WOMMA recently published a MEASUREMENT & METRICS GUIDEBOOK sharing practical insights into quantifying offline and online word of mouth. WOMMA Members have access to a free download of the paper. A bound version of the Guidebook is available for everyone.

Over the next two weeks we’ll be publishing short Q&As with some of the marketers, researchers, and academics who have authored papers in the Guidebook.

We’re talking first with Jennifer Voisard, Community Manager and Analyst with ComBlu, about her piece on Cost Deflection. Voisard’s paper explains the financial benefits to how and why businesses can use social media engagement with customers and customer communities to reduce business expenses.

Your paper shares insights on applying the “Cost Deflection” model to online and offline WOM. Why is this of importance to a marketer?
“It is no secret that Marketers are on the hook to prove what we instinctively know to be true, that WOM produces substantial ROI. This was the catalyst for creating this Guidebook. The reason I focused on Cost Deflection was to offer Marketers a different way to approach this daunting task.

The thinking needs to go beyond increasing web traffic, coupon redemption rates, producing a funny viral video, hosting a successful house party or having a large fan base on Facebook. These are important indicators, but they don’t give you program ROI. Marketing can add real value by designing and integrating their engagement strategies based on the actual KPI’s of the business. No matter the economic climate, Cost Deflection always helps the bottom line and can make for a happy and receptive CEO come budget time.” (Jennifer Voisard)

What’s a key step businesses must do to incorporate a marketing-focused Cost Deflection model?
“Everyone has heard the phrase it takes a village. Well, it applies here to. The biggest key to success is the ability to break down organizational silos. Form an integrated team across multiple business units such as: Marketing, Customer Service, Engineering and Product Development for example.

In order for cross-functional collaboration to occur in an efficient manner, you’ll likely need buy-in at the executive level. Otherwise you may find yourself herding cats, and you run the risk of disappointing your customers by failing to effectively manage their feedback and most importantly their expectations.” (Jennifer Voisard)

In your opinion, what company has found success implementing a marketing-focused Cost Deflection model?
“I would say that there are some divisions in Microsoft that get this. The example I highlighted in the chapter was of an early pilot program within the Online Services group. Since then, they have formally implemented their new operational model. Today, their KPI’s speak for themselves, and we are starting to see program adoption increase.

WOM programs deepen the relationship between customer and brand. I think any company that embraces customer feedback and leverages the passion and expertise of their brand advocates, can have a successful program like this.” (Jennifer Voisard)

*** Learn more about WOMMA’s MEASUREMENT & METRICS GUIDEBOOK ***