Marketing covers tactics from print advertisements to online strategies, to massive campaigns. One tactic often overlooked, or even forgotten entirely, is word-of-mouth marketing. According to Nielsen, 92% of consumers trust recommendations from their friends or family more than any other form of marketing. The term “word-of-mouth marketing”—also referred to as “word-of-mouth advertising”—simply means customers do the advertising for businesses.
Sounds pretty great, right? But how can a business tap into this opportunity for free marketing with a huge ROI? Today we will talk about the importance of word-of-mouth marketing (WOMM) for a company, and how business professionals can use it to their advantage.
WOMM is effective.
Word-of-mouth marketing is effective because it’s one of the most credible forms of advertising. Think of your close friends and family. You have an established relationship with them, and you can rely on them, so when they tell you something, more than likely, you’re going to trust their opinion. Additionally, when someone recommends a business, they stake their reputation on their exceptional experience. They have nothing to gain from giving a recommendation, so you can be sure they’re telling the truth.
For these reasons, when someone hears about a business through WOMM, they’re much more likely to trust the recommendation and check out the products or services, leading to more effective marketing strategies and a greater return.
WOMM builds loyalty.
Individuals who have been referred to a brand, rather than through an advertisement or marketing tactic, are typically more likely to stay loyal for longer than other customers. According to Forbes, a Goethe University study revealed that consumers who were recommended to a business were 18% more likely to stay long-term with the organization. Why is this? When their friends or family members share a bond with a company, people are akin to feeling the same way.
WOMM generates buzz.
Word-of-mouth marketing is also a powerful way to generate buzz for a small or locally-owned business. Especially with today’s new technology of email, Twitter, Facebook, and Instagram, when one person starts talking about a brand, more and more people tend to join in. It’s the age-old tactic of “bandwagoning.” People who hear good things about a business feel inclined to join in the conversation.
How to implement WOMM.
So, how can a small business get into WOMM? Don’t depend solely on exceptional customer service to spread the good news about a company. The key to generating WOMM for a business is to be unique. Entrepreneur recommends three main types of the individuality that creates WOMM: architectural, kinetic, and generous. Is the physical building of the business unique? Does the product or service offer an eye-catching, kinetic experience? And does the business consistently care about its customers and the community through generosity?
Building positive experiences and relationships like these will help generate word-of-mouth marketing. Then, please share the information online through social media, and watch how clients continue to feel engaged and excited to talk about their interactions.
Word-of-mouth marketing offers a huge opportunity for businesses to garner successful, consistent client relationships. Look for it in your life and see how to try it out.
