Stats, and Data, and Numbers, Oh My

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Stats, and Data, and Numbers, Oh My!
All the facts and figures about Word of Mouth
that you can eat
Ed Keller, CEO, The Keller Fay Group Greg Wester,
VP, In-Call Network, Voodoovox Ann Green, SVP,
Marketing Solutions, Millward Brown
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Our Agenda
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WHY WOM is important
2
WHO is creating and relying on WOM
3
WHERE WOM is happening
4
WHAT is being said
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(No Transcript)
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Note Use of Icons
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WHY
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People Dont Trust Advertising . . .
76
dont believe that companies tell the truth in
advertisements
Yankelovich, 2005
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. . .People Trust Others
68
trust other people like themselves. Up from 22
in 2003.
Source Edelman Trust Barometer
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That Trust Extends to Product Advice
92
cite WOM as best source for product ideas. Up
from 67 in 77.
Source GfK NOP/Roper
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That Advice Makes a BIG Difference . . .
84
Find the advice at least somewhat credible.
Source TalkTrack, Keller Fay Group, 2006
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Personal Contacts Are Most Convincing . . .
2x
difference when comparing stated impact of
contacts versus company led info
Source Millward Brown, WOM Influence Study, 2005
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Their Recommendations Impact CHOICE . . .
19
choose brand solely due to recommendation
Source Millward Brown, WOM Influence Study, 2005
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Their Talking About The Brand Impacts BRAND
STRENGTH . . .
1.5x
more likely to grow if brands are talked about
Source
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. . . as well as COMPANY GROWTH . . .
2x
increase in company rate of growth from a 12
point increase in advocacy
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As A Result,Marketers Are Doing More Than Talking
43
of US marketing execs plan to use WOM in next 6
months
Source CMO Magazine, April 2005
E-Mail Marketing Customer influence via word of
mouth Search marketing (paid placement) Blogs Prod
uct placement Branded entertainment Stealth
marketing Brand usage monitoring technology Use
of celebrities Determined detractors (negative
influence via internet and digital means)
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WHO
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Just About Everyone Is Talking . . .
76
of all Americans talk about at least 1 brand a
day (and average 10)
Source TalkTrack, Keller Fay Group, 2006
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of every conversation in America includes
something about a product or service
Source Northeastern University
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And Theyre Talking Frequently
112
marketing relevant conversations per week per
person
Source TalkTrack, Keller Fay Group, 2006
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. . . Primarily With Friends, Family . . .
46
of brand conversations take place between spouses
or other family members
Source TalkTrack, Keller Fay Group, 2006
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And, Peers
35
of teens young adults are talking to their good
friends
Source TalkTrack, Keller Fay Group, 2006
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But Some People Talk More Than Others . . .
2
times as many brand conversations per week come
from Conversation Catalysts
Source TalkTrack, Keller Fay Group, 2006
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WHERE
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The Majority Of WOM Conversations Are Occuring
Offline . . .
71
of WOM conversations are face-to-face
Source TalkTrack, Keller Fay Group, 2006
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. . . But Youth Is More Digital
3x
greater share of youth conversations are digital
Source TalkTrack, Keller Fay Group, 2006
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As Are Some Industry Categories
7x
difference in online popularity across categories
Source Millward Brown, WOM Influence Study, 2005
Advice from Blogs/chat/message boards
Advice from Personal contacts
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WHAT
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Theres More WOM in Certain Categories
2/3s
of brand mentions occur in the top 7 industry
categories
Source TalkTrack, Keller Fay Group, 2006
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And, This Word Of Mouth Is Mostly Positive
61
is the ratio of positive to negative word of mouth
Source TalkTrack, Keller Fay Group, 2006
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. . . And Positive WOM Has The Most Impact
26
point average difference in key area impact
between positive and negative WOM
Source TalkTrack, Keller Fay Group, 2006
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But Don't Underestimate The Power Of Negative
WOM!
74
of those hearing a personal, negative
recommendation were influenced to buy another
brand
Source Millward Brown, WOM Influence Study, 2005
Blogs/ Message Boards/Chat Rooms
Independent reviews/ press
Personal contacts
Company led




I chose a different brand solely because of their
advice
I chose a different brand partly on the basis of
the advice received
I would have chosen a different brand regardless
of their advice
I chose this brand despite being advised against
it
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WOM Impacts Purchasing
61
of conversations have an impact on the likelihood
to buy a brand
Source TalkTrack, Keller Fay Group, 2006
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. . . And Can Be Stimulated By A Brands Own
Marketing And Media
40
of brand conversations refer to brand marketing
or media
Source TalkTrack, Keller Fay Group, 2006
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The Final Word
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The Most Talked About Brands in America(Brands
with the most conversation mentions in
TalkTrack)

• Ford
• Verizon
• Dell
• Cingular
• Wal-Mart
• Chevrolet
• Toyota
• Coke
• Honda
• Apple/iPod

Every conversation is a marketing opportunity!
Source TalkTrack, Keller Fay Group, 2006
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Word-of-Mouth All-Stars (Brands with largest
net positive WOM mentions in TalkTrack)

• Toyota
• Wal-Mart
• Honda
• Apple/iPod
• Chevrolet
• Target
• Sony
• Home Depot
• BMW
• Verizon

Source TalkTrack, Keller Fay Group, 2006
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Thank You!

• Ann Green, Millward Brownann.green_at_us.millwardbro
  wn.com
• Ed Keller, Keller Fay Groupekeller_at_kellerfay.com
• Greg Wester, VoodooVoxgreg_at_voodoovox.com