How much stock do you place on a friend or family member's recommendation?
According to a Nielsen report in 2012, 92% of people trust this type of recommendation more than any other form of marketing. While these statistics may have changed over the years, one thing's for sure—word-of-mouth marketing is still at the top of the food chain.
So, what exactly is word-of-mouth marketing?
Traditionally speaking, word travels from one mouth to another's ears. Think gossip, but on a larger scale. In more modern terms, word-of-mouth marketing refers to targeted efforts as well as organic, i.e. naturally occurring, instances where customers share their satisfaction with a particular service, product, or brand.
The effects of word-of-mouth marketing can be dramatic. A few conversations between consumers—both actual and potential customers—can lead to a drastic increase in your brand's popularity. Most successful businesses would not be where they are today without word of mouth marketing.
So without further ado, we'd like to give you a clearer perspective on the power of word-of-mouth marketing and why it should be one of your top strategies.
It Can Save You Money
When it comes to your advertising efforts, it’s no secret that you need to spend money to make money. But did you know that word-of-mouth marketing doesn't have to cost you a dime?
Think about it. You don't have to pay your customers for them to leave a good review. You don't need to incentivize them to talk about your brand to their friends, although it certainly helps. Simply put, word-of-mouth marketing is the gift that keeps on giving.
It Builds Trust
When consumers hear about how good your services or products are from people close to them, then you are almost guaranteed a new customer. How can word-of-mouth marketing convince them to place their trust in your brand? You have to put effort into fostering goodwill in your customers.
Trust begets trust. Become a trusted brand and watch your loyal customers transform into your staunchest advocates.
It Promotes Brand Awareness
All your marketing efforts should have one objective—to generate sales. But even if they don’t lead to sales, effective marketing can still promote brand awareness.
Word-of-mouth marketing does the same thing. It won’t always lead to purchases 100% of the time, but it certainly creates buzz around your brand. And when people start talking about your brand in a positive light, it's not a stretch for them to become curious enough to give your products or services a try.
The Final Word (of Mouth)
The bottom line is this—word-of-mouth marketing has the potential to transform the way your company is viewed by consumers. Think of it as an automated marketing system for your business. All you have to do is keep your customers satisfied, and watch them sing your brand's praises while you reap the rewards.
Good luck, and stay tuned for more blog posts like this from your favorite virtual assistant agency, TopVA!