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Erik Qualman: Author of Socialnomics and Social Media and Technology Expert

How word-of-mouth has become world-of-mouth and what retailers must do to keep up.

Watch the full video on YouTube
VideoErik QualmanSeptember 17, 2014

Overview

Erik Qualman argues that social and mobile technologies have fundamentally shifted consumer purchasing behavior, turning customers into the most powerful salesforce—or critics—any brand has. Using retail-focused examples, he outlines a four-step operating model for companies: listen, interact, react, and then sell. The core claim is that trust built through peer networks now outweighs any advertising message.

Key takeaways

  • Word-of-mouth has become "world-of-mouth," with peer reviews carrying far more weight than traditional advertising.
  • The listen-interact-react-sell sequence is the correct order; leading with selling fails in social channels.
  • Resolving a public complaint well makes a customer three times more likely to repurchase than one who never had an issue.
  • Every initiative has a social play; asking that question in every meeting drives outsized reach at little additional cost.
  • Executives need a weekly two-page listening report covering brand performance and top competitors' digital signals.

Worth quoting

  • "Social media is less about technology and more about relationships."
  • "90% of us trust what our peers say about a product or service; only 14% of us trust what advertising says."
  • "Content is king, but culture is really checkmate."
social mediaword of mouthretail strategycustomer trustmobile commercedigital culturebrand reputation

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