Tuesday, July 08, 2008

Word Of Mouth Research


From the Church of the Customer Blog last week:

Online vs. offline word of mouth

Posted: 01 Jul 2008 03:28 PM CDT

People who do a lot of online research are significant sources of advice about products and services compared to adults who don't do much research, according to a new study of 15,727 people by BIGresearch.

"Do you give advice to others about products/services you have purchased?"


Active online researcher All adults
Regularly gives advice 47.0% 29.4%
Occasionally gives advice 49.8% 63.4%
Never gives advice 3.2% 7.2%

Source: BIGresearch, SIMM 11 (December 2007)

After searching, how do you communicate with others about a service, product or brand? (Check all that apply)

Face-to-face 72.7%
Email 63.2%
Telephone 55.0%
Cell phone 35.3%
Instant messaging 17.7%
Text messaging 13.1%
Online communities (e.g. MySpace, Facebook) 11.8%
Blogging 6.8%
Other 1.8%

Source: BIGresearch SIMM 11 (December 2007)

Contrast those numbers with a new study from Keller Fay which says 75% of word of mouth occurs in person, 17% on the phone, and just 7% online using instant messages, chat rooms, email and blogs.

BIGresearch and Keller Fay both found that three-quarters of adults tell others about stuff in person. But Keller Fay's numbers for brand conversations via the phone and online tools are markedly different than those from BIGresearch.

"Apparently, the value of eye contact, voice and perhaps even non-verbal communication provides a boost to credibility and the likelihood that we'll do something about what we've learned," said Brad Fay, a study co-author.

Here's what I consider a flaw with that thinking: The frame of credibility. Being credible isn't dependent solely upon the medium in which a recommendation occurs. Credibility comes from an established position of trust, whether it's in-person or online, or from a preponderance of independent evidence, such as a collection of reviews on a product site like Amazon.

When Virginia raves about Costco on her blog, I trust Virginia and her opinion. In my eyes, she's a credible source regardless of the medium. Years ago, Amazon established the Real Names system, which attaches a person's actual name to their review of a product, reducing the likelihood of widespread sock puppetry.

Conversely, I may regularly come into contact -- online or offline -- with someone whose taste is dissimilar, or has trouble with evidence. Their rave about a product or service is going to be less credible in my eyes, even if it's in person.

When it comes to word of mouth, the medium is not necessarily the message. The person is.

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