I pointed to this discussion thread [corrected link see comments below] about Word of Mouth the other day. I wanted to share Paul Marsden‘s contribution here.
Skeptic says – “‘WOM’ IS just a buzz phrase just keeps consultants in employment. Clients like me need real facts and need to use proper, paid for communications.”Hello Skeptic person – so you’ve obviously read the Deutsche Bank study that shows that only 14% of ‘proper paid for communications’ (mass marketing) show a positive return on investment.
And you’ve no doubt read that in the UK – word of mouth recommendation rates actually predict revenue growth (validated in the banking, supermarkets, phone network and car manufacturing sectors) – whereas the amount you spend on ‘proper paid for communications’ don’t.
And you know, of course, that because positive WOM is the consequence of delivering an experience above expectations – it means its the ultimate acid test in marketing. You can’t hype and spin your way out of mediocrity when it comes to WOM – you have to deliver a superior product or service experience.
Tough medicine for marketers who reduce their discipline to doing ads.
