Changes in Word of Mouth Advertising Based on the Customer Experience – Part 2

Previously we observed changes in customer purchase behavior based on the customer experience. 

Every time a company and a customer interact, the customer learns something about the company, and adjusts their behavior based on what they learn.

To explore this proposition, Kinesis conducted a survey of 500 consumers asking them to recall an experience with any provider that they found to be particularly positive or negative, and determined how these customer experiences influenced customer behavior.

Here is how respondents told us they changed their behavior based on the experience:

Change in Cust Behavior

 

This post specifically addresses positive word of mouth as a result of the experience.

Respondents shared positive word of mouth a median 4.3 times as a result of their positive experience, compared to negative experiences, which were shared about 20% more often (median 5.2 times).  In fact, they were more likely to share negative word of mouth across all mediums:

Word of Mouth as Result of Experience

Positive Experiences

Negative Experiences

Friend or family (Excluding Online or Social Media)

69%

80%

Coworkers (Excluding Online or Social Media)

42%

54%

Online Social Media

28%

47%

Online Reviews

20%

33%

Customers are far more likely to share negative experience using online mediums.  While they are about 1.2 times more likely to share a negative experience with a relative, friend or coworker via an off line medium, they are 1.7 times more likely to share negative experiences over positive via online mediums.

Again, every time a company and a customer interact, the customer learns something about the company, and changes their behavior based on what they learn.  And, as this study shows, they certainly will share this experience with others.   But what about the recipients of this word of mouth advertizing?  How does one customer’s experience influence the behavior of others?

Approximately 90% of respondents said their purchase decisions were influenced positively (93%) or negatively (85%) by social media or word of mouth reviews.

With customer trust at an all time low,  and social media providing a much more far reaching medium of person to person communication, positive word of mouth is becoming far more important in terms of defining the brand.  Increasingly social media is becoming the media.  With 9 out of 10 potential customers saying their purchase decisions are influenced reviews of others, it is increasing important that managers manage their customer experience to support and reinforce the brand.


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About Eric Larse

Eric Larse is co-founder of Seattle-based Kinesis CEM, LLC, which helps clients plan and execute their customer experience strategies through the intelligent use of customer satisfaction surveys and mystery shopping, linked with training and incentive programs. Visit Kinesis at: www.kinesis-cem.com

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