WOM Research #2.24
- WOMBAT: Researchers Need to Be There, Too
- 'Network Neighbors' Use WOM, Prompt Purchases
- Marketers Give WOM Lip Service, Spend Money Elsewhere
- From the Archives:
Sought WOM Packs More Punch Than Unsought
 Tell a friend: http://www.womma.org/tell/
1> WOMBAT: Researchers Need
to Be There, Too
WOMMA's Word of Mouth Basic Training (WOMBAT) event, taking place in New Orleans April 17-18, has something for everyone -- including researchers. If you're a researcher working in the word of mouth marketing world, you need to attend WOMMA's original "how-to" conference. Here's why:
It's a great place to learn about upcoming issues and trends on the word of mouth horizon.
Find out what metrics-related issues marketers are struggling with -- so you can be the one to address them.
Network with the folks who use your research to inform their word of mouth marketing decisions every day.
Inform your research with tons of learning about how the word of mouth marketing industry is growing and changing.
On top of all that, at WOMBAT 2007 you'll get 50+ amazing speakers, a fabulous location, case studies from word of mouth's greatest players, and priceless how-to lessons that showcase the word of mouth marketing industry's most innovation techniques.
Register today
2> 'Network Neighbors' Use WOM,
Prompt Purchases
Marketers are being encouraged to consider connectivity when targeting potential new customers. According to a recent study co-authored by Shawndra Hill, Wharton professor of operations and information management, consumers are more likely to buy a product if they have "network neighbors" (consumers linked to a prior customer) who already use it. According to the data, network neighbors adopt at a rate that's three to five times higher than that of baseline groups.
The study makes a strong case for marketers using social network data when determining which consumers to target. By allowing existing customers to play a connective role in linking it to new customers, a company can greatly increase adoption rates -- all with word of mouth.
Learn more
3> Marketers Give WOM Lip Service,
Spend Money Elsewhere
Even though marketers claim that word of mouth, customer service, web and interactive marketing, and public relations are the most effective ways to communicate their brands, 60% of their budgets still go to traditional marketing endeavors, such as broadcast, print, and direct mail, according to the State of the Brand Survey conducted by MiresBall in conjunction with Luth Research and the American Marketing Association. Part of the problem, the report's authors contend, is that marketers are stuck in a rut, and are throwing money at problems that require creativity to solve. Spending on marketing activities is up (from 9% in 2004 to 11% in 2006), but brand positioning and brand marketing are still lagging.
Other findings:
* Brands that spend upwards of 25% on creative services partnerships enjoy greater success.
* Revitalizing a brand is extremely important, and is most effective if done every three to five years.
* Eight out of 10 brands surveyed were revitalized in the last five years.
* Of those surveyed, 33% indicated that building awareness was their highest priority brand management goal; 33% indicated creating preference, 24% creating loyalty, and 11% creating understanding.
Learn more
4> From the Archives:
Sought WOM Packs More Punch
Than Unsought
A recommendation that is sought out by a recipient has more impact on service adoption than one that is unsolicited, according to a December 2003 article by Robert East and Caroline Hancock of the Kingston Business School, Kathy Hammond of the London Business School, and John Scriven of South Bank University. The article, titled "The Relative Frequency and Impact of Sought and Unsought Recommendations," was written to determine if word of mouth efforts should be focused on encouraging prospective customers to seek advice or on getting existing customers to dole out advice.
According to the team's research, the average number of recommendations needed in order to acquire one customer is 49, and a weighted average showed that sought WOM has twice the effect of unsought WOM -- with much variability between categories -- and indicated that an average of 50% of recommendations are sought. "Recommendation" was given as the reason for recruitment twice as often as "advertising" and twice as often as "personal search," and a rough calculation found that a single recommendation is worth the same as 600 ad exposures. The research team concluded that encouraging prospective customers to seek advice would have a profound effect on the propensity of word of mouth activities.
Learn more |
|
Back to newsletter list
