Conversation Triggers That Spark Word Of Mouth

Conversation Triggers: Sparking Conversations with Advertising & Media Ed Keller CEO, Keller Fay Group Twitter.com/kellerfay Insert Photo Emily Vanides VP Connections Research & Analytics MediaVest Insert PhotoJune 13, 2011

Word of Mouth is Powerful“The rewards of pursuing excellence in word-of-mouth are huge, and it can deliver a significant competitive edge few other marketing approaches can match” “It’s the most disruptive factor in marketing” “Marketing-induced consumer-to-consumer word of mouth generates more than twice the sales of paid advertising” McKinsey Quarterly, April, 2010 2

But What Sparks Conversation? Many assume WOM is generated by great brand experiences – Highly satisfied customers become evangelists for brands. However, marketing often sparks WOM, as well – Half of conversations about brands refer to media/marketing. To maximizing WOM, we need a clear sense of how marketing can most effectively “trigger” conversations. – Which media, at what time of day, in what venues, and relating to what topics of conversation? 3

WOM is at the core of SMG’s approachto marketing communications Simplifying human understanding to deliver meaningful brand experiences Our framework for designing experiences that matter 4

Ultimately, brands need to be apart of the conversation We live in a networked world The role of marketing is to be a spark in the communities where people live and play We have to harness the power of people‟s shared purpose & voice – Weaving into the fabric that bonds people together We must listen & understand the conversations and how we can trigger them 5

We looked to our partners at KellerFay to provide new insights 5+ year partnership with SMG Proven approach to WOM tracking and analysis – Inclusive of both online AND offline International perspective Successful and market-leading insights into the relationships between marketing and brand WOM – E.g. Super Bowl, Olympics, Cross-media studies, etc 6

Multiple Data Sources: TalkTrack® TalkTrack® Methodology – TalkTrack® is a diary-based survey program that measures all forms of word of mouth (WOM) – offline + online. – Respondents keep a diary of conversations over a 24-hour period, and then take an online survey where they report on these conversations. TalkTrack® US – A national syndicated program involving 36,000 consumers aged 13 to 69 annually. – The majority of TalkTrack® US results presented in this analysis are derived from interviews collected during November 2009 to October 2010, and during this time a total of 36,622 respondents participated. TalkTrack® Britain – Study was fielded online in May 2010. – A total sample of 2,578 16 to 69 year olds participated in the first wave of this study. TalkTrack® Australia – Study was fielded online in April – May 2010. – A total sample of 2,829 16 to 69 year olds participated in this study. 7

Multiple Data Sources:IPA TouchPoints 3  Unique and original survey of 5,400 British adults aged 15+ – Information gathered through individual PDA diaries and self-completion questionnaires.  The findings presented here focus on the diary portion of TP3.  The diary records information on a half hourly basis on the following: – Location of respondent – Who they were with – What they were doing (consuming media, communicating, etc.) – What media they were consuming – Their mood  Research was conducted during September 2009 through February 2010. 8

Regardless of Market (or Category), Offline Conversations Dominate How Brand Conversations Take Place US = 7% Britain = 7% Australia = 7% US = 91% Britain = 92% Australia = 91%Source: TalkTrack®: US, July 2009 – June 2010; Australia, April 2010, Britain, May 2010 9

Presentation to Cover What triggers WOM, according to consumers Role of media/marketing in WOM 10

(TalkTrack® Australia) What Triggers WOM, According to Consumers “Which one of the following comes closest to describing what prompted or “sparked” the conversation? “ “Something else” generally relates to “neutral” or factual talk about brand experiences or purchase plans.Base: Conversations (All WOM, n=17,653)Source: Keller Fay Group‟s TalkTrack® Australia, April – May 2010 11

(TalkTrack® Australia) Important Differences in WOM Triggers by Category What “Sparked” The Conversation Ranked by “All WOM” Results on Previous SlideBase: Conversations (Beauty & Personal Care, n=634; Beverages, n=1,390; Technology, n=1,368; Financial, n=1,003)Note: Percentages will not add to 100% because “something else” is not shown. These figures are 32%, 46%, 27%, and 42%, respectively.Source: Keller Fay Group‟s TalkTrack® Australia, April – May 2010 12

(TalkTrack® Australia) “Good” Experiences Drive Three Times More WOM than “Bad”• WOM about positive experiences is more likely to be shared with others than WOM about negative experiences. What “Sparked” The Conversation – Sharing an Experience Good-Bad Experience Ratio: Beauty & Personal Care – 7:1 Beverages – 5:1 Technology – 3:1 Financial Services – 1:1 20% of all WOM is driven by “sharing an experience” – three- quarters of which is “good.”Base: Conversations (All WOM, n=17,653)Source: Keller Fay Group‟s TalkTrack® Australia, April – May 2010 13

(TalkTrack® US) Positive, Strong Emotions Trigger the Most WOM Summary Table: WOM Topics Surfacing in Each Category by Pass-Along Likelihood Beauty & Personal Care Beverages Topics Surfacing in Each Category Highly Likely Not Likely Highly Likely Not Likely Superlative Brand Enthusiasm (Love, Excellent…) 10% 6% 11% 6% General Brand Enthusiasm (Great, Good…) 15% 11% 11% 11% General “Like” /Think Brand is OK 8% 7% 10% 11% Brand Criticism (Terrible, Bad, Hate, Worst) 3% 5% 2% 5% Brand Reputation (Positive) 6% 4% 2% 2% Brand Works Well 14% 9% 17%* 11%* Brand Does Not Work Well 3% 6% 3%* 3%* Purchase Decision 10% 10% 15% 17% “Need” The Brand 10% 7% 5% 5% “Want” The Brand 1% 3% 5% 5%*For “Works Well” for beverages examined “tastes good” and brand hydrates, wakes me up, etc.**For “Works Well” we examined “rate of return/earning interest” and positive feedback on customer service, since finance is a services oriented category. “Doesn‟t Work Well” is negative customer service.***For “Cost” examined charges/fees/interest/rates positive and negative.Note: Shading denotes statistical significance at the 90% confidence level.Source: Keller Fay Group‟s TalkTrack®, October 2009 – September 2010 14

(TalkTrack® US) Positive Emotions Also Key Trigger for Tech & Financial WOM Summary Table: WOM Topics Surfacing in Each Category by Pass-Along Likelihood Technology Financial Topics Surfacing in Each Category Highly Likely Not Likely Highly Likely Not Likely Superlative Brand Enthusiasm (Love, Excellent…) 11% 5% 6% 3% General Brand Enthusiasm (Great, Good…) 25% 18% 13% 7% General “Like” /Think Brand is OK 5% 5% 2% 2% Brand Criticism (Terrible, Bad, Hate, Worst) 7% 9% 14% 11% Brand Reputation (Positive) 8% 3% 3% 1% Brand Works Well 5% 2% 5%** 4%** Brand Does Not Work Well 1% 3% 3%** 5%** Purchase Decision 5% 6% N/A N/A “Need” The Brand 2% 1% N/A N/A “Want” The Brand 6% 2% N/A N/A*For “Works Well” for beverages examined “tastes good” and brand hydrates, wakes me up, etc.**For “Works Well” we examined “rate of return/earning interest” and positive feedback on customer service, since finance is a services oriented category. “Doesn‟t Work Well” is negative customer service.***For “Cost” examined charges/fees/interest/rates positive and negative.Note: Shading denotes statistical significance at the 90% confidence level.Source: Keller Fay Group‟s TalkTrack®, October 2009 – September 2010 15

(TalkTrack® US) Media Play a Big Role in Driving WOM ~ Half of consumer brand conversations refer to marketing or media …led by television (17%) Internet (15%) point of sale (9%) newspapers (6%) magazines (5%) direct mail/email (5%)Marketing and media are tools for encouraging WOMSource: Keller Fay Group‟s TalkTrack®, November 2009 – October 2010 16

(TalkTrack® US) Which Media that Trigger WOM? Plan by Category Media and Marketing References (% of WOM conversations citing media or marketing; top 3 references highlighted) Beauty & Financial All WOM Personal Beverages Technology Services Care Brand Mentions Involving 52% 59% 44% 55% 41% One or More References* Television 17% 15% 12% 13% 8% Internet 15% 13% 8% 26% 19% Point Of Sale 9% 14% 15% 12% 4% Magazines are Promotion 8% 18% 12% 6% 3%disproportionately referenced in Newspaper 6% 6% 5% 6% 5% beauty WOM. Direct Mail/E-Marketing 5% 5% 3% 5% 10% Magazine 5% 9% 4% 6% 3% Any Other Ad 3% 3% 3% 3% 3% Radio 3% 3% 3% 3% 3% Billboard 2% 2% 2% 2% 1% Base: Brand Mentions (All WOM, n=170,380; Beauty, n=7,361; Technology, n=13,523; Beverages, n=17,822; Financial Services, n=8,324) *Up to two media/marketing references can be selected so figures will not add to this total row. Source: Keller Fay Group‟s TalkTrack®, November 2009 – October 2010 17

Introducing theMedia Sociability Index™ Which media give advertisers the best access to consumers while they are in a conversational mode? – Based on proximity of media use and conversation. – TouchPoints3 (UK) is data source. The Media Sociability Index™ reveals “highly sociable media.” – This is an index which compares „those consuming media and communicating‟ with the average percentage of people communicating at any given half-hour interval over the course of the day. 18

(IPA TouchPoints 3) Conversations Happen More Often at Times When Media are Being Consumed• The baseline Media Sociability Index for conversations is 141 (based on 45% divided by 32%). All Forms of Conversation (Offline or Online) Media Sociability Index*** = 141 % of Total Adults Having % of People Consuming Media Conversations Who Are Simultaneously** During Each Half Hour Conversing with Others Offline or (Average Day*) Online (Average Day)*An average of the average percentage of offline./online or offline conversations during each half hour was taken to arrive at this figure.**Same half hour***Media Sociability Index compares „those consuming media & communicating‟ with the average percentage of people communicating during the day.Source: IPA TouchPoints3 19

(IPA TouchPoints 3)Internet & Radio are Highly Sociable,Coinciding Most with Conversations Boxed figuresrepresent Keller Fay‟s Media Sociability Index** metric 163 153 141 103 100*Same half hour**Media Sociability Index compares the above results to the average percentage of people communicating overall (32%) or just offline (30%) over thecourse of the day.Source: IPA TouchPoints3 20

(IPA TouchPoints 3) Large Variances in Times of Day People Socialize While Using Media Workplace use drives the sociability of Internet use during the morning hours.*Same half hour**Midnight to 4AM excluded for print media due to low base sizes during these hours.Source: IPA TouchPoints3 21

(IPA TouchPoints 3)Media Consumption at Work & SchoolEnjoy Highest Sociability The Percentage of People Consuming Media Who are Simultaneously* Conversing withBoxed figures Others Offline or Online – By Location represent (During Average Day – Monday through Sunday) Keller Fay‟s Media Sociability 141 225 219 131 128Index** metric *Same half hour **Media Sociability Index compares the above results to the average percentage of people communicating overall (32%) across each day part. Source: IPA TouchPoints3 22

(IPA TouchPoints 3)Digital Channels Related to Kids &Music Earn Highest Sociability Scores The Percentage of People Watching Digital TV Channels Who are Simultaneously* Conversing with Others Offline or Online (During Average Day – Monday through Sunday) % Communicating Type of Digital Channel Watched Media Sociability Index** with Others Children’s 73% 228 Music 54% 169 Home/DIY/Gardening 49% 153 Sport 48% 150 Reality 47% 147 News/Current Affairs 47% 147 Entertainment 46% 144 Shopping 44% 138 Game Show 41% 128 Movie 41% 128 Nature 39% 122*Same half hour**Media Sociability Index compares the above results to the average percentage of people communicating overall (32%) across each day part.Source: IPA TouchPoints3 23

Conclusions:Opportunities to Trigger WOM Marketing and media play important roles in triggering WOM: – Consumers tell us media “triggers” WOM 20% of the time. – Consumers report both conversing and consuming media during the same day parts. – Consumers report nearly half their conversations contain a reference to content they found in marketing. Conversations often happen close to the times when media are being consumed, providing marketers access to conversations. – Early morning and early evening are especially good times to reach people who are consuming media and socializing. 24

Conclusions:Opportunities to Trigger WOM TV & Internet are referenced in the largest volume of conversations, while point of sale & promotions play a key role in CPG WOM. The Internet is possibly the most “sociable” of media, especially at work. – Radio surprisingly effective at reaching people in social context. – Television, especially programming/channels related to children, DIY, or sports, is effective in triggering conversations at home. Positive experiences trigger more WOM than negative. – WOM containing stronger emotions tends to be the most viral. – Positive talk related to product efficacy, such as “works well,” is also more likely to be shared with others. 25

Thank you! Insert Photo Insert PhotoEd Keller, ekeller@kellerfay.com Emily Vanides Facebook.com/kellerfay Emily.vanides@mediavestww.com Twitter.com/kellerfay

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Conversation Triggers That Spark Word Of Mouth

by Keller Fay Group on Oct 03, 2011

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Conversation Triggers That Spark Word Of Mouth — Presentation Transcript