Measuring Word of Mouth

Wharton Magazine

November 18, 2013

Innovating Analytics | Wharton Magazine | Measuring Word of MouthI’m a big believer that you can’t manage what you don’t measure. When it comes to customer relationships, it’s paramount for brands to measure satisfaction across all customer touch points. One measurement of satisfaction is word of mouth, and the debates on exactly how to measure it have echoed within many corporations.

Readers may be familiar with Net Promoter Score (NPS), a measure that has been adopted by many companies. With NPS, customers answer a single question: On a zero-to-10 scale, how likely would you be to recommend this company? This question yields a single score that’s easy to report and acclaimed for its simplicity. Responders are categorized as brand promoters (nine to 10), passive (satisfied but unenthusiastic) customers (seven to eight), and brand detractors (six or lower). I don’t think it’s an exaggeration to say NPS has been seminal in helping rally organizations around the concept of a positive customer experience . . .  Read the full article »