Word of mouth really does make an impact, a big impact.
It has taken over all forms of communication as the most persuasive influence on people’s attitudes and, more importantly, behaviour
(Source NOP worldwide, Mckinsey, Neilson Global Survey 2008).
Word of mouth is trusted. Advertising is not.
Everyone is influenced by recommendation:
- 90% trust their spouse
- 82% trust their friends
- 69% trust their work colleagues
…however only…
- 27% trust manufacturers/retailers
- 14% trust advertisers and
- 8% trust celebrities
(Source: Henley Centre).
Word of mouth influence is growing.
Product proliferation, market complexity and lower trust in advertising have resulted in a greater reliance on the ‘influential’ people around us to help guide what we do and buy.
- 93% of customers identify word of mouth as the best, most reliable and trustworthy source for ideas and information on products and services
- That’s up 26% from 25 years ago
(NOP World 2007).
Word of mouth is highly targeted and tailored.
People only tell others that are interested and they even tailor the message to them. This means less wastage and much higher ROI. Right people, right place, right time, right message (did we just find the holy grail of media?)
Word of mouth marketing delivers business growth.
The amount of advocacy (positive word of mouth) for a company has been proven as the best predictor for business growth. (Source: Samantix, Fred Reichheld, Harvard Business Review 2006).
A 7% jump in word of mouth leads to a 1% rise in additional company growth. (Source: London School of Economics 2007).
So Word of mouth marketing is important. But how does it affect my brand?
Thousands of brand-related conversations are going on in your market everyday. Smart marketers are realising they need to become a part of the consumer-driven, word of mouth conversation. Talking with your audience and not at them is a very new idea.