Online chat source of negative brand referrals

Millward Brown consumer advocacy survey in the UK finds that influential positive brand recommendations are more likely from offline personal contacts.

While the number of consumers referring to informal sources online (message boards, digital communities and blogs) for information about brands and products has doubled over two years, it is the most likely source of negative opinions about brands.

This was revealed by brand research company Millward Brown in its second survey into the influence that online and offline media - including blogs, message boards, company websites, social media and online communities, magazines, newspapers, price comparison websites - as well as family, friends and sales people, have on consumers' purchase decisions.

The survey, which questioned 1,000 UK consumers, found that 31 per cent of people who had used online communities, online contacts and blogs said they received negative brand opinions from them.

This compares to 29 per cent who received negative opinions about brands from personal contacts and 23 per cent from independent reviews.

Positive recommendations about brands were far more likely to come from offline personal contacts, who remain consumers' most widely used source of information when considering purchases.

Of the consumers who referred to personal contacts, 54 per cent said they received a positive recommendation compared to 40 per cent of those who used online communities, contacts and blogs for information and advice.

Online communities, blogs and message boards are less likely to be seen as relevant (37 per cent) and convincing (32 per cent) even when they do give recommendations.

The survey also found that, among the minority who refer to online communities for advice and information when making purchase choices, specialist press are still the most convincing source of information.

Among those who said they received a brand recommendation from a specialist publication, 18 per cent said they chose the brand solely on the basis of the recommendation; this was on a par with personal contacts (20 per cent).

Other highlights were as follows.

Recommendations from friends, neighbours and colleagues were still the most convincing and relevant - 51 per cent of those who said they had a personal recommendation found it very convincing, and 59 per cent thought them very relevant.

For those who had used them, personal contacts were closely followed by price comparison websites on the influence stakes - 57 per cent of respondents who said they were given recommendations by price comparison websites found them very relevant and 45 per cent said they were very convincing; almost a quarter (24 per cent) said they chose the brand solely because of the recommendation, no doubt stimulated by the ease of use offered by click-through purchases.

Price comparison websites are particularly influential in car insurance: 62 per cent of consumers who had bought car insurance in the last six months said they had referred to price comparison sites (an increase of 15 points on the 2006 study).

The influence of company websites has decreased by 5 points since the last study by Millward Brown and is now listed by 44 per cent of respondents as a source of information when looking for advice or information on what products to buy.

However, nearly a third (31 per cent) of UK consumers who received recommendations from company websites found them very convincing and 35 per cent said they were very relevant.

Only 14 per cent chose to buy a product based solely on recommendations they were given there.

Commenting on the findings, Tim Wragg, Head of Client Service at Millward Brown UK, said: "There is no doubt that marketing campaigns using online communities are a key part of the marketing mix, but marketers need to truly understand how their online activities will impact their brand and be prepared to monitor positive and negative conversations in these communities".

He also advised marketers to improve their understanding of where word of mouth happens: "Where consumers go for information, and the role traditional and many new channels play in influencing buying decisions, is different for every brand in every category.

"There is no one size fits all approach that will work for all brands or across all categories".

Fergus Hampton, CEO of Millward Brown Precis, which monitors and evaluates media and consumer-generated content, said: "The fact that online communities generate almost as much negative brand news as they do positive recommendation is something that every brand needs to take on board.

"Tracking consumer opinion on your brand across a wide range of channels is critical.

"A yearly study is no longer enough: with online, the tracking needs to be continuous".

Millward Brown provides research that helps marketers understand the impact of word of mouth.

It provides: real-time tracking of global consumer generated media (including millions of blogs and message boards) to identity positive and negative discussion on brands or topics; analysis of the findings and guidance on what action companies should take in response to what's being said.

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