A New Method Of Measuring Word Of Mouth Marketing

The value of word of mouth reveals this art: it shows what information consumers may pass and the influence of these information, so that marketers can estimate the actual impact of word of mouth on brand value and sales volume.

Consumers have always attached great importance to the opinions expressed directly to them.

Marketers may spend millions of dollars on well-designed advertising campaigns, but what really makes consumers decide is often simple and free: word of mouth recommendation from trusted sources.

As consumers who face too many product choices no longer pay attention to the bombardment of traditional marketing methods, word of mouth publicity quietly and effectively stands out.

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Due to the huge amount of information available at present, the balance of power between enterprises and consumers has been significantly changed.

As consumers get too much information, they are increasingly skeptical of traditional advertising and marketing activities led by enterprises, and increasingly prefer to make decisions independently and independently of the next and next purchase.

Despite the varying degrees of word-of-mouth at all stages of the process, it is the only factor that is crucial to consumers' influence at every stage.

It is also one of the most disruptive factors.

The role of word of mouth in promoting consumers to consider a brand or product is that the rising advertising expenditure can not be achieved at all.

Its role is not a flash in the pan.

Appropriate information will resonate and expand in interested circles, thereby affecting brand awareness, purchase rate and market share.

The rise of online community and online communication has also significantly improved the possibility of word of mouth communication.

Understanding word of mouth

Word of mouth is rather complex and has many possible roots and motives, and we have identified three forms of word-of-mouth that marketers should know.

Empirical word of mouth: Empirical word of mouth is the most common and powerful form. It usually accounts for 50% to 80% of word of mouth activities in any given product category.

It comes from the direct experience of consumers in certain products or services, and is largely due to deviations from the expectations of consumers.

Secondary word of mouth: marketing activities will also lead to word of mouth.

The most common is what we call "secondary word of mouth" - consumers directly feel the information pmitted to them by traditional marketing activities or the word of mouth formed when they are advertised.

The impact of these messages on consumers is usually more direct than advertising, because the coverage and influence of positive word of mouth marketing activities are relatively greater.

Conscious word-of-mouth: another word of mouth that is not as common as the first two forms of word-of-mouth is conscious word-of-mouth. For example, marketers can use celebrity endorsements to create a positive atmosphere for the launch of products.

The number of enterprises that invest in conscious word of mouth is minority, partly because the effect is difficult to measure.

Many marketers are not sure whether they can successfully carry out promotional activities of conscious word of mouth.

For these three forms

Word-of-mouth value

In order to assess the impact of these different kinds of recommendation, we developed a method to calculate the word of mouth value, which is multiplied by the average sales influence of a brand information by the number of brand information.

This index not only tests the influence of these information, but also examines the total amount, so that marketers can accurately test the impact of these information on brand, individual promotion activities and the sales and market share of the entire enterprise.

This influence (that is, any verbal recommendation or discouraging ability to change purchasing behavior) reflects what information involves, what information is pmitted, and where it is said.

This effect is different from product category.

The content conveyed by information is the primary driving force for the impact of word of mouth.

We have found that in most product categories, if consumers' decisions are to be affected, the content of information must be directed against the important characteristics and functions of products or services.

The second key driver is the identity of the information pmitter: the word of mouth recipient must trust the pmitter and believe that he or she really understands the product or service.

Finally, the regional environment of word-of-mouth is crucial to the influence of information.

Compared with dispersed community communication, information coverage in a trusted and closely related circle is usually smaller, but more influential.

Word of mouth value can not only make

Control and use of the power of word of mouth

The pursuit of excellence in word of mouth marketing will bring huge rewards and bring about sustainable competitive advantages. Few other marketing methods can match them.

However, many marketers have not done so.

Some people worry that this method is not mature as a marketing discipline compared with the highly developed marketing management in such media as television and newspapers.

Others worry that they cannot use extensive data or carefully adjust marketing tools that have been trained for decades.

Those who are unsure of actively managing word of mouth should consider this: the cumulative earnings generated by excellent TV advertising (e.g., better than competitors) are relatively small.

This is because all enterprises will actively manage their traditional marketing activities and have similar knowledge.

Because the active management of word of mouth, the most powerful form of marketing, is so small that its potential revenue will be much greater.

Marketers have always known about the effectiveness of word of mouth, and designing effective word of mouth promotion activities obviously has its knack.

However, the scientific truth behind word of mouth value helps to reveal how to sharpen and apply this art: it shows what information consumers may pass and the influence of these information, so that marketers can estimate the actual impact of word of mouth on brand value and sales volume.

These insights are of great significance to companies that want to make use of the potential of word of mouth and achieve higher returns on marketing investment.