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Street Smarts

Here are 10 measures of why marketers are paying attention to word of mouth:

1. People don't trust advertising; 76 percent of consumers don't believe companies tell the truth in advertisements. (Yankelovich, 2005)

2. Ninety-two percent of consumers cite WOM as the best source for product ideas, up from 67 percent in 1977. (GfK NOP/Roper)

3. Consumers find that personal contacts with people "like themselves" are the most convincing (57 percent) and are twice as convincing as information from a company. (Millward Brown, WOM Influence Study, 2005)

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4. Consumers talking about the brand impacts brand strength; brands are 1.5 times more likely to grow if consumers talk about them. (Brandz)

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5. Consumers talking about the brand impacts company growth; a 12-point increase in advocacy correlates with a doubling of a company's growth rate. (Fred Reichheld, The Ultimate Question, Driving Good Profits and True Growth, 2006)

 

6. Don't underestimate the power of negative WOM; 74 percent of those hearing a personal, negative recommendation are influenced to buy another brand. (Millward Brown, WOM Influence Study, 2005)

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7. WOM impacts purchasing; 61 percent of conversations have an impact on the likelihood to buy a brand. (Talk Track, Keller Fay Group, 2006)

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8. Recommendations from "others like themselves" impact choice; 19 percent choose a brand solely due to recommendation. (Millward Brown, WOM Influence Study, 2005)

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9. Word of mouth is mostly positive; the ratio of positive to negative word of mouth is 6-to-1. (Talk Track, Keller Fay Group, 2006)

 

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10. Advice makes a big difference; 84 percent of consumers find advice from "others like themselves" at least somewhat credible. (TalkTrak, Keller Fay Group 2006)