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Paradigm Shift of MarketingWOM Marketing
-WOMlabo Credential-
www.womlabo.com
June 2010
Page1Confidential
About WOM labo project
1
What we do -WOMlabo-
1. Develop a WOM promotion platform
2. Structuralize a communication plan with WOM platform
3. Analyze WOM insights
4. Trainings, seminars, and introductory sessions
5. Whitepapers about WOM
6. Effectiveness measurement on WOM
http://www.womlabo.com
Page2Confidential
2
Introduction to our WOM Marketing Activity
Publication in Japan
Publication in China
Publication in Korea
日本 (JAPAN)
中国 (CHINA)
韓国 (KOREA)
Our WOM marketing program is introduced in 3 countries in Asia.
2003
2006
2004
2007
”図解でわかるくちコミマーケティング”(Graphic explanation of word-of-mouth marketing)
“『くちコミニスト』を活用せよ!”(Strategic Use of word-of-mouth with KUCHI-COMINISTs)
“口碑营销/市场营销新概念系列”(Word-of-mouth marketing)
Page3Confidential
3
ビジネスリスクマネージメント 2007年11月
サンケイリビング別冊 クチコミックス 2006年6月
YOMIURI ADリポート 2005年4月
Nikkei Marketing-Watcher 2010年6月
Introduction to our WOM Marketing Activity -Article-
Page4Confidential
メディア接触時間
フリーペーパを見る1.3%
折込チラシを見る4.5%
インターネットでコミュニティ(ブログ/SNS/掲示
板等)を見る8.5%
雑誌を見る2.7%
ラジオを聴く(室内)3.5%
BS/CS等の有料チャンネルを見る
2.6%
ラジオを聴く(車内)2.1%
新聞を見る6.6%
録画したテレビ番組を見る6.3%
テレビでDVDを観る1.7%
NintendoDS、PSP、携帯ゲームを利用する
1.5%
PS、Wii等でゲームをする1.1%
携帯電話でモバイルサイトを見る
2.9%
インターネットを使う(その他)22.4%
インターネットで動画を見る3.0%
地上波のテレビをライブで見る(録画ではない)
29.3%
Change in customer's media spending time
Source: Brand Ambassador
Research by Kokokusha,
January, ‟09
N = nationwide 1,698
Contact frequency in 1 week
The Internet
33.9%
Breakdown of the time spent on media in one week
5
Media Environment that surrounds consumers
Today, it‟s B2C2C = the Era of Multilateral Communication
Brand Ambassador(BA) =
Advocates who are high in brand
loyalty among customers
general
consumers
SNSgeneral
consumers
general
consumers
Potential customers
Potential customers
Potential customers
Information
from an entity
Today, in addition to information transmitted through mass media, “live information”
transmitted by consumers, called CGM, have effects on one‟s purchase activities.
magazine
Page6Confidential
『Leverage the WOM of loyal customers in marketing』
What highly influences a purchase decision is WOM suggestions from other
loyal customers. At WOM labo, we call this loyal customer Brand Ambassador
(BA). By making WOM by BAs accessible to potential targets through the WEB,
it enables to speed-up a purchasing decision.
The Concept of our WOM marketing
Potential customers
Loyal customer =
Brand Ambassador (BA)
Potential customers Potential customers
Page7Confidential
Functions of WOM Platform
Loyal customer =
Brand Ambassador (BA)
1: Gather BAs
2: Analyze WOM by BAs
3: Spread WOM by BAs
Potential customers
Potential customers Potential customers
1. Gather BAs’ WOM of high loyal customers from among existing
brand users.
2. Analyze the cause for BAs to suggest by WOM and leverage them in marketing.
3. Spread by making BAs’ WOM accessible to potential consumers.
Functions of our WOM Platform
Page8Confidential
Functions of WOM Platform
BA (Brand Ambassador)
Y axis
X axis② loyalty/intention to use a brand
Z axis yesNo
① degree of influence
toward others
③ degree of suggestive-ness about a brand
Brand Ambassador: DefinitionAt WOMlabo, Brand Ambassadors are existing customers of a brand who are highly loyal to the
product/service, and who are also influencers to people they know. (In case of a new product, people
who are interested to the brand and have high interest in making a purchase.) Not only BAs have
communicative powers, but they also have experiences in using the brand, and are high in loyalty
toward. BAs aresegmented by utilizing a program such as below.
■Characteristics Brand Ambassadors are:
① Highly influential.
② Highly loyal. (In case of a new product, have high interests in making a purchase.)
③ Highly suggestive (WOM-advocative) about the brand.
Page9Confidential
X axis: Usage Intention+U&AQ: HP Purchase Frequency: 1+ times / week, etc.
Brand Loyalty + Intention Barometer
Y axis: Influencer BarometerQ: More likely to tell others of useful knowledge/info.
Q: More likely to be asked for an advice
Q: Active in seeking information etc.
Z axis :
Suggestive-ness Barometer
Q: Account with mixi/twitter/facebookupdate frequency, # of my mixi/follower/RT/friends
Q: Blogs – write/comment/viewupdate + contact, frequency/PV
Q: iPhone ownership / since whenfrequency + applications
Proof for Degree of Influence to Others
Brand Ambassador
Functions of WOM Platform
Page10Confidential
WOM research
Down load here
http://www.womlabo.com/case02.html
Wom research 2003
Wom research 2004
Wom research 2006
Wom research 2007 + Wom Research2007 English Version
Wom research 2010
Page11Confidential
BRAND AWARENESS-Media by which customer knew brand that you bought-
Kuchikomi research 2010 Limited User
wom
wom
wom
wom
BRAND AWARENESS
Date executed: February, 2010
Research subject: 865 males/females over age 20
Research region: all Japan
1 .See in the shop 23.6%
2.Television 17.7%
3. Net search (Yahoo, Google, etc) 16.8%
4. Netcomuunity 16.3%
WOMlabo researched the effect of wom
New research report the following site
http://www.kokokusha.co.jp/service/kuchikomi.html
Page12Confidential
PURCHASING
wom
wom
wom
wom
purchasing decisions
Limited User
1. Shop 23.7%
2. Internet (communities/blogs) 20.2%
3. TV 19.1%
4. Retail outlet promotions: 17.0%
Kuchikomi research 2010
Page13Confidential
womwom
1. Face-to-Face 59%
2. Net community 51.8%
3. sns(kakaku.com/@cosme) 25.4%
Kuchikomi research 2010
Which was the most Influenced
WOM,when you decided the brand?
Page14Confidential
Tuszumi Model TSUZUMI Model is a graphic explanation of ‘word of mouth'
Potential customer
customer
Target Customer
Kuchi-Cominists
●Experience of recommending commodities to
someone by WOM 45.7%
WOM had influence
on a purchase decision
YES 64%
BRAND AWARENESS①Shop 23.6%
②TVCM 127.7%③SNS/Blog 16.3%
PURCHASING
①Shop 23.7%
②SNS/blog 20.2%
①TV 19.1%
wom
wom
wom
wom
B to C
C to C
Kuchikomi research 2010
Page15Confidential
About Loyalty Program
Potential
customerPotential
customer
Potential
customer
Consumers Consumers
customer
Brand Ambassador
(BA)
Target
Events
ATL
BTL
Feel affinity, transmit WOM
Corporate WEB, campaign WEB,
OOH
Branding,
Media planning
WOMWOM
BRAND
AWARENESS
interesting
purchase
Layalty
wom
comparing
WOM
extract
BRANB AMBASSADOR
↓
Develop
Talk-able programs
Extract Brand Ambassadors, and offer a platform to spread WOM.ブランドアンバサダーを選出し、ブランドアンバサダーからくちコミが広がるプラットホームを提供します。
Page16Confidential
2. Type of WOM
Page17Confidential
1. バズマーケティング (Buzz Marketing)
2. バイラルマーケティング (Viral Marketing)
3. コミュニティマーケティング (Community Marketing)
4. 草の根マーケティング (Grassroots Marketing)
5. エバンジェリストマーケティング (Evangelist Marketing)
6. プロダクトシーディング (Product Seeding)
7. インフルエンサーマーケティング (Influencer Marketing)
8. コーズマーケティング (Cause Marketing)
9. カンバセーションクリエイション (Conversation Creation)
10. ブランドブログ (Brand Blogging)
WOM Marketing methods defined by WOMMA(USA)
Source: Types of Word of Mouth Marketing (WOMMA)
Type of WOM by WOMMA
Page18Confidential
2.Viral Marketing leverage viral contentsDefinition: To leverage public entertainments and news for sparking a conversation.
Advantage: Heightens marketing impact by effectively mixing with other media.
Disadvantage: Cases with less transmission than expected, depending on the content /
scheme.
1.Evangelist Marketing leverage Kuchi-Cominists
Definition: To nurture evangelists and supporters (advocates) who will take action
towards leadership.
Advantage: Firmly facilitates positive transmission by provoking WOM in a natural way.
Disadvantage: Can take longer process to nurture consumers.
Organic WOM type
Amplified WOM type
Two important WOM techniques
Page19Confidential
Reach (#
of p
eople
engaged)
TIME elapse
2.Amplified WOM typeWOM by sparking a conversation
1.Organic WOM typeNaturally triggering WOM
*Leverage Kuchi-Cominists
*Be tactful depending on the product
1.Organic WOM type Evangelist MarketingThoroughly nurture fans in triggering WOM
2.Amplified WOM type Viral MarketingEvoke a topic for a domino effect for WOM to spread
*KEPCO Happy-e supporters
*TEPCO Switch! Supporters
*Hurley Davidson (HOG)
Two important WOM techniques
1. Organic WOM type example
Page20Confidential
Offline
Online
Organic
WOM type
Offline
Organic
KEPCO
Happy-e-
Supporter
Online
Organic
Offline
Amplified
Online
Amplified
Viral
marketing
Reve21
AmplifiedWOM type
Mapping the WOM Landscape
Page21Confidential
Ⅰ WOM marketing CASE
STUDY of ALL-DENKA
Organic WOM typeEvangelist Marketing example
Kepco
Page22Confidential
Page23Confidential
Happy-e-Supporter
WOM Marketing Objective
1. Facilitate a deeper comprehension about All-Denka to existing customers in
developing a platform for them to recommend to potential customers.Those with higher loyalty have more chances to actively recommend to others
2. Extract dissatisfactions and questions about All-Denka from existing
customers and deliver correct information to them.
3. Develop a channel where KEPCO and local consumers can directly
communicate by having a conversation.Today, power companies have less chances of directly facing consumers.
All-Denka especially requires such an opportunity to extract voices from local consumers, and
leveraging those into marketing.
Page24Confidential
Test research
All-Denka is highly visible 98%
2 objectives;
1. Consumers don’t recognize the degree of
inconvenience in the current situation.
2. Consumers don’t understand how a life
can change with All-Denka.
KUCHIKOMI
POSSIBILITY WITH KUCHIKOMI MARKETING
wom
wom
wom
wom
Potential
customers
Prospects
Customers KUCHIKOMI
NISUT
98% AWARENESS
94%SATISFACTION
Degree of satisfaction with All-
Denka customers is very high
94%
Page25Confidential
y
xLOYALTY BEHAVIOUR
zREFERRAL RATE
EMOTIONAL
LOYALTY
Yet-to-have
Loyalty
Pretended
Loyalty
Emotional
Loyalty
Favorable
Loyalty
Loyalty Analysis program
Page26Confidential
LOYALTY ACTION
EMOTIONAL
LOYALTY
-1
0
1
2
3
4
5
6
7
8
9
10
11
-1 0 1 2 3 4 5 6 7 8 9 10 11
未ロイヤル層
偽ロイヤル層
Emotional
Loyalty
Favorable
Loyalty
SELECTING
BRAND AMBASSADOR
Page27Confidential
2002 200 ppl.
2006 503 ppl.
2009 700 ppl.
WAKAYAMA-Prefecture (KEN)
= Happy-e-Supporter
Expand the number of happy-e-Supporters
SELECTING Brand AMBASSADOR
Page28Confidential
1 ALL-DENKA (TOTAL ELECTRICITY)
INFORMATION SEMINAR
2 INFORMATION EXCHANGE
3 INFORMERCIAL
4 MATSUSHITA FACTORY VISIT
5 IH COOKING SCHOOL
6 The Salon
kuchikomi STATISTICS
Happy-e-SUPPORTER
Page29Confidential
1.NETWORKING EVENTS
BA seminar
BA party
Page30Confidential
2. Infomercial
TV WAKAYAMA
TOTAL ELECTRICITY SERIES
BRAND Ambassador appears in TV program
TV Wakayama
5-minute “All-Denka Home Visitation”
1 show / week X 10 times series
(120 seconds/show)
Page31Confidential
3.IH COOKING SCHOOL
4.MATSUSHITA
FACTORY VISIT
Page32Confidential
5. The Salon - See, Touch and Try for Brand AMBASSADOR
Page33Confidential
Happy-e-Supporter: Transition in Loyalty
-2
0
2
4
6
8
10
12
-2 0 2 4 6 8 10 12
-1
0
1
2
3
4
5
6
7
8
9
10
11
-1 0 1 2 3 4 5 6 7 8 9 10 11
Start: December, „03
Start: December, ‟03
# of supporters: 203
ROI analysis: March, ‟05
# of supporters: 466
-1
0
1
2
3
4
5
6
7
8
9
10
11
-1 0 1 2 3 4 5 6 7 8 9 10 11
Y a
xis
: Em
otio
nal L
oyalty
X axis: Loyalty Action
Applicants in July, ‟07Additional 87 people
323 people in Wakayama Pref.
Favorable
Loyalty
14.7%(93)
Pretended
Loyalty
0.5%(3)
Emotional Fans
76.5%(484
Yet-to-have
Loyalty
8.4%(53)
●Average
Emotional 8.21pt
Behavioral 2.45pt
Loyalty disposition of All-Denka
customers as of Aug., „09
Page34Confidential
Effects of WOM Activities: Number of Information Offers
134
274
356324
387
3773 74 74 96 107
509437
252
469 477
575 568
0
100
200
300
400
500
600
700
H15 H16 H17 H18 H19 H20
情報件数 成約件数 サポーター数
# of information # of contract # of supporters
Page35Confidential
Effects of WOM Activities: Number of Information Offers
Conversion Rate for All-Denka
2004(H16) 27.6%
2005(H17) 26.6%
2006(H18) 21.1%
2008(H20) 21.0%
2009 (H21) 21.0%
*KPI (Key Performance Indicator)
Key barometer for business management
20% Conversion Rate
Number of our customers whom we got
Number of supporter information cards=
Page36Confidential
Ⅱ.Amplified WOM CASE
Structure to evoke WOM and to spread
WOM mainly on the WEB
Viral Marketing
Amplified WOM typeViral Marketing example
Page37Confidential
Consolidated
Campaign
Planning
[Trick for viral effects: Story
development](creative strategy)
Campaign site
Viral movie, etc.
Blog parts, gadgets, etc.
[Trick for viral effects: “Telling”
architecture](media & seeding strategy)
Optimization on movie-sharing site
Blogger seeding
Inserts on other CGM media
X
Step3: Seeding & SpreadingExecution and spread WOM
Step2: StoryTellingExpression X channel strategy
Step1: PlanningCampaign planning
Amplified WOM Campaign Planning
Reve21 Challenge for hair
growth!
Page39Confidential
Message to the target
-Reve21 challenges to reveal the truth of hair growth-
We Can Change Your Hair Life!あなたの髪の運命は、変えられる。
Reve21 now challenges the reality!
http:www.365real.jp
Page40Confidential
Promotion site TOP
Reve21 official site TOP
link
lead
Primary Target
クチコミ発生
クチコミ発生
クチコミ発生
クチコミ発生
クチコミ発生
クチコミ発生
サイトへの接触 Secondary Target
&
Potential customers
Males 20s-40s
Implement contents which
focuses on the point target
users want to know the most.
(ie. Whether or not it really
works for one‟s hair growth.)
Display ads
Listing
Friends, people they know
Seeding strategy on bloggers
Movie ads
lead
lead
lead
Aim for a spread on CGM by creating movies for blogs and external distribution.
*Documentary-like
TOP page design
for the look & feel of
reality.
Exterior
contents
Leads to a trial
Kuchi-Coma
Promotion: Overall Picture
Page41Confidential
Promotion: Movie on Hair Growth Progress
1-year blogs on the progress of hair growth
Movies on hair grown
progress
Transition by 365-day
documentary movie
Page42Confidential
[Movie Viewership]Goal Result Performance Rate
693,600 times 1,110,900 times 160%
[Site Leads]Goal Result Performance Rate
12,440 clicks 102,130 clicks 821%
[Conversion]
5 times more than average advertising on the WEB
Accomplishments
Kokokusha Co., Ltd.
President: Hitoshi Yuzawa (Representative Director)
Registered Address: 1-2-14 Yuraku-cho, Chiyoda-ku Tokyo
Founded: May 1, 1888
Incorporated: August 29, 1947
Employees: 253
Capital: ¥ 84 million
Banks: Mizuho Bank, Sumitomo Mitsui Banking Corporation,Bank of Tokyo-Mitsubishi UFJ
Business Outline :
Advertising for newspapers, magazines, TV, radio, the Internet, transportations and the outdoors;
sales promotion; PR; events; research; planning; production; and all other marketing services
Company Addresses
●Tokyo Headquarters: 6-8-7 Ginza, Chuo-ku, Tokyo 104-8111 +81-333750090
●Nagoya Branch: 3-1-1 Sakae, Naka-ku, Nagoya, Aichi 460-0008 +81-522611051
●Osaka Branch: 1-5-17 Dojima, Kita-ku, Osaka 530-0003 +81-663445371
●Sapporo Branch: 6-2 Kitagojo-Nishi, Chuo-ku, Sapporo, Hokkaido 060-0005 +81-112714571
●Hiroshima Branch: 3-2-31 Ote-machi, Naka-ku, Hiroshima 730-0051 +81-822440755
●Fukuoka Branch: 1-6-8 Tenjin, Chuo-ku, Fukuoka 810-0001 +81-927311511
●West Tokyo Sales Center: 2-15-12 Sakai, Musashino, Tokyo 180-0022 +81-422500565
●Sendai Office: 1-3-9 Hon-machi, Aoba-ku, Sendai, Miyagi 980-0017 +81-222256851
●Education Solution Center: 6-8-7 Ginza, Chuo-ku, Tokyo 104-8111 +81-335750087
KOKOKUSHA Corporate Profile
Page44Confidential
http://www.womlabo.com
Thank you
WOMlabo
Representative
Masayuki Nakajima(中島正之)
+81-(0)3-3575-0062
mnaka@kokokusha.co.jp