Description:

The concept of telling others about something you find valuable is ancient. Today, word of mouth requires much less effort due to the rise of social media, increasing connectedness, and plummeting costs of technology. However, as peer conversation becomes traceable online, marketers have a decision to make: Should they try to actively manage word of mouth—or even try to manufacture it themselves?

Word of mouth (WOM) is defined as information about companies, services, and products that passes from buyer to buyer. Word-of-mouth marketing involves programs designed to give influencers a reason to talk about a company's products and services and make it easier for those conversations to take place. Although B2C companies are the leading practitioners of WOM marketing today, WOM proponents say that the potential for WOM is much larger in B2B. The complexity of B2B products, their longer sales cycles, and the generally high-level decision makers involved in their purchase make the conversations about B2B providers vital. Moreover, B2B services and products have a large material impact on corporations and the profitability of their operations. WOM proponents say it is easier to build passionate believers in B2B products and services than in consumer products like paper towels and toaster ovens.

This ITSMA Update outlines the four primary components of WOM management—Monitor, Engage, Manage, and Measure—to help services and solutions marketers better understand how they can harness the power of WOM marketing.

Key Takeaways

• The high importance and expense of B2B services create the potential for passionate word-of-mouth evangelists — and detractors.
• Word of mouth has moved from passive observance to an active marketing discipline.
• Marketers should try to influence—rather than control—word of mouth.
• Marketers cannot monitor every word-of-mouth interaction, so they must discover the key influencers in the market and follow those conversations.
• Word of mouth can backfire on marketers who do not proceed with a full understanding of the unwritten rules of engagement: transparency, genuineness, and full disclosure.