Word Of Mouth Marketing Advantages Every Business Owner Needs To Know
Word of mouth marketing is by no means new but in the digital age it is stronger than ever. So many business owners think that word of mouth is dead but it is more alive than ever. Before broadcasting and printing, everyone relied on recommendations to make choices about what to buy. Nowadays, all the big companies actually take full advantage of word of mouth marketing.
Every single person interested in marketing should know the advantages offered by word of mouth advertising. Numerous ones can be mentioned but we should mainly focus on those that are listed below.
A buyer naturally trusts a brand more when it is referred by someone that is trusted. This is because people make the assumption that someone was happy if a recommendation was made. Statistics actually show that 92% of all consumers will trust recommendations coming from family and friends over all advertising forms.
When you facilitate and you encourage word of mouth marketing you manage to increase brand trust and you rely on the influence of the customers that talk about the company.
Numerous studies were conducted and showed that people are much more likely to buy if they are referred by a person they trust than by anything else. A referred customer is also much more likely to be a long-term customer. The entire value of such a referral system is huge.
As an example, Eat The Globe launched a national save food campaign. The program relied on word of mouth marketing as people were encouraged to let others know about the campaign. As a result, there was a 150% increase in the number of people that signed up to the official newsletter. Similar results can appear when selling something.
One of the main reasons why word of mouth marketing is particularly useful for a small business is that costs are really low. After a business is established, the use of word of mouth becomes a really cheap marketing option that can easily increase business.
Just think about how much money you would need to pay for regular print advertising. You would need to pay even more for billboards or TV ads. With word of mouth you do not spend much and you can easily combine it with really low cost email marketing promotions. If possible, you can even go for a viral marketing approach. This can also offer great results at low prices.
Every single experienced businessman will tell you that it is always important to focus on branding. This can be quite difficult for the small businesses since budgets are low. Word of mouth marketing can easily help you by building positive brand feelings. People start to know your services and products. They start to trust the brand.
As brand trust increases, more and more clients come in, normally through referrals. It is why you need to make sure that you focus on good content development. If customers receive articles, information and tips from you, the brand becomes stronger.