Word of mouth - one person sharing marketing-relevant information with another person - is far more influential for business executives than other communication channels. Fifty percent of business executives report they are highly likely to buy a product or service based on word of mouth; 49 percent pass on what they've heard to others. Executives report that word of mouth has more than twice the influence of advertising, direct mail or press coverage on purchase decisions.
Business decision-makers most value communication channels that provide two-way dialogue. Top influences on their business purchase are: recommendations from a colleague or friend, interaction with a salesperson, participation at in-person marketing events, conferences and tradeshows and the internet.
The vast majority of executive word of mouth occurs "offline," with over 75 percent happening in-person. Online and digital media account for only a small portion of executive word of mouth, with email comprising three percent, and IM/text messaging and blogs/on-line chat accounting for about one percent each. Face-to-face interaction predominates both at the office and at home - and defies conventional wisdom that word of mouth is largely electronic.
"The study provides clear directives about the influence of word of mouth in the BtoB space and the need to engage decision-makers face-to-face," says Laura Shuler, chief strategy officer and president (U.S.) of Jack Morton Worldwide. "Marketers need to provide a hands-on experience with the brand in a setting that's conducive to two-way dialogue."
Personal experience with a product or service is the No. 1 catalyst for recommendation, with 86 percent of executives saying they recommend a brand or service based on first-hand experience. Sixty percent of word-of-mouth conversations include advice to buy, try or consider a brand. Fewer than one in 10 conversations advise avoiding a brand.
The study also suggests that business executives are "super influencers" who are a prime target for both BtoB and BtoC marketing efforts, as they talk about and recommend brands at far greater percentages than the general public.
"BtoC marketers should take note," adds Ed Keller, CEO of the Keller Fay Group and co-author of The Influentials. "They should reach out to business executives as influencers and 'passionates' for their brands and think of them as another channel for brand-building."
When compared to others, business executives:
-- Have more word of mouth conversations and talk about more brands:
Business executives have 118 conversations about products and
services per week, citing 102 brands - significantly more than the
general public, who on average have 100 conversations per week, citing
77 brands.
-- Talk more about certain categories of products and services:
Executives have significantly more conversations each week about
financial products and services, telecommunications and technology.
They talk about many more brands in these sectors than the general
public: 43 percent more financial products/services and telecommunications
brands; and 56 percent more technology brands.
-- Keep current and make more brand recommendations: Business executives
are 32 percent more likely than the average person to keep up with the news
across a range of work and more personal categories, including
financial services, technology, telecommunications, automotive and
travel. They're also 28 percent more likely to make recommendations within
these categories compared to the general public.
The study also leveraged Keller Fay's TalkTrack, the only continuous, syndicated research system to measure marketing-relevant conversations in the U.S., to identify the most talked-about brands among executives and the brands with the largest volume of positive word of mouth. Based on the findings, brands with the highest share of positive conversations or positive TalkShare among U.S. executives are:
Financial
Services Technology Telecom Automotive Healthcare
1 Bank of 1 Dell 1 Verizon 1 Ford 1 Tylenol
America Computers 2 Cingular 2 Toyota 2 Walgreens
2 Citibank 2 Sony 3 Sprint 3 Chevrolet 3 CVS
3 JP Morgan 3 HP 4 T-Mobile 4 Honda 4 Advil
Chase 4 iPod 5 Nextel 5 Dodge 5 Johnson &
4 Fidelity 5 Apple 6 Motorola 6 Lexus Johnson
5 Wells 6 Microsoft 7 Nokia 7 Nissan 6 Lipitor
Fargo 7 IBM 8 AT&T 8 BMW 7 Aleve
6 Washington 8 Nintendo 9 Comcast 9 Jeep 8 Tums
Mutual 9 Canon 10 Time 10 Acura 9 Claritin
7 American 10 Samsung Warner 10 Merck
Express
8 Blue Cross
9 Visa
10 Wachovia
The research also established a Net Advocacy rating for individual product/service categories, with the average rating of 39 out of 100 points across all categories. Net Advocacy is defined as the percentage of positive talk minus the percentage of negative and mixed talk, with neutral conversations not shown.
-- Financial products and services: Net Advocacy rating of 32, with
investments scoring 52 and insurance scoring 10.
-- Technology: Net Advocacy rating of 41, with computer hardware scoring
46 and computer software scoring 3.
-- Telecommunications: Low overall Net Advocacy rating, ranging from
Wireless Hardware at 31 to Telecom Service Providers and Cable
Companies at 9.
-- Automotive: Net Advocacy rating of 35.
-- Healthcare: Net Advocacy rating of 52, one of the highest among
executives.
The report, titled "Driving Word of Mouth Advocacy Among Business Executives: The Experiential Marketing Connection," is based on online interviews with 700 executives in the U.S. and U.K. conducted between March and April, 2007, combined with interviews with 2,188 executives participating in Keller Fay's TalkTrack tracking study of word of mouth. In addition, 2006 Jack Morton research in Australia and China showed a strong link between experience, word of mouth and purchase influence. The lessons of the current study on executive word of mouth should hold true in markets where business culture is similar to the U.S. and U.K., and may be even more dramatic in markets where business culture more deeply emphasizes personal relationships, and therefore the value of recommendation.
A white paper reporting the study's results can be downloaded at http://www.jackmorton.com/.