Measuring Marketing

Chapter 63 Word of Mouth

Measurement Need

To understand whether word of mouth (WOM) generated from social media activities is impacting business efforts.

Solutioni

WOM = # of direct clicks + # of clicks from recommendations

# of direct clicks

Where

# of direct clicks is defined as any click

that first connects to the site

# of clicks from recommendations is defined

as clicks from other links,

such as other websites, ads, banners,

social media recommendations, etc.

Example: Company X had 1,000,000 direct clicks and 1,380,000 indirect clicks in January. They wanted to determine the impact of WOM:

$\begin{array}{l}\frac{1,000,000+1,380,000}{1,000,000}\\ =4.8\end{array}$

Each direct click influenced 4.8 additional clicks. In analog terms, this suggests one person told ...