Word of Mouth Cheat Sheet (Agent Wildfire)

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167 facts and stats you need to know about word of mouth, community-building, social media and marketing in a conversation marketplace, culture and society

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  • Thank you for the chance to talk about word of mouth… Personal background: Client for many years at P&G, Molson, Guinness/Diageo, a place called Echo Having spent a wealth on traditional advertising – I’m a born-again marketer My bet is it’s a big part of marketing’s future and at the end of this presentation, you’ll grab three things: - word of mouth is really powerful and for a wide a variety of brands, I should be thinking about it as an integrated part of upcoming plans - word of mouth can be orchestrated and you can do it credibly and avoid the pitfalls, you can make it a valuable marketing touchpoint and maybe even strategy for your business - Agent Wildfire is Canada’s Expert here – they have the experience, knowledge, database, assets and team to help my business – they are not one size fits all, they have options sized for my business
  • Word of Mouth Cheat Sheet (Agent Wildfire)

    1. AGENT WILDFIRE’S WORD OF MOUTH CHEAT SHEET: July, 2007
    2. <ul><li>… 167 Facts & Stats </li></ul><ul><li>That </li></ul><ul><li>May Surprise You </li></ul><ul><li>about Word of </li></ul><ul><li>Mouth </li></ul>
    3. WORD OF MOUTH WORD OF MOUTH Also known as: In Canada In the U.S.
    4. i. WORDS ARE IMPORTANT
    5. Word of Mouth By Numbers - Importance 67% - Percentage of consumer purchase decisions primarily influenced by word of mouth, #1 factor Source: Mckinsey/Thompson Lightstone 93% - Percentage of customers who identify word of mouth as the best, most reliable source about ideas and information on products and services - up 26 pts. vs. 25 years ago Source: NOP World - Percentage of Inc. 500 marketers planning a word of mouth program next year – #1 growing marketing vehicle Source: eMarketer 70% 66% - Companies who state “social media” is very important/somewhat important to company strategy Source: University of Massachussetts-Dartmouth 50% - Percentage of U.S. and U.K. executives highly likely to buy a product or service based on word of mouth Source: Keller Fay 46% - Percentage of senior marketers who believe generating “buzz and press” is the most important part of building a brand Source: Business Week
    6. ii. IS THERE ANYBODY LISTENING, IS THERE ANYBODY WATCHING? …
    7. Word of Mouth By Numbers - Filter 4% <ul><li>Estimated recall of TV ad from the last show we watched, down from 34% in 1965 . Source: Newspaper Bureau Association </li></ul>43% 72% 18 70% <ul><li>of people frequently consume multiple media simultaneously </li></ul><ul><li>Source: eMarketer </li></ul><ul><li>Percentage of ads actively ignored on TV </li></ul><ul><li>Source: CNW Marketing Research Inc. </li></ul><ul><li>Percentage of ads skipped by DVR users </li></ul><ul><ul><ul><ul><li>Source: CNW Marketing Research Inc. </li></ul></ul></ul></ul>- Amount of minutes of advertising in every hour of TV, double a generation ago and climbing 1-3% every year Source: AAAA 69% <ul><li>of people are interested in mechanisms that skip advertising completely Source: Yankelovich </li></ul>117 <ul><li>TV ads required to hit 80% of the population at least once; in 1965, this number was three Source: james Stengel, P&G </li></ul>
    8. iii. IT’S OK, BLAME THE MARKETER…
    9. Word of Mouth By Numbers – Marketing Pain 10% <ul><li>Percentage of Financial executives who believe marketers can assess impact of budget on sales Source: Marketing Management Analytics </li></ul>23 64% 66% 70% <ul><li>Average tenure of a Chief Marketing Officer (in months) </li></ul><ul><li>Source: Carmichael Lynch </li></ul>- Percentage of marketers who will drop at least one agency this year Source: CMO Council - Percentage of marketers who have repositioned their brand in the last three years Source: Brand Channel - Percentage of firms who have reorganized their marketing departments in the last five years Source: Booz Allen Hamilton 60% - Percentage of consumers who have a much more negative opinion of marketing & advertising than they did a few years ago Source: Yankelovich
    10. iv. WORD OF MOUTH -GEARED TO SPREAD…
    11. Word of Mouth By Numbers – Prolific - of people hearing a personal, negative recommendation, were influenced to buy another brand Source: Millward Brown, 2005 <ul><li>the number of words spoken a day by an average person </li></ul><ul><li>Source: University of Arizona </li></ul>74% 16,000 <ul><li>the number of weak ties (associates, acquaintances, colleagues) we have in our lives </li></ul><ul><li>percentage of people who believe word of mouth most affects purchase decision (vs. 48% sampling, 38% TV spots, 21% magazine ads) Source: Harris Interactive </li></ul><ul><li>the number of word of mouth recommendations made everyday in Canada Source: Agent Wildfire </li></ul><ul><li>the number of people needed to spread a word of mouth phenomenon to every Canadian with 4 generations of referral </li></ul><ul><li>Source: Agent Wildfire </li></ul>500-1500 68% 200M 20k
    12. v. WORD OF MOUTH: MARKETING ON STEROIDS …
    13. Word of Mouth By Numbers - Powerful - Amount of reduction of negative word of mouth to generate 1% of business growth Source: London School of Economics 7% - Amount of lift in word of mouth to generate 1% in business growth – top correlated growth factor Source: London School of Economics 4x - Difference in growth rate of high net promoter score brands vs. low net promoter score brands Source: London School of Economics 7to1 - Percent of people who claim word of mouth is one of the most reliable info sources - ranked #1 & up 50% vs. 1977 Source: NOP World 93% - Ratio of positive word of mouth about products compared to negative word of mouth in the marketplace Source: Keller Fay 70% Percentage of word of mouth conversations having an impact on brand purchase (37% buy it/try it, 24% consider it, 9% avoid purchase based on WOM) Source: Keller Fay 2%
    14. vi. HOCKEY, MAPLE SYRUP, WORD OF MOUTH…
    15. Word of Mouth By Numbers - Canadian 1 st ,2 nd, 4 th - Percentage of Canadians Who Trust Mass Advertised Brands (vs. 44% for Americans to the same question) Source: Environics 67% 56% 17% #1 Canada’s rank globally on broadband connection, visiting blogs & per-capita Facebook members Source: comScore/Facebook - Friends, spouses and parents rank in most passionately embraced subjects by Canadians Source: Arnold Mood and Mindset - of Canadians who have stopped doing business with a company that doesn't respect them Source: Arnold Mood & Mindset - Percentage of Canadians are willing to provide emails to websites that ask (up from 61% in 2005) Source: ipsos-NA 65% - of Canadian consumers feel bombarded by ads Source: Yankelovich
    16. vii. TRIED, TESTED & TRUE
    17. Word of Mouth By Numbers – Trusted <ul><li>People who claim to buy the same brands as their friends, up 28 points vs. 2003 Source: Edelman/Yankelovich </li></ul>- Trust Rank of Advertising practitioners among 21 professions - #19 Lawyers, #21 Car Salesmen Source: Gallup 90&82 - Percentage of People Who Trust Their Spouse and Friends on product purchase decisions respectively Source: Henley Centre 14&8 - Percentage of People Who Trust Advertising & Celebrities on product purchase decisions respectively Source: Henley Centre - of consumers who believe companies don’t tell the truth in advertising Source: Yankelovioch 61% 76% 20 98% - Percentage of People who believe “Integrity” is the #1 driver of their trustworthiness in professions Source: Ipsos-Na
    18. viii. SOME PEOPLE ARE NOT LIKE THE OTHERS
    19. Word of Mouth By Numbers – The Influencers 6 Types 184 - Number of word of mouth conversations an influencer will have every week Source: Keller Fay - Percentage of Influencer conversations that mention brands or products Source: Keller Fay - Number of people influencers will email when advocating a brand and number of people they will directly impact within an organized word of mouth program Source: Agent Wildfire/Burston Marsteller <ul><li>Influencer participation levels vs. the mainstream: </li></ul><ul><ul><li>Reading, Politics, Tech, Social Activism, Travel, Volunteerism, Investing, Career Choice, Arts, Photography, Health & Fitness, Self-development Various Sources </li></ul></ul>20-10-1 - The composition of your customer base’s involvement 20% - Referrers, 10% - Advocates, 1% - Zealots Source: Agent Wildfire 1.7% <ul><li>of Wikipedia’s users contribute 70% of its content </li></ul><ul><li>Source: Wikipedia </li></ul>27% 2x 14&40
    20. Word of Mouth By Numbers – Influencers Feel a Connection To - Religious/spiritual group Source: NOP World - Neighborhood/town Source: NOP World 53% 72% 85% 96% 58% 57% - Youth related group Source: NOP World - Professional group Source: NOP World - Workplace Source: NOP World - Political group Source: NOP World - (tie) Alumni association or hobby/interest group Source: NOP World 43%
    21. Word of Mouth By Numbers – Ranking Influencers’ Beliefs #1 <ul><li>I love talking to friends about things I have just discovered. </li></ul><ul><ul><ul><ul><ul><li>Source: Agent Wildfire </li></ul></ul></ul></ul></ul>#2 #5 - I like to try out new products well before other people I know do. Source: Agent Wildfire #3 - I'm not shy about expressing my opinion and enjoy a good debate. Source: Agent Wildfire #4 <ul><li>I am always looking for new and different things to do. </li></ul><ul><ul><ul><ul><ul><li>Source: Agent Wildfire </li></ul></ul></ul></ul></ul>- Staying informed and keeping up on current trends is very important to me. Source: Agent Wildfire #6 - People frequently ask me for advice on whether to buy something. Source: Agent Wildfire #7 - I enjoy meeting new people and find it easy to make friends. Source: Agent Wildfire <ul><li>I lead an active life, love to travel and explore new places. </li></ul><ul><li>Source: Agent Wildfire </li></ul>#8
    22. ix. NOT JUST THE WATERCOOLER…
    23. Word of Mouth By Numbers - Where 77% <ul><li>Of word of mouth is face to face. </li></ul><ul><ul><ul><ul><ul><li>Source: North Eastern University </li></ul></ul></ul></ul></ul>17% 6% 76% 40-27 <ul><li>Of word of mouth by phone. </li></ul><ul><ul><ul><ul><ul><li>Source: North Eastern University </li></ul></ul></ul></ul></ul><ul><li>Of word of mouth online. </li></ul><ul><ul><ul><ul><ul><li>Source: North Eastern University </li></ul></ul></ul></ul></ul><ul><li>Of organized seeded word of mouth is spontaneous. </li></ul><ul><ul><ul><ul><ul><li>Source: North Eastern University </li></ul></ul></ul></ul></ul>Percentage of word of mouth that happens at home and work respectively. Source: North Eastern University 14-8-7 Percentage of word of mouth that happens in a commercial area, campus and or community/fitness/party area respectively. Source: North Eastern University
    24. x. IT STARTS WITH A GREAT EXPERIENCE
    25. Word of Mouth By Numbers – It’s an Experience Thing <ul><li>of business leaders believe Customer Experience is the new battleground Source: MCE </li></ul><ul><li>Who say majority of customer experiences are “bland” </li></ul><ul><ul><li> Source: Gallup </li></ul></ul>69% - Of consumers who say emotions account for ½ of their customer experience Source: Strategic Resource Development Group, 2006 #2&#3 - Customer Service and Customer Experience rank in achieving growth goals (behind business strategy) Source: Microsoft Executive Circle Of consumers who had a negative service experience in the past year AND those that subsequently severed the relationship. Source: Customer Focus 95% 96&80% 49% 22% - Of customers agreed that companies “currently provide an excellent customer experience.” Source: Customer Focus
    26. xi. AND THEY TOLD XX PEOPLE AND SO ON…
    27. Word of Mouth By Numbers – The Passalong Effect <ul><li>of people ever pass on content through email Source: Sharpe Partners </li></ul><ul><li>of people pass on content every week </li></ul><ul><ul><li> Source: Sharpe Partners </li></ul></ul>46% <ul><li>of people pass on content daily </li></ul><ul><li> Source: Sharpe Partners </li></ul>6 - Average number of recipients that people pass on content through email Source: Sharpe Partners 89% 10&13 63% 75,38, 39, 52 <ul><li>Average number of friends on teen’s social networks, cell phone directories, email address list and IM directory” </li></ul><ul><li>Source: Deloitte & Touche </li></ul><ul><li>Bloggers average number of blogroll links and links to their blog </li></ul><ul><li> Source: Pew Internet </li></ul>
    28. Word of Mouth By Numbers – The Passalong Effect <ul><li>Passalong Jokes and Humour </li></ul><ul><li>Source: Sharpe Partners </li></ul>32% 30% 88% 56% 25% 24% 24% <ul><li>Passalong News </li></ul><ul><li>Source: Sharpe Partners </li></ul><ul><li>Passalong Health/Medical Info </li></ul><ul><li>Source: Sharpe Partners </li></ul><ul><li>Passalong Religious/Spiritual Info </li></ul><ul><li>Source: Sharpe Partners </li></ul><ul><li>Passalong Games </li></ul><ul><li>Source: Sharpe Partners </li></ul><ul><li>Passalong Personal Finance </li></ul><ul><li>Source: Sharpe Partners </li></ul><ul><li>Passalong Sports/Hobbies </li></ul><ul><li>Source: Sharpe Partners </li></ul>
    29. xii. MAKE NEW FRIENDS AND KEEP THE OLD…
    30. Word of Mouth By Numbers – The Transmitters 11% - Tastemakers – the ones who create Source: Agent Wildfire 7% 8% - Trendspotters – the ones who notice Source: Agent Wildfire 19% - Opinion Leaders – the ones who sell & convert Source: Agent Wildfire 36% - Experts/Mavens –the ones who know Source: Agent Wildfire - Celebrities – the ones who attract Source: Agent Wildfire 18% - Social Ringleaders – the ones who spread Source: Agent Wildfire
    31. Word of Mouth By Numbers – The Recipients 35% - Friends Source: Agent Wildfire 24% 4% - Family Source: Agent Wildfire 20% - Work Colleagues Source: Agent Wildfire 9% - Neighbours Source: Agent Wildfire - Online community members Source: Agent Wildfire 4% - Hobby/interest/team members Source: Agent Wildfire
    32. xiii. WORD OF MOUTH: THE LANGUAGEOF SOCIAL GROOMING
    33. Word of Mouth By Numbers – What Do We Talk About Generally 25% - Life/Living(i.e. food, events, relationships) Source: Northeastern University 13% 10% 12% 11% 6% - The Arts (i.e. movies, music, TV) Source: Northeastern University - Buying/using services Source: Northeastern University - Technology/science Source: Northeastern University - Buying products Source: Northeastern University - Health Source: Northeastern University 4% - (tie) Workplace/Professional and Hobbies Source: Northeastern University 3% - (tie) Sports/Education/Current Events Source: Northeastern University
    34. What Do We Word of Mouth About – Brand Conversations Per Week 12 - Media/Entertainment Source: Keller Fay 10 8 8 8 7 - Food & Dining Source: Keller Fay - Beverages Source: Keller Fay - Public Affairs Source: Keller Fay - Telecommunications Source: Keller Fay - (Tie) Tech & Travel Source: Keller Fay 7 - Health & Health care Source: Keller Fay 6 - (tie) Shopping/Auto/Financial/Beauty Source: Keller Fay
    35. xiv. WORD OF MOUTH: WHAT MOTIVATES US TO BUZZ
    36. #1 Reason Why We Word of Mouth – Products & Services That Are: 32% - Exciting/buzzworthy Source: Agent Wildfire 20% 9% 13% 13% 9% - Real problem solvers/smart ideas Source: Agent Wildfire - Exclusive and not yet discovered Source: Agent Wildfire 3% - Things You Personally Experience/Associate With Source: Agent Wildfire - New or just breaking Source: Agent Wildfire - Innovative and one-of-a-kind Source: Agent Wildfire - Fashionable & Stylish Source: Agent Wildfire
    37. xv. CONNECTED 24/7…
    38. Word of Mouth By Numbers - Connected 2.7B <ul><li>Cellphones in the world </li></ul><ul><ul><ul><ul><ul><li> Source: Gartner </li></ul></ul></ul></ul></ul>1.8B 1.1B 110M <ul><li>Number of videos streamed online every month </li></ul><ul><li>Source: Comscore </li></ul>8.5B <ul><li>Bloggers in the world </li></ul><ul><ul><ul><li> Source: Technorati </li></ul></ul></ul>75% Number of Facebook users who log in daily Source: Facebook <ul><li>Instant Messenger Users in the world </li></ul><ul><ul><ul><ul><ul><li> Source: Communities Dominate Brands </li></ul></ul></ul></ul></ul><ul><li>Internet users in the World </li></ul><ul><ul><ul><ul><ul><li> Source: Gartner </li></ul></ul></ul></ul></ul>
    39. xvi. MARKETING IS NOW A TRIBAL GAME…
    40. Word of Mouth By Numbers - Community 82% - Percentage of “brand community members” who recommend company/brand more often after membership Source: Communispace 89% <ul><li>Percentage of “brand community members” who believe company is truly concerned on what they have to say </li></ul><ul><li>Source: Communispace </li></ul>76% 75% 56% - Percentage of “brand community members” who felt MORE positively about the company Source: Communispace - Percentage of “brand community members” who felt MORE respect for the company Source: Communispace <ul><li>Uplift in revenue - community members vs. non-members </li></ul><ul><li> Source: HBR </li></ul>2x/4x/6x <ul><li>Ebay community members vs. control users – frequency of bids, frequency of listings and amount of earnings Source: HBR </li></ul>
    41. xvii. GATHER ‘ROUND THE FIRE, WE’RE HAVING A SOCIAL…
    42. Word of Mouth By Numbers - Social 850M <ul><li>Number of people on top 72 social networks </li></ul><ul><ul><ul><ul><ul><li> Source: Wikipedia </li></ul></ul></ul></ul></ul>668% <ul><li>Growth in social networks April 2007 (from April 2006) </li></ul><ul><li>Source: Business Week </li></ul>2,4 & 29 - Average number of confidants, close friends, strong ties Source: Agent Wildfire 4.2 79.9 <ul><li>Average Visits per month to social network sites (vs. 3.5 for other sites) by members Source: Comscore </li></ul>217 <ul><li>Average minutes per visit to social network site (vs. 33.2 minutes for other sites) Source: Comscore </li></ul><ul><li>Average No. of pages per visit to social network sites (vs. 53 for other online sites) </li></ul><ul><ul><ul><ul><ul><li>Source: Comscore </li></ul></ul></ul></ul></ul>
    43. Word of Mouth By Numbers – Social Networks 91% <ul><li>Use social networks to stay in touch with friends they see a lot </li></ul><ul><li>Source: Pew Internet </li></ul>82% <ul><li>Use social networks to make new friends that they don’t see in real life </li></ul><ul><li> Source: Pew internet </li></ul>51% 84%,82%, 76% <ul><li>Percentage of online time spent by Millenials (14-26 years old) on social networks Source: Deloitte & Touche </li></ul><ul><li>Use social networks and post to friend’s wall/page, send private messages, post comments to friend’s blog </li></ul><ul><li>Source: Pew Internet </li></ul><ul><li>Use social networks to make plans with friends, send a mass message, wink, poke or give e-props to friends Source: Pew Internet </li></ul><ul><li>Use social networks to stay in touch with friends they rarely see in person Source: Pew Internet </li></ul>49% 72%,61%, 33%
    44. xix. PEOPLE WANT IN…
    45. Word of Mouth By Numbers – Create & Share 52% - Of bloggers’ major reason for blogging is to express themselves creatively Source: Pew Internet 50% 68% <ul><li>Percentage of the net generation (14-26 years old) willing to collaborate with companies that engage them in dialogue </li></ul><ul><li>Source: New Paradigm </li></ul>- Have registered for emails from companies at an average of 8.5 sites Source: Ipsos-NA 80% <ul><li>Of customers believe customer-generated ads are more customer-friendly, more creative and more innovative </li></ul><ul><ul><ul><ul><ul><li>Source: American Marketing Association </li></ul></ul></ul></ul></ul>68%,56%, 55% - Percentage of consumers who regular give and seek information about products Source: eMarketer - Of bloggers’ major reason for blogging to document personal experiences and share them with others Source: Pew Internet 94% & 91%
    46. xx. GIVE UP SOME POWER TO GET SOME POWER…
    47. Word of Mouth By Numbers – Not Well Practiced 80% - Of companies believe they deliver a superior customer experience. But only eight percent of their customers agree Source: Customer Focus 22% - Of marketers willing to let customers shape their marketing initiatives Source: University of Mass.-Dartmouth 3.4% <ul><li>Percentage of face to face WOM conversations stimulated by a marketing organization's promotional efforts </li></ul><ul><li>Source: Journal of Services Marketing </li></ul>- Executives who believe they don’t engage in true dialogue with customers Source: Strativity 55% - Executives who believe they don’t deserve their customer’s loyalty Source: Strativity 45% 5.8% - Percentage of Fortune 500 companies with a public blog Source: Social Text
    48. Word of Mouth By Numbers – There is Hope Yet 36%,32%, 31% <ul><li>Breakdown of why companies will participate in social media more actively in the future </li></ul><ul><ul><li>to keep ahead of the competition </li></ul></ul><ul><ul><li>to be cost-efficient </li></ul></ul><ul><ul><li>to deal with declining credibility of ads and editorial Source: Manning, Selvage & lee </li></ul></ul>65% <ul><li>Percentage of business executives who social network online (Linked In, MySpace, Yahoo 360) </li></ul><ul><ul><ul><ul><li>Source: I4CP </li></ul></ul></ul></ul><ul><li>Percentage of Executives who believe: </li></ul><ul><ul><li>social media will grow </li></ul></ul><ul><ul><li>social media is a fad Source: MS&L </li></ul></ul>70&3% <ul><li>Marketer’s expected use of online media over the next 3 years – percentage expected more/expected less </li></ul><ul><ul><ul><ul><ul><li> Source: Association of National Advertisers </li></ul></ul></ul></ul></ul>96% & 1% 4.5, 4.3, 4.1 <ul><li>Ratings out of 5 on why Corporate Blogs are a priority </li></ul><ul><ul><li>Another way to publish content and ideas </li></ul></ul><ul><ul><li>Thought leadership </li></ul></ul><ul><ul><li>Build a community Source: Backbone Media </li></ul></ul>
    49. Brand Communities Word of Mouth Campaigns Word of Mouth Media Word of Mouth Insights Word of Mouth Consulting
    50. Let’s Put your Word of Mouth on an Accelerator Pedal! Inquire: smoffitt (at) agentwildfire.com Phone: 647-436-6802 URL: www.AgentWildfire.com Join/Share: www.TheInfluencers.ca Blog: http://BuzzCanuck.typepad.com/ Learn: The Buzz Report (monthly e-newsletter)
    51. Agent Wildfire Inc. 2006 Agent Wildfire President & Chief Evangelist - Sean Moffitt Led and managed some of Canada’s most loved brands VP Marketing/Strategy - Molson & Diageo-Guinness Various Brand/Innovation management roles - P&G VP Business Development/Client Service - Echo Successfully practiced word of mouth as a client, agency executive and now as a specialist expert Founded Agent Wildfire in 2004 , operates as a full service WOM marketing, media & research firm Frequent speaker at conferences, seminars and universities on new media & word of mouth Chair and organizer - Canadian Marketing Association’s word of mouth conferences and seminars Co-developed Canada’s 1st Word of Mouth MBA course at Schulich School of Business Author of Buzz Canuck blog and The Buzz Report e-newsletter Consultant with New Paradigm Group on the open source Future of Brands (Wiki Brands)

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