This plan focuses on using key metrics to gauge and enhance the effectiveness of Word-of-Mouth (WOM) marketing. Each metric measures different aspects of customer interaction and loyalty, providing insights to boost marketing strategy. For instance, the Net Promoter Score (NPS) tracks customer loyalty and satisfaction, helping identify areas for improvement like customer service and product quality.
Customer Referrals and Social Media Mentions highlight the direct results of WOM marketing efforts. High referral rates indicate a strong customer base willing to advocate for your brand. Meanwhile, frequent social media mentions can significantly expand your brand's reach online. Lastly, metrics like Customer Lifetime Value (CLV) and Review and Rating Volume offer critical insights into long-term customer engagement and overall brand reputation.
Top 5 metrics for Word-of-Mouth Marketing
1. Net Promoter Score (NPS)
Measures customer loyalty and satisfaction by asking how likely customers are to recommend your product or service to others
What good looks like for this metric: 50 or above is considered excellent
How to improve this metric:- Improve customer service
- Enhance product quality
- Request feedback and act on it
- Offer referral incentives
- Build a strong customer community
2. Customer Referrals
Tracks the number of new customers acquired through referrals from existing customers
What good looks like for this metric: 10% of new customers is considered good
How to improve this metric:- Introduce a referral program
- Simplify the referral process
- Provide incentives for referrals
- Highlight referral successes
- Ask for referrals at peak satisfaction points
3. Social Media Mentions
Counts the number of times your brand is mentioned on social media platforms
What good looks like for this metric: Varies widely by industry and brand size
How to improve this metric:- Engage with users on social media
- Create shareable content
- Encourage user-generated content
- Monitor social media trends
- Collaborate with influencers
4. Customer Lifetime Value (CLV)
Estimates the total revenue a business can expect from a single customer account
What good looks like for this metric: Varies widely by industry
How to improve this metric:- Enhance customer experience
- Upsell and cross-sell products
- Improve customer loyalty programs
- Offer exceptional after-sales service
- Personalise marketing efforts
5. Review and Rating Volume
Tracks the number and quality of reviews and ratings your products or services receive
What good looks like for this metric: 4 stars or higher is considered good
How to improve this metric:- Encourage customers to leave reviews
- Respond to all reviews
- Address negative feedback promptly
- Showcase positive reviews
- Simplify the review process
How to track Word-of-Mouth Marketing metrics
It's one thing to have a plan, it's another to stick to it. We hope that the examples above will help you get started with your own strategy, but we also know that it's easy to get lost in the day-to-day effort.
That's why we built Tability: to help you track your progress, keep your team aligned, and make sure you're always moving in the right direction.
Give it a try and see how it can help you bring accountability to your metrics.
