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.
1. Paradigm Shift of Marketing
WOM Marketing
-WOMlabo Credential-
June 2010
www.womlabo.com
2. About WOM labo project
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
Confidential Page1 1
3. Introduction to our WOM Marketing Activity
Our WOM marketing program is introduced in 3 countries in Asia.
日本 (JAPAN)
Publication in Japan
”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) 2003 2007
中国 (CHINA)
Publication in China
“口碑营销/市场营销新概念系列”
(Word-of-mouth marketing)
2006
韓国 (KOREA)
Publication in Korea
2004
2
Confidential Page2
5. Change in customer's media spending time
Breakdown of the time spent on media in one week
Source: Brand Ambassador メディア接触時間 Contact frequency in 1 week
Research by Kokokusha,
January, ‟09
PS、Wii等でゲームをす
N = nationwide 1,698 る
テレビでDVDを観る 1.1%
NintendoDS、PSP、
1.7%
携帯ゲームを利用する
携帯電話で 1.5%
モバイルサイトを見る
2.9%
地上波のテレビを
ライブで見る
(録画ではない)
The Internet インターネットを使う 29.3%
(その他)
33.9% 22.4%
インターネットで動画を 録画したテレビ番組を
見る 見る
3.0%
6.3%
インターネットでコミュニ BS/CS等の
ティ(ブログ/SNS/掲示 有料チャンネルを見る
板等)を見る 2.6%
8.5%
フリーペーパを見る
ラジオを聴く(室内)
1.3%
3.5%
折込チラシを見る
4.5% ラジオを聴く(車内)
雑誌を見る 新聞を見る
6.6% 2.1%
2.7%
Confidential Page4
6. Media Environment that surrounds consumers
Today, it‟s B2C2C = the Era of Multilateral Communication
Today, in addition to information transmitted through mass media, “live information”
transmitted by consumers, called CGM, have effects on one‟s purchase activities.
Brand Ambassador(BA) =
Information Advocates who are high in brand
from an entity loyalty among customers
magazine
Potential customers Potential customers
Potential customers
SNS
general general
consumers consumers
general
consumers
5
7. The Concept of our WOM marketing
『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.
Loyal customer =
Brand Ambassador (BA)
Potential customers Potential customers
Potential customers
Confidential Page6
8. Functions of our WOM Platform
Functions of WOM Platform
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.
Loyal customer =
Brand Ambassador (BA)
1: Gather BAs
2: Analyze WOM by BAs
Potential customers Potential customers
3: Spread WOM by BAs
Potential customers
Confidential Page7
9. Functions of WOM Platform
Brand Ambassador: Definition
At 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.
Y axis
① degree of influence
toward others
BA (Brand Ambassador)
Z axis No yes X axis
② loyalty/intention to use a brand
③ degree of suggestive-ness about a brand
Confidential Page8
10. Functions of WOM Platform
Y axis: Influencer Barometer
Q: More likely to tell others of useful knowledge/info.
Q: More likely to be asked for an advice
Q: Active in seeking information etc.
Brand Ambassador Q: Account with mixi/twitter/facebook
update frequency, # of my mixi/follower/RT/friends
Q: Blogs – write/comment/view
update + contact, frequency/PV
Q: iPhone ownership / since when
frequency + applications
Proof for Degree of Influence to Others
X axis: Usage Intention+U&A
Q: HP Purchase Frequency: 1+ times / week, etc.
Brand Loyalty + Intention Barometer
Z axis :
Suggestive-ness Barometer
Confidential Page9
11. WOM research
Wom research 2003
Wom research 2004
Wom research 2006
Wom research 2007 + Wom Research2007 English Version
Wom research 2010
Down load here
http://www.womlabo.com/case02.html
Confidential Page10
12. BRAND AWARENESS
BRAND AWARENESS
-Media by which customer knew brand that you bought-
wom wom 1 .See in the shop 23.6%
wom wom
2.Television 17.7%
3. Net search (Yahoo, Google, etc) 16.8%
4. Netcomuunity 16.3%
Kuchikomi research 2010 Limited User
Date executed: February, 2010
Research subject: 865 males/females over age 20 WOMlabo researched the effect of wom
Research region: all Japan New research report the following site
http://www.kokokusha.co.jp/service/kuchikomi.html
Confidential Page11
13. PURCHASING
purchasing decisions
wom wom 1. Shop 23.7%
wom wom
2. Internet (communities/blogs) 20.2%
3. TV 19.1%
4. Retail outlet promotions: 17.0%
Limited User
Kuchikomi research 2010
Confidential Page12
14. Which was the most Influenced
WOM,when you decided the brand?
wom wom
1. Face-to-Face 59%
2. Net community 51.8%
3. sns(kakaku.com/@cosme) 25.4%
Kuchikomi research 2010
Confidential Page13
15. Tuszumi Model TSUZUMI Model is a graphic explanation of ‘word of mouth'
BRAND AWARENESS
①Shop 23.6%
②TVCM 127.7%
③SNS/Blog 16.3%
Target Customer
PURCHASING
Potential customer
①Shop 23.7%
B to C ②SNS/blog 20.2%
①TV 19.1%
customer WOM had influence
Kuchi-Cominists on a purchase decision
YES 64%
C to C ●Experience of recommending commodities to
wom wom someone by WOM 45.7%
wom wom
Kuchikomi research 2010
Confidential Page14
18. Type of WOM by WOMMA
WOM Marketing methods defined by WOMMA(USA)
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)
Source: Types of Word of Mouth Marketing (WOMMA)
Confidential Page17
19. Two important WOM techniques
Organic WOM type
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.
Amplified WOM type
2.Viral Marketing leverage viral contents
Definition: 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.
Confidential Page18
20. Two important WOM techniques
1.Organic WOM type Evangelist Marketing
Thoroughly nurture fans in triggering WOM
2.Amplified WOM type Viral Marketing
Evoke a topic for a domino effect for WOM to spread
1.Organic WOM type 2.Amplified WOM type
Naturally triggering WOM WOM by sparking a conversation
*Leverage Kuchi-Cominists
1. Organic WOM type example
Reach (# of people
*KEPCO Happy-e supporters
*TEPCO Switch! Supporters
engaged)
*Hurley Davidson (HOG)
*Be tactful depending on the product
TIME elapse
Confidential Page19
21. Mapping the WOM Landscape
Offline
Offline Offline
Organic Amplified
KEPCO
Happy-e-
Supporter Amplified
Organic
WOM type WOM type
Online
Online Amplified
Organic
Viral
marketing
Online Reve21
Confidential Page20
22. Organic WOM type
Evangelist Marketing example
Ⅰ WOM marketing CASE
STUDY of ALL-DENKA
Kepco
Confidential Page21
24. 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.
Confidential Page23
25. Test research
All-Denka is highly visible 98% 98% Potential
AWARENESS customers
Prospects
2 objectives;
1. Consumers don’t recognize the degree of Customers KUCHIKOMI
NISUT
inconvenience in the current situation.
2. Consumers don’t understand how a life wom wom
can change with All-Denka.
Degree of satisfaction with All-
94% wom wom
Denka customers is very high SATISFACTION
94%
KUCHIKOMI
POSSIBILITY WITH KUCHIKOMI MARKETING
Confidential Page24
26. Loyalty Analysis program
EMOTIONAL
LOYALTY
y
Emotional Favorable
Loyalty Loyalty
Yet-to-have Pretended
Loyalty Loyalty
x
z LOYALTY BEHAVIOUR
REFERRAL RATE
Confidential Page25
28. SELECTING Brand AMBASSADOR
= Happy-e-Supporter
WAKAYAMA-Prefecture (KEN)
Expand the number of happy-e-Supporters
2002 200 ppl.
2006 503 ppl.
2009 700 ppl.
Confidential Page27
29. kuchikomi STATISTICS
Happy-e-SUPPORTER
1 ALL-DENKA (TOTAL ELECTRICITY)
INFORMATION SEMINAR
2 INFORMATION EXCHANGE
3 INFORMERCIAL
4 MATSUSHITA FACTORY VISIT
5 IH COOKING SCHOOL
6 The Salon
Confidential Page28
31. 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)
Confidential Page30
35. Effects of WOM Activities: Number of Information Offers
# of information # of contract # of supporters
情報件数 成約件数 サポーター数
700
575 568
600
469 477
500 437 509
387
400 356
324
252 274
300
200
134
96 107
100 73 74 74
37
0
H15 H16 H17 H18 H19 H20
Confidential Page34
36. Effects of WOM Activities: Number of Information Offers
20% Conversion Rate
Number of our customers whom we got
=
Number of supporter information cards
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
Confidential Page35
37. Amplified WOM type
Viral Marketing example
Ⅱ.Amplified WOM CASE
Structure to evoke WOM and to spread
WOM mainly on the WEB
Viral Marketing
Confidential Page36
38. Amplified WOM Campaign Planning
Step1: Planning Step2: StoryTelling Step3: Seeding & Spreading
Campaign planning Expression X channel strategy Execution and spread WOM
Consolidated [Trick for viral effects: Story
Campaign development]
Planning (creative strategy)
Campaign site
Viral movie, etc.
Blog parts, gadgets, etc.
X
[Trick for viral effects: “Telling”
architecture]
(media & seeding strategy)
Optimization on movie-sharing site
Blogger seeding
Inserts on other CGM media
Confidential Page37
40. 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
Confidential Page39
41. Promotion: Overall Picture
Reve21 official site TOP
Implement contents which
Movie ads
focuses on the point target
users want to know the most.
(ie. Whether or not it really
works for one‟s hair growth.)
lead
link
Promotion site TOP
Males 20s-40s クチコミ発生
Kuchi-Coma
クチコミ発生
Listing
サイトへの接触 Secondary Target
lead
Primary Target クチコミ発生 &
Potential customers
Display ads クチコミ発生
クチコミ発生 クチコミ発生
lead *Documentary-like Friends, people they know
Exterior
TOP page design
contents
for the look & feel of
reality.
Leads to a trial Aim for a spread on CGM by creating movies for blogs and external distribution.
Seeding strategy on bloggers
lead
Confidential Page40
42. 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
Confidential Page41
43. Accomplishments
[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
Confidential Page42
44. KOKOKUSHA Corporate Profile
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