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  Gaining Influence Through Word of Mouth   Gaining Influence Through Word of Mouth  Randall Frost  
         
 
Gaining Influence Through Word of Mouth In The Influentials (The Free Press, 2003), RoperASW pollsters Ed Keller and Jon Berry argue that consumers today place more weight on the word-of-mouth insights of their more influential neighbors than on what they hear on TV or read in the newspaper. Just who are these opinion leaders? Is it possible to target them in a marketing campaign?

Keller and Berry’s research suggests that, in the US, opinion leaders constitute roughly one in ten Americans, and that as a group they tend to serve as a leading indicator of popular trends, from public issues to new product adoption to social attitudes. Although these “influentials” come from a diverse range of social and economic backgrounds, the authors believe that reaching them is quite feasible, especially from the standpoint of getting information to the public at large. In an interview, Berry says, “If you know who these individuals are, what characteristics they have, what interests them or what their mindset is, you can begin to break down the obstacles of being able to communicate with them.”

Key to reaching the larger public through local opinion leaders is knowing how to run a successful word-of-mouth marketing campaign, and knowing how such a campaign differs from traditional top-down marketing. Word-of-mouth opinions about products, according to the authors, do not spread from a company to the media and high visibility personalities, and from there to the public. Nor are they routed through a company’s distributors to dealers, who in turn communicate the information to their customers. “Social networks cannot be mapped onto organization charts,” says Berry.

Nevertheless, there has been considerable opposition to the idea that word-of-mouth strategies can be effectively integrated into traditional marketing campaigns; first because the concept of word-of-mouth communication is somewhat elusive, and secondly because it contradicts the idea that marketers can spread information directly to the public. And there is also a sense that it would be impossible to identify local opinion leaders — their age, income, favorite TV shows — because they constitute such a diverse group. But Berry disagrees, arguing that most opinion leaders tend to stand out as enlightened generalists, although they may have a specific area of expertise. “They get in on a lot of conversations so they are likely to know what restaurant to go to, or to have an opinion about a doctor, or a procedure or something like that,” he says.

 
Professor Thomas Valente of the University of Southern California, an expert on the use of social networks to affect behavior change, points to two problems in identifying and targeting local opinion leaders for marketing purposes. First, he says, opinion leadership tends to be quite specific, and someone who is a leader for one person might not be a leader for another. Second, some people are harder to influence than others; while a few will adopt a new idea quickly, others will wait until nearly everyone else has signed up.

But Valente still believes that word-of-mouth marketing can work under the right conditions. He believes, for example, that significant market penetration must be achieved before word-of-mouth marketing can become effective. “Once adopters outnumber non-adopters, word-of-mouth provides a positive influence. So the trick really is to get to that point,” he says. “The key is to generate interpersonal communication — making it ‘sticky,’ making it emotive, or just making it different as many advertisers try to do.”

Given deeply entrenched consumer resistance to traditional marketing, there has recently been increased interest in the possibilities of word-of-mouth approaches. Word-of-mouth recommendations have been found to be especially effective, for example, in influencing the decisions consumers make about vacation destinations, restaurants, movies, cars, computer software, magazines, TV shows, retail stores, websites and investments.

Keller and Berry find that brands do not define the lifestyles of opinion leaders, nor do these individuals purchase brands to create self-image. But, says Berry, “brand names still count for something. The New York Times, The Wall Street Journal, CNN, CBS and NBC are brand names that people do put more credibility in than a bulletin board on the Internet or a viral email.” Most opinion leaders believe that brand value is worth paying extra for, but only if a brand really is better. And among influentials, brands are valued as conveniences that save time for more important things.

In order for a brand to become successful, Keller and Berry suggest, it must be associated with a meaningful product; for example, something that improves the quality of life, that connects to a passion or that contributes to causes or concerns that the opinion leaders care about. Driven by a consumer-first mindset and an appreciation of low prices; innovative, easy-to-use technology; and quality at a reasonable price, the authors’ opinion leaders have given thumbs up to Wal-Mart, Southwest Airlines, Microsoft, Home Depot, Nokia, Charles Schwab, Dell Computer, Starbucks and FedEx.

Although a number of successful marketing campaigns have used word-of-mouth strategies, few have used word-of-mouth techniques alone. But start-up company LinkedIn of California, is currently attempting to buck the trend of dot-com downsizing by just using word-of-mouth. Starting with an idea once proposed by Harvard psychologist Stanley Milgram that every American is linked to every other by no more than six degrees of separation, the company attempts to bring professionals into connection with well-connected peers with whom they are linked by no more than four degrees of separation (for example, an associate of an associate of an associate). By extending the subscriber’s personal network from several hundred to thousands of individuals, the company seeks to give them an edge in meeting their business goals.

 
Ravi Kalakota, CEO of e-Business Strategies, believes this type of networking has tremendous possibilities. “Suppose you’re a salesman and you want to find out how you could approach someone. Instead of doing a cold call, if that other person is a friend of a friend of a friend, [this kind of] site allows you to do this. You go to some one you know and have them go to the next contact,” he says.

Says LinkedIn co-founder Konstantin Guericke, “We have well over 1000 people per day joining. We’re doubling every six weeks, and now have close to 80,000 users.” The service is currently free, but the company’s business plan calls for eventually charging for successful referrals. Venture capitalists have apparently taken note; the company recently received a fresh infusion of cash at a time that most Silicon Valley start-ups are barely surviving.

Emanuel Rosen, author of The Anatomy of Buzz (Doubleday, 2000), views word-of-mouth marketing as an important addition to the marketers’ toolbox. He feels that people have found more ways to talk to each other over the past decade, including the Internet and cell phones, and that websites and Internet newsgroups have empowered opinion leaders, allowing them to generate tens of millions of personal recommendations each year.

“It is happening everyday,” he notes. “People use marketing methods that get people to talk to each other about a product... As people spend more time talking to each other, they will also talk about products... Stimulating this talk has proven very successful for some companies.” One of the best things about word-of-mouth campaigns, Rosen adds, is that they typically involve low levels of financial risk.

Jon Berry points out that not all word-of-mouth marketing takes place on the Internet. “There are lots of ways into the conversation,” he says. “If you are in the pharmaceutical industry, the connection might be with the pharmacist or with a nurse. It’s important to engage those types of nodes.”

He adds, “What events are arguing for is a highly integrated marketing approach. A lot of ad agencies that I come into contact with are still fairly fragmented. They have an internet marketing group, or a web advertising group on one hand, and a TV advertising group on the other.”

For the time being, at least until word-of-mouth marketing becomes more of a science, Valente believes “the best strategy for [word-of-mouth] marketers is to seed their product in a group and let the product diffuse for a short time, find some early adopters and locate the people who influenced these early adopters, then use them as testimonials in ad campaigns — basically taking their messages to market with mass media.” And then, he adds, “pray.”    

[9-Feb-2004]

 
  
  

Randall Frost a freelance writer based in Pleasanton, CA, is the author of the forthcoming book The Globalization of Trade. Other work has been published by the New England Financial Journal, CBSHealthWatch, Modern Drug Discovery, Outdoor California and Gale.

     
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