Key findings confirm the importance of word of mouth on business marketing performance.
On Day 1 of the ARF's Maximizing the Mix conference in San Francisco, CA,Nancy Smith presented "Return on Word of Mouth," which discussed key insights from the Word of Mouth Marketing Association's (WOMMA) extensive study on the impact of word of mouth marketing on business marketing performance.
- 13% of KPIs are driven by WOM
- While both online and offline WOM is strong, offline WOM has two times the impact
- About one-third of the sales impact is attributable to WOM acting as an “amplifier” to paid media, such as television
- An offline WOM impression drives at least 5 times more sales than a paid advertising impression, and much more (as much as 100 times more) for higher-consideration categories
The presentation was followed by a Q&A panel moderated by Alice Sylvester, Partner at Sequent Partners, and comprised of Nancy Smith, Rob Key, CEO of Converseon, and Ed Keller, CEO of The Keller Fay Group.