• Save
Social Media and the Power of Word of Mouth Marketing
Upcoming SlideShare
Loading in...5
×
 

Social Media and the Power of Word of Mouth Marketing

on

  • 2,011 views

 

Statistics

Views

Total Views
2,011
Views on SlideShare
2,010
Embed Views
1

Actions

Likes
4
Downloads
5
Comments
0

1 Embed 1

http://www.linkedin.com 1

Accessibility

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • So, let me provide you with some background before I delve into the results of our research. When it comes to social media, Australians are certainly big adopters. 9.9 million Australians use social media sites every month - with Facebook the clear favourite. The average time that Australians spend on these sites exceeds that of any other nation at six hours and 52 minutes per month. According to the Nielsen 2010 Social Media Report , the participation of Australians in social media is increasing at a rapid rate, with content sharing the most popular social media activity. Social media sites are not only a place to converse with friends but are increasingly seen as a source of information. Nearly nine in ten Australians are interested in what other internet users are saying about a company’s products and services. The report also suggested that Australians’ engagement with online word of mouth will increase in coming years. In terms of blogging, there is an unprecedented growth in amateur critics, with thousands of contributors posting homemade reviews at websites such as Rotten Tomatoes (film), Amazon (books) and Eatability (restaurants). With consumers spending so much time online, how does a business tap into this resource and use it to successfully set itself apart from its competitors?
  • Our research was designed to drill down into the habits of consumers when it comes to online activity and to identify whether word of mouth is still a widely-used method of communicating positive experiences. We used Galaxy Research to conduct the survey on our behalf and it was completed online by 1,010 Australians, from the age of 18 upwards. Respondents were asked specific questions about their dining habits during the previous three months. The survey was distributed nationwide and broken down to provide us with useful state-specific data.
  • The findings were very revealing. Nearly two thirds of respondents said that they use word-of-mouth recommendations when deciding where to dine out. One in four uses online media sources, such as search engines like Google, blogs and online restaurant websites and guides, to make their decisions and it’s probably no surprise that this rises to one in three for both the 18-24 and 25-34 year old groups – our Gen Y consumers. Interestingly, three out of four in the 18-24 age bracket also rely on word-of-mouth – demonstrating that it’s still the most popular means of sharing recommendations. Overall, word-of-mouth was regarded as having the most influence on where respondents chose to eat the last time they went to a new place, with nearly half of those surveyed relying on this method. Online sources influenced the choice of just eight per cent of respondents, rising marginally to 10 per cent for the 25-34 year old group.
  • When consumers find a restaurant or other dining establishment that they like, it appears they want to share. Eight out of ten will tell other people about the good experience they had. Of these, one in six will turn to Facebook to comment about their dining experience. This climbs to nearly one in three in the 18-24 year old group and one in four for the 25-34 year old group. Twitter still lags behind Facebook with one in twenty tweeting about their positive experience. However, this increases to one in ten among the 18-24 year old group. More than half of those surveyed claim they will ‘always’ recommend places they like to others while a further 40 per cent said they will ‘occasionally’ make recommendations. Probably most interesting for everyone participating today is that overall, females are more likely to speak to people about their dining experience than males.
  • Moving on to those looking to go somewhere they haven’t previously been to for a meal . . . Out of those who regularly dine out for lunch, three quarters will look online for the eatery’s location. In many cases this links to a map, such as Google Maps. And of those who say online is the most influential source for finding places to eat out, nine out of ten will look at the menu online. This is further supported by survey results from TNS, a global market research company, which found that 97 percent of online Australians are researching products they intend to buy online.
  • The results of the survey certainly reinforce the fact that word-of-mouth remains a vital ingredient in any business’s marketing mix. It also serves to highlight the benefits of having a well-designed, easy-to-navigate website that provides consumers with clear and concise information about your product or service. Businesses that don’t capitalise on this are likely to lose out as more and more consumers tune in to what online has to offer. With so many consumers sharing their good experience online, the quality of the product or service you offer, good customer service and providing value for money are paramount to ensure your business is being talked about in a positive way. As Australians continue to embrace social media, the influence of third party sites will continue to grow and business’s marketing strategies will evolve to adapt to new trends.
  • In this online environment, everyone with a positive or negative retail experience and a laptop is a potential reviewer, able to shape the thinking of other consumers. If you haven’t done so before, go online and see if people are already talking about your business. There’s no doubt that Twitter and Facebook are providing small businesses with a cost-effective way to spread the word about their products and/or services, promote upcoming events, publicise special offers and generally communicate directly with their customers. They can also provide valuable insights into what customers think about your business and how it could be improved. Facebook also allows the personal profiles of people commenting about your business to be reviewed, detailing their age, location, hobbies and other interests, allowing you to target your marketing efforts accordingly. Consider your target audience and where they’re most likely to be commenting online – males and females have different habits. Social media has been referred to as “word of mouth on steroids” and people sharing their experiences on and offline remains an essential way to recommend or complain about a company. At American Express we’re continuously carrying out research to understand our customers better and to help our merchants stay on top of the latest trends and tap into the behaviours of their potential customers.
  • So how does American Express use online and social media . . . The American Express website has a dedicated Small Business page where businesses can access the latest information about our cards and any initiatives in place. We also have a Facebook page which we regularly update and use to alert customers to events we’re organising. We’re currently looking into developing a page purely for small businesses and we’re also considering setting up a Twitter account. Watch this space . . . In terms of our products, we offer both charge and credit cards, specifically designed for small businesses. Our cards simplify payments, enhance cash flow, streamline financial reporting and maximise the rewards for small business owners. Increasingly, they are seen as an essential tool for small business owners. We believe that small businesses should regard their business card as an approved loan that is in their pocket available to cover a wide range of business overheads. At American Express, we have a dedicated and growing team of 50 sales and support staff specialising in small business needs. We see ourselves as a key supporter of small business and a solution to many of their cash flow challenges. If you would like more information on the cards we offer, please log on to the website you can see here. That’s it from me. Thank you everyone for joining and I hope you found it informative.

Social Media and the Power of Word of Mouth Marketing Social Media and the Power of Word of Mouth Marketing Presentation Transcript

  • SOCIAL MEDIA
    • and the Power of Word of Mouth Marketing
    • with Craig MacIndoe, Catriona Pollard and Teena Corbett
  • Suzi Dafnis
    • Australian Businesswomen’s Network
    Social Media and the Power of Word of Mouth Marketing
  • Q&A Social Media and the Power of Word of Mouth Marketing
  • Social Media and the Power of Word of Mouth Marketing TWITTER Follow along @suzidafnis Use tag: #abnsocial NOT ON TWITTER? search.twitter.com Catriona is @catrionapollard Craig is @chefmumu
  • Sponsored By:
  • Social Media and the Power of Word of Mouth Marketing Catriona Pollard CP Communications Teena Corbett American Express Craig MacIndoe MUMU Grill
  • Social Media and the Power of Word of Mouth Marketing Catriona Pollard Founder & Director, CP Communications Twitter: @catrionapollard Website: http://www.cpcommunications.com.au Blog: http://publicrelationssydney.com.au/ Youtube: http://www.youtube.com/PublicRelationsTips
  • Word-of-Mouth marketing is simply conversations. It is an unpaid form of promotion in which satisfied customers tell other people how much they like a business, product, service. 2/3rds of the economy is influenced by personal recommendations. Word-of-mouth is one of the most credible forms of advertising because the endorsement comes from a trusted source rather than a corporate third party. Social Media and the Power of Word of Mouth Marketing What is word of mouth?
  • Word of Mouth used was neighbours over the back fence sharing an experience Social Media and the Power of Word of Mouth Marketing
  • Now with social media, amplify those conversations by about a zillion. We have consumer connectivity like never before. No longer do consumers rely on advertising or their family to influence their purchasing decisions – they also now look to their online community. Social Media and the Power of Word of Mouth Marketing All rights reserved by wishymom (Stephanie Wallace Photography)
  • How can you spread the word about your business using Social Media and Word of Mouth marketing? Social Media and the Power of Word of Mouth Marketing
    • The fundamentals:
    • Have a product or service people want to buy; start using social media!
    • Make it easy for people to talk about you
    • Give people a reason to talk.
    • Build your reputation.
    • Get influencers talking about you.
    • Be where your customers are online.
    • Track online conversations.
  • Create communities and connect people Contribute to communities Create advocate programs Co-creation and information sharing Create a Blog Interact with Bloggers Go viral Social Media and the Power of Word of Mouth Marketing Online Word of Mouth tactics
  • Social Media and the Power of Word of Mouth Marketing
  • Social Media and the Power of Word of Mouth Marketing
  • Social Media and the Power of Word of Mouth Marketing
  • Give people a reason to talk about your products and services, and make it easier for that conversation to take place. Engage and interact as much as possible. Be authentic and don’t blatantly promote – give something in return. You don’t need to think big – your word of mouth strategy can be simple. IRL is still very powerful. Social Media and the Power of Word of Mouth Marketing Key tips:
  • Social Media and the Power of Word of Mouth Marketing Teena Corbett Director – Small Business Services American Express Australia Limited
  • Online and word-of-mouth: How to harness their effectiveness to drive business success
  • Small Business and Social Media
    • 9.9 million Australians use social media each month
    • Average of six hours and 52 minutes per month
    • Nearly nine in ten Australian users (86%) looking to fellow internet users for opinions and information
    • Online word of mouth is likely to increase
    • In terms of blogging, the number of amateur critics is growing
  • American Express Research
    • Carried out by Galaxy Research in April 2010
    • Conducted among 1,010 Australians aged 18 and over
    • Approximately two hundred interviews were conducted in each state and the total was weighted to national proportions
  • Word-of-mouth vs online
    • Word-of-mouth is widely used in deciding where to dine
    • 62% used word-of-mouth recommendations
    • 25% used online media sources
    • Those under 35 are more likely to use all forms of media, particularly word-of-mouth (72%) and online (35%)
    • Word-of-mouth most influential source (46%)
    • Online is influential (8%)
  • Pass it on
    • When diners find a place they like:
      • Eight in ten (81%) will talk to others about it
      • One in six (15%) will comment on Facebook (29% 18-24 yr olds and 26% 25-34 yr olds)
      • One in twenty (4%) will tweet on Twitter (10% 18-24 yr olds and 7% 25-34 yr olds)
      • More than half (56%) will ‘always’ recommend to others
      • Two in five (40%) will ‘occasionally’ recommend
      • Females recommend more than males (64% of females ‘always’ recommend compared with 48% of males)
  • Taking a shine to online
    • When looking to dine out at a new place:
      • Three in four (74%) people who eat out for lunch frequently (weekly or more often) go online for the street address
      • Among those who say online is the most influential source, 91% go online to look at the menu
    • According to research by TNS, 97% of online Australians are researching products they intend to buy online.
  • Summary of findings
    • Word-of-mouth is vital to grow business and build customer loyalty
    • Website is a must to make information readily available to existing and potential customers
    • Ensuring customers have an enjoyable experience is essential
  • So what did we learn?
    • Online is growing in popularity – widely used among 18-34 year olds
    • Twitter and Facebook are cost-effective marketing tools
    • Word of mouth remains highly influential
    • Use American Express insights to discover more about your customers’ habits
  • Built for Business Owners
    • Dedicated small business products, including charge and credit cards
    • Simplify payment, enhance cash flow, streamline financial reporting and maximise reward points
    • Team of 50 dedicated sales and support staff specialising in small business needs
    • Information on American Express Small Business Cards can be found at: www.americanexpress.com/australia/SmallBusiness
  • Social Media and the Power of Word of Mouth Marketing Craig MacIndoe MUMU Grill
  • Remember “the traveling parade” Social Media and the Power of Word of Mouth Marketing
  • How do you generate Word Of Mouth?? Social Media and the Power of Word of Mouth Marketing
  • Why FaceBook? Why Twitter? Why Social Media ? Social Media and the Power of Word of Mouth Marketing
  • Meet Know Like Trust Social Media and the Power of Word of Mouth Marketing
  • “ There is no Interest quite as strong as self interest” The W.I.I.F.M Principal Social Media and the Power of Word of Mouth Marketing
  • Find the Influencers/Deal Makers Social Media and the Power of Word of Mouth Marketing
  • Sell the Story Engage not broadcast Social Media and the Power of Word of Mouth Marketing
  • What is the Customer Path ? Social Media and the Power of Word of Mouth Marketing
  • Blog/ Website Social Media and the Power of Word of Mouth Marketing Twitter Facebook E-mail Hard mail
  • Social Media and the Power of Word of Mouth Marketing Q&A Use the Question Pane to Ask Your Questions
  • Thank you Social Media and the Power of Word of Mouth Marketing Catriona Pollard Teena Corbett Craig MacIndoe
  • Sponsored By:
  • Coming Up:
  • Coming Up: 31 MAY 2011 Inside Business Success How to Get More Customers, Generate more Profits and Make your Business a Big Success
  • Become a member today. www.abn.org.au Social Media and the Power of Word of Mouth Marketing