For example, if the Conversation Value™ is $1.20, how can this be improved in subsequent campaigns? Is it above or below category benchmarks? Optimizing a campaign's Conversation Value™ will directly benefit company revenues.
Boston, MA (PRWEB) May 8, 2008
ChatThreads announces the release of its Conversation Value™ metric, quantifying the bottom-line revenue impact of each conversation about a brand's product or service.
"Conversation Value™ incorporates a customer's Word of Mouth (WoM) behavior into a lifetime value model, revealing the true value of a conversation," explains ChatThreads' Founder and Chief Research Officer Dr. Walter Carl. "This value gives marketers an ROI metric which will enable them to evaluate the profitability of their WoM and advocacy initiatives."
Developed in collaboration with Dr. Barak Libai, a Marketing Professor at Tel Aviv's Faculty of Management and a Visiting Professor at Massachusetts Institute of Technology, the model incorporates conversational partner purchase and recommendation behavior at each generation, information captured through the ChatThreads' G2X Analytics Platform. The dollar value indicates the projected estimate of company profit that can be attributed to a particular marketing initiative each time a consumer has a conversation about the brand, product, or service. The model is currently being used with ChatThreads' clients.
"The Conversation Value™ will give marketers a meaningful optimization metric," said Laurie Cohn, ChatThreads' President. "For example, if the Conversation Value™ is $1.20, how can this be improved in subsequent campaigns? Is it above or below category benchmarks? Optimizing a campaign's Conversation Value™ will directly benefit company revenues."
Dr. Carl will be discussing the Conversation Value™ Model at the Word of Mouth Marketing Association's WOMM-U event in Miami on May 8-9, and the Advertising Research Foundation's Audience MEasurement 3.0 conference in New York City on June 25.
ChatThreads is an offline Word of Mouth (WoM) measurement and analytics company that helps leading brands quantify and optimize the bottom-line impact of their WoM marketing initiatives. ChatThreads metrics includes reach, outcomes, cost of conversion and Conversation Value™, ChatThreads' proprietary calculation of the dollar value to a brand of each consumer conversation. Clients include Johnson & Johnson, Kellogg's, Microsoft, Nike, Unilever and Wyeth as well as advertising and media agencies such as Arnold, BzzAgent and Matchstick. For more information, please visit ChatThreads.