For Brands, Experience-Driven Word of Mouth Sparks the Most Action

New Keller Fay Group Research Reveals that Over 50% of Conversations Triggered by an In-Person Experience Spark Pass Along and Purchase

Chicago, IL, WOMM-U – May 20, 2013 – Try it, you’ll like it…talk about it and buy it! Keller Fay Group, the world leader in word-of-mouth research, today released new findings that support and explain the success of word of mouth marketing driven by an in-person experience. The research study, “Experience-Driven Word of Mouth: The Key to Powerful Social Marketing” was commissioned by House Party, a leading social marketing company.

A lack of solid, projectable research about what motivates consumers to talk about brands – and about the impact of that talk – leaves many marketers to make marketing decisions that fail to fully capitalize on the opportunities that are afforded by today’s highly social marketplace. This research explores the factors that trigger word of mouth and assesses which have the greatest impact. The research finds that the most powerful conversations are started by a positive brand experience, both in terms of quantity and quality. In fact, top line findings show that over 50% of conversations triggered by an in-person experience spark action to pass along and purchase. For this study, Keller Fay Group looked at the beverage, household product, media & entertainment, technology, and food & dining categories. Results from over 30,000 consumer interviews, ages 13-69, showed:
  • Experience-driven earned media sparks the most action, especially when it references the brand’s media/marketing:

o 55% rate it highly likely to spur them to pass it along, 8 points (17%) higher than media/marketing WOM alone. o 45% rate it highly likely to spur them to seek more info, 8 points (22%) higher than media/marketing WOM alone. o 56% rate it highly likely to spur them to purchase, 10 points (22%) higher than media/marketing WOM alone.

  • After “need,” “good experience” sparks the most earned (17% and 15%, respectively).

o Ads spark just 5%. o Social media sparks just 3%.

  • Experience-driven earned is the most credible

o 63% rate it highly credible – 10 points (19%) higher than media/marketing WOM, at only 53%.

  • Over half of experience-driven earned contains strong recommendation to buy/try – 51% of it does, 11 points (28%) more than media/marketing WOM alone.
One fast-growing marketer is all over this magic combination. SodaStream, the leader in at-home soda-making, has been shaking up the soft drink market using word of mouth driven by an in-person experience. According to Kristin Harp, SodaStream U.S.A’s Marketing Manager, “We’ve built our business on word-of-mouth and turbo-charged our campaigns by adding the in-person experience. We have seen that by putting our soda makers and flavors into the homes and hands – and the social networks – of consumers leads to powerful advocacy coupled with sizable lifts in awareness as well as purchase intent.” According to Brad Fay, COO of Keller Fay Group, “With all the enthusiasm over social media, it is easy to forget that the most powerful WOM starts with a great in-person experience. While there are many ways to help drive word of mouth, the best is always positive experiences. In fact, 83% of all WOM about products involves someone who has had personal experience with the brand, and without it credibility and likelihood to purchase falls dramatically.” The research in this white paper comes from Keller Fay Group’s TalkTrack®, a national syndicated program measuring word of mouth in all forms – face-to-face, over the phone, and digitally via texting, social networking sites, and email. Daily WOM volume and metrics in this white paper are based on interviews collected April 2012 – January 2013. During this time 31,108 interviews were completed among people 13 to 69. About Keller Fay Group The Keller Fay Group is a full-service marketing research and consulting company dedicated exclusively to word-of-mouth marketing. Keller Fay's TalkTrack® is an award winning research system, the only source of continuous tracking of all forms of word of mouth about products, services and brands. Keller Fay’s clients include leading brands, agencies, and media. TalkTrack was launched in the US in 2006 and in the UK in 2010. The firm was founded by Ed Keller and Brad Fay, coauthors of the recently published book, The Face-to-Face Book: Why Real Relationships Rule in a Digital Marketplace. Keller is also coauthor of highly acclaimed 2003 best seller, The Influentials: One American in Ten Tells the Other Nine How to Vote, Where to Eat and What to Buy." Follow us @KellerFay or visit us at kellerfay.com. About SodaStream SodaStream is the world’s leading manufacturer and distributor of home beverage carbonation systems which enable consumers to easily transform ordinary tap water instantly into carbonated soft drinks and sparkling water. Soda makers offer a highly differentiated and innovative solution to consumers of bottled and canned carbonated soft drinks and sparkling water. Our products are environmentally friendly, cost effective, promote health and wellness, and are customizable and fun to use. In addition, our products offer convenience by eliminating the need to carry bottles home from the supermarket, to store bottles at home or to regularly dispose of empty bottles. Our products are available at more than 60,000 retail stores in 45 countries around the world, including 15,000 retail stores in the United States. For more information, visit http://www.sodastream.com SodaStream IR App: To download SodaStream's IR app, with access to SEC documents, press releases, videos, audiocasts and more, please visit http://itunes.apple.com/us/app/soda-ir/id524423001?mt=8 for your iPhone/iPad, or https://play.google.com/store/apps/details?id=com.theirapp.soda for your Android mobile device. About House Party House Party is a social marketing platform that drives consumer recommendations to build brands and increase sales. Our in-home parties — hosted by influential brand advocates and scaled through social media — generate unmatched engagement, advocacy, and lifts for the world’s best loved brands. Follow us @HousePartyInc. House Party applies rigorous and comprehensive measurement methodologies that employ best practices as defined by the Word of Mouth Marketing Association (WOMMA). The company has been vetted by leading research firms, and adopted by some of the world’s biggest brands. # # # Media Contact: Audrey Mann Cronin Mann Cronin PR audrey@manncroninpr.com 914-861-2009 – c 914-260-9651 - o