Word of Mouth Cheat Sheet (Agent Wildfire)

Agent Wildfire – Canada’s Word of Mouth Expert - Proprietary and Confidential 2007 1

AGENT WILDFIRE’SWORD OF

MOUTH CHEAT SHEET:

July, 2007July, 2007


…167 Facts & Stats That

May Surprise Youabout Word of

Mouth


WORD OF MOUTH

WORD OF MOUTH

Also known as:

In Canada In the U.S.


i. WORDS ARE IMPORTANT


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


ii. IS THERE ANYBODY

LISTENING, IS THERE ANYBODY

WATCHING?…


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


iii. IT’S OK,

BLAME THE

MARKETER…


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


iv. WORD OF MOUTH -GEARED TO SPREAD…


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


v. WORD OF MOUTH: MARKETING ON STEROIDS …


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%


vi. HOCKEY, MAPLE SYRUP, WORD OF MOUTH…


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


vii. TRIED, TESTED

&TRUE


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


viii.SOME

PEOPLE ARE NOT LIKE THE

OTHERS


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


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%


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


ix. NOT JUST THE WATERCOOLER…


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


x. IT STARTS WITH A GREAT EXPERIENCE


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&#3 - 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


xi. AND THEY TOLD XX PEOPLE AND SO ON…


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


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


xii. MAKE NEW

FRIENDS AND KEEP THE

OLD…


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


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


xiii.WORD OF MOUTH:

THE LANGUAG

EOFSOCIAL

GROOMING


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


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


xiv. WORD OF MOUTH: WHAT MOTIVATES US TO BUZZ


#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


xv. CONNECTED 24/7…


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


xvi.MARKETING IS NOW A TRIBAL GAME…


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


xvii. GATHER ‘ROUND THE FIRE, WE’RE HAVING A SOCIAL…


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


Word of Mouth By Numbers – Social Networks

91% - Use social networks to stay in touch with friends they see a lot


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


- Use social networks to make plans with friends, send a mass message, wink, poke or give e-props to friends


- Use social networks to stay in touch with friends they rarely see in person Source: Pew Internet

49%

72%,61%,33%


xix. PEOPLE WANT IN…


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%


xx.GIVE UP

SOME POWER TO GET SOME

POWER…


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


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


Brand Communitie

s

Word of Mouth Campaigns

Word of Mouth Media

Word of Mouth Insights

Word of Mouth

Consulting


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)

Word of Mouth Cheat Sheet (Agent Wildfire)

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Transcript of Word of Mouth Cheat Sheet (Agent Wildfire)