The London School of Economics (LSE) compared the results of a telephone survey on a random sample UK consumers against the 2003 and 2004 sales data from companies mentioned in the survey. They found that word-of-mouth, both positive and negative were statistically significant predictors of sales growth.
- A 7% increase in WOM advocacy (willingness to recommend a product) unlocks 1 per cent additional company growth.
- A 2% reduction in negative word of mouth boosts sales growth by 1 per cent.
See press release on LSE's website.