How to Capitalize on Word of Mouth
Brands can generate a positive buzz about themselves with highly enjoyable and involving marketing activity. But the generation of advocacy is harder and conversations with family and friends are more likely to be influential than other channels. The extent of these conversations varies considerably by category, but, as ever, excellent product quality can lead to recommendations.
Information on Web sites is more likely to be negative than that received from friends and family; but understanding how information passes from site to site can help guide marketing activity.
Buzz and Advocacy
While Word of Mouth (WOM) refers to all the communication about brands that takes place on a consumer-to-consumer level, it is useful to separate these messages into two types, according to their content: Buzz and Advocacy. Buzz reflects interest in something new, cool, different, or provocative, and forms a social currency, encouraging “pass-along” from one
person to another, especially when it comes from a trusted source.
Advocacy is word-of-mouth communication — positive or negative — focused on a brand and its merits. While Buzz may influence purchase among those who like to keep up with current trends, and helps maintain brand saliency, Advocacy is more likely to sway brand choice in the short term.
Buzz
Buzz can help keep a brand salient and familiar, and advertising can be a useful source for generating buzz. Analysis of our Link™ database shows that the types of advertising that consumers are most likely to talk about are those that are considered enjoyable and involving.
However, Buzz does not automatically generate sales. One recent ad in the U.S. for whisky was hugely enjoyed, and generated a lot of buzz, as it was designed to do. However, brand imagery was also meant to improve, but didn’t. Search data from Google Insights revealed that the searches were to
do with the ad, and the actress featured in the ad; searches for the brand itself were much lower.
Advocacy
Word of Mouth is one of the key channels by which people absorb information about brands, along with more formal news channels and the Internet. In a study in the U.S. and the UK, covering six categories (digital cameras, mobile phones, holiday destinations, car insurance, cars and household cleaning products) one in four people reported choosing a brand solely because of a recommendation received from a personal contact. Similarly, after receiving negative comments about their original choice, up to 20 percent of shoppers changed their mind and bought a different brand.
Despite the rise in online activity, people are still much more likely to make use of brand recommendations from personal contacts such as friends, family or colleagues than online material. Data from the same research showed relatively few people (just 11 percent in the U.S. and 10 percent in the UK) used informal sources of online information (chat rooms, blogs, online message boards and online contacts) to guide their last purchase decision in these categories. The majority of shoppers (74percent in the U.S. and 63 percent in the UK) turned to friends, neighbors and colleagues for advice. Even when it comes to saving money, consumers prefer the advice of friends and family over financial professionals.