If You Can Guarantee WOM Success, You’re Probably Measuring it Wrong
Maybe it’s just me but I’ve always been wary of money back guarantees. With very few exceptions, returning products or getting refunds is generally a hassle. By the time you’ve been through the whole process you generally regret the whole experience and that attempt at a “clean slate” with the brand is rarely achieved.
BzzAgent disagrees with me. In a move Ad Rants is calling “desperate,” BzzAgent is guaranteeing that their word-of-mouth campaigns will perform 20% better than other media or you can have your money back (if you’re spending more than $300,000).
So what is 20% better? Is it 20% more conversions? WOM is about more than just selling products and services in a one time hit, isn’t it? Or maybe it’s our beloved Net Promoter score rearing it’s ugly head again. If you can prove that your banner ads make more people likely to recommend your product then you can have your money back. Nope, that doesn’t sound right.
The problem in the money back guarantee for me is that it undermines what I consider is the true value of what BzzAgent does. Over the years the company has built a network of “agents” who are basically people that like getting free stuff to try. The company is criticized by those who say that these people aren’t influencers but, if we’re talking about candy bars and laundry detergent, one-to-one recommendations from average consumers are just as valuable as one from the hyper-connected. Is Seth Godin really blogging about how soft his toilet paper is?
BzzAgent is in a unique position as a word-of-mouth marketer. If you’re interested in seeding a packaged goods product, there is probably no better company to get it out to most major demographics. They’re ethical marketers who keep their agents informed of the WOMMA rules and have more experience than just about anyone else.
The only problem I have with this is that it once again shrinks WOM down to the campaign level. Sadly, there are no great metrics of WOM except trying to find out the number of recommendations or somehow being able to track conversions, neither of which are usually an option. The level of WOM that a brand attains is more akin to brand awareness than it is to most of the common marketing metrics that advertising and PR are based on. This is a discipline that can only be measured by trend data and I don’t think you can compare that to other media that delivers short term reach.
I side with Contagious on this one. The guarantee is a stunt that gets BzzAgent some added visibility but it raises more questions about measurement than it attests to the true value of WOM.


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