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Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 1
AGENT WILDFIRE’SWORD OF
MOUTH CHEAT SHEET:
July, 2007July, 2007
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 2
…167 Facts & Stats That
May Surprise Youabout Word of
Mouth
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 3
WORD OF MOUTH
WORD OF MOUTH
Also known as:
In Canada In the U.S.
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 4
i. WORDS ARE IMPORTANT
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 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
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 6
ii. IS THERE ANYBODY
LISTENING, IS THERE ANYBODY
WATCHING?…
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 7
Word of Mouth By Numbers - Filter
4% - Estimated recall of TV ad from the last show we
watched, down from 34% in 1965. Source: Newspaper
Bureau Association
43%
72%
18
70% - of people frequently consume multiple media simultaneously
Source: eMarketer
-Percentage of ads actively ignored on TVSource: CNW Marketing Research
Inc.
-Percentage of ads skipped by DVR usersSource: CNW
Marketing Research Inc.
- Amount of minutes of advertising in every hour of TV, double a generation ago and climbing 1-3% every year
Source: AAAA
69% - of people are interested in mechanisms that skip advertising completely
Source: Yankelovich117 - TV ads required to hit 80% of the population at least
once; in 1965, this number was three Source: james Stengel, P&G
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 8
iii. IT’S OK,
BLAME THE
MARKETER…
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 9
Word of Mouth By Numbers – Marketing Pain
10% - Percentage of Financial executives who believe
marketers can assess impact of budget on sales Source:
Marketing Management Analytics
23
64%
66%
70%
- Average tenure of a Chief Marketing Officer (in months)Source: Carmichael Lynch
- Percentage of marketers who will drop at least one agency this year Source: CMO Council
- Percentage of marketers who have repositioned their brand in the last three years Source: Brand Channel
- Percentage of firms who have reorganized their marketing departments in the last five years Source: Booz Allen Hamilton
60%- Percentage of consumers who have a much more negative opinion of marketing & advertising than they did a few years agoSource: Yankelovich
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 10
iv. WORD OF MOUTH -GEARED TO SPREAD…
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 11
Word of Mouth By Numbers – Prolific
- of people hearing a personal, negative recommendation, were influenced to buy another brand Source: Millward Brown, 2005
- the number of words spoken a day by an average person
Source: University of Arizona
74%
16,000
- the number of weak ties (associates, acquaintances, colleagues) we have in our lives
- percentage of people who believe word of mouth most affects purchase decision (vs. 48% sampling, 38% TV spots, 21% magazine ads)
Source: Harris Interactive- the number of word of mouth recommendations made everyday in Canada Source: Agent Wildfire
- the number of people needed to spread a word of mouth phenomenon to every Canadian with 4 generations of referral Source: Agent Wildfire
500-1500
68%
200M
20k
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 12
v. WORD OF MOUTH: MARKETING ON STEROIDS …
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 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%
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 14
vi. HOCKEY, MAPLE SYRUP, WORD OF MOUTH…
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 15
Word of Mouth By Numbers - Canadian
1st,2nd,4th
- 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
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 16
vii. TRIED, TESTED
&TRUE
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 17
Word of Mouth By Numbers – Trusted
-People who claim to buy the same brands as their friends, up 28 points vs. 2003 Source: Edelman/Yankelovich
- Trust Rank of Advertising practitioners among 21 professions - #19 Lawyers, #21 Car Salesmen Source: Gallup
90&82 - Percentage of People Who Trust Their Spouse and Friends on product purchase decisions respectively Source: Henley Centre
14&8 - Percentage of People Who Trust Advertising & Celebrities on product purchase decisions respectively Source: Henley Centre
- of consumers who believe companies don’t tell the truth in advertising Source: Yankelovioch
61%
76%
20
98% - Percentage of People who believe “Integrity” is the #1 driver of their trustworthiness in professions Source: Ipsos-Na
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 18
viii.SOME
PEOPLE ARE NOT LIKE THE
OTHERS
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 19
Word of Mouth By Numbers – The Influencers 6 Types
184 - Number of word of mouth conversations an influencer will have every week Source: Keller Fay
- Percentage of Influencer conversations that mention brands or products Source: Keller Fay
- Number of people influencers will email when advocating a brand and number of people they will directly impact within an organized word of mouth program Source: Agent Wildfire/Burston Marsteller
-Influencer participation levels vs. the mainstream: -Reading, Politics, Tech, Social Activism, Travel, Volunteerism, Investing, Career Choice, Arts, Photography, Health & Fitness, Self-development
Various Sources
20-10-1 - The composition of your customer base’s involvement 20% - Referrers, 10% - Advocates, 1% - Zealots Source: Agent Wildfire
1.7% - of Wikipedia’s users contribute 70% of its content- Source: Wikipedia
27%
2x
14&40
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 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%
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 21
Word of Mouth By Numbers – Ranking Influencers’ Beliefs
#1 -I love talking to friends about things I have just discovered.
Source: Agent Wildfire #2
#5
- I like to try out new products well before other people I know do. Source: Agent Wildfire
#3 - I'm not shy about expressing my opinion and enjoy a good debate. Source: Agent Wildfire
#4- I am always looking for new and different things to do.
Source: Agent Wildfire
- Staying informed and keeping up on current trends is very important to me. Source: Agent Wildfire
#6 - People frequently ask me for advice on whether to buy something. Source: Agent Wildfire
#7 - I enjoy meeting new people and find it easy to make friends.
Source: Agent Wildfire-I lead an active life, love to travel and explore new
places. Source: Agent Wildfire
#8
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 22
ix. NOT JUST THE WATERCOOLER…
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 23
Word of Mouth By Numbers - Where
77% Of word of mouth is face to face. Source: North Eastern University
17%
6%
76%
40-27
Of word of mouth by phone. Source: North Eastern University
Of word of mouth online. Source: North Eastern University
Of organized seeded word of mouth is spontaneous. Source: North Eastern University
Percentage of word of mouth that happens at home and work respectively. Source: North Eastern University
14-8-7 Percentage of word of mouth that happens in a commercial area, campus and or community/fitness/party area respectively.
Source: North Eastern University
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 24
x. IT STARTS WITH A GREAT EXPERIENCE
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 25
Word of Mouth By Numbers – It’s an Experience Thing
- of business leaders believe Customer Experience is the new battleground Source: MCE
- Who say majority of customer experiences are “bland” Source:
Gallup
69% - Of consumers who say emotions account for ½ of their customer experience Source: Strategic Resource Development Group, 2006
#2 - Customer Service and Customer Experience rank in achieving growth goals (behind business strategy) Source: Microsoft Executive Circle
Of consumers who had a negative service experience in the past year AND those that subsequently severed the relationship. Source: Customer Focus
95%
96&80%
49%
22% - Of customers agreed that companies “currently provide an excellent customer experience.” Source: Customer Focus
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 26
xi. AND THEY TOLD XX PEOPLE AND SO ON…
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 27
Word of Mouth By Numbers – The Passalong Effect
- of people ever pass on content through email Source: Sharpe Partners
- of people pass on content every week Source: Sharpe
Partners
46% - of people pass on content daily Source: Sharpe Partners
6 - Average number of recipients that people pass on content through email Source: Sharpe Partners
89%
10&13
63%
75,38,39, 52
-Average number of friends on teen’s social networks, cell phone directories, email address list and IM directory”
Source: Deloitte & Touche- Bloggers average number of blogroll links and links to their blog
Source: Pew Internet
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 28
Word of Mouth By Numbers – The Passalong Effect
- Passalong Jokes and Humour Source: Sharpe Partners
32%
30%
88%
56%
25%
24%
24%
- Passalong News Source: Sharpe Partners
- Passalong Health/Medical Info Source: Sharpe Partners
- Passalong Religious/Spiritual Info Source: Sharpe Partners
- Passalong Games Source: Sharpe Partners
- Passalong Personal Finance Source: Sharpe Partners
- Passalong Sports/Hobbies Source: Sharpe Partners
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 29
xii. MAKE NEW
FRIENDS AND KEEP THE
OLD…
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 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
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 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
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 32
xiii.WORD OF MOUTH:
THE LANGUAG
EOFSOCIAL
GROOMING
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 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
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 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
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 35
xiv. WORD OF MOUTH: WHAT MOTIVATES US TO BUZZ
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 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
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 37
xv. CONNECTED 24/7…
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 38
Word of Mouth By Numbers - Connected
2.7B - Cellphones in the world
Source: Gartner
1.8B
1.1B
110M
-Number of videos streamed online every monthSource: Comscore
8.5B
- Bloggers in the world Source:
Technorati
75% Number of Facebook users who log in daily Source: Facebook
- Instant Messenger Users in the world Source:
Communities Dominate Brands
- Internet users in the World
Source: Gartner
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 39
xvi.MARKETING IS NOW A TRIBAL GAME…
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 40
Word of Mouth By Numbers - Community
82% - Percentage of “brand community members” who recommend company/brand more often after membership Source: Communispace
89% - Percentage of “brand community members” who believe company is truly concerned on what they have to say
Source: Communispace
76%
75%
56%
- Percentage of “brand community members” who felt MORE positively about the companySource: Communispace
- Percentage of “brand community members” who felt MORE respect for the company Source: Communispace
-Uplift in revenue - community members vs. non-members
Source: HBR2x/4x/6x - Ebay community members vs. control users – frequency
of bids, frequency of listings and amount of earnings Source: HBR
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 41
xvii. GATHER ‘ROUND THE FIRE, WE’RE HAVING A SOCIAL…
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 42
Word of Mouth By Numbers - Social
850M-Number of people on top 72 social networks
Source: Wikipedia
668% -Growth in social networks April 2007 (from April 2006) Source: Business Week
2,4 & 29
- Average number of confidants, close friends, strong ties Source:
Agent Wildfire
4.2
79.9
- Average Visits per month to social network sites (vs. 3.5 for other sites) by members Source: Comscore
217
- Average minutes per visit to social network site (vs. 33.2 minutes for other sites) Source: Comscore
- Average No. of pages per visit to social network sites (vs. 53 for other online sites)
Source: Comscore
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 43
Word of Mouth By Numbers – Social Networks
91% - Use social networks to stay in touch with friends they see a lot
Source: Pew Internet
82%
- Use social networks to make new friends that they don’t see in real life
Source: Pew internet
51%
84%,82%,76%
- Percentage of online time spent by Millenials (14-26 years old) on social networksSource: Deloitte & Touche
- Use social networks and post to friend’s wall/page, send private messages, post comments to friend’s blog
Source: Pew Internet
- Use social networks to make plans with friends, send a mass message, wink, poke or give e-props to friends
Source: Pew Internet
- Use social networks to stay in touch with friends they rarely see in person Source: Pew Internet
49%
72%,61%,33%
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 44
xix. PEOPLE WANT IN…
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 45
Word of Mouth By Numbers – Create & Share
52% - Of bloggers’ major reason for blogging is to express themselves creativelySource: Pew Internet
50%
68%- Percentage of the net generation (14-26 years old) willing to collaborate with companies that engage them in dialogue
Source: New Paradigm
- Have registered for emails from companies at an average of 8.5 sites Source: Ipsos-NA
80%
-Of customers believe customer-generated ads are more customer-friendly, more creative and more innovative
Source: American Marketing Association
68%,56%, 55%
- Percentage of consumers who regular give and seek information about products Source: eMarketer
- Of bloggers’ major reason for blogging to document personal experiences and share them with othersSource: Pew Internet
94% & 91%
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 46
xx.GIVE UP
SOME POWER TO GET SOME
POWER…
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 47
Word of Mouth By Numbers – Not Well Practiced
80% - Of companies believe they deliver a superior customer experience. But only eight percent of their customers agree Source: Customer Focus
22% - Of marketers willing to let customers shape their marketing initiatives Source: University of Mass.-Dartmouth
3.4%- Percentage of face to face WOM conversations stimulated by a marketing organization's promotional efforts
Source: Journal of Services Marketing
- Executives who believe they don’t engage in true dialogue with customers Source: Strativity
55%
- Executives who believe they don’t deserve their customer’s loyalty Source: Strativity
45%
5.8% - Percentage of Fortune 500 companies with a public blog Source: Social Text
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 48
Word of Mouth By Numbers – There is Hope Yet
36%,32%,31%
-Breakdown of why companies will participate in social media more actively in the future
- to keep ahead of the competition- to be cost-efficient- to deal with declining credibility of ads and editorial
Source: Manning, Selvage & lee65% - Percentage of business executives who social network
online (Linked In, MySpace, Yahoo 360)
Source: I4CP- Percentage of Executives who believe:- social media will grow- social media is a fadSource: MS&L
70&3%
- Marketer’s expected use of online media over the next 3 years – percentage expected more/expected less
Source: Association of National Advertisers
96% &1%
4.5, 4.3, 4.1
- Ratings out of 5 on why Corporate Blogs are a priority - Another way to publish content and ideas- Thought leadership- Build a community Source: Backbone Media
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 49
Brand Communitie
s
Word of Mouth Campaigns
Word of Mouth Media
Word of Mouth Insights
Word of Mouth
Consulting
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 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)
Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 51Agent Wildfire Inc. 2006
Agent WildfirePresident
& Chief Evangelist
-Sean Moffitt
Led and managed some of Canada’s most loved brandsVP Marketing/Strategy - Molson & Diageo-GuinnessVarious Brand/Innovation management roles - P&GVP 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)