Hawthorne Effect

76% Think You Are a Liar

76% Think You Are a Liar

The Word of Mouth Marketing Association has some great statistics and presentations available on their site. The title for this post comes from the finding that 76% of consumers think that businesses don't tell the truth in advertising. That fact and other nuggets can be found in this presentation.

The obvious follow on question becomes, who do consumers trust? The answer is also obvious: each other. From the same presentation 92% cite word of mouth as the best source for new product ideas, up from 67% in 1977. The fact is that as the marketplace clutter continues to build, word of mouth becomes more and more of a necessity to grow a business.

I posted a few weeks ago about the Hawthorne Effect and the role it can play in helping to develop advocates or promoters for your business. Dr. Paul Marsden of the London School of Economics, has written extensively about the Hawthorne effect and how Consumer Advisory Panels can be a tool to harness the power of the Hawthorne Effect to increase word of mouth.

We like the way Paul thinks and decided to do some testing of our own to see what business owners think of Consumer Advisory Panels, the Hawthorne Effect, and our system Promoterz, which can be used to setup and manage online consumer advisory panels. If you are a business owner and would be willing to take a few minutes to share your thoughts with us, we'd love to know what you think. Click here. You'll be asked to watch a brief video and answer five quick questions.

The growth of your business will be determined by what your customers say about it. Do you know what they are saying? Learn more

They Call it the Hawthorne Effect

They Call it the Hawthorne Effect

In the 1930's some studies were held at the Western Electric production facility outside Chicago in a place called Hawthorne. The intent of the study was simple enough: invite a handful of employees to participate in various working condition tests to determine which conditions were most conducive to increased production. Those conditions that "tested" best were then to be rolled out to the general production floor. One of things they tested was brighter lights. Production went up. Then they tested dimmer lights. Production went up. In fact, no matter what they tested, production went up!

Dr. Paul Marsden, from the London School of Economics, brought my attention to the study and the results which have come to be known as the "Hawthorne Effect." He explains it like this in the preview chapter of his book Connected Marketing:

By singling out a small group of employees to participate in an exclusive trial, participants felt valued, special and important. The special attention they received gratified their ego and created a positive emotional bond with what they were trialing. The practical upshot was that the research trials effectively transformed the research participants into advocates for whatever it was they were trialing.

What does the Hawthorne Effect have to do with growing your business? Creating advocates, or promoters, or evangelists is the first step to harnessing the power of word-of-mouth marketing. The researchers at Hawthorne created advocates by singling out a small, exclusive group, giving them special attention, and asking for their opinion. It is possible to do the same with your product or service.

Case in point: text book publishers. Whether they know it or not, text book publishers have been using the Hawthorne Effect to sell more text books for years. The smart publishers pro-actively select instructors with large adoptions and stellar reputations to review forthcoming text books. Sure, they get good feedback to improve the text, but they also realize that professors that review texts are much more likely to adopt them. I know this because I worked with a unique company called Content Connections that helps publishers do exactly that. Content Connections has developed online tools and processes that facilitate the review process and helps authors and publishers harness the power of the Hawthorne Effect.

Put the power of the Hawthorne Effect to work for your business today. Choose some customers, make them feel special, and ask for their feedback on new products or services. Not only will you get good feedback, you'll get advocates and all those they go on to tell.

Need some help? Contact us at Zeryn.

The growth of your business will be determined by what your customers say about it. Do you know what they are saying? Learn more
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