Wednesday, November 19

Word Of Mouth Doesn't Distinguish Between Online And Off

The decade-long era of marketers attempting to distinguish between online and offline word of mouth is over. As consumers have adopted small screen mobile technology and social networking tools, few people make the distinction. Most don't even remember when or where the conversation occurred.

All they remember is that the recommendation came from a friend or family member. The details of its delivery (text or network, phone call or in person) is largely lost to them. All they remember is someone close to them (not an "influencer" based on popularity but an "influencer" based on proximity) had something to say about a particular product, service or solution.

Word of mouth directly accounts for about $6 trillion in consumer spending, online and off.

And it is these conversations, which are personal and person to person, that account for as much as 13 percent of all consumer sales and as much as 20 percent among higher price-point categories. And the division between online and offline conversations just isn't there. It's no longer relevant.

This finding and others were recently published in a study organized by the Word of Mouth Marketing Association (WOMMA) in partnership with AT&T, Discovery Communications, Intuit, PepsiCo, and Weight Watchers. The study is based on the econometric modeling of sales and marketing data provided by participating brands (on a confidential basis) and conducted by Analytic Partners.

The results of the study may change the way some marketers think about paid and earned exposure, with about one-third of sales attributable to word-of-mouth conversations acting as an "amplifier" to paid media such as television. In sum, consumers spread advertised messages one-third of the time.

The rest of the impact is independent of advertising and tied to other influencers such as product or customer service experiences, public relations, owned and earned digital content, referral marketing, and related activities. These influencers work in tandem to shape overarching brand perceptions.

Other key findings from the study underpin the power of word-of-mouth marketing.

• Word-of-mouth impressions drive at least 5 times more sales than a paid advertising impression.

• Word-of-mouth impressions for higher price-point items are as much as 100 times more impactful.

• Word of mouth impacts tend to influence consumers closer to the time of purchase over media.

• Word of mouth amplifies the effect of paid media by as much as 15 percent.

"Intuitively, we know that a consumer recommendation is going to be a powerful contributor to brand sales, but this is the first time a rigorous study has quantified that impact across a range of product and service categories," said Suzanne Fanning, president of WOMMA. "We hope this research will lead marketers to elevate the role of word of mouth, both online and offline, in their marketing plans."

This study also reinforces the idea that marketers who are more inclined to communicate a clear contrast between their products and services will be more likely to have a message that consumers are not only able to remember, but can also readily share with friends and family members. And considering that the average consumer can only recall one to three messages about any paticular product or service (not all of which are written by marketers), it had better be something clear and compelling.
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