How can you effectively measure the impact of word-of-mouth on consumer behavior?

1 Define your WOM goals

Before you start measuring WOM, you need to define your goals and objectives. Consider what you want to achieve with WOM and how it can help improve products, services, or brand image. Possible goals include increasing awareness and reach of your brand or product, enhancing customer satisfaction and loyalty, generating referrals and recommendations, boosting sales and revenue, and identifying customer pain points and feedback. Your goals will help you decide which type of WOM to measure (e.g. organic, amplified, or advocacy) and which metrics and indicators to track (e.g. volume, sentiment, or conversion).

2 Choose your WOM sources

Once you have your goals set, you need to select your WOM sources. These are the channels and platforms where customers and prospects share opinions, experiences, and preferences about your brand or product. For example, social media platforms like Facebook, Twitter, Instagram, or YouTube are common sources. Additionally, online review sites like Yelp, TripAdvisor, or Amazon are popular choices. Blogs, forums, podcasts, or newsletters are also potential sources. Lastly, offline word-of-mouth such as face-to-face conversations, events, or media coverage can be considered. When selecting sources for your WOM strategy it is important to consider the relevance and accessibility for your target audience, industry, and market. Furthermore, the quality and credibility of the sources should be taken into account as well as the level of engagement and interaction they generate.

3 Collect and analyze your WOM data

After you have your sources, it's time to collect and analyze your WOM data. This process involves gathering, organizing, and interpreting the information and feedback from customers and prospects. To do this, you can use surveys and questionnaires, such as Net Promoter Score (NPS), Customer Satisfaction Score (CSAT), or Customer Effort Score (CES). Additionally, you can leverage social media analytics like likes, shares, comments, mentions, or hashtags; online review analytics such as ratings, reviews, or testimonials; text and sentiment analysis such as natural language processing (NLP), machine learning (ML), or artificial intelligence (AI); and word-of-mouth marketing software like Bazaarvoice, Trustpilot, or Influitive. You should select the methods and tools that best suit your goals, sources, and budget. Moreover, it's beneficial to compare your data across different sources, time periods, and segments to identify patterns, trends, and insights.

4 Apply and improve your WOM strategy

The final step in your WOM strategy is to apply and improve it. Using the results and insights from your WOM measurement, you can enhance your marketing efforts, customer relationships, and business performance. You should reward and incentivize loyal customers to spread positive WOM, respond promptly to any negative WOM or customer complaints, create and share engaging content that encourages WOM, collaborate with influencers or experts who can amplify your WOM, and test and optimize products, services, or brand image based on WOM feedback. Additionally, you should monitor and evaluate your WOM strategy regularly, adjusting it according to your goals, data, and market conditions. Moreover, communicating and celebrating successes with your team and stakeholders is essential.