Recommendation generation

Online word of mouth has become a much more widely used source of information, but marketers should pay attention to what is being said about their brands offline as well as on the internet

Marketers are keen to leverage word of mouth (WOM) in their campaigns but they need to bear in mind that there is a difference to what people say about brands when chatting to friends in the pub or on sites such as MySpace – and, more importantly, how this influences purchase decisions.

The number of consumers referring to online sources, such as message boards, social communities and blogs, for information about brands and products has doubled over the past two years. And whatever is said – good or bad – can travel more quickly than ever in digital communities, blogs or forums as well as with mobile technologies such as text messaging.

However, despite marketers diverting budgets into targeting social networks as a place where positive brand discussion can take place, it is actually the most likely source of negative opinions about brands, according to Millward Brown.

The research company undertook a second survey, two years after the first, into the influence of online and offline media. The research discovered that of the 1,000 UK consumers surveyed who used online communities, online contacts and blogs, a third said they received negative brand opinions from them.

Positive recommendations about brands are far more likely to come from offline personal contacts, who remain consumers’ most widely used source of information when considering purchases. Of the consumers who referred to personal contacts, 54% said they received a positive recommendation compared to 40% of those who got positive recommendations online.

Personal contacts were less important than any other source when it came to looking for information on digital cameras. For this product choice, independent reviews in the press was the dominant information source. Also, information on over-the-counter medicines was more likely to come from company-led communications than friends and family.

Marketing campaigns using online communities are a key part of the marketing mix, but marketers need to truly understand how their online activities will have an impact on their brand.

Marketers also need to track what’s being said about their brand on the street, in the café and in the pub because where consumers go for information, and the role traditional and new channels play in influencing buying decisions, is different for every brand in every category.

The research also found that although personal contacts are still more important in influencing purchasing decisions than online communities and blogs, the gap is closing. Online WOM has become a much more widely used source of information, but is still relatively small in comparison to other sources.

Recommendations from personal contacts are more likely to be regarded as convincing and relevant than corporate websites or online informal sources. Even when they do give recommendations, online communities, blogs and message boards are less likely to be seen as relevant (37% of those who had received a positive recommendation compared to 59% for personal contacts found the advice to be very relevant).

Millward Brown’s research underlines the changing influence of other media. For those who had used them, personal contacts were closely followed by price comparison websites on the influence stakes. More than half (57%) of respondents who were given recommendations by price comparison websites found them very relevant and 45% said they were very convincing; almost a quarter (24%) said they chose the brand solely because of the recommendation, no doubt stimulated by the ease of use offered by click-through purchases.

The print media is now less salient than in 2006, although it remains a significant source of information. There is a divergence in the fortunes of specialist press and reviews in mainstream newspapers and magazines. Consumers are relying on a more varied set of sources for their information about brands. While advice from specialist publications remains convincing, fewer consumers are turning to newspaper and magazine reviews and their recommendations are unlikely to influence a consumer purchase (10% versus 18% for specialist press and 20% for personal contacts).

People are becoming less influenced by branded corporate communications. The influence of company websites has decreased by five points since 2006 and is now listed by less than half of respondents as a source of information when looking for advice or information on what products to buy. Only 14% chose to buy a product based solely on recommendations they were given there.

Marketers need to pay particular attention to what is being said about their brands both online and offline as it can influence brand loyalty and purchase decisions. Proactive WOM strategies also need to address all places that people chat, not just online. Brands that want to craft a WOM strategy need first figure out what is going to resonate with their audience and then target them with the most appropriate channels, online and offline. v Fergus Hampton, chief executive of Millward Brown Precis, contributed to this week’s Trends InsightIt is not the norm for people to want to go to a music and arts festival simply because they visited the related website, yet that is what secretgardenparty.com set out to achieve. By engaging and intriguing site visitors, the website aimed to tempt them to buy tickets and attend the real-life Secret Garden Party festival.

Secretgardenparty.com represents a virtual festival world that entices the festival goer to explore with playfulness and fun. When entering the flash built site you are taken into a cartoon-style festival world where you can traverse the site’s area and offerings.

Different types of music fade in and out wherever you point your cursor, which has changed into a buzzing ladybird. In between you have moments of surprise and quirkiness, such as hairy characters appearing next to the pond – with corresponding sound effects – or yogic flyers lifting above the tents.

However, the site has its drawbacks. It’s not for the rushed visitor who wants to find facts about who is performing when and where quickly. Nor is there a facility to print any information. Also, users with poor eyesight will have trouble reading the small black text on the light grey semi-transparent background, and the absence of a back button might cause problems for users wanting to make their way back to descriptions they have looked at before.

It also takes time to find your way around the site, so it is a positive thing that a sound-off feature has been included so users can tell their gripes in the hope they can be corrected.

The secretgardenparty.com’s ethos is not to serve the masses but to stay small and personal. It is praiseworthy that the site creators implemented an accessible version of flash for people using a screen reader, although there is always room for improvement. Screen reader users are deafened by the music playing far too loudly upon entry and some link labels are missing, leaving the content to be guessed.

Still, the secretgardenparty.com 2008 site is in the making. Let’s hope the creators will work on the 2007 site’s pitfalls and come up with a site that is better to navigate but just as intriguing. 

Fergus Hampton, chief executive of Millward Brown Precis, contributed to this week’s Trends Insight