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Assessing The Real Value of Customers Word-of-Mouth

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Marketing 2.0 Conference, Paris 2010 Assessing The Real Value of Customers Word-of-Mouth BSI
Join the conversation MARKETING 2.0 CONFERENCE www.marketing2conference.com
ASSESSING THE REAL VALUE OF CUSTOMERS’ WORD–OF–MOUTH Prof. Barak Libai Prof. Barak Libai Prof. Barak Libai Tel Aviv University Marketing 2.0 Conference Paris, March 2010
Prof. Barak Libai By 2010, most mangers are informed about the power of customer word of mouth Prof. Barak Libai
We also know that assessing the economic contribution of word of mouth is critical ,[object Object],[object Object],[object Object],Prof. Barak Libai Valuing investments in social networks and social media in general
Prof. Barak Libai Yet for many, the way WOM turns into ROI stays a mystery ?
Here are I will argue that: ,[object Object],[object Object],[object Object],[object Object],Prof. Barak Libai
The “regular” value of a customer ,[object Object],[object Object],Prof. Barak Libai
The “social value” of a customer ? ,[object Object],[object Object],Prof. Barak Libai
[object Object],Prof. Barak Libai The complexity of calculating person A’s social value A B C D
[object Object],Prof. Barak Libai The complexity of calculating person A’s social value A B C D
[object Object],[object Object],Prof. Barak Libai The complexity of calculating person A’s social value A B C D
[object Object],Prof. Barak Libai The complexity of calculating person A’s social value A B C D
So, it is not only how many friends they have, or even how much they talk. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Prof. Barak Libai
Conceptually, the social value of a customer (or a group of customers) ,[object Object],[object Object],Prof. Barak Libai
Can it really be calculated? ,[object Object],[object Object],Prof. Barak Libai
Stage A- Collect data on real social networks Prof. Barak Libai
Stage b: Based on these networks create simulations in which products are sold to connected customers ,[object Object],[object Object],Prof. Barak Libai
Stage 3: Conduct experiments ,[object Object],[object Object],[object Object],[object Object],Prof. Barak Libai
Some recent results on the social value of WOM “seeding” programs ,[object Object],[object Object],[object Object],Prof. Barak Libai
Thank you Merci beaucoup ! ,[object Object],Prof. Barak Libai

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Assessing The Real Value of Customers Word-of-Mouth

  • 1. Marketing 2.0 Conference, Paris 2010 Assessing The Real Value of Customers Word-of-Mouth BSI
  • 2. Join the conversation MARKETING 2.0 CONFERENCE www.marketing2conference.com
  • 3. ASSESSING THE REAL VALUE OF CUSTOMERS’ WORD–OF–MOUTH Prof. Barak Libai Prof. Barak Libai Prof. Barak Libai Tel Aviv University Marketing 2.0 Conference Paris, March 2010
  • 4. Prof. Barak Libai By 2010, most mangers are informed about the power of customer word of mouth Prof. Barak Libai
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  • 6. Prof. Barak Libai Yet for many, the way WOM turns into ROI stays a mystery ?
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  • 17. Stage A- Collect data on real social networks Prof. Barak Libai
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