Minding Your Business Blog Index
July 21, 2008
Word of mouth advertising in a viral world

On its face, the letters-to-the-editor feature makes no sense. Every day, newspapers invite people to complain about the company's effort, so that the news organization can print and distribute those grievances to customers. It's kind of like McDonald's running notes on Happy Meals bags from customers who are angry that french fries and Chicken McNuggets make kids fat.

The idea behind letters is this: People will trust the newspaper more if they see that it is willing to share criticisms of its work with the public.

I'm not sure there's ever been scientific research on whether it works. But newspapers everywhere have bought into the concept as the right thing to do. Besides, readers expect the feature to run and would complain if it didn't.

Today, whether they like it or not, the whole commercial world is adopting and adapting to the letters approach.

Corporations and their products are being praised and slammed on company websites that invite customers to describe their experiences. The same chatter has become a staple of countless blogs, consumer websites and email distribution networks that are totally outside the control of those companies being discussed.

And unlike newspaper letters, online comments are much more numerous, varied and lacking in restraint. Issues of fairness -- even libel in some cases -- are not discussed before these missives are published online.

On Sunday, the Boston Globe had an interesting piece about the phenomenon. The article was tied to research done by Josh Bernoff and Charlene Li at Forester Research Inc. and their book, "Groundswell -- Winning in a World Transformed by Social Technologies."

The question has become this: How can corporations control their message at a time when competitors, gadflies, disgruntled employees, customers and anybody else with an opinion can communicate their take on things to the world?

In politics, presidential candidate Barack Obama set up a special website to combat Internet-fueled rumors. And in the corporate world, some businesses are working hard to grab the attention of Web users and shape their thoughts.

Lego, for example, created its Lego Ambassadors site, so fans would have a place to discuss what they like about the toy bricks and rally in support of the company. These ambassadors are expected to take that message to other locations on the Web and in their real-world communities.

Viral communication, through email and social networking sites, is today's "word of mouth" advertising. It's also word of mouth that has been bitten by a radioactive spider. Rumors, facts without context and misimpressions can circulate around the world like wildfire, as they are distributed exponentially to more people each day.

No business has time to make Web chatter and gossip its focus. The old standbys of marketing and public relations -- media relations, advertising, customer outreach, networking, event organizing, etc. -- are still king.

Still, it wasn't all that long ago that people said that the Web itself was something that organizations could afford to mostly ignore, since the majority of sales still came through bricks-and-mortar stores or direct mail.

Businesses can't ignore the word on the Web any more than they can ignore the word on the street.

Posted by Eric W Blom at 02:58 PM

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Comments

With regard to Letters to the Editor, I think that you're right. Perceived openness creates a sense of trust. I believe that this is why community and civilian journalism is on it's way to gaining more trust than the mainstream media - While it is more open about its subjectivity, it also, running on the ethic of the Internet, tends to be more open. LTE still maintain a corporatist structure, in which letters, no matter how critical, are still hand-picked by the editors.

I recently talked with "net guru" Lawrence Lessig. He has started a website called Change Congress, which is meant to monitor varying aspects of the governing body. He had mentioned at a presentation his desire to seat at the site bloggers who are critical of the site's operations. I asked him why and he explained:

"When you look at what happens on the net, [participants that] adopt an ethic of openness, [can help protect] from criticism. When you contrast that with a corporate ethic and a corporate website, where everything is closed and just great, I realize which side of the divide we’ve got to be on. So that wasn’t conceptually hard."

Posted by Alex Steed
July 23, 2008 10:32 AM

"No business has time to make Web chatter and gossip its focus. The old standbys of marketing and public relations -- media relations, advertising, customer outreach, networking, event organizing, etc. -- are still king."

I consult with nonprofits and businesses regarding their web messaging (shameless plug: my website is linked with my name above) - and I would disagree with the sentiment expressed above - This is not to say that I disagree with what is still "king," but this is not to say that viral/internet messaging/marketing can't be both affordable and time-manageable. Further, integrated into an overarching approach that utilizes each of the methods you've discussed, they offer an upper-hand on businesses who ignore their place on the Internet.

One last piece: I was flying JetBlue recently, and it was the second time in a week that my flight was delayed. This time, I had to stay at my location overnight, no one from the company could explain what was going on, there were no accommodations provided, etc. Long story short, one employees, someone who was very helpful (as a person, not a company representative), said to me - "Sir - We try to hard to resonate with the consumer and to stand apart from the other airlines and to be one with our customers. Why has it not worked for you?" And he's right. I still hear people tell me they love JetBlue and when asked why, I get no particular reasoning. But I explained to him, "No amount of cute and clever marketing or money donated to causes I like can wash the taste of consistently bad service.

Because at the end of the day, really, service is king. All of the rest is just icing.

Posted by Alex Steed
July 23, 2008 10:43 AM

Anyone interested in talking further about this topic with me can reach me at: http://alexsteed.com/

Posted by Alex Steed
July 23, 2008 10:45 AM

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Eric Blom has been a journalist in Maine for 20 years, much of it as a business reporter and editor. He's been inside factories, office buildings and retail shops throughout the state, meeting with workers, shoppers, investors and executives about their hopes and fears. These days, as local and business news editor, he has a bird's eye view of what's happening in Maine commerce.

Eric, who was born in Rhode Island, has been heading north for some years now. He graduated from Boston University, edited a weekly newspaper in Belmont, Mass., and worked at the now-defunct Peabody Times in Massachusetts before coming to Maine. He lives in Portland with his wife and two children.

Knowing Maine's Business is a gathering spot for the respectful exchange of information and ideas about the marketplace.



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