It is getting harder to find new ways to increase sales every day. Competition is fierce. To increase sales, it is necessary to develop a solid strategy and take advantage of every opportunity, but when it comes to marketing, there is one area whose value is poorly understood: word of mouth marketing. In this article, we will examine the concept of Word-of-Mouth Marketing in detail and tell you how you can use this marketing method in your own business.
What is the word of mouth marketing strategy?
Word of mouth is basically when someone recommends a brand or product to their friends.It is very effective nowadays for someone to recommend a product to their friends and family, as there is such a huge space as social media. When a person with 160,000 followers recommends a product to their followers, 160,000 people suddenly hear about a brand new product. According to trend research firm Nielsen, 92% of people rely more on product recommendations from family members and friends than ads.
Organic Word-of-Mouth Marketing and ad-supported Word-of-Mouth Marketing
Word-of-Mouth Marketing generally takes two forms: Organically and ad-supported.
Both types of marketing have something in common with each other, and a successful word-of-mouth marketing campaign boosts organic marketing. The opposite is also true. If you have a good organic marketing strategy, your ad-supported campaigns will be positively affected.
- In organic marketing, a person tells his favorite product to his friends and followers, because the person liked the product in question and wants people to benefit from it.
- In advertising-supported word-of-mouth marketing, a marketing campaign is carried out by pursuing a specific strategy to improve word of mouth marketing and reach new customers.
Word of mouth Marketing Statistics
According to trend research firm Nielsen, 92% of people rely on product recommendations from friends and family more than ads.88% of people attach importance to online product reviews and reviews at least as much as their friends’ recommendations.74% of consumers state that word-of-mouth marketing plays a very important role in purchasing decisions while buying something. However, only 33% of companies desire online comments and reviews about them. However, research shows that a 10% increase in word of mouth marketing about a brand increases sales by 1% – 1.5% and we can say this in advance: Word of mouth “Do your job well and wait for the customer to send you a friend.” is more than understanding. Word of mouth will never go out of style and will continue to influence people’s purchasing decisions. Moreover, businesses can increase word of mouth about themselves with certain strategies.
Advantages of the Word-of-Mouth Marketing
Advertising on social media and using artificial intelligence technologies are much cooler tactics, but a solid word of mouth marketing strategy is at the heart of all other marketing and advertising strategies. Therefore, all other efforts of a company that cannot use word of mouth marketing are futile.
First of all, your advertising expenditures are drastically reduced with word of mouth marketing. There is an organic increase in sales and brand awareness.
Word of mouth marketing consists not only of customers but also people who love your brand and admire you. In a sense, when you give importance to the word of mouth marketing, your customer loyalty increases. A customer will continue to shop from you for life and refer their friends to you.
The business model of companies with high customer loyalty and low customer acquisition cost is considered successful and healthy. Companies that investors want to invest in fall into exactly this category.
Brand Loyalty
According to researchers, acquiring a new customer is 5 times more costly than keeping the existing customer. A positive word of mouth marketing and advertising strategy ensures that the person who makes a one-time shopping from you becomes a permanent and loyal customer. Moreover, a person directs his friends to you, and they become loyal customers.
Brand Trust
According to Hubspot research, 75% of people do not believe and trust ads. 90% of people care about the advice of friends and family members. 70% of them (or do not) shop relying on product reviews and comments on the internet. In other words, people trust their friends and family members more than ads. Word of mouth marketing ensures your brand is recommended in the most reliable way possible.
Popularity
It’s great to have a high advertising budget. But the healthiest way for your brand to gain popularity is when people talk about your brand on social media and the street. A good word of mouth marketing strategy makes this happen. If you can influence the right person (s), the whole country may know your brand one night. Accessories and jewelry brand Flash Tattoos managed to attract the attention of the famous singer Beyonce and Beyonce collaborated with this brand. As a result, the brand, which is known by only a very small segment, has become advertised on all major magazines and websites in the USA. All social media has been talking about this brand. This gave the brand a huge increase of 1100% in sales.
Nothing as Important as Customer Experience
Before you start developing word of mouth marketing strategy, there is only one thing you need to do: Deliver a great customer experience. If you don’t show a person an interest in your store, and even scold him, would that person recommend you to his friends? Of course no. On the contrary, negative word of mouth marketing occurs in this case.
People want to share something they love with the people they love. This is the basis of word of mouth marketing. “I’ll send my friend to this company and maybe I’ll get a discount on the next shopping.” he has no idea. 65% of consumers never shop from a company where they get bad service. This information is very important. You have one chance to make a positive impression on people. If you do not make the right use of this chance, you may lose the customer in question and the other potential customers they will bring.