Wednesday, January 10, 2007

From Buzz Canuck via Glue Planning:

Here's Buzz Canuck's top five killer bee stats:

"1) 67% of all consumer decisions are primarily influenced by word of mouth (McKinsey) - That's right - word of mouth governs 2/3rds of our economy and yet the Wall Street Journal doesn't have a page dedicated to it, I've never met a VP of Word of Mouth and I've not yet seen a marketing budget code that was labelled "word of mouth or buzz". Egads.

2) 1 out of every 7 social conversations are word of mouth based (Northeastern University) - Think for a moment from a media perspective - how valuable is a two way, in-depth, interactive medium from a trusted source which answers all your questions and validates the way you think about a product and is something we tap into 14% of the time we talk. Ching $! Ching $!

3) Only 3.4% of face to face WOM conversations are stimulated by a marketing organization's promotional efforts (Journal of Services Marketing) - It's not that it can't be done by a marketer, it's just that we refuse to heed the cardinal rules of word of mouth. Involve your consumer, don't carpet bomb everybody and their cousin, identify the right early evangelists, create a hard edge that stand out in your product, be honest...and a number of other word of mouth road signs we tend to drive past blindly as marketers.

4) 90% of customers identify word of mouth as the best, most reliable and trustworthy source about ideas and information on products and services (NOP World) - It just makes sense, we tend to believe things when we receive information from a trusted source - be that friend, family or colleague. People lay their reputations on the line when they recommend something to somebody else. The currency word of mouth is thus enhanced by its most valuable characteristic - "honesty" - which makes it the purest marketing form we have.

5) 44% of consumers claim to avoid buying products that overwhelm them with advertising/56% of people have stopped doing business with a company that doesn't respect them (Mood and Mindset Study Canada) - The consumer in 2006 has three extreme scarcities that are creating diminishing returns from mass marketing and leading to a consumer exodus - no time, no attention and no trust. Think of advertising and word of mouth as two of your best friends - who do you want to hang with - the friend who is flashy but brags to the point of lying, doesn't listen, doesn't even let you speak, interrupts what you like doing and makes you pay a lot to be with them or the friend who you trust, has the same interests, listens to your concerns, is there when you need him, introduces you to stuff that isn't widely known or available and gives just as much as she takes. Cheers to my best drinking buddy - word of mouth!"

For the whole range of stats click here.



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