May 20, 2013

Experience-Driven Word of

Mouth: The Key to Powerful

Social Marketing

By

Keller Fay Group

Commissioned By

House Party

©2013 The Keller Fay Group

Introduction Word of mouth (WOM) is huge and hugely important. Keller Fay

estimates there are 2.1 billion brand impressions created via word of

mouth each day in America. McKinsey calls word of mouth “the most

disruptive force in marketing.”

But what gets people talking in the first place? Marketers need answers

to that question if they are to unleash the full scale and power of word of

mouth and social influence. A lack of solid, projectable research about

what motivates consumers to talk about brands leaves many marketers to

make marketing decisions that fail to fully capitalize on the opportunities

that are afforded by today’s highly social marketplace.

This paper explores the factors that trigger word of mouth and assesses

which have the greatest impact. Specifically, this study investigates the role

of positive experiences in triggering high quality, actionable WOM. In doing

so, it demonstrates the value of incorporating experiential marketing into a

brand’s marketing mix.

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©2013 The Keller Fay Group

Methodology The research in this paper is based on data from more than 31,000

consumers ages 13-69 who kept track of and reported on their word of

mouth conversations between April 2012 and January 2013.

The data come from Keller Fay Group’s TalkTrack®, a continuous,

syndicated program measuring word of mouth in all forms: face-to-face,

over the phone, and through digital tools such as texting, IM, social

networking sites, and email. TalkTrack is conducted week in and week out

among a fresh, nationally representative sample of 700 consumers aged 13

to 69. Respondents use a diary to keep track of their brand conversations,

and then complete an online survey that gathers detailed information

about these conversations.

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Face-to-Face 77%

Phone 15%

Online 6%

Other 2%

Mode of Conversations

©2013 The Keller Fay Group

Key Themes • Good experiences with a brand are a key factor that gets

people talking. 1-in-6 conversations among consumers are triggered

by a positive experience with a brand, more than any other factor except

consumers “having a need.” Ads (5%) and social media (3%) are far

less likely to be the spark that gets people talking.

• Experience-driven WOM is the most credible and positive in

sentiment. Conversations that are prompted by positive experiences

are the most likely to be seen as believable and favorable – more so

than talk that has been generated by media and/or marketing such as

ads and PR. This speaks to the strength of experience-triggered

conversations.

• Experience-driven WOM includes strong calls to try or buy.

Over half of experience-driven conversations contain strong

recommendations to try or buy the brand being discussed.

• Experience-driven WOM sparks the most consumer action.

Over half of experience-driven conversations are highly likely to spur

consumers to pass along the information to others and to purchase. Just

under half are highly likely to drive consumers to seek more

information about the product.

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©2013 The Keller Fay Group

Discussion Good experiences with a brand are a top conversation spark.

Conversations about brands can be started for a wide variety of reasons.

People might see or hear an advertisement that sparks a conversation.

Others might ask for information or advice about a particular brand they are

considering, or they simply may want to share a great experience that they

had.

Our research finds that conversations are most likely to be sparked by a

need, such as being hungry, thirsty or needing a particular product or

service (17%). Good experiences with a brand follows closely behind

(Chart 1). Fifteen percent of all conversations are prompted by a positive

brand experience, either a good encounter with the brand itself, or possibly

a representative of the brand such as a sales person or customer service rep.

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Had A Need 17%

Good Experience

15%

Seeking Advice 13%

Seeing Someone Using a Brand

5%

Bad Experience 4%

Something Else/ Nothing

in Particular 25%

Generally relates to “neutral” or factual talk

about brand experiences or purchase plans.

5%

4%

4%

3%

3% 2%

Chart 1: Conversation Sparks

Media/ Marketing (Net)

21%

Brand Website

Social Media

Shopping Website

Coupon or Sale

Article

Advertisement

©2013 The Keller Fay Group 6

Ads and social media are far less likely to get people talking, with 5% or

fewer saying these are what sparked their conversation. Only 5% of talk is

driven by ads and even less by social media, at 3%.

Regardless of what started the conversation, 83% of all WOM about

products involves someone who has had a personal experience with a brand,

more proof that experience is a foundational element of social

influence.

Good brand experiences are more likely to spark influencers.

Word of mouth influencers are 1.4x more likely to start a conversation

based on a good experience than the average. These influencers are highly

valuable to brands, given their large social networks and their proclivity to

be sought out for their advice and recommendations. This finding suggests

that experience-based WOM is particularly important for unleashing the

power of this important consumer segment.

©2013 The Keller Fay Group

Experience-driven WOM is the most credible and positive.

Credibility is an essential reason that word of mouth is so valuable. At

the end of the day, word of mouth only matters to marketers if it leads to

positive brand outcomes, and credibility is an important prerequisite to

consumer action including purchase.

Nearly two-thirds of experience-based WOM is highly trustworthy (Chart

2). That’s ten percentage points more than WOM triggered by

media/marketing.

Equally important, good experiences get people talking positively about

brands. 80% of WOM sparked by a good experience is mostly positive,

compared to 69% of talk overall, again demonstrating the caliber of

experience-driven WOM.

57% 53%

63% 60%

All WOM Media/Marketing WOM Experience WOM Experience WOM + Media/Marketing Reference

Chart 2: % Rating WOM Highly Credible/Believable “9” or “10” on 0-10 Scale

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©2013 The Keller Fay Group

Over half of good experience-driven conversations contain strong

recommendations to try or buy the brand.

When people talk about brands, the conversations often contain advice.

They are not idle chit chat. These are robust conversations with valuable

outcomes for the brand involved.

Advice givers might strongly recommend that someone purchase a

product, or they might make a softer suggestion that they consider

purchasing a particular product. Alternatively, they may advise the other

person to avoid a brand altogether, if they have had bad experiences.

The research shows that for conversations based on a positive experience,

over half lead to strong buy or try recommendations, while an additional one-

quarter contain subtler suggestions to consider purchasing or trying a brand

(Chart 3). What’s more, when WOM triggered by a good experience also

references a media/marketing element, talk is even more likely to contain a

buy it or try it recommendation. The bottom line? Good experiences convert

high quality WOM into valuable business outcomes.

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©2013 The Keller Fay Group 9

40%

25%

7%

40%

28%

7%

51%

25%

5%

53%

28%

5%

Buy or Try It Consider It Avoid It

All WOM Media/Marketing WOM Experience WOM Experience WOM + Media/Marketing Reference

Chart 3: % of WOM Conversations Containing Specific Recommendation

Experience-driven WOM inspires the most action, especially

when it references the brand’s media/marketing.

Conversations triggered by a good experience are also very likely to

inspire action (Chart 4). This is particularly so when they contain a

media/marketing reference, illustrating the importance of aligning

media/marketing plans with experience-driven WOM programs.

Fifty-five percent of experience-driven talk that also references media/

marketing is highly likely to motivate those engaged in the conversation to

pass along the information to others; that’s eight percentage points higher

than WOM triggered exclusively by media/marketing.

©2013 The Keller Fay Group

What’s more, 56% of experience-driven WOM that also references

media/marketing is very likely to lead talkers to purchase the brand; that’s

ten percentage points higher than conversations sparked only by

media/marketing.

Just under half of these conversations sparked by a positive experience

and referencing a media/marketing element are highly likely to spur

consumers to seek even more information as a result – eight points more

than WOM driven by media/marketing alone.

46%

34%

48% 47%

37%

46%

54%

41%

55% 55%

45%

56%

Likely to PassAlong to Others

Likely toSeek More info

Likely toPurchase

All WOM Media/Marketing WOM Experience WOM Experience WOM + Media/Marketing Reference

Chart 4: % Rating WOM Highly Likely to Inspire Action “9” or “10” on 0-10 Scale

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©2013 The Keller Fay Group 11

Implications

Give great brand experiences to advocates and influencers in your

category.

With product experience driving the most powerful WOM, it is vital that

marketers include experience-driven social marketing programs in their mix.

Brands should consider marketing strategies that both introduce potential

customers to their products and extend the experiences of current customers,

especially the influencers. The research is clear that these experiences are

often talkworthy and lead to strong brand outcomes.

Give them content they will want to share and the tools to do so.

Because product experience makes consumers so inclined to pass along,

marketers should make sure to maximize this. Make advocates feel special

with exclusive deals and content. Educate, entertain and inspire them. Then,

make sure the appropriate means are in place so advocates can easily share,

remembering that sharing takes place not only online but quite often offline

as well: Free samples or coupons, early notification of new product

introductions or sales, previews of new commercials that will soon be

launched, texts or emails with content worth passing along to others – these

are just a few of the strategies that should be considered.

©2013 The Keller Fay Group 12

Experiential marketing and media in tandem are a powerful

combination.

Our research demonstrates that some of the most powerful WOM is found

in conversations that are triggered by a good experience and also reference

other elements of the marketing mix. Brands should consider integrated

campaigns that combine experiential programs to supplement their

media/marketing campaigns. The combination of good experiences plus

relevant media/marketing has shown to be the key to strong and actionable

brand word of mouth.

Use experience-driven social marketing to build brand equity as

well as drive sales.

The findings show that experience-driven social marketing can be effective at

both the top and bottom of the traditional marketing funnel.

• Builds brands: Experiences spark more WOM, that is more positive and

credible, and that sparks more pass along and seeking of brand/product

information. As such, it creates a “halo effect” for brands that fosters an

openness to learn more, to be on the lookout for product or brand news

or ads, to enhance receptivity to new product introductions, and so forth.

• Drives sales: By sparking more try/buy recommendations and higher

likelihood to purchase, experience-based WOM contributes significantly

to a brand’s bottom line.

©2013 The Keller Fay Group

About Keller Fay Group: The Keller Fay Group is a marketing research

and consulting company dedicated exclusively to word-of-mouth marketing.

with offices in the US and the UK. Keller Fay's TalkTrack® is an award

winning research system, the only source of continuous tracking of all forms

of word of mouth about products, services and brands. Keller Fay’s clients

include leading brands, agencies, and media. TalkTrack was launched in the

US in 2006 and in the UK in 2010. The firm’s principals, Ed Keller and Brad

Fay, are coauthors of the recently published book, The Face-to-Face Book:

Why Real Relationships Rule in a Digital Marketplace. Keller is also coauthor

of the highly acclaimed 2003 bestseller, The Influentials: One American in

Ten Tells the Other Nine How to Vote, Where to Eat and What to Buy." Follow

us @KellerFay or visit us at http://kellerfay.com.

About House Party, Inc.: House Party is a social marketing platform that

drives consumer recommendations, at scale, to build brands and increase

sales. House Party’s platform enables brands to easily identify influential

advocates, engage them with in-person brand experiences, and amplify their

advocacy through social media, generating unmatched results. Follow us

@housepartyinc or visit us at http://about.houseparty.com/.

For more information about this report, please call Keller Fay Group at

+1.732.846.6800 or contact us at info@kellerfay.com.

All contents are copyright © The Keller Fay Group LLC. TalkTrack® is a registered trademark of The Keller Fay Group LLC.

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