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BizReport : Research : April 03, 2008

NetPromoter: WOM drives tech purchases

A happy customer is a repeat customer. The old adage has never been more true than in today's online shopping world. One happy customer now can influence the buys of thousands of other consumers with the click of a mouse; the same can be said for one unhappy consumer. A recent study from NetPromoter indicates that happy consumers (also called Promoters) are very influential in the tech world.

by Kristina Knight

Computer products, mobile peripherals and handheld devices are highly sought after. The study found that consumers who have used and liked specific consumer electronics were apt to spread the word, influencing the buys of may more users.

More than half of the users in the study were Promoters, or advocates of a brand/product, about 30% were Passive and 20% were Detractors who would spread the word about a "bad" purchase. We'll focus on the Promoters for a moment because their WOM efforts have had a huge impact.

More than 75% of promoters in the study admitted to recommending a purchase to a friend or co-worker; on average, Promoters spread the word about a new product to four people.

What is most interesting, however, is that in the world of online communication those four recommendations could be global, which means the potential word-of-mouth impact could grow exponentially throughout the world.

Another interesting fact from the study is that Detractors aren't as interested in spreading the word. Only about 30% of Detractors said they warned people against a product, but those who do seek to spread dissuade other users are more active. They contacted 4.2 other consumers, on average, to report on a product they viewed as a bad buy.

Tags: ecommerce, word of mouth

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