The importance of word of mouth marketing?
Word-of-mouth marketing is the oldest and most important form of communication for every business whether small or large. It is one of the most credible forms of advertising where a person puts their reputation on the line every time they make a recommendation and that person has nothing to gain but the appreciation of those who are listening. Today, almost every business use this marketing tactics to build their customer base.
Gaining new customers for your business can be a challenge which is why there are number of reasons why WOM is beneficial for the business. As per a research by Nielsen’s Global Trust in Advertising, 92% of consumers say that they trust recommendations from friends and family above all other forms of advertising. By receiving referral buyers tend to assume that the person was happy with the services or products, and is unbiased.
Also, People that have been referred by a peer typically stay loyal to a brand longer than those that found the company by other means. According to a study done by Goethe University states that customers recommended to the business were 18% more likely to stay with the organization than other customers.
Apart from that this is the cheapest form of advertising to increase your business sales. If we compare it to the thousands or even millions of pounds required to run a consistent ad campaign in print, television or on radio, a referral costs almost nothing. Word of mouth impression results in 5x more sales than a paid media impression.
Brands that inspire a higher emotional intensity tends to receive 3x as much word of mouth as less emotionally connected brands. It helps build positive feelings about your products and services but one needs to make sure that they provide enough resources such as tips, information and articles which will give their customers an easy means of sharing information about your company while establishing your brand.
Moreover, 28% of consumers say that WOM is the most important factor in strengthening and eroding brand affinity. As per data analysis 70% of respondents are planning to increase their online WOM marketing spend, and 29% will increase their offline WOM marketing spend. But it is only the start, business objectives are the end goal.