A group call Satmetrix just released a study on the Economic Impact of word of mouth marketing.
As WOM becomes accepted and embraced as part of the marketing mix, the demands for ROI and other measurements intensify.
According to Satmetrix's model, which focused on the computer hardware industry, each Promoter was worth approximately $2,634. Promoters spend $203 more than the industry average of $1,615 and account for roughly one-half of a new customer acquired through positive word-of-mouth. In comparison, each Detractor can cost a business 0.84 percent of a new customer through negative word-of-mouth. by only $158.
Keep an eye out for more word of mouth marketing measurement. We've got a new model we're formalizing as well. It's a sign the industry is growing up.
As WOM becomes accepted and embraced as part of the marketing mix, the demands for ROI and other measurements intensify.
According to Satmetrix's model, which focused on the computer hardware industry, each Promoter was worth approximately $2,634. Promoters spend $203 more than the industry average of $1,615 and account for roughly one-half of a new customer acquired through positive word-of-mouth. In comparison, each Detractor can cost a business 0.84 percent of a new customer through negative word-of-mouth. by only $158.
Keep an eye out for more word of mouth marketing measurement. We've got a new model we're formalizing as well. It's a sign the industry is growing up.
