What is Word of Mouth (WOM)?

WOM has become the term for information (good/bad) about you, your product/service, company, or brand that is passed from a person to a person (in various means) with the result of an action being taken.

It is the opposite of mass advertising. It is generally understood that is is a person not associated (employed) with the source of the WOM. (Else they would be considered a spokesperson, not a WOMer). However, a spokesperson can provide tidbits of information to help make it easier to spread the word.

In our interview John mentions Malcolm Gladwell’s 2000 book The Tipping Point. Malcolm explains how ideas spread through: Mavens, Salesmen, and Connectors. John sees this as the birth of the idea of Word of Mouth as a tool.

I don’t think people realized the business application for WOM until around 2003 as a result of the December 2003 HBR article “The One Number You Need To Grow” by Frederick Reichheld. He says the best (and only) question you need to ask customers (to gauge satisfaction) is:

“How likely is it that you would recommend
our company to a friend or colleague?”

Companies began to focus energy around the idea… “What do we need to do (tools, process, mechanisms) to help people recommend us?”

As the article points out… “When customers recommend you, they’re putting their reputation on the line. And they’ll take that risk only if they’re intensely loyal.”

Since then, we’ve been trying to find ways to reach these potential promoters directly to tell THEM about our services, product, and company.

The History of WOM

We humans are good at WOM…

In grade/high school it is called gossip:

• “OMG, did you hear homecoming king, Simon is dating cheerleader Paula?”

As adults, WOMers are called busy bodies.

• “OMG, did you hear Simon is cheating on his wife Paula with Ellen, the Blizzard girl at Dairy Queen?”

Water-cooler talk the morning after a Seinfeld episode or American Idol show is WOM.

• “OMG did you see the way Simon dissed Paula’s vote of Sanjaya?”

It’s the tag we’ve stuck on people talking to people with a message that isn’t controlled by the source.

Trying to foster WOM as a marketing strategy is our way of trying to create a script for that conversation. To provide bullet points, helping the informant with their facts, (and our propaganda).

We’ve always relied on WOM for things like babysitters, finding a good accountant, or a restaurant recommendation.

Generating WOM is the way that babysitter, accountant, or restauranteur does things in hopes of word spreading faster, more efficiently, or with “the right” information.

Is WOM taking back seat to social media?

Creating WOM isn’t as simple as ringing your agency and asking for a press release or an ad in the Sunday newspaper. Furthermore, it isn’t something assigned to a single person. WOM happens when the whole organization is working together in a way that provides a remarkable experience for the customer.

Social media tools make it easier for people to connect on a one-to-one basis, for a ‘conversation’ to happen, and for them to share that conversation with others.

Social media tools are quick and easy for us to access – I can set-up Facebook, Twitter, or a blog in minutes. Furthermore, they’re easy to track. See how many friends, followers, re-tweets, and comments I receive. My numbers are up from last month to this month – I must be doing better.

For all these reasons, social media is appearing to be the “thing.” It is important to understand that creating WOM is a strategy, and social media tools are a few of the many tools to help with that strategy. People talk about social media tools as the magic bullet to successful marketing. However – like any tactic – you must first determine if they are the right tactic for you to connect with your customers.

Source: Sand Blog