Demystifying Word of Mouth (Part 1) - Why Customers Talk
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The document discusses the three-step process of word of mouth referrals: talking about, listening to, and acting on referrals, as illustrated by marketing expert Ernest Dichter. Customers share their personal experiences with products to express joy and validate their ownership, often motivated by self-confirmation, the desire to be nice, and advertising influences. Notably, word of mouth can significantly enhance marketing effectiveness and has been successfully utilized by brands like Tupperware and Old Spice.
Demystifying Word of Mouth (Part 1) - Why Customers Talk
- 1. Demystifying W o rd o f Mo ut h Ernes t Di c h t er With Marketing Legend PART ONE Why Customers Talk
- 2. W o rd O f Mo ut h Re fer ral s are a Rec u r r i ng 3 St ep Process
- 3. These st eps are : Talking about Listening to
- 4. Ac t i ng o n t h e Re fer ral AN D
- 5. In this 3 part series, find out why each step happens and how to use this knowledge to acquire more customers through word of mouth referrals... With the help of marketing legend, Ernest Dichter
- 6. W h y c us tomers t alk
- 7. Per so nal Experie nc e
- 8. Personal Experience with a product spurs customers to talk about them. Ernest Dichter writes “… it is talk about the product which confirms for the speaker his ownership and joy in the product, or his discovery of it.”
- 9. 49% Of participants in a study by the New York Times said that they shared to inform others of products they care about and to potentially change opinions or encourage action. I’M ALL ABOUT THIS BASS SOURCE: http://www.mediabistro.com/alltwitter/ social-sharing-psychology_b53786
- 10. CrossFit ballooned from 13 gyms to 7,000, -without traditional advertising-in just 9 years And that’s how it happened SOURCE: http://www.channelsignal.com/fresh-signal s/by-the-numbers-the-growth-of-crossfit
- 11. Se l f Co n f ir mat i o n
- 12. There are 8 types of self-confirmation sought through talking about products and services, notably: Ernest Dichter notes that customers share to feel good about themselves.
- 13. Showing Connoisseurship Having Inside Information Spreading the “Gospel” by Converting the Listener to Use the Product
- 14. Independent musicians are dominating the music industry controlling 34.5% of the business, more than any major label. le Connoisseurship. SOURCE: http://nypost.com/2014/01/02/indie-artist s-are-new-no-1-in-music-industry/
- 15. Twitter users share to feel more involved with the world. Twitter users share to define their identity 69% 68% OF OF
- 16. ei ng Nic e B
- 17. So m e re fer ral s are made b ec au se s h ar i n g some t hi ng h e l p fu l feel s li ke a n ac t o f nic e nes s
- 18. “Here the prevailing attitude is the need and intent to help, to share with the other person enthusiasm in, and benefits of, things enjoyed. Products serve mainly as instruments which help to express sentiments of neighborliness, care, friendship, and love.” E r n e s t Dic ht e r e xplai ns:
- 19. Tupperware has been relying on neighbourliness and niceness as it’s sales weapon since 1948. 66 years later, they turn an annual revenue of 2.3 billion dollars. SOURCE: http://en.wikipedia.org/wiki/Tupperware
- 20. 78% of twitter users share content to nourish relationships SOURCE: http://www.mediabistro.com/alltwitter/ social-sharing-psychology_b53786
- 21. I n f l ue n c e d by Ad ver t i si ng
- 22. Advertising can spark word of mouth by being entertaining or controversial.
- 23. “Since it is difficult for consumers to avoid exposure to advertising, many people have turned to accepting it for its independent attraction and entertainment value. Thus entertainment value and originality of ads have become topics of talk.” Ernest Dichter found:
- 24. Old Spice’s viral “The Man Your Man Could Smell Like” campaign generated a 2700% increase in Twitter followers, a 60% increase in Facebook Fans, a 150% increase in Youtube followers and a 107% increase in sales. #Winning SOURCE: http://www.jeffbullas.com/2011/08/30/11-social-media-marketing- lessons-from-the-old-spice-campaign/
- 25. Audiences chose to watch ads 4.6 billion times in 2012 SOURCE: http://ten-stats- adage.com/article/digitalnext/change-video-2013/238915/
- 26. In Summary Customers talk about a product because: 1. To share personal experience 2. For self confirmation 3. To be nice 4. They’re influenced by advertising
- 27. Coming soon: Demystifying Word of Mouth PART 2: Why People Listen to Referrals
- 28. Word of mouth has been shown to improve marketing effectiveness by up to 54%! Visit for more tips and strategies on using word of mouth to acquire more customers! SOURCE: http://blog.getambassador.com/word-of-mou th-marketing-statistics/ Blog.ReferralCandy.Com