Some Gradgrindian hard facts on word-of-mouth..

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.

3 thoughts on “Some Gradgrindian hard facts on word-of-mouth..

  1. Corante Marketing Hub

    Eggs and Chickens… or something.

    Renee’s question yesterday kind of reminded me about the chicken and the egg thing. (Where the egg is the product, and the chicken is the brand…) So… which one comes first? Give it some thought. We’ll come back to it…

    Reply

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