Firms can identify cream of clients for word of mouth referrals
Published on 06 November, 2006
Professional services firms can identify the best clients to nurture to encourage positive word of mouth referrals, cross-selling and up-selling.
That is according to CQU researcher Angela Dobele, who is looking forward to graduating with a PhD on word-of-mouth referrals from Southern Cross University early in 2007.
Ms Dobele said her research in conjunction with professional service firms successfully redefined and cross-referenced positive referral types (of clients) with their importance based on the 'believability dimension'. However, a further batching by age and gender showed no significant influence from these factors.
The referral types used included Opinion Leader (motivated by ego); Passive Mercenary (motivated by treats); Helpful Friend (motivated by altruism); and Reciprocator (motivated by reciprocity).
The 'Believability Dimension' covered aspects including Credibility, Expert Power and Neutrality.
"Positive word-of-mouth referrals are important to the services industry, especially with the increasing pressure on business to think strategically to maximise limited resources and cope with increasing competition," Ms Dobele says.
She says there is evidence of a positive significant relationship between the 4 positive referral types and the Believability Dimension, which can help firms nurture and reward the right types of client to encourage successful relationship marketing.
Her research also has wider applications among firms outside the professional services industries.
"The conclusions from this research make a major contribution to positive word-of-mouth referral theory and advance understanding of managing positive word-of-mouth referrals for relationship marketing practitioners," Ms Dobele says.
"The moral of course is that everyone talks ... make friends and don't annoy customers".
While concentrating on word-of-mouth, Ms Dobele is also actively pursuing research in emerging areas such as viral marketing and mobile electronic marketing.