Why Is Word OF Mouth Marketing So Important?
Most of the time we all get suggestions from our friends for using a product or service. These suggestions are a form of marketing that is used by the brand for getting free publicity and consideration from the customers. Here in this blog, we are going to discuss the word of mouth marketing in detail. Let's dive in.
Can you remember the last time you saw something exceptional and told those things to your good friends? Do you remember eating a delicious dish in a classy restaurant and describing your experience to your near ones? Both of these instances can be regarded as the Word of Mouth marketing (WOMM).
Table of contents
- What Exactly Is Word Of Mouth Marketing?
- Aspects of this time-piercing marketing strategy
- Importance of Word Of Mouth Marketing In Today’s Time
- Is Word Of Mouth Marketing Worth the Effort & Investment?
- Correlation Between Reviews & Process Of Advertising
- Exploring The Versatile Marketing Technique!
- Word Of Mouth Marketing Is Here To Stay!
What Exactly Is Word Of Mouth Marketing?
As easy as it may sound, word of mouth marketing goes far beyond simply talking about a product or brand. Over the years of its usage, people have used this marketing strategy in several ways.
The methods have been changed and redefined to meet the purpose of marketing and the needs of the brand and bring profitable results.
However it may have been used, this marketing technique is so useful and effective that it has never gone out of trend even after centuries of its usage. It is still potent enough to drive consumers towards a business and lead to profitable results.
Aspects of this time-piercing marketing strategy
In this article, we will discuss the most important aspects of this time-piercing marketing strategy, how it is relevant and what are its significance. You’ll get to know about word of mouth marketing and its importance in an in-depth manner. You can then successfully build your marketing campaign by using this technique.
It is an organic way of distributing information among people who use the components of viral marketing, but unlike viral marketing, it is distributed in more natural ways.
Word of mouth is a freeform or example of an advertisement or product promotion, and this is one of the main reasons why it is so important nowadays.
Other persons’ thoughts and opinions about many products and services are a very important source of information for the other customers of that product and service.
Those opinions can be more relatable and trustworthy as they are derived from the perspectives of a user while representing independent voices.
On the other hand, many reviews written for unknown customers are also good sources for consumers to refer to something good for purchase. But in most cases, word of mouth recommendations only come from familiar sources.
Importance of Word Of Mouth Marketing In Today’s Time
Friends and family members are the most trusted ones. This is the reason why word of mouth marketing is the most valuable source of marketing in this modern period. Word of mouth marketing doesn’t stop after just one conversation.
One person will tell their opinion to another, and that person will express it to someone else. Then that person will continue the chain of information and spread the word further among his/her other friends, in this way you will also become aware of that particular product; thus the news can reach a large number of consumers.
Unlike the public product reviews, the verbal recommendations usually come from your near ones. What they lack is the power of authority but that can be made up by the trustworthiness of your friends and family. 64% of marketing experts believe that word of mouth is a very powerful and effective form of marketing.
Word of mouth has the rare power to increase the brand loyalty of a particular product. A study from Wharton School of Business discovered that referred consumers who are more loyal on average are between 16% to 24 %.
Many research works reveal that word of mouth is the 4th most used source for brand discovery among many internet users globally, behind many search engines and also the advertisements, which you can see online or on your TV.
Many people seem to be very happy and proud while sharing their expertise, which seems to be important for many consumers who leave reviews. Word of mouth is more related to spreading tailored knowledge and opinions to people willing to use those experiences.
Although the influence of mobile and social media is increasing day-by-day, face-to-face interaction still has an incredible value for brand discovery and advertisement.
While discussing the importance of Word of Mouth Marketing, we have to consider how effective it is in this era when social media marketing is gaining enormous importance.
Word of mouth marketing is a very crucial marketing tool for marketers, mainly because they come from our most reliable sources and because of the ‘buzz’ these can create; they are more valuable and reliable.
According to a study by Nielsen, 92% of the users believe opinions from their friends and family members more than they believe the advertisements – this information alone can solidify the case for the use of word of mouth.
It has also been noted that word of mouth marketing is the third most powerful source of brand discovery among internet users globally, behind the search engines and the advertisements shown on the TV. Word of mouth (31%) is more important than the comments on social media (25%) and also user review sites (22%).
Is Word Of Mouth Marketing Worth the Effort & Investment?
Word of mouth marketing can be proved to be good if the review is positive but it can be bad if the recommendation is a negative one. The main fact is that the word of mouth marketing is so important for the companies because it is a personal recommendation by someone you know very closely– and hence, it is known to have a very high conversion rate – which can be higher than the other forms of marketing.
Correlation Between Reviews & Process Of Advertising
You can advertise via word of mouth in various ways. But one of the best ways can be by collecting positive reviews of your customers. About 90% of people read reviews of other users before deciding whether or not to buy a product and 72% will only go through with a purchase after encountering many positive opinions.
On the other hand, good reviews will also help in building the social proof of your brand and also enhance your brand reputation online. These two are the best ways to gain a reputation and have a large number of people talking about you.
The reviews of the customers also help you in getting expansion into other channels and platforms.
As an example, we can say that someone writes a review about you on the social platform, that review can be shared and searched across many other channels. You can also share your testimonials on your website.
The key guideline for a strong word of mouth marketing strategy is to stop collecting and start connecting.
The people who believe in word of mouth can share some key ways to share with the other consumers. These consumers who are the believers of word of mouth are likely to come from North America. There are some other qualities that can define these individuals when compared to the average number of customers, and those are:
- 15% tend to be female
- 28% tend to be divorced or widowed
- 10% likely to be within the top 10% of earners.
The older generation is more dependent on word of mouth marketing for brand discovery, with more than a third of 45-54 (34%) and 55-64 year (38%, refer to the above index) showing this as a good source of knowledge about new brands and items.
As for the new generation, word of mouth can be placed third as a way of brand discovery behind the ads seen on media. Though it had been dropped down to the fourth position for millennials, this is still ahead of the recommendations on social media.
You can be aware that brand trust is at the base of word of mouth. The combination of a private scandal of many corporate and largely spreading data legislation has induced a feeling of tiredness and false beliefs with many online marketing techniques.
Therefore, the ability to hold companies responsible for the misuse of data and have good control was viewed positively by the researchers.
Since that time, many users of the internet have become irritated with the repeated barrage of privacy notices and consent boxes. Despite the high-quality privacy-related events of the previous year that occurred in Europe and North America, distrust of brands is very common within the tracked markets.
At least 6 people out of 10 across all regions express that companies are using their personal data, whereas, this number has increased to 8 out of 10 in the markets of Latin America.
With this lack of trust comes brand wariness who only engages their users via some targeted advertisements on social media. Therefore, it is not very surprising to see that consumers look forward to the recommendations and suggestions from their near and dear ones.
Exploring The Versatile Marketing Technique!
If a brand can capture what is being considered as the most valuable form of marketing-built on the experiences of the customers’-but they can easily increase their reach and increase positive reception largely. While word of mouth suggestions can be a powerful tool of marketing, they also have to be nourished by marketing ideas that can go beyond ‘likes’.
Creating reliable suggestions and recommendations are more likely to be passed on compared to the opinions induced by rewards.
In these modern times, brands need to focus on developing authentic relationships with their customers through powerful customer assistance which are transparent, so a large number of users will be motivated to share and exchange their experiences.
Here are some strategies that can be useful when it comes to word of mouth marketing:
With these below-mentioned strategies, you can easily develop a powerful stream of referrals for your brand.
There are a good number of word of mouth channels to help you with your work, like-referral programs, affiliate marketing, influencer programs, and many more. Whichever way you choose, it is really important to create a special word of the mouth marketing strategy for your success. Here are some proven ideas to help you in your process.
Create triggers for this process called the word of mouth
Triggers are the ways that make your audiences aware of your brand, even without any proper advertisement. This is the type of connection which you want to develop for your own brand.
One very successful example can be the KFC campaign that ran in Japan in 1970s, called “Kentucky for Christmas” it promoted a party barrel of fried chicken for the Christmas dinner. That campaign was very successful, and still today, many families in that country order some Kentucky fried chicken during the holiday seasons.
Become appealing to your audience
Word of mouth works better than other marketing strategies as it puts the audience in the first position. Always try to think about what would appeal best to your users. By being able to offer your audiences what they really want, you will be able to add to your market value and trigger word of mouth.
Give value to your customers
Give proper value to your users, whether that can be special customer service or solving a problem of your customers. Providing value is a very powerful way to obtain the goodwill of a customer.
If you can provide value to your customers, then you will earn a positive review of your consumers. Therefore, unique customer experiences, along with offering an excellent product, can easily increase your brand value, and also, your potential of word of mouth.
Triggering emotional attachment
An emotional bond is another very powerful driver of word of mouth marketing. If a person has a strong belief about a product, then they will not drop it very easily. People respond more to strong emotional attachments. Whether it’s a happy or unhappy experience, they want to share it with others. So, if you can create positive emotions your word of mouth can work for a longer period.
Though word of mouth marketing and referral marketing are similar to some extent, there are many differences as well. Word of mouth marketing is getting people talking about a brand. At the same time, referral marketing is mainly focused on some key targets and getting some specific results.
Word Of Mouth Marketing Is Here To Stay!
Word of mouth marketing enhances the interests of your customers, thus spreading brand awareness. Referral marketing is only a part of the word of mouth marketing.
It is very common in word of mouth marketing to refer something to others. But in actual cases, a referral is another way of gaining many new consumers of your products or brand. The combination of these two will give you the best result in the world of powerful business.
So, let us try our best to enhance our relationship with our consumers by good service and strong emotional response, and thus increasing our potential of word of mouth marketing.
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