Why Use Network Marketing
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The document discusses how word of mouth marketing is expected to see strong growth compared to other marketing segments. It provides 12 reasons why word of mouth deserves consideration, including that it taps into consumer participation culture, stimulates action, is more trusted than traditional media, costs less per impact, targets influencers, and is more measurable and linked to business growth. The document concludes that word of mouth will overtake traditional media influence in the future and marketers will need to leverage word of mouth strategies.
Why Use Network Marketing
- 1. Here Comes the Next Wave of Marketing & Media… Crisis requires radical shifts in thinking In this recession economy smart marketers are now rethinking traditionally held views...
- 2. The Fastest Growing Marketing/Media Segments Expected 5 year Compound Annual Growth Rate Word of Mouth ( Network Marketing ) 27% Internet/Mobile 14% Branded Entertainment 13% Custom Publishing 11% Out of Home 10% Source: Veronis Suhler Stevenson
- 3. 12 Reasons Why Word of Mouth ( Network Marketing ) Deserves Your Consideration In This Economy
- 4. Reason #2 – Word of Mouth Taps The Values of New, Customer Participation Culture Mass Media Word of Mouth 93% of people believe word of mouth is the most reliable way to find out information about products and services (up +26 pts. Vs. 25 years ago) Source: NOP World Reason #1 – Word of Mouth Gets Noticed Customers Now Want: Freedom Customization Scrutiny Integrity Collaboration Entertainment Speed Innovation Participation Values Grade 2/10 2/10 3/10 2/10 1/10 8/10 5/10 2/10 Participation Values Grade 9/10 8/10 9/10 9/10 10/10 8/10 8/10 9/10 Evaluation Score 25/80 70/80
- 5. Reason #3 – Word of Mouth Stimulates Action 90% - proportion of people who can skip ads, do skip ads and 69% - percentage of people who are interested in skipping ads completely Source: Yankelovich 70% - percentage of people affected by word of mouth conversations - 37% buy it/try it - 24% consider it - 9% avoid it Source: Keller Fay BUT Reason #4 – Word of Mouth is More Trusted - 61% of people claim to buy the same brands as their friends (+28 pts. Vs. 4 years ago) - 90% trust their spouse - 82% trust their friends Sources: Keller Fay/Yankelovich/Henley Centre Reason #5 – Word of Mouth is a Competitive Advantage
- 6. Reason #6 – Word of Mouth Has Longevity Over 30% of the broadcast content we see in mass media is advertising or promotion How much is consciously & attentively well-received and retained in memory? Low to Virtually nil Average people have 17 word of mouth conversations each day How much is interactive, spoken, internalized, retained and behavior altering? High Reason #7 – Word of Mouth Costs Less Per Impact National Ad campaign low impact splatter focus 82% of community members refer more people to a brand after joining Face to face or on the phone high intensity Bull’s eye focus Verses Reason #8 – Word of Mouth Targets Influence - 70% of Wikipedia’s content is produced by 1.7% of its audience Top ranked Influencer belief – “I love talking to others about things I’ve just discovered” Influencers are 2x more active, conversational and/or brand-involved than the mainstream consumer Sources: Agent Wildfire, Keller Fay
- 7. Reason #10 – Word of Mouth is Consumer Driven Entertainment Value Information Value Entertainment Value Informational Value Explicit value (rewards) Intrinsic value (feeling of belonging) Extrinsic value (ego/reputation) Experiential value (immersion) Social value (making connections) Talent value (expressing skills/creativity) Service value (adds to the product) Collaborative value (1+1=3) Mass Media Provides: WOM Provides: Reason #9 – Word of Mouth is More Measurable and Linked to Growth Word of mouth activities have much better measurement ability because of their digital nature and opportunity to mine relationship with customer/member - The #1 factor linked to business growth is word of mouth referral - Word of mouth measures the key business drivers of engagement and advocacy Sources: Agent Wildfire, Bain
- 8. Reason #12 – Word of Mouth is the Now & the Future 58% of marketers agree that word of mouth influence will overtake traditional media influence within a generation 73% of marketers believe marketers will become much more important in an organization by leveraging word of mouth strategies and tactics Source: Agent Wildfire Reason #11 – Word of Mouth Simply Provides More Advocacy Ambassadorship Buzz Communication Insight Innovation Operational Improvements Real world feedback Solutions Support User Generated Content
- 9. Don’t skate to where the puck is , skate to where it is going to be In hockey, football or life, you have to be ahead of the pack to receive the pass so you can score the goal. Don’t wait to run after the pass is begun. By then it is too late. Basic Slide Presentation Source: Agent Wildfire, Toronto, Canada