People buy people, that’s why word of mouth marketing cuts out the need to wade through endless choices. Word of mouth helps consumers make up their mind quickly and effectively. It’s simple and free and is wrapped up in referrals, recommendations, testimonials and endorsements.
Here’s our top 10 insights into word of mouth marketing.
1. Finding information – if someone you trust recommends your services, that information is considered more useful than web search results and social media (Buyersphere report 2012).
2. Enhance profits – word of mouth marketing is around 8 times more powerful than traditional advertising, it carries more weight than what the advertiser says about itself.
3. Older sharers – over 50s tend to share information verbally more often than younger ones (up to 40) who are more likely to cite Facebook, Twitter and blogs.
4. It’s official – there’s an official trade association dedicated to word of mouth practices, WOMMA (Word of Mouth Marketing Association).
5. First time buyers – word of mouth is the primary factor behind 20 to 50 per cent of all purchasing decisions, its influence is greatest when consumers are buying a product for the first time or when products are relatively expensive.
6. One to many – the digital world has accelerated word of mouth’s reach, operating on a one to many basis such as sharing product reviews posted online.
7. Consumer journey – word of mouth is inﬂuential throughout the whole consumer decision journey. From consideration, evaluating through to purchase and post-purchase.
8. Direct experience – experiential word of mouth is the most common and powerful form, accounting for 50 to 80 per cent of activity, it results from a consumer’s direct experience with a product or service.
9. Pass on messages – consequential word of mouth happens when consumers are directly exposed to traditional marketing campaigns and pass on messages about them or the brands promoted.
10. Measure the impact – marketers can measure the effects of word of mouth messages more accurately by considering their impact as well as their volume.
The rewards of pursuing word of mouth marketing can be huge if planned carefully. 77% of consumers are more likely to buy a new product when learning about it from friends or family. It can deliver a sustainable and significant competitive edge that few other marketing approaches can match. Share your word of mouth marketing comments in the section below or on Twitter.