By Dr. Shamael Zaheer Khan
While modern-day marketers rely heavily on digital mediums and platforms to reach large numbers of people, word-of-mouth marketing, also known as referral marketing, has also become a highly sought-after marketing tool for businesses. The reason why? It works. People trust other people's opinions when it comes to learning more about a product or service.
Word-of-mouth marketing accounts for $6 trillion of annual consumer spending and 13% of consumer sales. Semrush reports that out of the top five ways to recommend a business, word-of-mouth comes first, followed by Facebook, Google, and Twitter.
Getting people to buy from you through positive word-of-mouth
Last week, as I was about to order a pizza to serve a gathering of eight to 10 people in my office, I was interrupted: "Where are you ordering the pizza from?" As I looked up to answer, my colleague, who is also a food enthusiast and a culinary connoisseur, recommended that I buy the pizzas from a certain local restaurant that he said was very good and well worth the price. It's worth noting this comment came from someone I have known since my childhood—it was not a paid endorsement.
I took his suggestion (the pizzas were good!), and I have since ordered pizzas twice from this restaurant for my family and recommended it to at least a dozen other friends.
Today as we are bombarded with all sorts of information, we look for genuine opinions and feedback from trusted sources to help us make smart purchases. When a trusted person speaks highly about a product or service, we're encouraged to buy it. Here are a few statistics:
- Nearly 90% of consumers trust and buy from brands recommended by a friend.
- 92% of consumers believe suggestions from friends and family more than advertising.
- Word-of-mouth is way more effective than paid ads, resulting in five times more in sales.
What about negative word-of-mouth marketing?
Last year, a tech-savvy friend told me I should not buy a touchscreen laptop because it would not be good from an ergonomic standpoint and because it would have a short battery life. Instead, he convinced me to go for a different model. My friend did not have a vested interest in my purchase; he was just offering genuine input that led me to buy my current non-touchscreen laptop. For the record, it is doing well.
While positive word-of-mouth (as in the pizza example) can get a lot of people excited about a product, negative word-of-mouth (as in the case of a touch screen laptop) can have them walking away:
- 26% of people will completely avoid a brand if a friend or family member shares a negative story about their experience.
- 21% of people will lose trust in a brand, whether they’ve been a customer or not, because of bad word-of-mouth.
- A dissatisfied customer will tell 9 to 15 people about their bad experience.
- 91% of unhappy customers will not buy from a company they’ve had a bad experience with again
- It takes about 40 positive customer experiences to undo the damage done by one negative review.
How to create positive word-of-mouth about your business
First, you need to realize that creating a buzz through word-of-mouth is not something that happens overnight. It's a process that requires consistency, authenticity, continuous improvement of your offerings, a strong understanding of your target audience's changing interests and needs, and building a climate of trust with your customers and prospects. Here is how to create and maintain a positive buzz:
1. Provide unparalleled customer service
Let's face it. Great customer service makes us go head over heels for a brand. Exceptional customer service is the backbone of positive word-of-mouth, so always ensure your customers' concerns are addressed swiftly and effectively.
2. Exceed customer expectations
Simply satisfying your customers is not enough. Overdelivering on what your products or services promise will leave you with customers who are over-impressed, which can further lead them to recommend your business to others.
Photo by Nick Fewings on Unsplash
3. Encourage user reviews and testimonials
Ninety-five percent of consumers read online reviews before they shop and 58% say they would pay more for the products of a brand with good reviews. Therefore it's important to encourage satisfied customers to leave positive reviews on your website, on review sites, and social media platforms.
4. Leveraging social media to your advantage
Your most powerful weapon in today’s tech-dominated world is social media. Because of its massive outreach, you can leverage it to make your brand relatable and content shareable to help your message spread organically.
5. Associate with influencers
We are living in an age where influencers are in vogue and their opinions matter. Businesses that partner with an influencer can witness significant business exposure and positive word-of-mouth marketing.
6. Engage in community initiatives
Participating in community events, sponsoring local teams or charities, and undertaking discretionary social responsibilities can help you build a positive reputation for your businesses, encouraging positive word-of-mouth.
7. Deliver continuous value
Customers today are constantly in search of things that are value-driven. From insightful blog posts to free webinars, your business can deliver value to curious customers through information. This in turn will create loyal customers who are more likely to spread positive word-of-mouth.
8. Monitor your online reputation
Equally important to creating a buzz about your business, is monitoring that buzz and keeping track of what people are saying and posting online about your brand. In the event of negative word-of-mouth, promptly dealing with a negative review can help you to restore your business's good image.
Build your brand through word-of-mouth marketing
Word-of-mouth is not simply a marketing strategy, but rather a testament to the quality, values, and rapport a business builds with its customers. It thrives on authenticity and exceeds the boundaries of traditional advertising through personal recommendations and buzz created organically.
Businesses that successfully create the right buzz distinguish themselves, not just via innovative products or services, but through an overarching commitment to customer satisfaction and engagement. After all, a conversation about a business can be the most powerful conversation one can leverage; it's the art of harnessing this dialog that crafts a truly resonant and influential brand.
FAQs about word-of-mouth marketing
Does word-of-mouth marketing work?
Yes, word-of-mouth marketing is exceptionally effective as it leverages the trust consumers place in personal recommendations over advertisements. It fuels brand credibility and awareness and fosters a community around a product or service.
What is an example of word-of-mouth marketing?
A classic example of word-of-mouth marketing is Dropbox's referral program. Dropbox provided extra storage space to existing users for every new user they referred. This led to millions of sign-ups, as users found value in sharing their positive experiences/positive word-of-mouth with their network, exponentially expanding Dropbox's customer base.
Why is positive word-of-mouth important?
Positive word-of-mouth builds brand trust and credibility, significantly influencing consumer behavior. As an endorsement from satisfied customers, it boosts brand popularity, increases customer acquisition, and enhances customer loyalty. It's an organic, cost-effective method to increase sales and overall business growth.
About the Author
Post by: Dr. Shamael Zaheer Khan
Dr. Shamael Zaheer Khan, an academic and practitioner in digital marketing, brings a unique blend of theory and practice to his position as vice president of digital marketing and corporate strategies at an SaaS firm. He holds a doctorate in digital marketing, and has contributed to the field as an academician, shaping minds and honing the skills of the marketing leaders of tomorrow. His theoretical knowledge is matched by a professional portfolio, which includes strategic leadership in accelerating growth, cultivating innovation and driving transformation in business technology environments.
Company: Hyperzod Technologies
Website:
www.hyperzod.com
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