Companies spend millions on advertising every year, but when it comes to influencing consumers, advertising doesn’t hold a candle to the opinion of the person next door according to Intelliseek’s 2005-2006 Consumer Generated Media Engagement Monitor.
When people were asked to rate how strongly fourteen factors influence purchase decisions, advertising came in dead last, behind personal word-of-mouth, expert testimonials, stories in the media, and even postings from strangers on the internet!
To what degree would your decision to purchase something be influenced by:
[ from 0 = not influenced at all to 10 = influenced greatly ]
A positive word-of-mouth report from someone you knew personally 7.72
A negative word-of-mouth report from someone you knew personally 6.95
A positive first-hand report from a credible professional source or expert 6.46
A positive news story on TV or radio or in a newspaper or magazine 6.16
A negative first-hand report from a credible professional source or expert 6.05
A negative comment about a product or company by an employee of that company 5.74
A negative news story on TV or radio or in a newspaper or magazine 5.68
A positive first-hand report from an individual on the Internet with comment
When people were asked to rate how strongly fourteen factors influence purchase decisions, advertising came in dead last, behind personal word-of-mouth, expert testimonials, stories in the media, and even postings from strangers on the internet!
To what degree would your decision to purchase something be influenced by:
[ from 0 = not influenced at all to 10 = influenced greatly ]
A positive word-of-mouth report from someone you knew personally 7.72
A negative word-of-mouth report from someone you knew personally 6.95
A positive first-hand report from a credible professional source or expert 6.46
A positive news story on TV or radio or in a newspaper or magazine 6.16
A negative first-hand report from a credible professional source or expert 6.05
A negative comment about a product or company by an employee of that company 5.74
A negative news story on TV or radio or in a newspaper or magazine 5.68
A positive first-hand report from an individual on the Internet with comment
postings from others agreeing with him or her 5.68
A negative first-hand report from an individual on the Internet with comment postings
A negative first-hand report from an individual on the Internet with comment postings
from others agreeing with him or her 5.41
A positive first-hand report from an individual on the Internet 5.16
A positive comment about a product or company by an employee of that company 5.14
A negative first-hand report from an individual on the Internet 4.97
A television or radio commercial 4.74
An advertisement in a newspaper or magazine 4.63
This study reinforces the need for companies to be aware of the word-of-mouth they are generating. Each interaction and transaction with consumers is the potential source of either a positive or a negative anecdote more persuasively powerful than the your commercials This suggests three important considerations:
1) You need to understand that each consumer interaction creates either an enhancement to, or a detraction from, your advertising. [This effect is magnified if you are dealing with an “influential”—someone who makes an extra effort to communicate their experiences and opinions.] So it makes sense to put a strong effort into making sure every consumer interaction is a positive one.
2) Publicity is more powerful than advertising. Resources should be devoted to obtaining testimonials from experts, placing news stories, and stimulating positive “buzz.”
3) Your company can be badly hurt by negative anecdotes. With millions of people blogging on the internet, you may be getting lambasted and not even know it. It makes sense to have someone regularly search the internet for any negative stories; defusing them if possible, and taking steps to prevent recurrence of the kind of situation that caused the negative story.
A positive first-hand report from an individual on the Internet 5.16
A positive comment about a product or company by an employee of that company 5.14
A negative first-hand report from an individual on the Internet 4.97
A television or radio commercial 4.74
An advertisement in a newspaper or magazine 4.63
This study reinforces the need for companies to be aware of the word-of-mouth they are generating. Each interaction and transaction with consumers is the potential source of either a positive or a negative anecdote more persuasively powerful than the your commercials This suggests three important considerations:
1) You need to understand that each consumer interaction creates either an enhancement to, or a detraction from, your advertising. [This effect is magnified if you are dealing with an “influential”—someone who makes an extra effort to communicate their experiences and opinions.] So it makes sense to put a strong effort into making sure every consumer interaction is a positive one.
2) Publicity is more powerful than advertising. Resources should be devoted to obtaining testimonials from experts, placing news stories, and stimulating positive “buzz.”
3) Your company can be badly hurt by negative anecdotes. With millions of people blogging on the internet, you may be getting lambasted and not even know it. It makes sense to have someone regularly search the internet for any negative stories; defusing them if possible, and taking steps to prevent recurrence of the kind of situation that caused the negative story.
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