A new “buzz action score” from researchers at Northwestern University’s Kellogg School of Management shows that positive and negative online conversations are leading indicators of sales performance.
The research found that a relatively small group of people in online communities can have a substantial influence on purchase decisions, much like in face-to-face word of mouth.
Some implications for marketers:
- Tracking online conversations is becoming essential. By understanding the “buzz” — good or bad — you can can act early to either change strategies to improve performance, e.g., pricing, longer warranties, or boost performance, e.g., increase promotional budget for product receiving a high “buzz score.”
- Re-evaluate sales forecasting: rather than waiting until retailers report sales figures, you can being to get a sense of how well a product is doing real time by evaluating the buzz.
- Ask your brand ambassadors for help, either providing an assessment of the buzz you’re seeing or more actively sharing their views into online conversations. (And if you have no brand ambassador program or community, start now. These folks are invaluable to helping any brand succeed in a world where word-of mouth-is becoming so influential.)
