More evidence that word of mouth drives business growth:
- A 7% increase in positive word of mouth unlocks 1% additional company growth
- A 2% reduction in negative word of mouth boosts sales by 1%
- Companies with above-average positive word of mouth grow four times as fast as those with below-average positive word of mouth.
The figures are based on surveys conducted by the London School of Economics and Political Science and The Listening Company in the United Kingdom and compared against 2003 and 2004 sales data from banks, mobile phone networks, supermarkets and car manufacturers.
What this means for companies: Get baseline figures comparing your word of mouth to that of your competitors. A word of mouth goal or a composite Customer Evangelism Score makes it easier for employees know how well they're doing in the word of mouth arena.
Via: WOMMA
Technorati tags: word-of-mouth
Source: http://customerevangelists.typepad.com/blog/2006/05/word_of_mouth_d.html
