Buzz Builder: Word of Mouth is Growing Exponentially as a Marketing Activity and Consumer Influence

October 2008

November 21, 2007

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Word of Mouth is Growing Exponentially as a Marketing Activity and Consumer Influence

Recently, a friend sent me me a few interesting stats regarding word of mouth marketing that I found quite enlightening. According to PQ Media, word of mouth marketing jumped 35.9% in 2006 to $981 million, and its expected to climb at a compound annual rate of 30.4% in the 2006-2011 period to $3.7 billion. Keller Fay Group found that Americans engage in nearly 3.5 billion (!) brand-related conversations (that is, people talking about specific companies, products or services) per day, and 80% of all people trust recommendations from family, friends, and "influential" persons over all other forms of marketing and advertising.

In other words, you can be certain that people are talking about your company and what they have to say has a huge impact on your success. What are you doing to make sure that that customer buzz is positive?

November 21, 2007 in Creating Buzz, Measuring Buzz, Referrals, WOM Research | Permalink

Comments

Amazing figures.

Posted by: Greg Albrecht | November 22, 2007 at 04:11 AM

Thanks for the info I speak on this and will be nice to have some more facts to back up what I say Tod Novak

Posted by: Tod Novak Speaker | December 02, 2007 at 10:19 AM

Websites

Galvin Communications
The website for my word of mouth marketing and PR firm. Sign up for The Buzz Bulletin, a free monthly eNewsletter, and receive a complimentary public relations handbook.
WOMMA: Word of Mouth Marketing Association
An outstanding resource for word of mouth marketing information. This respected organization also puts on a variety of well-organized and information-rich events and conferences which are worth attending.

Books

Al Ries: The Fall of Advertising and the Rise of PR
Credibility is the crucial ingredient in brand building. This book explains why PR should be used to launch a brand while advertising should be used only once major PR opportunities have been realized.
Malcolm Gladwell: The Tipping Point: How Little Things Can Make a Big Difference
Why do major changes in our society so often happen suddenly and unexpectedly? Ideas, behaviour, messages, and products often spread like outbreaks of infectious disease. This book will help you understand how social epidemics take off and reach critical mass.
EMANUEL ROSEN: The Anatomy of Buzz : How to Create Word of Mouth Marketing
Rosen pinpoints the products and services that benefit the most from buzz and offers strategies for creating and sustaining effective word-of-marketing campaigns.
Mark Hughes: Buzzmarketing
This book contains some great stories from an experienced buzz marketer that illustrate the importance of finding angles that make you stand apart from the competition. I loved the story of how getting the town of Halfway, Oregon to change its name to Half.com generated a flood of publicity. You'll learn some great practical tips from this book.
Ben McConnell: Creating Customer Evangelists: How Loyal Customers Become a Volunteer Sales Force
An interesting look at how to develop evangelism marketing strategies and programs that will create communities of influencers who will drive sales for your company.
Fred Reichheld: The Ultimate Question: Driving Good Profits and True Growth
Too many companies are addicted to bad profits. These corporate steroids boost short-term earnings but burn out employees and alienate customers. Learn why the answer to one simple question can determine your company's future: Would you recommend us to a friend?
Andy Sernovitz: Word of Mouth Marketing: How Smart Companies Get People Talking
This is the perfect book for an entrepreneur looking for a "how-to" on word of mouth marketing rather than a theoretical or academic overview. Andy Sernovitz built the Word of Mouth Marketing Association using many of the intriguing word of mouth marketing tactics he describes. His strategies are practical for both small and large businesses as his interesting case studies demonstrate. You may put this book down a few times while reading it so you can start implementing some of its excellent ideas.
T. J. Walker: Media Training A-Z
Walker, an accomplished media trainer, provides great practical insight into maximizing the value of the media spotlight. By following his simple suggestions, you'll go into interviews much more confident and come out of them with much better results for your business.
Chip Heath: Made to Stick
This is the best business book that I've read since The Tipping Point since it provides a new way at looking at how you try to tell people about your products or services. You'll have lots of new ideas for promoting your business when you've finished reading this book. And, you'll discover that the best way to promote yourself doesn't involve spending money on marketing rather its all about learning how to tell your business stories better.
Richard Fenton & Andrea Waltz: Go for No!
A great parable about a salesman who learns that every "no" brings him closer to "yes" - an important lesson for anybody who wants to create buzz.