A Facilitated Word of Mouth Research Study completed by Purdue University Agricultural Economics Department (2002) verifies that word of mouth marketing has both long lasting and measurable positive impact on the market by effectively reaching customers. Significant sales increases resulted following Beck Ag, Inc. AgTelecom^® participation.

Definition
Word of mouth marketing is communication about products and services between people who are perceived to be independent of the company providing the product or service, in a medium perceived to be independent of the company.

Beck Ag
Beck Ag, Inc. offers ag professionals an opportunity to learn about products, innovative technologies and business practices from their peers through interactive telephone conversation. Beck Ag consults with organizations to develop and deliver customized word of mouth marketing strategies through various forums that utilize peer influence tactics. Beck Ag is agriculture's word of mouth marketing leader.

This Research
An agricultural marketing research study conducted by Purdue University Agricultural Economics department evaluated Beck Ag facilitated conferences held Dec. '98 through March '99. Teleconferences involved a total of 415 grower participants and ranged between 8 - 12 participants per conference. Purdue surveyed 16% of the total grower participants. The majority of those producers surveyed farmed between 1000 and 1500 corn acres, and most raised soybeans.

The Subject
The Beck Ag client in this case was a crop protection/seed company marketing an insecticide to growers. Growers surveyed in these 1999 AgTelecom conference calls were contacted by telephone and participated in a facilitated educational conference. Some of the participants had used the insecticide previously, others had not. The conferences were strictly peer-to-peer and no company representatives participated in the calls. During the call, participants each had an opportunity to learn from other participants through conversation and interaction. Beck Ag moderators with specific Midwest ag industry backgrounds facilitated the AgTelecom programs.

Analysis
Immediate sampling through polling of participants is standard practice by Beck Ag with results averaging 95 - 98% of participants finding value in conference participation. The Purdue University research measured the participants' recall and actual increase in product use over the three years following the AgTelecom participation.


The Results
Both long lasting and measurable positive impact on the client's bottom line resulted from participation in Beck Ag teleconferences. Based on the Purdue research findings, Beck Ag calculated their client's increase in sales generated following participation Beck Ag's word of mouth marketing tactics. For each dollar invested in Beck Ag, the client realized an additional $7.57 increase in sales the first year following participation in a Beck Ag AgTelecom teleconference. Second year following AgTelecom participation, the client realized an additional $8.57 increase in sales and an additional $10.56 increase the third year following AgTelecom participation. Total increased sales generated over the 3-year study period showed a sales increase of $26.70 for every dollar invested in Beck Ag, Inc.


Additional Significant Research Findings
Significant findings calculated in this research show that growers who participated in facilitated word of mouth marketing done by Beck Ag, Inc. not only remembered participating up to three years post conference, but also indicated they would be willing to participate in future conferences. Participants actively referred program participation to other growers. The ripple effect, demonstrated through growers actively sharing information with their peers post conference was significant. In addition, 81 percent of the growers polled were those who were maintaining or expanding their operations - optimum targets for the client.


Information Sources
Additional findings in the Purdue research revealed that sources of information considered "important" to surveyed growers included information from other producers, salespeople (both manufacturer and dealers) - situations where interactive conversation occurs, and trade publications. Information from television, radio or Internet sources was rated as far less important to growers.

AgTelecom^® is a registered trademark of Beck Ag, Inc.