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
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? …
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%
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
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%
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
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
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
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)
Editor's Notes
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