WOMMA State of WOM Measurement & Research 2008


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State of word of mouth measurement and research presentation at WOMMA Research Symposium 2008

Published in: Business, Economy & Finance

WOMMA State of WOM Measurement & Research 2008

  1. 1. State of Word of Mouth Measurement & R M Research h 2008 Walter J. Carl, Ph.D. ChatThreads Corp. Corp Northeastern University
  2. 2. What’s the Value of WOM? Sources: Kumar et al. HBR. Oct 10.07., BzzAgent, Satmetrix, ChatThreads Slide 2
  3. 3. Some Key Approaches • Customer Value Matrix V Kumar and colleagues; Harvard Business Review • Net Promoter™ Economics Satmetrix • Social Value of Opinion Leaders Barak Libai and colleagues • Conversation Value™ Model ChatThreads and colleagues • For each approach: key concept, focus, methodology, and conclusions • All share in common: CLV + WOM Slide 3
  4. 4. Customer Value Matrix • Key Concept Customer Referral Value (CRV) • Focus Adding New Customers Reducing Marketing Acquisition Costs • Methodology Value of customers who joined due to referral Value of customers who would h l f h ld have joined anyway d • Conclusions CLV ≠ CRV Different types of WOM recommendations Champions, Affluents, Advocates, Misers Slide 4
  5. 5. Customer Value Matrix LOW HIGH CRV CRV HIGH AFFLUENTS CHAMPIONS CLV LOW MISERS S S ADVOCATES OC S CLV Source: Kumar et al. HBR. Oct 10.07. Slide 5
  6. 6. Net Promoter™ Economics • Key Concept Referral Economics • Focus Adding new customers due to positive WOM Minimizing lost customers due to negative WOM • Methodology Positively referred x number referred x conversion rate l f d Negatively referred x number referred x conversion rate b f d Referral impact x overall average spend • Conclusions C CRV:CLV Focus on loyalty drivers to move customers along continuum from detractors to promoters Slide 6
  7. 7. Social Value of Opinion Leaders • Key Concept Social Value • Focus Acceleration effect • Methodology Agent-based modeling with inputs from diary-based self- report methodology Looks at effect on long range products if customer is absent long-range from social system • Conclusions Much M ch social value stems from accelerating p rchase process al e purchase Activating influencers can increase value of firm’s revenue due to accelerating adoption Slide 7
  8. 8. Conversation Value™ Model • Key Concept Conversation Value™ • Focus New customer purchases due to positive WOM • Methodology Generational reach of program Current and future purchases at each generation How long people continue to recommend • Conclusions Cross-channel comparisons Understand referral drivers and high-impact conversations to optimize over time Slide 8
  9. 9. Other Approaches • CPM base rate + premium for unique attributes associated with WOM • Marketing mix modeling • Value from customer listening and innovation Slide 9
  10. 10. What You’ll Hear Today… • Driving KPIs Through WOM • Global WOM • Online and Offline WOM • ROI • Value of WOM • WOM Planning and Measurement Award-winning Paper Slide 10
  11. 11. Driving KPIs Through WOM • Customer-Generated Q&A Drives 72% Increase in Conversion for PETCO.com BazaarVoice • Understanding the Impact of Product and WOM Campaign Attributes on Generational Reach BzzAgent • The Hidden Business Decision Maker The New York Times Slide 11
  12. 12. Global WOM • The New Dimensions of Word of Mouth: Comparing Use in America and China BIGresearch Slide 12
  13. 13. Online and Offline WOM • Comparing Offline and Online Word of Mouth: Quantity, Quality, and Impact Keller Fay Group • Trends in Informal WOM - Information and Usage Millward Brown Slide 13
  14. 14. ROI • The Impact of “Credible” Reach: How the Scalability of Online Word of Mouth Programs Delivers Better ROI Matchstick • Metrics that Matter: Developing Key Performance Indicators to Measure, Communicate, and Maximize the ROI of Word-of-Mouth Popular Media Slide 14
  15. 15. Value of WOM • Measuring the Value of Word of Mouth ChatThreads • Measuring Conversations: A Proposal to Quantify Public Relations Campaign Results Golin Harris • Net Promoter® Economics: The Impact of Word of Mouth: Exploring the Relationship Between Net Promoter and W d of Mouth in the Computer P d Word f M hi h C Hardware Industry Satmetrix Slide 15
  16. 16. WOM Planning and Measurement • Socialight: How an Agency Developed a Proprietary Word of Mouth Planning Tool Denuo • How Honest We Are FikriMuhim • How Innovative, Real-time Research Captures Buzz Mesh Planning g • Making the Case: Measuring the Impact of Organic Word of Mouth Serengeti Communications S ti C i ti Slide 16
  17. 17. WOM Planning and Measurement (cont.) • Identification, Engagement, and Measurement: Putting It All Together For WOM Marketers Sysomos • Measuring the Social Mix: Quality, Quantity, and A Bit of Intuition VML • Small Business and Word of Mouth Webbed Marketing Slide 17
  18. 18. Measuring Word of Mouth, Volume 4 http://www.womma.org/research08/ Slide 18