Word-of-Mouth Rules Customers Decisions, Jupiter Says

Share this content:
Nearly half of the consumers shopping on the Web choose e-commerce sites based on word-of-mouth recommendations, but only 7 percent of companies can accurately identify these "viral influencers," according to Jupiter Media Metrix research released yesterday.


Jupiter also said that its cumulative research shows that a company considering viral marketing and customer satisfaction when identifying loyal customers can reduce customer acquisition costs by 27 percent and increase average order sizes by up to 60 percent. Most companies define customer loyalty too narrowly and are overlooking key measures of their customers' behavior, the study found.


"Most companies are not tracking their customers' behavior adequately enough to understand customer loyalty," said David Daniels, a Jupiter Media Metrix analyst. "Businesses need to identify what influences their customer purchasing decisions and they should start by building a broader view of customer behavior."


Other key findings of the research include:


· Most companies do not look beyond monetary metrics when identifying loyal customers. The majority of the companies define loyal customer segments and the value they place on those relationships by customers' spending habits and order values. A small percent of them incorporate customer-satisfaction scores.


· Most companies are underutilizing data that they have collected on their customers and are instead using third-party data.


· E-mail will dramatically enhance the ability of companies to measure viral behavior. Since HTML-based e-mail messages can contain links to files remote from a user's desktop, companies can track and measure the pass-along rate of these messages. That would allow the companies to develop loyalty and retention campaigns that directly target viral influencers.


Jupiter's findings were culled from executive polling, executive and consumer surveys, Media Metrix audience measurement data and AdRelevance online advertising metrics.


close

Next Article in Digital Marketing

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above