Conversational Capital: How to Create Stuff People Love to Talk About by Bertrand Cesvet, Tony Babinski and Eric Alper

An Exclusive Conversation on Conversational Capital with Author Bertrand Cesvet

What is the most common mistake made by individuals seeking to harness the power of word-of-mouth marketing?
All too many individuals seeking to harness the power of word-of-mouth marketing focus on the vehicles through which word-of-mouth is perpetuated, rather than the triggers of word-of-mouth to begin with.

The number of times we've heard marketers yearn for a presence on social media or a user-generated content campaign is nauseating. Our response is pretty universal ~ it doesn't matter that you give your consumers a place to talk if they don't have anything good to talk about.

Thus, our central message is to focus not on the tools, but on the substance of conversations. The only way to create resonant and sustained word-of-mouth is to focus on the inherent value of the experience itself.

I found it interesting that Conversational Capital should not be termed "buzz." Why is this so important?
Buzz is something created around an experience rather than related to the experience itself. Let's say I put a pedometer in a box of Fruit Loops cereal and proceed to call it "healthy" because the pedometer encourages one to exercise. I've done nothing to change the experience or the nutritional value of the cereal itself - only created a stunt to project a temporal aura of "health."

Do smaller companies have an advantage in building Conversational Capital?
Being small isn't necessary, but it helps. Why? Because engineering and implementing Conversational Capital requires three things: 1) the ability to be nimble, 2) the capacity to be entrepreneurial (and thus embrace some degree of risk-taking) AND 3) the foresight to take a long-term view of the development of your brand, unconstrained by investors clambering for short-term profit-taking.

That being said, many large organizations have successfully preserved these three competences. Look at an organization like Southwest Airlines - the largest domestic air carrier in the US. The firm has managed to develop Conversational Capital principally because its empowered culture is by its very nature, entrepreneurial.

So in essence, the ability to act small is what matters more than being small.

How wary should marketers be with the double-edged sword of myth?
Myth must be rooted in some fundamental truth about the brand, the brand experience, or the brand's founding. Otherwise myth lives in the realm of lies, rather than as a story that's told and retold. Marketers can temper their wariness by ensuring that the myth(s) around their brand are continuous ~ it is continuity that keeps the cutting edge of that proverbial sword away from you.

What industries do you feel are under-utilizing Conversational Capital?
Industries that view their customers with disdain or an attitude of dismissiveness.

Look at the North American Air Transport sector. Airlines continue to pare service in a continuous quest for cost-cutting, thereby commoditizing themselves rather than developing the ability to build brands and extract premiums.

Look too to the North American Auto Industry. It is in crisis principally because it didn't listen to the talk around its brands. And it didn't build products worthy of conversation.

Many further examples exist, from education, to financial services, to telecom, to department stores. But ultimately, the realization must be apparent that not everyone can be a Conversational Capital king. But each industry should have its star(s).

Owner Reviews, Ratings, Comments and Criticism
Customer review from the Amazon Vine™ Program (What's this?) Overall: -------- The book is a high-level description of "Conversational Capital" or what makes a consumer into an active advocate for your brand combined with the description and benefits of lifestyle brands. The key concepts are: Rituals, Initiation, Exclusive product offering (EPO), Over-delivery, Myths, Relevant Sensory Oddity (RSO), Icons, Tribalism, Endorsement and Continuity. Each concept is given examples using well-known brands to help you understand the concept. The designing process is defined at a high-level with some useful tips. However, it does not really have anything revolutionary or even barely evolutionary. If you have taken more than basic marketing classes, you will see the validity in the concepts but will be wishing for more substance on how to make your brands into the described brands. Take-aways from the book: Rituals -- "Rituals are behaviors or rites we engage in to mark certain activities as exalted. When ritual behavior becomes associated with a consumer experience, it is marked out as more resonant" (pg. 68) Initiation -- "Initiation is a special subset of ritual. When consumers feel they have worked a little harder to acquire special knowledge of or access to a consumer experience, they feel set apart." (pg. 75) EPO -- "EPO occurs when a consumer experience offers a notable degree of individualization. When you feel something has been designed just for you, or in a distinclty personal way, you can claim an experience as your own, it becomes more salient. EPO sings in high-end experiences, but we've also observed it in simple products such as Cracker Jack or the Kinder Egg." (pg. 83) Over-delivery -- "Over-delivery is an aspect of EPO. It's what happens when brands make an experience feel special by going much further than they have to in terms of customer satisfaction. Over-delivery occurs when consumer experiences include features that anticipate needs and desires consumers haven't even thought they would want but end up loving. In the end, it can be understood as an attitude; the desire to be the best and keep improving, just for the sake of it." (pg. 89) Myth -- "Myth might be the most critical engine of Converstational Capital because it embodies a brand story. Essentially, stories set brands apart because they are so important in the identity-forming and affirmation process. We are the sum of our stories and we look to myth to provide them. If your brand is powered by myth, it might be all you need." (pg. 97) RSO -- "RSO stands for relevant sensory oddity. IT can be observed when a consumer experience surprises and delights a full range of sense. IT recognizes that human beings see, touch, hear, taste, and feel and communicates with them on that level. However, doing so in a manner tha is relevant, and resonates with the consumer experience in a meaningful way, is key." (pg. 105) Icons -- "Icons are signs and symbols that are rich in evocative power and associations. Almost anything can take on the shorthand power of an icon: places, buildings, people, logos, labels, and more. The key is that these icons have to evoke a compelling brand story." (pg. 113) Tribalism -- "In essense, Conversational Capital occurs when brand stories become part of the identity formation and affirmation process. Determining which tribe you belong to is a bedrock component of that process. Tribalism takes place when consumer experiences draw the like-minded together in a quest for mutual discovery." (pg. 121) Endorsement -- "Endorsement is not a matter of well-known people speaking for your consumer experience. Rather, it is a matter of consumers advocating on your behalf in a free and unsolicited manner. This is the most powerful form of marketing there is. However, endorsement comes with a built-in caveat. If you are endorsed, you need to live up to consumer support. If they recommend you to someone who is disappointed, they look bad, too." (pg. 125) Continuity -- "Conversational Capital demands continuity. Because it is about creating consistent brand stories, it works best when there is no disconnect between how a product is designed, marketed, and perceived. The best brands are the result of a united, cohesive strategy, and they walk the talk." (pg. 131) Prose: ------ The book was clearly written quickly with marginally editting. The book is a fast read where the text is concept light. So, it is good for getting some key marketing vocabulary with supporting real-world high-level examples.