Two surveys that I picked up on that draw somewhat different conclusions. First of all (via Marketing Charts) comes this study by WorkPlace Media which says that 96% of employed consumers won't think less of a brand if it has no social media presence.
Moreover while 25% recommended a business or product on a social network, only 18% have actually acted on recommendations. Phew, that's ok then, I knew all this social media business was all a bag of b*llocks. Switch off the computer and get some fresh air like most normal people!
Or maybe not. Another study by Nielsen involving 25,000 people in 50 countries shows that 90% of Internet consumers worldwide (so in the developed world, that's most consumers full stop) trust recommendations from people they know, while 70% trust consumer recommendations posted online - I am assuming this means recommendations from people you don't necessarily know via sites like TripAdvisor.
Information on brand websites elicits a high degree of trust at 70%, as does (as you'd expect) editorial endorsements at 69%. My take on the brand website score is that by the time people visit it, they are already at least curious about the product or service and so are looking for validation.
And at the bottom? Text ads on cell / mobile phones (24%) and the much maligned banner ad (33%). The point is that according to Nielsen, word of mouth online recommendations outstrip every other form of marketing and even a good (editorial) review in a newspaper or magazine.
Commenting on the study, Jonathan Carson, President of Online at Nielsen says: "The explosion in consumer generated media over the last couple of years means consumers' reliance on word of mouth in the decision making process, either from people they know or online consumers they don't has increased significantly."
So going back to that first WorkPlace Media study, I wonder if it's simply a case of how the questions are phrased. Most consumers won't think less of you if you don't have a social media presence....and so what? Will they however think *better* of you if you communicate with them online?
And if the stat of only 18% having acted on online recommendations is true (I doubt it), that's still arguably a very high number in a recession filled climate where margins turn on single percentage points.
- Pricing, WOM, PR Efforts Get Recession Boost (marketingvox.com)
- People Trust Stuff They Read Online More Than Nearly Any Other Medium [If It's On The Internet, It Must Be True] (consumerist.com)
- Consumer-generated media and its usefulness (specialdee.wordpress.com)
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