Face to Face Summary Slides Data

The Face-to-Face BookSummary Data Slides

Prepared byEd Keller, CEO

Brad Fay, COO

© 2012 Keller Fay Group

May be used for non-commercial purposes with attribution to The Face-to-Face Book (Free Press: 2012) and The Keller Fay Group LLC

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About The Face-to-Face Book

The Face-to-Face Book presents a unique, research-backed point of view about the value of real relationships in a time when social media has taken center stage. Companies are pouring billions into Facebook and Twitter, hoping that they have finally found the holy grail of marketing. But, the fact remains that it is the in-person conversations that still matter most. Based on six years of research by the award-winning word of mouth research firm, the Keller Fay Group, the Face-to-Face Book presents a multitude of case studies and research studies that show that:

•Over 90% of conversations still take place offline, primarily face to face, with less than 8% occurring online

•Human beings are fundamentally wired to be social and are highly influenced by direct, in-person conversations

•Large companies, such as Apple, General Mills, Kimberly Clark and Toyota have been successful by integrating WOM into their advertising and marketing campaigns

•Consumers often reference other forms of media when they are talking about a brand, making the case that advertising can be designed to spark WOM conversation

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About the Keller Fay Group

About Keller FayThe Keller Fay Group is the first full-service market research company focused exclusively on word of mouth (WOM) and brand advocacy. The firm’s founders, Ed Keller and Brad Fay are authors of The Face-to-Face Book, “a celebration of the supremely social nature of all human beings and how that drives the consumer marketplace.” The book is based on research from Keller Fay’s TalkTrack® program is the only continuous study of WOM in all channels (online and offline) designed to closely monitor and measure the marketing-relevant attributes of actual consumer conversations. TalkTrack® was launched in the U.S. in 2006 and in the United Kingdom in 2011. For further information about the Keller Fay Group, visit our website www.kellerfay.com.

Join our Network:

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CONTACT: Kristen Beveridge, Vice President, 732-846-6800, [email protected]

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Table of Contents

Section I: Word of Mouth Overview Stats……….page 5

Section II: Conversation Catalysts®…………………page 8

Section III: Advertising and Word of Mouth……page 12

Section IV: The Internet and Word of Mouth….page 16

Section V: Brands and Word of Mouth…………...page 19

Section VI: Summary WOM Tactics………………...page 24

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WOM Stats

WOM Overview Stats

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WOM Conversations Largely Take Place Offline

Mode of Conversations

Source: Keller Fay Group’s TalkTrack®, July 2010 – June 2011 Page 18, The Face-to-Face Book, Free Press, 2012

Face to Face76%

Phone14%

Email3%

Instant/Text Message

3%

Social Media2%

Other2%

Total Online: 8%

Total Offline: 90%

Research from Keller Fay Group shows 90% of

WOM conversations are offline, while 8% are

online. Only 2% of WOM occurs on social media.

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2 Out of 3 Conversations are Positive

Polarity of WOM Conversation by Category


(Ranked by net advocacy score)

Mostly Positive

Mostly Negative

Mixed

Net Advocacy (positive minus

mixed & negative talk)

Children’s Products 74% 5% 11% 58 Food/Dining 73 6 11 56 Beverages 72 5 11 56

Personal Care/Beauty 72 5 11 56 Household Products 71 5 11 55

Retail/Apparel 71 5 13 53 Media/Entertainment 71 6 14 51

Travel Services 68 7 13 48 All-Category Average 66 8 15 43

The Home 64 8 15 41 Automotive 62 9 17 36 Technology 63 9 18 36

Sports/Hobbies 63 10 18 35 Health/Healthcare 55 12 17 26 Financial Services 51 14 16 21

Telecommunications 51 15 22 14

Research from Keller Fay Group’s TalkTrack® shows

only 8% of WOM conversations are negative. Meanwhile the Children’s

Products category earns the best WOM quality while

Telecom suffers the most.

7

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WOM Stats

Conversation Catalysts®

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The Size of the Real World Social Network of Conversation Catalysts® is Double the Average

Conversation Catalysts® are everyday consumers who

stand out because they have large social networks, they

regularly keep up with what’s new and emerging, and they

are sought out by friends, family, and neighbors for

advice and recommendations.

Total PublicTotal Network: 16

6

5

5

9

1311

FriendsAcquaintancesFamily

Conversation Catalysts® Total Network: 33

Average Number of People Communicate With Fairly Often

Source: Keller Fay Group’s TalkTrack®, July 2010 - June 2011 Page 62, The Face-to-Face Book, Free Press, 2012

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Conversation Catalysts® Give Twice as Much Advice on Average Than Total Public

Percentage of People Giving Category Advice and Recommendations

Conversation

Catalysts® Total Public

Food/Dining 77% 36% Retail/Apparel 61 25

Media/Entertainment 59 26 Beverages 56 24

Technology 55 26 Sports/Hobbies 52 21

Personal Care/Beauty 50 21 Health/Healthcare 48 22

Household Products 46 19 Automotive 41 19

Public Affairs/Politics 41 18 The Home 40 16

Telecommunications 40 15 Children’s Products 37 18 Financial Services 37 17

Travel Services 31 12


Research from Keller Fay Group’s TalkTrack® shows that

it is possible to identify category specialists who are particularly

active recommenders in a single category. But there is quite a lot

of overlap among categories; people who recommend in one area are much more likely to do

so in others too.

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Conversation Catalysts® Have Nearly Two and Half Times as Many Brand Conversations vs. Total Public

Average Number of Brand Conversations Per Week

Source: Keller Fay Group’s TalkTrack®, July 2010 – June 2011

Page 65, The Face-to-Face Book, Free Press, 2012

65

150

Total Public ConversationCatalysts®

Whereas the average Americans has about 65 conversations per week about brands,

Conversation Catalysts® have nearly 2.5 times as many: 150 conversations per week. This is a group of people who, if they can be engaged

and activated on a brand’s behalf, can certainly drive the conversations that drive results.

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WOM Stats

Advertising and WOM

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Advertising Plays a Bigger Role Than People Think (Or Say)

13

What Consumers Say Consumers say they rely on advertising to learn about products, but claim it plays a diminishing role as they approach an actual decision.

0%

10%

20%

30%

40%

50%

60%

70%

AwarenessPhase

ResearchPhase

Decision-Making Phase

What Consumers Do …But in fact, the closer they get to a decision the more they

talk about ads in their word of mouth conversations.

0%

10%

20%

30%

40%

50%

Awareness ResearchPhase

(Broad)

ResearchPhase

(Narrow)

FinalDecision

Source: Keller Fay Group for NBC Universal, March 2011Page 81, The Face-to-Face Book, Free Press, 2012

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One-Quarter of Brand WOM References Ads

Industries Ranked by the Percentage of WOM Influenced by Advertising


Industry % of WOM Influenced by Advertising

Media/Entertainment 31 Telecommunications 29 Personal Care/Beauty 28

Technology 27 Automotive 27 The Home 27

Household Products 26 Retail/Apparel 25

All-Category Average 25 Travel Services 25

Food/Dining 24 Children’s Products 23

Beverages 22 Sports/Hobbies 21

Financial Services 19 Health/Healthcare 18

Ads are talked about most frequently in conversations about entertainment and

movies, followed by telecom, beauty, technology, and

automotive.

The right ad at the right time with the right message can

spark word of mouth, regardless of category.

14

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TV Ads are the Most Prevalent Type of Advertising Referenced

Percentage of All WOM Conversations Driven by Advertising Ads that Spark WOM: By Medium

Type of Ad % Referenced in WOM

Television Ad 11.4

Internet Ad 4.5

Newspaper Ad 4.0

Magazine Ad 3.0

Radio Ad 2.0

Billboard Ad 1.7

Any Other Ad 2.8


On a collective basis, other forms of advertising (the

Internet, newspapers, magazines, radio, and

outdoor) are about on par with TV. So all media should

be considered eligible for driving word of mouth; the key for marketers is to find the right type of message

that will reach the right type of consumer, at the right

time, via the right channel.

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WOM Stats

The Internet and WOM

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Internet is Most Referenced in WOM About Product & Service Categories, While TV is #1 for Media & Entertainment WOM

Percentage of Media & Marketing Elements Referenced in Type of WOM

Products Services Media &

Entertainment* Any Media/

Marketing Reference 49% 49% 61%

Internet 15 23 15

TV 13 13 35

Point of Sale 12 6 5

Coupons/Promotions 11 4 3

Newspaper 6 5 6

Magazines 5 4 5

Mailing 5 8 4

Radio 3 3 4 * includes Media/Entertainment and Sports/Hobbies


Each media offers different advantages

when it comes to sparking or supporting

conversation, and these are also important considerations for

marketers and media planners.

17

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The Internet is a Powerful Reference Source for Conversation

Percentage of Media & Marketing Elements Referenced in All WOM Online Sources Talked About in WOM

Media/Marketing Element

% Referenced in WOM

Internet (any reference) 16.0

Company Website 5.2

Internet Ad 4.5

Other Website 3.1

Online Consumer Reviews 2.9

Social Media 2.6


Across all categories, only 2.6% of all

conversations involve a reference to social

media, including blogs and social

networking sites.

18


WOM Stats

Brands and WOM


The More a Brand Advertises, the More Likely it Will be Talked AboutThe Most Talked-About Brands in America

Rank Top WOM

Brands Weekly WOM

Impressions (in millions) 1 Coca-Cola 212 2 Walmart 190 3 Verizon 185 4 AT&T 167 5 Pepsi 150 6 Apple Computer 147 7 Ford 145 8 Sony 108 9 McDonald’s 106

10 Dell 99


Successful marketing isn’t just about cuing more conversations;

it’s also about driving strongly positive conversations that lead to recommendations and purchases.

The best marketers, Keller Fay Group has found, use a variety of messaging techniques that lead to

sharing and recommending.

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Audiences With the Most Weekly Brand-Related WOM Conversations

Average Number of Brand Conversations Per Week Top 10 of 113 Media Audiences Shown



116

117

117

118

118

119

119

119

124

128

USA Today

Southern Living

USAToday.com

Wall Street Journal

NBA.com

New York Times

Us Weekly

Disney.go.com

WSJ.com

Vogue

Advertisers can take better advantage of these media by using them as a way to

introduce “new news” that they want to spread, by

making ads in online publishing environments

easy to share with others, and by using messages that people will feel compelled

to share with others.

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Brand WOM in Stores is More Likely to Lead to Purchase Intent

Percentage Rating WOM Highly Likely to Inspire Purchase Intent “9” or “10” on 0-10 scale



50%57%

Any Location In a Store

5% of all brand conversations actually occurs inside a store.

Though not a very large percentage, this is a very

large volume, as consumers are exposed

to in-store conversations some 750 million times per week.

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People Talked About Different Brands in All WOM vs. Social Media WOM

Top 10 Social Brands (2010): Social Media vs. All Word of Mouth

Social Media Word of Mouth

1 iPhone Coca-Cola

2 BlackBerry Walmart

3 Disney Verizon

4 Android AT&T

5 iPad Pepsi

6 Sony Ford

7 Apple Apple

8 MTV McDonald’s

9 Coca-Cola Sony

10 Samsung Dell

Source: Social Media data from Vitrue. Word of Mouth data from Keller Fay Group’s TalkTrack® 2010. Page 150, The Face-to-Face Book, Free Press, 2012

Looking across the ten most social brands, the average ranking when it

comes to all word of mouth is 82. The biggest

disconnect is Android, which is the fourth most social brand online but

drops to 400 on the list of most talked-about brands

offline and online.

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WOM Stats

Summary Tactics


Consider WOM in all stages of planning

Consumers are social, and the goal of all marketing is to activate our true, social nature

•Start with your story – make it compelling and “talkworthy”

•Tap the right talkers – put your media in front of the people who will most likely talk about you. We call them Conversation Catalysts®

•Choose your channels – focus on the media outlets that will be most effective 1) telling your story and 2) targeting your Conversation Catalysts®

Face to Face Summary Slides Data

Education

Transcript of Face to Face Summary Slides Data