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Marketing Matters: Understanding the Power of G2G

By: Alisa Marie Beyer
Posted: October 14, 2008, from the May 2006 issue of GCI Magazine.

page 3 of 3

There are certainly brands that have customers who repeat purchase but who are not willing to recommend them to a friend. They are referred to as brand critics, and it’s only a matter of time before a competitor converts those customers to another product line. By asking the right questions and tracking the answers, beauty marketers can compare changes in customer purchasing and word-of-mouth behaviors.

Ask the Right Question

Many research reports are too difficult for executives to act on. Companies today do not need complex research tools. They need ongoing, reliable, timely and actionable data that allows them to track how they are doing and how to improve.

Keep your research process simple, timely and actionable. Begin by running a quick survey to establish your company’s benchmark. Keep it very easy. Ask the one important question: how likely is it that you would recommend (insert your beauty brand) to a girlfriend? You are keen to know how many customers are endorsing your brand to others versus how many are serving as brand critics. You can establish your own benchmark, giving it a great name such as Brand Ambassador Profile or Customer Voice Index.

Calculate your index by simply subtracting the percentage of ambassadors from critics. This will give you a benchmark score to track.

Demonstrate a deep respect for the power of word-of-mouth marketing in today’s beauty brand building, and you will get women talking about you.