Posts Tagged ‘metrics’

Sam Decker The “Gorge” Between Word of Mouth and Company Operations

May 12th, 2006 by Sam Decker Chief Marketing Officer

DMNews recently published an article I wrote that discusses the larger strategic impact of inviting the customer voice to your site…

 

There’s a lot of buzz about word of mouth. It’s not surprising. Customers are exposed to thousands of marketing messages and trust each one less and less. Customers also are paralyzed by product choice: Search “Stapler” on Froogle.com and you’ll find 25,000 results. Naturally, we’re turning to each other to make wiser purchase decisions.

Marketing executives have noticed. CMO magazine reported that 43 percent of U.S. executives cite word of mouth as a top strategy for the coming year. But that doesn’t mean they know what to do about it. And it doesn’t mean that once they find something to do, it will stick.

Ironically, very few marketers actually are focused on word of mouth. Though the Word of Mouth Marketing Association has seen tremendous growth this year, the ideas and strategies of word of mouth have not seen the light of day across the entire marketing department.

How can something so important to a company’s success fail to get the attention of multiple functions? The problem is in the nature of a corporation and the nature of the topic.

Picture two cliffs and a gorge between them. On one cliff is the ostensibly right-brain ambiguity of “word of mouth.” We live this instinctively every day as customers, spending roughly 30 percent of our conversations spreading word of mouth and always seeking it out. On the other cliff is the left-brained, financially grounded operational process and systems that are the corporation. And we live on this cliff every day at work with our colleagues.

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Sam Decker Ratings “J Curve”

May 8th, 2006 by Sam Decker Chief Marketing Officer

We’ve talked to several advisors and prospects who expect to see a “U” shape in the distribution of their review submissions by ratings. In other words, there should be an equal number of “1” ratings as there is “5” ratings, displaying the extremes of customer opinion. We weren’t sure what to expect when Bazaarvoice got off the ground a year ago.

We didn’t know what to expect then, but we do now.

Across many clients in diverse industries this “U” curve turns out to be more like a “J” curve…almost a reverse "L" (see below). The average rating across all clients is 4.3 out of 5 stars. The distribution looks like a J, where there are more 1s than 2s, but far more 4s and 5s than the lower ratings.

Why is this? Aren’t people more likely to share their word of mouth about bad experiences? Perhaps they are more likely to share negative opinions when they have personal experiences with a company (service, sales) than the product they buy?

And perhaps customers are interested in sharing their opinion about great products they buy, because there are so many mediocre products. So there’s some satisfaction in sharing the news when we find a product we love.

We’ll learn more and share more here. But in the meantime, this “J” curve is part of the answer to the conern: “What about negative reviews?”