Top 5 Reasons Consumers Become Word-of-Mouth Brand Activists

Consumers who are loyalty reward program members are far more likely use word-of-mouth for their favorite brands than non-members, and the more active their program participation, the more likely they are to exhibit word-of-mouth behavior, according to a study released by Colloquy.

The study "The New Champion Customers: Measuring Word-of-Mouth Activity Among Reward Program Members" shows a direct correlation between reward program activity and consumers' positive endorsement activity.

According to the study:

-Reward program members are 70% more likely to use word-of-mouth (defined as customers who are 'actively recommending' a product, service or brand) than the general population

-55% of reward program members are self-described word-of-mouth champions

-Only 32% of non-reward program members are self-described word-of-mouth champions

-68% of word-of-mouth champions in reward programs will recommend a program sponsor's brand within a year

-Actively participating reward program members are over three times more likely to be word-of-mouth champions

- Reward program members who have redeemed for experiential rewards are 30% more likely to be word-of-mouth champions than those who have redeemed for discounts.

Top Five Reasons Consumers Talk, Blog, Email & Post Info on Their Favorite Brands
The research also examined the motivations of word-of-mouth champions - asking why they engaged in word-of-mouth activity regarding their favorite products and brands and what categories of offers and information they were most likely to pass along to others within their networks. The top five motivations of word-of-mouth champions were:

- To tell manufacturers what I think.......... 73%
- To get smart about products/services........ 68%
- To be the first to discover new items....... 68%
- To get free product samples................. 63%
- To share my opinion with others............. 61%

The research shows that a company's loyalty marketing database is an under-utilized social network that marketers would do well to exploit in the pursuit of positive, profitable word-of-mouth activity.
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