The world of marketing is constantly changing, but that doesn’t mean that tried and true methods such as word-of-mouth marketing are not effective.
In today’s fast-paced, competitive world, the importance of word-of-mouth marketing is more important than ever.
Word of Mouth advertising is effective due to the element of trust: people are able to trust their family and friends more than they trust brands.
Another reason it functions so well is that it permits more targeted advertising. We tend to promote products to those who we are certain will be interested in these products. For example, you would not usually recommend a pair of running trainers to someone who does not need them.
The power of word-of-mouth advertising is fantastic because it works for all, even less established brands and even start-ups.
But, What Is Word of Mouth Marketing?
The concept of word-of-mouth marketing happens when happy customers are able to spread the word about your business, are happy to recommend your business to their family and friends, and leave positive (or positive or negative) reviews. It is anything that relates to a positive customer publicly voicing their opinions.
This strategy is an important component of your business’s toolkit since, as we’ve said, customers tend to seek out their family members, friends and even other customers’ opinions when they make purchase choices.
We use this a lot at VocalViews as we enjoy having dependable, respectable respondents and when we know they are being referred by people who had positive experiences, we know they are going to have one too!
Check out these statistics:
A majority of consumers (95%) say online reviews influence their buying purchases
and at least 78 % of people browse nearby businesses via the web at least once a week.
It is also seen that around one-third of customers do not trust online reviews in the same way they trust reviews from family and friends.
There are two kinds of word-of-mouth marketing both amplified and organic.
Organic word-of-mouth advertising is the process by which satisfied customers share their experiences and make recommendations.
Amplified word of mouth marketing happens when brands reward buyers to spread the word by leveraging user-generated content or influencer marketing.
Why Does Word of Mouth Marketing Matter To You?
Nowadays, consumers are smart by using user-generated content reviews and social media to make buying decisions. They are interested in what others review your product or service. They are also particularly savvy in spotting bot replies, it is important that you avoid using robots to spam reviews as it can cause the exact, opposite effect!
There are many benefits to the power of word-of-mouth marketing, for example:
- It’s free for start-up businesses with small budgets, you can utilize word of mouth advertising, to advertise and develop an established image.
- The word of mouth marketing process is not finished after the initial contact: In other terms, when a satisfied customer has a great experience, they will continue to talk about and promote your business for a long time instead of just buying one thing and never be seen or heard again…
- It gives you valuable feedback. Customer reviews can aid in improving your service or product and also learning from your mistakes. It is important to not only have gleaming reviews as nobody can improve from constant love. We require constructive criticism sometimes to evolve! It is also helpful in showing your consumers that you are capable of adapting and changing issues within your brand and that you do in fact care about them.
- It increases customer loyalty. In some industries in some industries, even a 5 percent retention rate of customers can bring at about 25 percent to the bottom line. It’s not only nice to have, it can impact how much you earn.
- Connects you to your audience and builds credibility Connects people to your brand: Marketing via word of mouth gives credibility to your business and allows you to connect with leads via social media.
The History and Evolution of Word of Mouth Marketing
In the 1990s, as well as the 2000s, word of mouth advertising, became increasingly sophisticated due to the popularity of online social networks such as Facebook as well as Twitter. Today, more and more people are turning to social media to post reviews of products.
Naturally, companies are realizing how important reviews and social media can be for their brand’s reputation. Instead of leaving it to the consumers to propagate the word and promote their brands, they’re taking active steps to get shoppers talking about their brands.
An effective company utilises social media platforms to:
- Create excitement by announcing announcements ahead of time.
- Produce beautiful/efficient products that customers are eager to share with friends and family on social media.
- Creates intuitive, user-friendly products that are easy to use.
- It reinvents its products using new features that keep people talking
- Word of Mouth Marketing Strategies and Uses
Word-of-mouth advertising increases confidence and makes people more comfortable about purchasing. If there are a lot of people talking about a product or service, it’s bound to be great, isn’t it?
But there’s more to the word of mouth marketing other than just outstanding products. You need to offer your customers something worthwhile to share and you require effective strategies to make buyers talk. If a product is good but not particularly exciting or rewarding, there will not be a need to spread information about it to people you know. For example, here at Vocal Views, when we conduct a particularly highly incentivised study that has a quick direct pay-out. The service is efficient and stands out amongst competitors, so the recommendations flow in.
Below are a few ways to market your business through word of mouth you can implement right now:
Encouraged Social Media and Online Reviews for Word of Mouth Advertising
Social media platforms are a fantastic method to make use of the power of word-of-mouth marketing as mentioned before since they’re where the majority of users go to learn more about the company (especially digitally based companies). Research by BrightLocal indicates that by 2021 the majority of users visited Facebook to review local businesses.
There is no doubt about the power of online reviews. And today’s reviews hold the power to determine the fate of your business.
With the proliferation of review websites on the internet, customers aren’t afraid to check out platforms such as Trustpilot to express their views. Almost 99.9 percent of people read reviews, making them a vital part of your word-of-mouth marketing strategy.
The most effective way to encourage your customers to leave reviews (both via social media and review sites) is to contact happy consumers and invite them to write reviews about their experiences online. Some people may have a wonderful experience, but just not consider writing a review. If you reach out to these people, we are sure they would be more than happy to help. However, in some circumstances, you could offer some sort of incentive for their time taken to review to ensure you receive in-depth feedback.
To get the most value out Word of Mouth Advertising, be sure you:
Try Influencer Marketing
Marketing via word of mouth is difficult to manage. It is difficult to control the people who are discussing your company’s brand and what they are saying, and how they express it.
But, influencer marketing lets brands concentrate on certain communities by connecting to people they already are familiar with. It’s similar to word of mouth marketing, but on bigger and more targeted sizes.
Brands are increasingly recognizing the importance of influence marketing and the market is growing.
You can determine the most effective influencers to promote your brand and collaborate with them to develop content that can help you connect with your ideal audience and leave a lasting impression.
However, do not be thinking you need to chase mega influencers or those with huge followings, micro-influencers can also have targeted audiences that can be extremely successful for small-scale companies or products with a more specific niche. Smaller influencers sometimes tend to have more dedicated and loyal followers as they are more personable.
Conclusion: Word of Mouth Marketing
Marketing through word of mouth has been in use for centuries, but the way it is used is changing quickly, much like everything, due to the internet.
Marketing via word of mouth is so effective that it can make a difference in a brand’s success. It is also the most effective way to market any business regardless of budget.
While the outcomes can be impressive, the methods are easy to apply.