HBR High Math: Calculating the Value of Word of Mouth
Submitted by willow on Thu, 2007-10-25 21:45.
How your customers feel about you and what they say to others about you impact your business -- perhaps even more than what they buy from you.
The key to maximizing the value of your customer base -- and wisely appropriating your marketing dollars -- is to estimate how much of each customer's value stems from purchases (lifetime value) and how much from referrals (referral value), says this Harvard Business Review piece. Order this paper ($6.50) to find out how to identify customers who bring in the most referrals, and capitalize on that knowledge. For a preview, go here.
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