From the April 23, 2007, edition of The Chicago Sun-Times.
By Brad Spirrison (brad@midwestbusiness.com)
Shortly after the first vowel was enunciated, it seems, people became comfortable sharing their likes and dislikes with one another. From campfires to sewing circles to chat rooms, human beings have historically relied on peer influence more than advertising messages when making their consumption (or any other) decisions.
As businesses increasingly use interactive communication technologies to better understand and exploit customer behavior, a fledgling field with Chicago roots, known as "word-of-mouth marketing," proclaims itself to the world.
"I have been watching this industry as it has evolved from a simple marketing tactic to a recognized discipline," said Paul Rand, who earlier this month founded his third company, River North-based word-of-mouth agency Zócalo Group
Rand, 44, is a public relations veteran who a decade ago started Corporate Technology Communications. During the first wave of the Internet boom, CTC excelled in promoting tech companies, and in 2001 was acquired by Ketchum public relations firm. Until recently, Rand served as Ketchum's innovation officer where he led the global firm's efforts in developing customer relationship management programs and interactive media applications, including blogs and podcasts.
Ketchum and holding company Omnicom Group have backed Zócalo, which draws its name from town squares most commonly found in Mexico.
Rand said Zócalo's mission is to help companies expand upon the initial "buzz and 15 minutes of fame" associated with positive word-of-mouth, and identify customer "influencers" capable of sustaining successful marketing campaigns.
This language and approach should ring familiar to anybody who has read Malcolm Gladwell''s 2000 business best-seller The Tipping Point: How Little Things Can Make a Big Difference. That book showcases how companies can sell more of their offerings by taking care of their most influential customers instead of (or in addition to) the customers that spend the most money.
"The trick is how to find ways of engaging people on their terms," Rand said. "Technology is one of the key drivers to do that. It is not how you find better ways of interrupting people, but how you find ways of engaging people in a way that is compelling and interesting to them."
Rand and his partners, former Ketchum executives Patrick Rooney and Emily Bader, expect to house about 10 employees in their new corporate digs at 670 N. Clark by month's end. The firm''s proprietary technology includes databases that help clients manage and communicate with both their influencer friends and "detractor" foes.
Zócalo also develops online communities to help clients share the love with their most valued customers. These customers, in turn and in theory, will then spread the gospel to everyone else.
"If we make [influential customers] aware of an offering and give them a reason to be engaged, then they don''t have to be paid [to market on a client's behalf]," he said.
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