What does it take to start people buzzing?
- More likely to seek out and listen to WOM when purchase is higher risk, e.g. more talk about autos, less about toilet paper
- Extreme levels of satisfaction/dissatisfaction drive WOM
- Advertising can stimulate WOM
- Loyal customers tend to engage in WOM, but not always positive
What’s the ROI of Advocacy?
- Likelihood to recommend as a proxy measure of advocacy
- Net Promoter Score (Promoters – Detractors); metric correlated with revenue growth
- Current controversy about relationship between NPS and business performance
- Challenge: WOM is both a driver of future sales and an outcome of past sales
[the jury’s still out on this one.]
Naturally, these points were all supported by citations of academic research, like this.