Chris Cowan at TEDx: “How does word of mouth really work?”

Clusters : Louise Altman Louise Altman, June 7th 2016 Uncategorised

7th June 2016

In April, Chris Cowan, Managing Director of Clusters, spoke at the annual TEDx London Business School conference on the topic of a segmentation-driven approach to brand advocacy. He asked “how does word of mouth really work?” and discussed the findings from a recent study Clusters conducted with Digital Animal, the word of mouth marketing specialists, which segmented different types of brand advocates. The research looked at both recommenders and those who had been recommended to, in order to uncover the true value of recommendations and how this varies by segment.

Interestingly, we found that most people recommend because they believe in the product or because they were asked for their opinion, but three segments are motivated by reward and one purely by cold hard cash. This last cash-motivated segment accounts for only 1 in 7 of all recommenders but a whopping £4 out of every £5 given as a reward for recommending. Most of their recommending is online to an extended network, through social media.

Inevitably, these people are the most common targets for businesses, with their ‘recommend a friend’ programmes and other cash-based incentive schemes. But do their recommendations actually work? And what about the recommenders who don’t get paid; are their recommendations any more effective?

Watch Chris’ talk below to find out more and discover how you can effectively harness word of mouth for business:

To learn more about Clusters, brand advocacy or customer segmentation in general, contact us by emailing or calling +44 (0)20 7842 6830.