Word of Mouth Marketing

Word of mouth marketing is one of the most powerful forces in the marketplace, and taking control of this important marketing channel is critical. Word of mouth is more credible than your most sincere salesperson - it reaches more people, faster, than advertising, direct mail or even the Internet. It's this credibility that gives word of mouth some of its power. It also explains why word of mouth can be negative and marketers perceive that it is out of their control.

Department Research

The Department of Tourism has conducted regular studies on advertising awareness in our core markets of Chicago and the Twin Cities. Among other things, survey respondents were queried on the sources of information they used in planning their Wisconsin vacations. Word of mouth recommendations were mentioned more frequently than any other source. Forty-seven percent of those who traveled to Wisconsin mentioned they relied on word of mouth recommendations followed by the state's Internet site (20%) and brochures and booklets (19%).

In a series of studies conducted by the Department between 2000 and 2001, more than 4,300 visitors at various events around the state, stated that they relied on recommendations from family and friends as their source of travel information. Forty-seven percent of these visitors mentioned word of mouth as their information source followed by Wisconsin Tourism Guides (44%) and the Internet (38%).

National Research

The Department's findings are reinforced in recently conducted national travel research. In the Yesawich, Pepperdine & Brown and Yankelovich Partners' National Leisure Travel Monitor (April 2002), we learn that recommendations from family and friends rank third in criteria in hotel and resort selection decision factors. In the hierarchy of factors in the decision process, brand name ranks on the lower end of the spectrum. Consumers place more emphasis on the specific reputation of a property or destination than its brand name. The report also confirms that without brand awareness and reputation or previous experience with the hotel, consumers are likely to seek recommendations from friends or business associates.

Word of mouth is the informal communication between people who are independent of the company providing the service-a fact that makes a decision maker feel they are getting the whole, undistorted truth. The National Leisure Travel Monitor findings indicate that recommendations of friends and family are at the top of the list of confidence when compared with other information sources. In 2002, 84% of the people surveyed indicated that recommendations from friends or family members drove their confidence level, ranking this form of marketing as the most important when considering a travel destination.

Marketing Implications

Both Department and national research reinforces the power of word-of-mouth marketing, and is one reason why it is so important to make sure guests are completely satisfied prior to leaving your business. A dissatisfied customer will tell approximately 11 people about a bad experience whereas a satisfied customer will tell only three people. For more suggestions on how to build a culture of customer service and harness the power of word of mouth, refer to the article "Building a Culture of Customer Service" in the June/July 2002 issue of The Marketour.  Copies of the advertising awareness studies are also available through the Department of Tourism by contacting Dave Scheler via e-mail or phone, 608/266-6792.