There is a common assumption that word of mouth tends to be negative, and that negative WOM has greater impact than positive talk. It turns out that both are untrue. More than two-thirds of all brand WOM is actually positive in nature, while less than 10% is purely negative. That’s over eight times more positive than negative WOM.

1. © 2014 Keller Fay Group | Not to be quoted or distributed without written permission
The Power of Positive WOM
Keller Fay TalkTrack® Insights
March 2014

2. Introduction: Positive and Negative WOM
2
“What is the
breakdown
between positive
and negative
WOM?”
“Negative WOM has to
be more impactful on
consumer behavior than
positive WOM, right?”
Two of the most frequent questions we hear about WOM:
We’ll address those questions and
more in this presentation.

3. Executive Summary
• More than 2/3 of all WOM is positive, compared
to less than 10% that is negative.
– Leading categories for positive WOM include personal care & beauty,
beverages, household products, food/dining and media/entertainment.
– Even polarizing categories like financial services and telecom earn over 50%
positive WOM.
• Positive WOM is more likely than negative WOM
to be viewed as credible and to result in
information pass along.
– Travel, media/entertainment and retail/apparel are the leading categories
where positive WOM is rated as even more credible and likely to be passed
along than negative WOM.
3

4. All Product Categories Earn
> 50% Positive Sentiment
4
-24%
-12%
-19%
-18%
-15%
-16%
-15%
-14%
-15%
-13%
-13%
-16%
-14%
-18%
-9%
-8%
-7%
-6%
-6%
-5%
-6%
-6%
-4%
-8%
52%
58%
64%
64%
68%
69%
71%
71%
72%
71%
74%
67%
Net Sentiment
(positive less mixed
& negative WOM)
43
MixedNegative Positive
57
52
52
51
50
WOM Sentiment by Category
All Categories
Personal Care & Beauty
Beverages
Media / Entertainment
Household Products
Food / Dining
Retail / Apparel
Travel
47
46
Automotive
Technology
Financial Services
Telecom
38
36
28
14
Source: Keller Fay’s TalkTrack®, Oct. 2012 – Sept. 2013

5. Positive WOM is More Credible
and More Likely To Be Shared
5
45%
37%
64%
53%
Credibility/Believability Likelihood to Pass Along
Positive WOM Rated Highly Credible/Likely to Lead to Action
Mostly Negative WOM Mostly Positive WOM
Source: Keller Fay’s TalkTrack®, Oct. 2012 – Sept. 2013

6. In These Key Categories, Positive WOM Exhibits the
Most Decided Advantage Over Negative WOM
6
69%
67%
67%
65%
65%
45%
48%
47%
47%
52%
Travel
Media/Entertainment
Food/Dining
Retail/Apparel
Financial
61%
56%
53%
53%
53%
36%
33%
38%
41%
42%
Travel
Retail/Apparel
Media/Entertainment
Telecom
Technology
Mostly Positive WOM Mostly Negative WOM
% of WOM Rated Highly Credible/Likely to Lead to Action
Credibility / Believability Likelihood to Pass Along
Source: Keller Fay’s TalkTrack®, Oct. 2012 – Sept. 2013

7. © 2014 Keller Fay Group | Not to be quoted or distributed without written permission
The Keller Fay Group
Bringing best-in-class tools to word of
mouth strategy and measurement