Supermarket sales performance closely reflects word of mouth rankings

- Aldi the most positively-discussed supermarket in the UK – and the fastest-growing.

LONDON, Nov. 5, 2014 /PRNewswire/ -- Research indicates that brand word of mouth – consumers' conversations in person, by phone or via online channels - has a clear impact on sales. In supermarkets, the evidence is compelling. Data from marketing research group Keller Fay's TalkTrack^® programme indicates that the quality of word of mouth (WOM) for UK supermarket brands is closely reflected in their sales performance:

Supermarket net sentiment* and annual sales growth in past 12 months

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*Net sentiment = positive conversations minus negative or mixed for each brand

In fact, all supermarket brands enjoy positive word of mouth. On average, conversations about food retailers are 64% positive and only 6% negative (the remainder being 'mixed' or neutral). In conversations with friends, family and work colleagues, people are usually more likely to share positive experiences and pass on tips about good deals and new products.

But there is big variation across the sector. Over the past 12 months, Aldi, with consistently positive WOM, has enjoyed spectacular growth, whereas Tesco's troubles are widely known. Over 80% of Aldi WOM is positive and just 13% negative or mixed, the best ratio by far.

% of WOM which is positive for UK supermarkets – 12 months to September 2014

Waitrose has WOM sentiment similar to Lidl, but its sales are growing more slowly. In part this will be because some simply can't or won't pay Waitrose prices, however loudly their friends might praise them. But Waitrose perhaps underperforms in terms WOM volume. The number of conversations about Waitrose is only moderate given its number of stores (whereas Aldi and Lidl overperform), and Waitrose perhaps needs to activate latent brand advocacy more fully.

In summarising the research results, Steve Thomson, MD of Keller Fay UK, said "Contrary to some perceptions, all the major UK supermarket brands are discussed positively in everyday conversation. But the star performers in the sector enjoy a significant lead over the big 4 brands, and this powerful brand advocacy is clearly reflected in their stronger sales performance".

About Keller Fay
The Keller Fay Group are the consumer conversation experts. We are the first full-service market research company focused exclusively on word of mouth (WOM) and brand advocacy. Launched in 2011, Keller Fay's TalkTrack^® Britain programme is the UK's only continuous study of consumer conversations about brands across all channels, online and offline. TalkTrack subscribers include leading agencies, brands and media organisations. For more information, go to www.kellerfay.com