Tuesday, May 16, 2006

LSE Study: WOM drives business growth

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.

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