Dove Real Beauty campaign with Shonda Rhimes – Photo: Dove
Can offline word-of-mouth be used to drive business results?
Despite the hype, conversations about retail and apparel brands still mostly happen offline, in face-to-face conversations, as opposed to online conversations taking place via social media, according to Engagement Labs.
The word-of-mouth (WOM) marketing researcher also notes that offline conversations drive two or three times as many sales as online, according to studies.
Unfortunately, it’s easier to drive WOM online than offline. Online, marketers can target key influencers and brand advocates based on metrics such as followers indicating their social clout. Having compelling shareable content can also support online conversations. Categories involving more innovation, style or higher price points tend to get more sharing on social media.
Engagement Labs also notes that offline and online WOM work differently.
“Offline conversations, which are mostly in one-on-one settings, are more personal and intimate by nature and thus allow people to share emotions such as excitement and satisfaction,” according to a study from Keller Fay, owned by Engagement Labs. “Online WOM, which usually involves ‘broadcasting’ to many people (e.g., Twitter), is more appropriate for social signaling (e.g., uniqueness).”
Engagement Labs’ TotalSocial rankings shows that some retailers had healthy online WOM and weak offline WOM, and others the opposite. Retailers with stronger online versus offline WOM included Nordstrom, H&M, Best Buy and Kohl’s. Those with louder offline conversations than online included Costco, Old Navy, Home Depot, Target and Bed Bath & Beyond. Amazon, the leading retailer in WOM, had both high offline and online WOM.
Offline outreach at bars and restaurants, parties and social events, through new product sampling as well as customer relationship management programs are some ways brands are attempting to amplify WOM. Citing the success of Dove’s “Real Beauty” campaign, Engagement Labs notes that some brands can address larger social themes to drive WOM overall.
Moreover, the research firm notes that a “large share” of offline conversations are driven by online content and the two can play hand in hand. Engagement Labs wrote, “A marketing strategy crafted with a holistic consumer conversation and sharing approach can provide a much-needed competitive edge for brands in an increasingly tight market.”
- Consumers may be shopping online more often, but they are taking their conversations offline – Engagement Labs
- What Drives Online vs. Offline Word of Mouth: Major Differences Revealed in New Academic Study – Keller Fay
- Comparing Online And Offline Word Of Mouth – Keller Fay
- Landmark Study Shows Word of Mouth Drives 13% of Consumer Sales – Engagement Labs/PRNewswire
- Social Misfits – Engagement Labs
- Lessons From The Leaders Of Social Influence – Engagement Labs
Discussion Questions
DISCUSSION QUESTIONS: What can retailers and brands do to drive offline versus online word of mouth? What are some obvious and less obvious factors supporting high word-of-mouth activity for retailers?
Poll
BrainTrust
Anne Howe
Principal, Anne Howe Associates
Ralph Jacobson
Global Retail & CPG Sales Strategist, IBM
The study from Engagement Labs points to the seamless experience consumers expect from retailers. Whether online or in-store, consumers have expectations that retailers need to meet. Some of them are basic: have items in-stock, make items easy to find, provide a fun shopping experience, make the checkout process easy and have knowledgeable help nearby to navigate the shopping experience. Retailers can generate word of mouth by exceeding consumer expectations, tying into causes and surprising consumers (in a good way). It’s all about making the shopping experience easy, enjoyable and worthwhile.
Giving in-store employees some topics and conversation starters on a daily/weekly basis can work really well. For example, a locally-owned garden center I visited last week had the employees (even the watering guys) talking about what plants need feeding over the Memorial Day holiday. In the south it’s time to feed double-blooming azaleas and camellias! And all the veggies we planted a month ago need food again.
Can that scale to Lowe’s? I say yes. On Facebook, on Pinterest and in the garden center. All it takes is a calendar, an easy script, a method of circulation and a culture of offering people something useful with a smile. It’s really not that hard to give people something to talk about.
Today over 92 percent of consumers research online before deciding where to shop. Social media is high and is growing with many sites for customers and employees to post their comments about a retailer they have shopped or for whom they work. For many retailers, the negative comments take away from the positive experiences they are providing.
I think retailers need to take social media a lot more seriously than many do. Word of mouth has and always will be the best advertising, and it’s free. So to expand that, start in the store and focus heavily on “wowing” the customers, which will lead to many WOM experiences. The simplest thing that comes to mind to facilitate WOM opportunities that cross over both offline and online would be creating a contest for customers to share their experiences. The best of the best could be posted online as testimonials as well as with in-store signage and included with the in-store messaging. Customers participating will enjoy sharing their experiences. The contest could be simple offering nothing more than recognition. Making customers feel appreciated goes a long way in “wowing” customers and giving them a reason to spread the word about the retailer they like.
I have been struck for years by how businesses get focused on a byproduct of doing their business right.
Should WOM be a goal? It’s good to measure it and know what’s happening. It’s a good indicator if you have problems. And in a well-oiled marketing machine it should be happening naturally. If you have products worth talking about, have a place worth shopping at, offer deals that are important and tell people about these things with advertising and clear communication, WOM will be strong.
What’s not discussed here is whether there is sufficient payout from focusing marketing dollars on WOM vs. where else you might use them. I have not found the trade-off to be strong and smart strategically.
WOM-focused marketing can lead your team to dash around expending considerable effort for small returns when considered in terms of your needs to survive the next few years of retail transition.
My experience is that if you’re posting feedback online you’re also telling it to friends and acquaintances. The scope and scale are dependent on how good (or bad) your experience was!
Offline word of mouth is continuous, while online is discontinuous. In other words, silence during a face-to-face or phone conversation is awkward, while pausing before responding while texting or chatting is natural. As a result, offline word of mouth is spontaneous and even off-topic, while online WOM is premeditated and biased toward socially acceptable topics.
The best way to get anyone talking is to stay top of mind. The best way to stay top of mind is to target your most loyal users, who already are thinking about you. Give them deals and incentives to recommend you to their friends. Give them seasonally-relevant tips to help them solve their problems and help their friends and family as well. This is far better than spending media to drive “stories” to get uninterested non-users to talk about you.
Yes, offline word of mouth drives business results. Most would agree that depending on the category and the age group, the offline impact is a greater component of the shopping experience than we would be able to measure. Ignoring this is a perilous move, for any marketing organization.
No doubt WOM in person is stronger than what someone reads online from someone they don’t know. So, how can a retailer get more WOM (in both online and in person)? Like the old Bonnie Raitt song (by the same name) goes: Let’s give them something to talk about!
Deliver an amazing product with amazing service. When you do both, one plus one does not equal two. The sum is greater than the parts. Give the customer something to talk about, and they will.
One way to drive offline word of mouth is to start from within by improving internal communication. An obvious resource retailers have is their own retail sales employees. These employees should be calling their book of business and clienteling to spread the word about new inventory and sales promotions. In order to do that effectively, there must be an efficient internal communication channel in place so retail sales employees are tipped off earlier and can drive business via word of mouth.
WOM marketing existed a couple millennia prior to online marketing, so trust me, WOM is powerful, to say the least. Taking the last bastion of retail differentiation, “Service,” and making it personalized — in real time — is one of the most effective ways to drive the power of WOM.