ZuberRants

WOM Market Red Hot, Study Finds

The newly-released Veronis Suhler Stevenson (VSS) Communications Industry Forecast states that spending on word-of-mouth marketing increased 21.4% in 2006, to $4.82 billion. 

"The increasing popularity of social networking sites, blogs and instant messaging is creating additional platforms for word-of-mouth marketing, leading to accelerated growth in 2006" the report states.

The shift to alternative media and marketing strategies like WOM marketing will drive U.S. communications spending growth in the 2007-2011 period, as marketers look for new ways to engage saturated, resistant consumers who are increasingly tuning out "traditional" media and messengers.

Veronis Suhler Stevenson (VSS) is a leading private equity firm dedicated to the media, communications, information and education industries (www.vss.com).

For more on the VSS study, click here:

http://www.vss.com/news/index.asp?d_News_ID=166

Return to Sender

Resistant consumers have a message of their own for email marketers: stop bugging us.

According to recent research by Forrester, more people than ever are ignoring, blocking, and failing to respond to emails from marketers.

Key findings:

• 72% of people delete email messages without opening them - a 17% jump since 2002
• 77% say they receive too many email offers and promotions, up from 60% in Jan. 2001
• Only 5% say they "often buy things" advertised via email promotions
• Only 9% forward email ads to friends, down from 21% in 2003

Clearly, email can still be an effective marketing tool when used properly. However, Forrester's findings underscore a larger, more important issue:

Reaching today's saturated, resistant, and in-control consumers requires approaches that are relevant and engaging.

Rising Roar of WOM

A newly-released report by eMarketer shows that increasing numbers of consumers are relying on WOM recommendations to make purchase decisions. And many of them are giving - and getting advice - online.

Here's a link to the eMarketer report: http://www.emarketer.com/Article.aspx?id=1005072&src=article1_newsltr

Mapping Online Communities

 

Word of Mouth Marketing: Too Much Focus on The "Talkers"

Today I had a very interesting conversation with Bill Mosher, former founder of EchoOpinion. Bill is smart, seasoned, and strategic.

I shared with Bill my view that one of the big problems with Word of Mouth (WOM) marketing (as it's currently being practiced by most PR & ad agencies) is that nearly all the focus is on the "talkers" and hardly any focus is on the receivers.

Mobilizing a swarm of "buzz agents" and arming them with product samples and talking points is still about pushing content at people, not about engaging two parties in a conversation that brings value to each party.

How is activating buzz agents any different than pushing ads at people? Yes, it is more interactive than TV ads but the primary focus is still on the message sender, not the receiver.

I believe that companies need to focus as much, if not more, on facilitating the types of interactions that:

1) Brings value to the receiver of a WOM conversation

2) Enables the receiver to rate the value of that interaction

Companies that don't get this will be dismissed as tactical promotion agencies, no matter how much they try to dress up their offering in the fashionable cloak of WOM marketing, social media, or social networking.

Partnering with Text 100

This is an exciting day for Zuberance. We're announcing today a strategic alliance with Text 100, a top-notch global PR agency. (see attached press release below.)

Our alliance aims to help marketers solve a big problem: enabling companies to create communities of trust, which is key to achieving business objectives.

We're excited about partnering with Text 100 because they are a very-well respected PR agency and on the cutting edge of new media. Text 100 was the first PR firm to open an office on Second Life, the leading virtual world.

Text 100 has a blue-chip roster of clients, including Cisco, IBM, Philips, Fujifilm, Xerox, and many others looking to build and extend their communities of trust online.

Download zuberance_global_pr_leader_text_100_form_strategic_allia.pdf

Top 50 Business Blogs

Times Online publishes its list of Top 50 Business Blogs.

http://business.timesonline.co.uk/tol/business/industry_sectors/media/article1923706.ece

The Lighter Side of...

Trust: The Most Important Issue

Audiences have never been more distrustful of "official" media and messengers, yet creating and maintaining trust is critical in today's highly fragmented, connected environment.

In recent weeks, I've been having many fascinating conversations about the topic of trust with the brilliant Dr. Georg Kolb, who heads up innovation for Text 100, the global PR agency whose clients include Cisco, IBM, Philips, and many other leading technology companies.

You may find it interesting that a senior executive of a company in an industry that hasn't exactly been associated with the word "trust" would be thinking deeply about this issue. But Georg is a different kind of executive and Text 100 is a different kind of PR agency.

Text 100 has earned the trust of press, analysts, bloggers -- some of the most jaded audiences. They've done this by being authentic and straightforward, and by focusing on long-term relationships rather than short-term gain.

In coming days and weeks, Text 100 and Zuberance will have much more to say about building communities of trust. And we hope to spark a global conversation about this critical issue. Stay tuned.

Net Promoter - What's Next?

Forrester recently asked: "So you know your Net Promoter Score (NPS). What's next?"

One obvious answer: improve customer experiences. Experian's Consumer Information Solutions group doubled its NPS in 6 months by enhancing customer experiences, Laura DeSoto, VP of Synergy & Innovation, told attendees at the Net Promoter Conference recently.

Another answer: mobilize your promoters. Give your promoters tools and platforms to share their enthusiasm with others online and offline. Companies that boost advocacy grow revenues 2X-4X faster than competitors, studies by Bain & Company and the London School of Economics have shown.

Is your company mobilizing its promoters to drive business results? Let us know.