Have you been to the shoe store around the corner? It has a great selection." - "I went to the new pizzeria yesterday. The service was lousy, the food was bland." People talk about brands, products and companies in everyday life. In marketing jargon, these conversations are called Word-of-Mouth WoM. In a positive sense, they mean advertising. In a negative sense, they can be image-damaging. Nice or not. In both cases, it is in the company's interest to control communication, i.e. to ensure good conversations or to be able to respond to any criticism. This is the aim of word-of-mouth marketing (WoM marketing). This is not a new concept, but a tried and tested marketing tool. This is because input that comes from personal contact is considered more relevant and also more credible than traditional advertising methods (Nielsen, 2009). However, the possibility of reaching a much larger target group via social media has made the use of WoM marketing even more attractive. There is also interest on the scientific side. As part of her Master's thesis at the IPMZ Institute of Mass Communication and Media Research at the University of Zurich, Alexandra Weber investigated the use and suitability of WoM as a communication tool. To her delight, the companies and agencies she interviewed for her qualitative study showed great interest. However, Weber soon realized that WoM is interpreted differently in practice. How the concept is to be distinguished from viral marketing or buzz marketing, for example, seems anything but clear. Werbewoche asked agencies and communication managers how WoM is understood and used and - in combination with Weber's work - attempted to classify it.
1. the WoM classics
Specialized providers such as Webguerillas or Mr. Wom sharply differentiate WoM marketing from other forms of alternative advertising. They focus on the experience with a product or service. "WoM marketing, or recommendation marketing, is a marketing tool in which opinion leaders and multipliers are invited to get to know new products and services before anyone else, talk about them publicly and pass on honest experiences to other interested people," is how David Eicher, Managing Director of the Webguerillas agency, defines the term. Mark Leinemann, who offers WoM consulting under the name Mr. Wom, also emphasizes the experience aspect: "While viral and buzz marketing clearly focus on the advertising or brand message, WoM marketing focuses on the real, authentic product experience of a consumer with a brand that is passed on." However, Leinemann takes issue with the term referral marketing, which he considers to be too sales-oriented. "For a good WoM marketing effect, it is enough for someone to tell others or report on the web that they have tried the product and like it, without explicitly recommending the purchase." Campaigns that meet this definition are used in particular for product launches. The approach is often based on the following elements:
Sampling/Tryvertising: Campaign participants receive a package containing the test product as well as discount coupons, flyers or small test samples, which are distributed to friends and family.
Storytelling: The product test is surrounded by a story that is as exciting as possible. This should give the consumer an incentive to test the product and at the same time provide a reason to talk about it with others.
Continue the story: The testers should share their experiences offline and online. Online on specific platforms (e.g. Buzzer.ch), on blogs or, for example, on the company's Facebook page.
Exclusivity factor: The testers benefit from exclusive treatment. At a product launch, they are given the opportunity to try the product before anyone else. Some companies also organize competitions, company tours or excursions for the testers - also to provide additional talking points.
Kraft Foods launched a classic WoM campaign for the introduction of a new Tassimo coffee machine. The agency responsible, Webguerillas, specifically selected multipliers (including bloggers) who wrote posts on their blog or other social media channels after the product test. Ricola also relied on WoM marketing for the launch of a new sweet. In contrast to Tassimo, the test packages in the campaign managed by Buzzer were not sent to bloggers, but to a wide audience. Clichés were used as storytelling tools and conversation starters. Ricola confronted the testers with common clichés and asked them to put their fellow human beings to the test. The claim was: Women like to store for life. Men pee standing up. Or: Herbal sweets are good for your mouth and throat, but don't taste good. The aim was to communicate that Ricola herbal sweets "contrary to the opinion of many consumers, they also taste good and are therefore suitable for everyone", as Janine Gauch, Social Media Manager at Ricola, explains.
2. WoM as a corporate strategy
Certain companies do not rely on temporary WoM campaigns, but generally work via word of mouth. For example, SMEs that reach new customers primarily through recommendations from existing customers and also actively manage this channel. These include the shoe manufacturer MBT Masai Barefoot Technology, which invests a large part of its marketing budget in WoM - currently around 50 percent. Not least because the shoe with the thick, rounded sole is less of a fashion accessory and more of a health shoe. "Our product thrives on recommendations. To explain the health benefits of MBT to a person, you need an explanation," says Annette von Mandach from MBT. "This works better through healthcare professionals and acquaintances who have already had experience with MBT than through traditional advertising." MBT maintains contact with health experts such as physiotherapists, whom the manufacturer informs about its product and supplies with test samples. If they are convinced by the shoe, they receive marketing tools such as information brochures and vouchers that they can pass on to their patients. On the other hand, the manufacturer uses the customer-recruit-customer approach. When a customer buys a shoe, they receive a voucher for an MBT product, which they can either redeem themselves or pass on to friends and family members. If a friend buys an MBT shoe, the "referrer" is entered into a prize draw.
3. WoM as part of the whole
Other agencies do not regard WoM as an independent marketing tool. "For me, WoM marketing is an integral part of communication," says Cyrill Hauser, Senior PR Consultant at Jung von Matt/Limmat, for example. And he is not alone in this view, as Weber's interviews show. "The proportion of agencies that see WoM as a small cog in the marketing machine is high," says Weber. "Often the measures are not specifically geared towards WoM, but WoM is seen as a hoped-for result or welcome by-product of an entire campaign." Well-known campaigns were cited as examples of WoM projects, including the one by SFLB for Mammut with Mary Woodbridge, who pretended to want to conquer Mount Everest, the "Obermutten Project" by Jung von Matt/Limmat or the prevention campaign "Slow down. Take it easy" by Rod with the bearded angel Franky Slowdown.
Contrary to the specialized agencies that claim a direct experience with a product is necessary for WoM marketing, these campaigns are primarily based on a good story. "In a WoM marketing campaign, a story is constructed around a product or brand that gives the consumer a reason to talk about it. After all, people don't tell each other marketing messages. Instead, products or services need to be emotionally charged," explains Hauser. However, WoM marketing is independent of media and measures. "WoM can be triggered by a funny commercial, a media release or a mailing."
Motives and obstacles
Regardless of the understanding and use of WoM marketing, companies and agencies agree that the advantages of WoM lie in the dialog with the target group. "With WoM, we find out what consumers really think about us and our products, so that an active exchange takes place and very high-quality feedback can be obtained. Especially when launching a new product, this offers us an ideal opportunity to learn from consumer insights and eliminate any weaknesses," explains Janine Gauch from Ricola. The company has already launched another WoM campaign in Germany, in which it intends to have its apple mint and licorice products tested by around 7500 consumers.
However, this two-way communication also leads to caution among companies. Quite a few are afraid of the momentum of WoM. Of being overwhelmed by an avalanche of negative comments. WoM specialists counter this with the fact that reactions will come anyway and emphasize that a WoM campaign at least offers the opportunity to moderate criticism. However, good preparation is the be-all and end-all. A company must ask itself the following questions in advance: How are we positioned in the market? What are the weaknesses of our product? What negative reactions can we expect? How do we react to this? Once the campaign gets rolling, monitoring is also important. Factors that can make a WoM campaign costly under certain circumstances. It would therefore be inappropriate to regard WoM as a cheap alternative to other marketing measures.
One final detail: social media is also hyped for WoM. Although the impact of WoM is mainly postulated offline in the literature (according to Keller/Fay 2012, only 8 % take place online), Weber has identified a majority of web-based use. This is probably due not least to the fact that the success of a campaign on the web is easy to measure. A good argument for advertising customers.
Isabel Imper