What do you normally do before you buy a product?
Maybe you do a little research online to find out what the best option is. Perhaps you read some reviews from other customers (like 93% of other people) or ask your friends for their opinion.
It’s rare for a customer to make the immediate decision to buy anything based on advertising alone. Instead, we make decisions based on what others think about a product or service.
Sure, a good marketing campaign through your email inbox or social media could make a difference, but a suggestion made by a friend is always more credible and meaningful than any pitch from a company on your TV screen.
Word-of-mouth marketing might not be the most modern form of advertising companies can use today, but it’s still one of the most valuable.
Word-of-Mouth Marketing: The Basics
Word-of-mouth is the conversations that others have about your business – positive, or negative.
These days, consumers have more ways to share their opinions than ever before. There are full review websites, comment sections on your product pages, and social media.
Since around 97% of your customers use the web to collect information that other consumers share online before making a purchase, it’s a natural part of the buying journey.
Word-of-mouth marketing is how companies can try to use this social chatter to their advantage.
Through word-of-mouth marketing, you encourage brand evangelists (and happy customers) to share positive reviews about your product and service as often as possible online.
You can encourage reviews by:
- Giving your customers rewards for leaving feedback on your product pages
- Asking them to leave a review after a purchase
- Requesting comments on social media
The more of a part you play in the conversation that clients are already having about you, the more likely it is that the discussion will be good.
Why is Word-of-Mouth Marketing Valuable?
So, why is word-of-mouth so effective?
The statistics consistently show that positive reviews and feedback from your customers have a direct impact on your chances of success as a business.
Around 92% of B2B buyers say that they’re more likely to make a purchase after reading a review.
Further studies show that customers are willing to spend up to 31% more on a company with excellent reviews, as experience matters more than price to most customers today.
Ultimately, these are the 3 biggest benefits of word-of-mouth marketing:
Brand loyalty. Word-of-mouth marketing, when done correctly, can help to build a community around your brand. If you encourage your customers to leave positive feedback by providing incentives, great customer service, and excellent experiences, you’re improving your reputation.
- More importantly, you’re also building a relationship with your customers that shows them you care about what they think and say. Over time, this relationship will lead to greater loyalty from your clients, because they know they can trust you more than your competitors.
- The more you nurture your community, the more they’ll reward you by referring friends to your business, talking about you positively online, and helping your company to grow.
- What’s more, loyal customers are more likely to keep coming back and purchasing your products in the future. According to studies, as little as a 5% increase in the number of customers you retain can increase your profitability by 75%.
Brand awareness. Brand awareness is the core goal at the core of every marketing campaign. However, we’re living in a world where people are constantly blocking out things like ads and marketing schemes because they’re sick of the same old messages. So, how do you make your business stand out among the sea of similar ads they see everywhere else?
- You hook them with authentic messages from customers who already know and love your brand. With reviews and testimonials, you can easily reach your customers wherever they are, whether they’re hanging out on social media or checking product testimonials online.
- Reviews also have a positive impact on your SEO, convincing Google to rank you higher among your competition when clients are searching for keywords related to your brand.
Brand reputation. Finally, now more than ever, your customers value authenticity. When a company leverages word-of-mouth marketing, they let their clients do the talking. This is much more credible than making wild claims about your own products and services.
- People are inherently more likely to trust the opinions and thoughts of other customers just like them than they are to trust messages straight from a brand’s advertising team.
- Although your marketing campaigns can help you to grow, it’s your reviews and word-of-mouth commentary that will convince your customers that you’re authentic.
When you want to attract new customers naturally, word-of-mouth is the way to do it. Why wait? Word-of-mouth marketing is free advertising. It keeps both you and your customers happy. And it grows your profits.
Take advantage of word-of-mouth marketing, starting today! You’ll be glad you did!