What Is Word-Of-Mouth Marketing? — A Simple Definition
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Word-of-mouth marketing (WOM) is a trust-based marketing technique that builds brand awareness and trust. When customers trust your brand, they’re more likely to recommend it to their friends. Trust is the cornerstone of word-of-mouth marketing. That’s why it’s important that you understand what word-of-mouth marketing is, so you can implement an effective strategy to grow your business. This article will explain what word-of-mouth marketing is, its benefits and disadvantages, as well as examples of successful companies using this marketing technique to promote their brands.
What Is Word-Of-Mouth Marketing?
Word-of-mouth marketing is a marketing strategy in which a business uses its customers’ recommendations to build brand awareness and generate sales. When a customer trusts a brand, he or she is more likely to tell their friends about it, which ultimately increases sales. There are many ways to create word-of-mouth marketing. One of the most effective methods is through customer referrals. If a customer trusts a brand they’re using, they’re more likely to recommend it to their friends. Since customers are increasingly looking for online recommendations before purchasing a product or service, it’s important to create a culture of brand trust before building a customer retention strategy.
Why Is Word-Of-Mouth Marketing Important?
In today’s hyper-connected world, there are many ways to market a product or brand. However, the most cost-effective and successful way to do so is through word-of-mouth marketing. This is because word-of-mouth marketing relies on word of mouth to spread. The more people trust a brand and talk about it, the more opportunities it has to be discovered. And the more people discover your brand, the more likely they are to buy from you. Word-of-mouth marketing can be particularly important for small businesses, which have fewer marketing resources than large corporations.
Advantages of Word-Of-Mouth Marketing
- Builds Brand Awareness
- Boosts Sales
- Generates Word-of-Mouth
- Increases Customer Loyalty
- Increases Retention Rate
- Increases Customer Satisfaction
- Increases Repeat Purchase Rate
- Increases Referral Rate
- Increases Impression on Others
- Increases Trust
- Increases Reputation
- Increases Legitimacy
- Increases Authority
Word of Mouth Marketing Disadvantages
There are a few disadvantages to using word-of-mouth marketing as your primary marketing strategy. First of all, you need to know your customers well enough to use this strategy effectively. You also need to know how to motivate customers to spread the word about your brand. It’s very easy to get lost in the constant buzz of social media. You need to work hard to create a culture of word-of-mouth marketing. You also need to be sure to set up systems to track and analyze the results of your marketing. You need to be sure your social media posts are reaching the right audience, your email marketing is being opened, and your advertising is reaching the right person. If you’re not sure how to go about this, you may want to consider partnering with a digital marketing agency.
B2B Word of Mouth Marketing Tips
When it comes to growing your business through word-of-mouth marketing, focus on building a strong foundation of trust with your customers.
- Build a Relationship with Your Customers
- The foundation of any successful relationship is trust. Build a relationship with your customers so they feel comfortable recommending your brand.
- Be honest and transparent. Be human. Be genuine. And be available to your customers when they have questions or concerns.
- Set Up Systems to Track and Analyze the Results of Your Marketing
- Word-of-mouth marketing is all about building trust with your customers. You need to make sure your social media posts are going out to the right audience, your email marketing is being opened, and your advertising is reaching the right person. Having a system in place will help you stay organized and make sure you’re hitting the mark.
- Invest in Online Advertising
When it comes to growing your business with word-of-mouth marketing, investing in online advertising is a must. Put some thought into to the types of ads you want to run and make sure they match your target audience.