrester Research, Inc. Reproduction Prohibited 27
Social marketers rarely run WOM efforts
© 2015 Forrester Research, Inc. Reproduction Prohibited 28
Measurement is a mess
The average WOM
vendor offers
marketers 8...
© 2015 Forrester Research, Inc. Reproduction Prohibited 29
I asked 14 large brands if they
would recommend their WOM
vendo...
© 2015 Forrester Research, Inc. Reproduction Prohibited 30
Agenda
› WOM marketing isn’t working
› The state of the market
...
© 2015 Forrester Research, Inc. Reproduction Prohibited 31
Marketers have work to do.
© 2015 Forrester Research, Inc. Reproduction Prohibited 32
Fix 1:
Marketers must start
taking WOM seriously.
© 2015 Forrester Research, Inc. Reproduction Prohibited 33
Resolve to never again post and pray
© 2015 Forrester Research, Inc. Reproduction Prohibited 34
Never again hijack an irrelevant hashtag
Wrong Right
© 2015 Forrester Research, Inc. Reproduction Prohibited 35
And for goodness’ sake, put some
resources into this strategy
•...
© 2015 Forrester Research, Inc. Reproduction Prohibited 36
But if you fix the vendors,
you fix the industry.
© 2015 Forrester Research, Inc. Reproduction Prohibited 37
Fix 2:
WOM vendors must offer both
advocate and influencer serv...
© 2015 Forrester Research, Inc. Reproduction Prohibited 38
Most vendors offer advocacy products
© 2015 Forrester Research, Inc. Reproduction Prohibited 39
But it’s time for WOMPs to consolidate
© 2015 Forrester Research, Inc. Reproduction Prohibited 40
WOM vendors must offer both advocate
and influencer services
• ...
© 2015 Forrester Research, Inc. Reproduction Prohibited 41
Fix 3:
WOM vendors must offer
useful success metrics.
© 2015 Forrester Research, Inc. Reproduction Prohibited 42
Measurement is a mess
© 2015 Forrester Research, Inc. Reproduction Prohibited 43
WOM vendors must offer useful metrics
• Measure business outcom...
forrester.com
Thank you
Name
nelliott@forrester.com
@nate_elliott
Nate Eliott Forrester presentation for WOMMA
of 44

Nate Eliott Forrester presentation for WOMMA

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Transcripts - Nate Eliott Forrester presentation for WOMMA

  • 1. How to Fix Word of Mouth Nate Elliott, VP and Principal Analyst @nate_elliott November 3, 2015
  • 2. © 2015 Forrester Research, Inc. Reproduction Prohibited 3 Word of mouth marketing isn’t working.
  • 3. © 2015 Forrester Research, Inc. Reproduction Prohibited 4 Agenda › WOM marketing isn’t working › The state of the market › How to fix word of mouth
  • 4. © 2015 Forrester Research, Inc. Reproduction Prohibited 5 Agenda › WOM marketing isn’t working › The state of the market › How to fix word of mouth
  • 5. © 2015 Forrester Research, Inc. Reproduction Prohibited 6 WOM is a top driver of discovery
  • 6. © 2015 Forrester Research, Inc. Reproduction Prohibited 7 Word of mouth is trusted
  • 7. © 2015 Forrester Research, Inc. Reproduction Prohibited 8 WOM generates reach brands can’t
  • 8. © 2015 Forrester Research, Inc. Reproduction Prohibited 9
  • 9. © 2015 Forrester Research, Inc. Reproduction Prohibited 10 But word of mouth marketing isn’t working.
  • 10. © 2015 Forrester Research, Inc. Reproduction Prohibited 11 But word of mouth marketing isn’t working. MARKETING
  • 11. © 2015 Forrester Research, Inc. Reproduction Prohibited 12 Too many brands post and pray But this does not generate word of mouth
  • 12. © 2015 Forrester Research, Inc. Reproduction Prohibited 13 Or try to hijack hashtags
  • 13. © 2015 Forrester Research, Inc. Reproduction Prohibited 14 Mistakes are piling up
  • 14. © 2015 Forrester Research, Inc. Reproduction Prohibited 15 Mistakes are piling up
  • 15. © 2015 Forrester Research, Inc. Reproduction Prohibited 16 Mistakes are piling up
  • 16. © 2015 Forrester Research, Inc. Reproduction Prohibited 17 Mistakes are piling up
  • 17. © 2015 Forrester Research, Inc. Reproduction Prohibited 18 Brands say it’s not delivering
  • 18. © 2015 Forrester Research, Inc. Reproduction Prohibited 19 Both marketers and vendors must do better.
  • 19. © 2015 Forrester Research, Inc. Reproduction Prohibited 20 Agenda › WOM marketing isn’t working › The state of the market › How to fix word of mouth
  • 20. © 2015 Forrester Research, Inc. Reproduction Prohibited 21 Today, we published a WOMP landscape • WOMP = Word of Mouth Platform • Our vendor landscape reviewed 40 vendors • Each filled out a questionnaire • We interviewed two dozen of them • We also interviewed and collected data from two dozen word of mouth marketers • Including some of the biggest brands in the world
  • 21. © 2015 Forrester Research, Inc. Reproduction Prohibited 22 Forrester sees three kinds of WOM 1 Customer Advocates Use existing, satisfied customers to spread brand messages. 2 Employee Advocates Use your employee base to spread brand messages. 3 Category Influencers Use people influential among your key audiences to spread brand messages.
  • 22. © 2015 Forrester Research, Inc. Reproduction Prohibited 23 And we looked at three types of WOMPs 1 Customer Advocacy Platforms 2 Employee Advocacy Platforms 3 Category Influencer Platforms
  • 23. © 2015 Forrester Research, Inc. Reproduction Prohibited 24 Marketers love to chase influencers
  • 24. © 2015 Forrester Research, Inc. Reproduction Prohibited 25 But most vendors work on advocacy
  • 25. © 2015 Forrester Research, Inc. Reproduction Prohibited 26 Vendors focus on activation
  • 26. © 2015 Forrester Research, Inc. Reproduction Prohibited 27 Social marketers rarely run WOM efforts
  • 27. © 2015 Forrester Research, Inc. Reproduction Prohibited 28 Measurement is a mess The average WOM vendor offers marketers 8 “success” metrics
  • 28. © 2015 Forrester Research, Inc. Reproduction Prohibited 29 I asked 14 large brands if they would recommend their WOM vendor to a colleague. Only 4 said they would.
  • 29. © 2015 Forrester Research, Inc. Reproduction Prohibited 30 Agenda › WOM marketing isn’t working › The state of the market › How to fix word of mouth
  • 30. © 2015 Forrester Research, Inc. Reproduction Prohibited 31 Marketers have work to do.
  • 31. © 2015 Forrester Research, Inc. Reproduction Prohibited 32 Fix 1: Marketers must start taking WOM seriously.
  • 32. © 2015 Forrester Research, Inc. Reproduction Prohibited 33 Resolve to never again post and pray
  • 33. © 2015 Forrester Research, Inc. Reproduction Prohibited 34 Never again hijack an irrelevant hashtag Wrong Right
  • 34. © 2015 Forrester Research, Inc. Reproduction Prohibited 35 And for goodness’ sake, put some resources into this strategy • Most marketers we spoke to said they had zero or one person dedicated to WOM. • Only half the marketers we spoke to said they had increased their WOM investment in 2015. • Most marketers I’ve spoken to don’t use any external vendors to help with WOM.
  • 35. © 2015 Forrester Research, Inc. Reproduction Prohibited 36 But if you fix the vendors, you fix the industry.
  • 36. © 2015 Forrester Research, Inc. Reproduction Prohibited 37 Fix 2: WOM vendors must offer both advocate and influencer services.
  • 37. © 2015 Forrester Research, Inc. Reproduction Prohibited 38 Most vendors offer advocacy products
  • 38. © 2015 Forrester Research, Inc. Reproduction Prohibited 39 But it’s time for WOMPs to consolidate
  • 39. © 2015 Forrester Research, Inc. Reproduction Prohibited 40 WOM vendors must offer both advocate and influencer services • We’re not looking for end-to-end social suites. • No vendor can do ads, organic, and WOM well. • Clients of end-to-end social suites are less satisfied. • But marketers can’t justify hiring three WOMPs. • The vendors that offer complete WOM services will win the market.
  • 40. © 2015 Forrester Research, Inc. Reproduction Prohibited 41 Fix 3: WOM vendors must offer useful success metrics.
  • 41. © 2015 Forrester Research, Inc. Reproduction Prohibited 42 Measurement is a mess
  • 42. © 2015 Forrester Research, Inc. Reproduction Prohibited 43 WOM vendors must offer useful metrics • Measure business outcomes, not operational metrics like contacts and posts. • Only one-quarter of vendors focus measurement on business outcomes like awareness or sales. • Integrate with the tools marketers trust. • CMOs already use mix modeling and attribution tools; make sure these vendors can use your data.
  • 43. forrester.com Thank you Name nelliott@forrester.com @nate_elliott

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