Comments on: WOM Does Have ROI http://marketingconversation.com/2008/07/07/wom-does-have-roi/ Digital PR and Social Media Marketing Fri, 18 May 2012 23:54:07 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Jonathan Trenn http://marketingconversation.com/2008/07/07/wom-does-have-roi/comment-page-1/#comment-2771 Jonathan Trenn Tue, 08 Jul 2008 16:45:30 +0000 http://marketingconversation.com/2008/07/07/wom-does-have-roi/#comment-2771 Excellent post Saul. I believe the traditional "in your face" advertising will stay strong for products and services that have broad appeal. But in today's world of fragmented media and diverse populations and interests, the in your face won't work for most clients. Or at least, it won't be worth the cost. The greatest resistance is with the many marketing agencies and marketing decision makers within client companies that continue to view the traditional marketing methods as gospel. Send out a press release, advertise on prime time, Control the message. Give no means for recipients to expand the message. Those days aren't over, but those that stick to it as the major thrust of their operations will find themselves marginalized. Excellent post Saul.

I believe the traditional “in your face” advertising will stay strong for products and services that have broad appeal. But in today’s world of fragmented media and diverse populations and interests, the in your face won’t work for most clients.

Or at least, it won’t be worth the cost.

The greatest resistance is with the many marketing agencies and marketing decision makers within client companies that continue to view the traditional marketing methods as gospel. Send out a press release, advertise on prime time, Control the message. Give no means for recipients to expand the message.

Those days aren’t over, but those that stick to it as the major thrust of their operations will find themselves marginalized.

]]> By: Saul Wainwright http://marketingconversation.com/2008/07/07/wom-does-have-roi/comment-page-1/#comment-2763 Saul Wainwright Tue, 08 Jul 2008 00:58:48 +0000 http://marketingconversation.com/2008/07/07/wom-does-have-roi/#comment-2763 Ifran - first thanks for stopping by. Second - I agree with the three "potentially big assumptions" and I think that this is where the WOM marketing will have to grow and refine their approach. You after all don't wanna start conversations with everyone - it takes time and energy to sustain a conversation. But, I think that the web and blogosphere specifically gives you insights into issues of interest and relevance unlike any other medium. The issue of scalability is where it becomes really interesting and looking at different ways of operating and structuring campaigns will be where you recognize the ability to scale up and out. Ifran – first thanks for stopping by. Second – I agree with the three “potentially big assumptions” and I think that this is where the WOM marketing will have to grow and refine their approach. You after all don’t wanna start conversations with everyone – it takes time and energy to sustain a conversation.
But, I think that the web and blogosphere specifically gives you insights into issues of interest and relevance unlike any other medium. The issue of scalability is where it becomes really interesting and looking at different ways of operating and structuring campaigns will be where you recognize the ability to scale up and out.

]]> By: Irfan Kamal http://marketingconversation.com/2008/07/07/wom-does-have-roi/comment-page-1/#comment-2759 Irfan Kamal Mon, 07 Jul 2008 19:26:54 +0000 http://marketingconversation.com/2008/07/07/wom-does-have-roi/#comment-2759 Customer acquisition costs (i.e. cost of a converted sale) vary tremendously by industry, product and product category, so it's tough to compare the WOM $2-3 current estimated cost. However, it's likely that this is very favorable: consider, e.g. , a not-unreasonable $1 CPC Adwords campaign with a pretty good 10% conversion rate once the user is on the site; that's a $10 cost per conversion. So, on balance, assuming you can get around the scalability, interest level & relevance issues (which are potentially big assumptions), WOM delivers sales very efficiently. Customer acquisition costs (i.e. cost of a converted sale) vary tremendously by industry, product and product category, so it’s tough to compare the WOM $2-3 current estimated cost.

However, it’s likely that this is very favorable: consider, e.g. , a not-unreasonable $1 CPC Adwords campaign with a pretty good 10% conversion rate once the user is on the site; that’s a $10 cost per conversion.

So, on balance, assuming you can get around the scalability, interest level & relevance issues (which are potentially big assumptions), WOM delivers sales very efficiently.

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