Measuring the ROI of Word of Mouth Marketing

The final panel at the CMA Word of Mouth Conference deals with measurement.

The panellists:

  • Dan Hunter, Partner at IMI International
  • Malcolm Faulds, VP Media Services, BzzAgent
  • Andrea Wojnicki, Assistant Professor of Marketing, Rotman School of Management, University of Toronto (Session Moderator)

I’m live blogging the session using CoverItLive. My notes are below:

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Measurement – ROI of WOM Marketing (06/12/2008) 
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Wojnicki: What are the quick and inexpensive measurement tools that everyone should implement tomorrow?
Faulds: Google trends; Google Analytics; Twitter tracking
Hunter: Conduct surveys to test awareness and perceptions of WOM campaigns.
Wojnicki: Should Word of Mouth be campaign or something longer term? What are we measuring? Campaign results? Or longer term reputation?
Faulds: Include both organic and accelerated word of mouth.
Faulds: BzzAgent recruits consumers to try and discussion products. They measure reach: how many people can be reached?
insights: what are people talking about and what are they saying?
impact: Are we able to move people’s perceptions fo the brand. And more importantly, can we move sales?
It’s easier to measure online WOM. But offline makes up 80-90% of WOM. So, we have to find ways to measure that effectively.
Hunter: Impact is the key net measure that should be measured across all programs. The impact I can make measured agains the dollars that were spent. This will enable us to compare campaigns against one another.
Wojnicki: Everybody’s jumping on the WOM bandwagon because it’s so pervasive and easily measured online. How do we measure the offline WOM.
Hunter; Consumer research will provide the answers for offline WOM. You have to invest in order to learn.
Faulds: Whenever there is a new medium out there, people have to measure it with old metrics. It takes some time for new metrics to be developed that fit the new medium. So, with Word of Mouth and “viral,” it will take some time to develop new better metrics.