Word on
the Street
By Barbara Kiviat
Time Magazine
April 18, 2007
The next time someone you know raves about a dish
detergent or motor oil, consider this: you might be on
the receiving end of a clever marketing campaign. It’s
a brave new world for people whose job it is to sell
you things, what with consumers’ TiVo-enabled ability
to skip over ads they don’t want to see, and their
Internet-empowered freedom to find out all the stuff
left out of a cheery 30-sec. TV spot. That’s driving
marketers to all sorts of new places, including your
circle of friends--a trend that has produced some
surprising intelligence on how word-of-mouth
communication really works.
Procter & Gamble, a pioneer in the field, has been
taking control of word of mouth for six years through
its Tremor division, which has enlisted 225,000
teenagers to tell their friends about brands like
Herbal Essences and Old Spice. Last year, figuring the
strategy could be just as effective with adults, P&G
signed up 500,000 volunteers, all mothers, for
Vocalpoint, a program in which the moms evangelize
about pet food, paper towels and hair color. P&G gives
the women marketing materials and coupons, but they
are free to say whatever they like (or nothing at all)
about the products. BzzAgent, a firm that specializes
in word-of-mouth marketing, has its 260,000 volunteers
submit detailed profiles about their habits and
interests, which BzzAgent uses to match them to
word-of-mouth campaigns for products made by companies
such as Nestlé, Arby’s, Philips, Kraft and BP. The
so-called agents are provided with information about
the clients’ products and in return give detailed
feedback about the conversations they have.
This unscripted strategy might sound like a big
risk--there’s nothing stopping the volunteers from
saying they hate a product. But despite the
conventional wisdom that consumers are much more
likely to voice complaints than praise, recent
research finds the opposite. In one study, Andrea
Wojnicki, an assistant professor of marketing at the
University of Toronto, looked at self-styled experts
and found that they were likely to keep negative
experiences to themselves, lest their skill--at, say,
picking a restaurant--be called into question.
And why are these citizen marketers so willing to
shill for free? “It gives people social currency,”
says Walter Carl, an assistant professor of
communication studies at Northeastern University.
Inside access to products and the feeling that
companies care about what you and your friends think
are such strong motivating forces that other forms of
compensation pale in comparison. BzzAgent’s members
earn reward points, which they can cash in for prizes
like DVDs and books--yet 87% of them never do.
Word of mouth has been around for ages--"Try the
apple,” said Eve--and it continues to prove resilient.
Even in the era of MySpace, some 90% of word of mouth
still happens off-line, according to research by both
P&G and the consultancy Keller Fay Group. Breaking it
down, Keller Fay found that 18% of word-of-mouth
marketing took place on the phone, and 72% face to
face, despite the ubiquity of electronic
communication. Or perhaps because of it. Inundated by
marketing messages, says Tremor CEO Steve Knox,
“consumers have gone back to their most trusted
source--family and friends.”
Naturally, some people aren’t happy about marketers’
following them there. In 2005 the advocacy group
Commercial Alert asked the Federal Trade Commission to
investigate company-fed word of mouth and other buzz
tactics, which the group says take authentic
relationships and unduly commercialize them. Not all
firms ask word of mouthers to disclose their corporate
connection, but the Word of Mouth Marketing
Association requires its 400-odd members to do so as
part of its ethics code. There might also be a
business case for disclosure, according to
Northeastern’s Carl. Working with BzzAgent data, he
found that agents actually gain credibility by
mentioning their affiliation. Word of mouth is built
on trust, explains Gerald Zaltman, a sociologist and
professor emeritus at Harvard Business School. Fessing
up reinforces that.
But perhaps the biggest lesson companies can learn
from word of mouthers is that there’s an unmet social
need among consumers to feel that their opinions
matter. “They care what you have to say,” says Carol
Engels, a Vocalpoint mother in suburban Chicago.
“That’s what I like most.” Smart companies find that
when they listen, they also get a shot at steering the
conversation.