A new way to measure word of mouth

How likely are you to discourage others from doing business with this company? As a message spreads, this approach generates an exponential word-of-mouth impact, similar to the ripple effect when a pebble is dropped in a pond. The right messages resonate and expand within interested networks, affecting brand perceptions, purchase rates and market share.

For instance, while battery life is a crucial driver of satisfaction for mobile handset consumers, they talk about it less than other product features, such as design and usability.

A consumer-driven world The sheer volume of information available today has dramatically altered the balance of power between companies and consumers.

A new way to measure word of-mouth marketing

Those brands, and others, are actively evaluated as consumers gather product information from a variety of sources and decide which brand to purchase. That impact — in other words, the ability of any one word-of-mouth recommendation or dissuasion to change behaviour — reflects what is said, who says it, and where it is said.

Mobile carriers have granular customer data that can precisely locate influentials who know the category, talk to many people, and provide them with trusted opinions. Intentional A less common form of word-of-mouth is intentional — for example, when marketers use celebrity endorsements to trigger positive buzz for product launches.

Its also the most disruptive factor. These insights are essential for companies that want to harness the potential of word-of-mouth and to realise higher returns on their marketing investments.

Measuring Word of Mouth

The bizarre juxtaposition was an immediate hit. Within 24 months of launch, the iPhone was selling almost one million units a year in Germany. It represents the average sales impact of abrand message multiplied by the number of word-of-mouth messages. Finally, the environment where word-of-mouth circulates is crucial to the power of messages.

Harnessing experiential word of mouth is fundamentally about providing customers with the opportunity to share positive experiences and making the story relatable and relevant to the audience.

BrandsIndustry Info As consumers are increasingly overwhelmed by a variety of product choices, impulse buying seems to become a trend of the past.

A New Way to Measure Word-of-Mouth Marketing

Tweet Consumers have always valued opinions expressed directly to them. To turn consumers into an effective marketing vehicle, companies need to outperform on product and service attributes that have intrinsic word-of-mouth potential. Apple has maintained interest in and excitement about the iPhone via its apps store, as constantly evolving and user-generated content maintains positive word of mouth.

Theres an appealing power and simplicity to this approach, but also a challenge: By looking at impact as well as volume, marketers can measure the effects of word-of-mouth messagesmore accurately. In fact, our research shows that a high-impact recommendation — from a trusted friend conveying a relevant message, for example — is up to 50 times more likely to trigger a purchase than is a low-impact recommendation.

The starting point for managing word-of-mouth is understanding which dimensions of word-of-mouth equity are most important to a product category: Managing consequential word-of-mouth involves using the insights provided by word-of-mouth equity to maximise the return on marketing activities.

Marketers may spend millions of dollars on elaborately conceived advertising campaigns, yet often what really makes up a consumers mind is not only simple but also free: Some customers even create websites or blogs to praise or punish brands.

A new way to measure word-of-mouth marketing

Consumers look, ask, search, compare, review, and re-think before purchasing advertised products. Some companies, such as Miele and Lego, build buzz around products before launch and work to have early, highly influential adopters by involving consumers in product development, supported by online communities.

That generates an exponentially greater impact on the products consumers recommend, buy, and become loyal to.

But measuring and managing it is far from easy.Word-of-mouth generates over billion brand impressions each day, it is the primary factor driving per cent of all purchase decisions and it is at least twice more effective than paid advertising (Bughin et al., ; Keller and Libai, ).

A new way to measure word of-mouth marketing 1. 1 A PR I L m a r k e t i n g & s a l e s p r a c t i c e A new way to measure word-of- mouth marketing Assessing its impact as well as its volume will help companies take better advantage of buzz.

Then, you need to figure out a way to measure the effect of adding more "word of mouth." This is where stretching the definition of "word of mouth" can be helpful.

One method that can earn you some new customers while you're doing the "research" is to establish a loyalty card program for your existing customers that gives your existing. A PR I L m a r k e t i n g & s a l e s p r a c t i c eA new way to measure word-of- mouth marketing Assessing its impact as well as its volume will help companies take better advantage of fmgm2018.coms Bughin, Jonathan Doogan, and Ole Jørgen Vetvik.

A new way to measure word of-mouth marketing 1. 1 A PR I L m a r k e t i n g & s a l e s p r a c t i c e A new way to measure word-of- mouth marketing Assessing its impact as well as its volume will help companies take better advantage of buzz.

A New Way to Measure Word-of-Mouth Marketing

A new way to measure word-of-mouth marketing? How The Cirqle looks at it. Claire Duiverman. September 26, Brands, Industry Info. A new way to measure word-of-mouth marketing? How The Cirqle looks at it.

Claire Duiverman. September 26,

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A new way to measure word of mouth
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