Nielsen//NetRatings shared some interesting analysis today on word-of-mouth marketing and search - based on their numbers, these techniques are important for educating consumers and building brand awareness. Actual sales conversion, however, tends to occur separately:
Word-of-mouth
Nielsen's research puts some definition
around the relationship between word-of-mouth marketing and online
sales. This behavioral analysis shows that consumers share much more
information with people they already know than with the community at
large.
- 75% of online consumers will recommend a site to a friend, but only 33% will write and post a public review.
- 64% of shoppers share information about their shopping experience with a friend, but only 5% of shoppers blog about online shopping.
Once a customer recommends a retailer to a friend, or forwards an email, it feeds into the consumer's research rather than converting directly into a purchase. Even after a referral, folks go directly to the site when ready to purchase - e.g., typing www.landsend.com into their browser rather than clicking an email link from a friend.
Search
Most online purchases are made by direct visits to a branded site, which isn't too surprising given the strong branding of most cataloguers. Search is being used as a navigational rather than an exploratory tool; e.g., searches are more commonly performed on a phrase like "banana republic wool sweater," not just "wool sweater."
