Roundtable participants:

Peter Blackshaw, Chief Marketing Officer, Nielsen BuzzMetrics
Edward Keller, CEO, The Keller Fay Group
Deirdre Murphy, Board Director, Consumer Practice Group, Ketchum London
David Rabjohns, President, MotiveQuest LLC
Paul Rand, President and CEO, Zócalo Group

Questions:

1. What type of impact can word of mouth have on a brand? A company?

2. What makes WOM more sustainable than a one-time buzz event? And when should you seek one versus the other?
3. Which organizations can benefit most from WOM, and which shouldn't even try? And why?
4. What magnitude of results are you seeing now with WOM programs? And what do you expect to see over the next five years?
5. How are different countries, regions, industries using WOM?
6. Negative WOM can be damaging. How do you counteract it?
7. How do you see WOM and connected communities impacting the relevance of traditional media — both for marketing and news/information? How do WOM, traditional media and new media work together?
8. What should today's PR professionals know about WOM?

Edward Keller: Our research shows that WOM has considerable impact on individuals who are on the receiving end of advice and recommendations. There is extremely high credibility and believability, high likelihood to pass along what they learn to others, and high levels of purchase intent as a result of WOM. Positive WOM, therefore, has the tremendous potential to grow brands. Undoubtedly, it also can enhance corporate image.

Peter Blackshaw: I agree. Offline word of mouth, especially within intimate social networks, is far more impactful than traditional forms of advertising. The same principle is at work online, except that online word of mouth — or what we like to refer to as "consumer generated media" (CGM) — leaves a digital trail that can keep rewarding or punishing the brand in perpetuity.

Paul Rand: It is important to keep in mind that WOM promotes recognition and understanding of a brand or a company in a way that can't be related through traditional communications. It gets at the core of what the consumer likes and feels in ways we're not finding elsewhere. WOM done right is taking the time to really understand the customer and their linkages with the brand and using that insight to shape other communications messages. A brand needs a catchphrase for billboards, but for WOM to be successful, companies must market in the way people really talk.

Rand: What makes WOM more sustainable versus a one-time event is "continuous provement" — finding ways for organizations to continue to prove their value and to stay engaged with their evangelists. Buzz can be of great value when launching a product, but organizations need more. Engagement is ongoing.

Keller: The question of sustainable versus one-time buzz events also has a lot to do with what the goals are with respect to word of mouth. Is the goal to create an initial burst of energy for a brand or create awareness for a new product (as we saw with the iPhone six months before its official launch date)? If so, a one-time buzz event may well be the way to go. If, however, the goal is to sustain WOM-based "impressions" for a product or a corporate brand, an ongoing WOM program is better.

Blackshaw: You certainly can't ignore one-time buzz events around a major new initiative or product launch, but if they are too gimmicky or off-equity from the core brand benefit, they can maneuver the brand into risky territory. The key is to not push buzz too hard.

David Rabjohns: All organizations benefit from better understanding their customers. Paying attention to what they are saying to each other is a great way of doing that. WOM's relevance depends on a company's ability to truly understand what matters to its customers.

For example, the Axe underarm deodorant brand came to us a while ago and asked if we could study online discussions about deodorant. Of course, nobody is talking about deodorant. However, that isn't what should matter to Axe. The brand had risen from nowhere to become the No. 1 deodorant brand in the country in four years. They did this not because they deodorized better but because they have successfully connected their brand with something people love to talk about — sex. Now that's a subject with plenty of online chat to study.

Blackshaw: To add to David's point, what's most important is that the products are talk-worthy. They must have "news" that gives the carrier of the message "social currency" to share with others. Sometimes the product's ad campaign itself can have talk value. Think about Budweiser's "Wassup" campaign, or Nationwide's Super Bowl ad featuring Kevin Federline.

Keller: Many people assume, incorrectly, that WOM is only for new products that are unique or highly innovative, or where there is an entertaining event or a "stunt" that will attract attention. In fact, any product in any category is a candidate for WOM — if the experience consumers have with the brand is exemplary, if they would be proud to share a recommendation with someone else, and if the product is easy to talk about with others. In other words, when it comes to word of mouth, "the steak is the sizzle." Products that can't meet these standards are probably not good candidates for successful WOM.

Deirdre Murphy: I work with health and beauty brands in London, and we have seen absolute sales spikes as a result of WOM. Specifically, we've seen instances where a celebrity influencer or beauty guru unexpectedly mentions a product on a talk show and sales go up. The great effect of these influencer programs is that these on-air comments are unsolicited. More and more companies are reaching out to influencers in ways that make them feel connected to their brands. I expect that trend to continue among consumer companies in the U.K. in the coming years.

Blackshaw: Similar to what Deirdre is observing in London, the results we are seeing so far are positive and encouraging. We know from our in-depth, CGM analysis that there is a clear tie between early positive buzz and product success, and we intend to do a lot more research on this front. Long term, I expect to see more brands leverage listening and feedback pipes as incubators for WOM programs.

Rabjohns: We feel that the study of WOM will become more scientific. Our early econometric models reveal some strong correlations between WOM and other vital metrics, such as sales or share. I think the study of WOM will become a vital metric in the measurement and prediction of success. I know of at least one company that has tied the compensation of the CEO to it already. One of the company's stated goals was to become the "most talked about" set of brands, so it set a benchmark and factored success at reaching this goal into the CEO's bonus structure.

Rand: We also have to measure WOM in relation to sales increases, product movement or a shrinking of the sales cycle. The ability to monitor WOM's impact is higher than anticipated when we are able to link in online communities or other trackable tools.

Rand: Professionals from more than 30 countries participate in the Word of Mouth Marketing Association. Right now, North America and the U.K. may be a bit ahead of the curve. But there is great interest in other parts of the world, especially with consumer-generated media.

Murphy: In the U.K., prestige brands have used WOM for a while and it's now spreading to more mass brands. We're seeing it in every area from beauty products to food. Companies are establishing personal connections with their influencers by mailing sample products as birthday gifts, sending a bottle of a brand's champagne to an award winner or shipping a brand's baby products to someone who has just had a baby. These acts are even more personal because the items don't come directly from the company or a public relations agency, but rather from a credible name that the influencer will recognize. Companies in the U.K. also are expanding their WOM influencer groups by encouraging established influencers to pass along the contact information of like-minded individuals.

Blackshaw: WOM and CGM are on the increase everywhere. China is exploding, and the numbers are just mind-boggling, especially when you take a look at the blogosphere numbers. MySpace and Facebook are pushing well beyond U.S. borders, and there's no question that YouTube is straddling a global market of viewers. More and more of our clients are putting a premium on the global perspective.

Keller: Research shows that WOM is among the most important forms of customer contact with a brand in markets all around the world. Global brands and global communications experts can and should be incorporating WOM techniques into the plans.

Blackshaw: This is a very big deal, and I daresay brands may want to matriculate through "negative CGM boot camp" before trying to tackle or embrace the positive buzz. Trust me, shareholders would thank them.

Online CGM is especially damaging because it never really goes away — it constantly reappears via search engine results. Just think about the pet food crisis. What's the bigger impact? The current loss of sales or the net impact of search results related to pet food taking a massive turn toward the negative for the next five years. We now have a cloud over the entire pet food industry that will be hard to erase.

Keller: You counteract negative WOM in one of two ways. If the negative WOM reflects a real problem with the company, the product or the brand, the first and only thing to do is to learn from the WOM and correct the problem. The process of acknowledging deficiencies and fixing them will become WOM-worthy in and of itself, and the "new and improved" business will be something people will be willing to share with others.

If the negative WOM is the result of a smear campaign by a select group of detractors, but the brand also has a large cadre of advocates, the advocates should be mobilized on the brand's behalf to spread the word about "the real story."

Rabjohns: Traditional media will be relevant for a while yet. I think the study of WOM will have a greater impact on research. Media have always provided gasoline for the brand fire. If you want to accelerate your brand launch, pour some media on it (maybe it's more Google than TV, but media nonetheless). The difference is that by using WOM as research, you can do a much better job of ensuring that you don't pour gasoline on bad products that will just fail faster and more expensively.

Blackshaw: WOM and paid media generally share a symbiotic relationship, and a recent study we helped conduct found a clear relationship between traditional media and buzz. Many of the TV networks today are repositioning their value proposition to highlight the degree to which television shows drive conversation. Other variables share an equally important relationship with WOM, and eventually media mix planners will need to think hard about whether to shift dollars from traditional paid media vehicles such as television, to, say, customer service or product quality.

Keller: In our research, we find that 50 percent of word of mouth references some type of media or marketing. Television is the most likely medium to be referenced in WOM, while the Internet is close behind.

Blackshaw: First, take a deep breath. There's a huge amount to consume, and no shortage of hype. But at the core, a consumer's propensity to recommend or not recommend is having an unmistakable impact on product success and ultimately brand reputation. Every public relations professional needs to internalize this. I also believe every public relations professional needs to think long and hard about what makes a corporation or brand truly credible.

Rabjohns: As much as they can. Study it as a lawyer would study law. Be informed, and don't forget to check what people are saying about you along the way!

Keller: They should know that WOM is the most powerful force in the consumer marketplace today. There are literally billions of WOM conversations that take place every day, and there is enormous credibility and purchase intent that comes as a result of WOM.

Rand: WOM can and should be a part of the overall marketing mix, and we must continue to develop specific ways to ensure our linkages. Public relations and WOM complement each other.

Murphy: New sources of authority and opinion are coming from the bottom up, using mediums such as online to get their views across quickly. This new generation of "editors" could end up stealing the agenda; PR needs to be able to connect and influence them.

About the panelists:

Peter Blackshaw, CMO of Nielsen BuzzMetrics, earlier served as chief marketing and client satisfaction officer of Intelliseek. He is a co-founder of the Word of Mouth Marketing Association and authors a biweekly column on digital marketing strategy targeted to CMOs for ClickZ network and several work and personal blogs.

Edward Keller is CEO of the Keller Fay Group, a market research firm focused on word-of-mouth marketing. He is author of the acclaimed book The Influentials, president of the Word of Mouth Marketing Association and a board member of the Advertising Research Foundation. Earlier he was CEO of RoperASW.

Deirdre Murphy is a practice group director for Ketchum in London, overseeing global and local accounts for consumer product brands. She has 15 years of experience in brand communications and public relations and has expertise in the beauty, entertainment and fashion sectors.

David Rabjohns is president and founder of MotiveQuest, a marketing consultancy specializing in online consumer dialogue. He served as EVP, brand strategy director, at Leo Burnett Chicago, and served in marketing and strategy positions at IBM (U.K.), PepsiCo (Australia), Saatchi & Saatchi (U.K.) and McConnaughy (U.S.).

Paul Rand, president and CEO of Zócalo Group (a Ketchum and Omnicom company specializing in WOM) and a Ketchum partner, recently served as global chief development and innovation officer at Ketchum, and before this he was director of the firm's Global Technology Practice. Prior to Ketchum he was founder and CEO of the Corporate Technology Communications agency. He currently serves as vice president of the Word of Mouth Marketing Association.