Why Word Of Mouth Marketing Still Matters

Photo Source: hubspot.net

Photo Source: hubspot.net

Word of mouth advertising can be defined as satisfied customers promoting the product to other people. It is a sort of unpaid promotion by the customers themselves. It is apparently a very important aspect in any business since even one satisfied customer can bring in dozens of others and so on. Here some important and surprising statistics–

  • Word-Of-Mouth is the MOST trusted form of marketing [Trusted by 86% of consumers].
  • Comparatively, only 62%, 60% and 48% of consumers trust TV ads, print ads and social media ads respectively.
  • The statistics are alarming. This is how consumers are dealing with advertising:
    • 94% Skip Pre-Roll Ads
    • 91% Have Unsubscribed From Mailing Lists
    • 86% Skip TV Commercials
    • 44% Of Direct Mail is NEVER Opened
  • 49% of U.S. consumers say friends and family are their top sources of brand awareness.
  • Word-Of-Mouth also gives you #AWESOME customers – Customers acquired through Word-Of-Mouth spend 200% more than the average customer and make 2x as many referrals themselves.
Photo Source: womenunlimitedworldwide.com

Photo Source: womenunlimitedworldwide.com

It is more than often regarded as being one of the credible ways, since every time a person recommends a particular product to others; he keeps his reputation on the line. Furthermore, what makes word of mouth so powerful is listed below.

  • Online advertising: Social media, which almost everyone on this planet is addicted to through some means or another, has a very crucial feature. It is that it is social. Whatever you do or want to share in your circles can be done almost instantly and it reaches far. The important thing here is that people share the real content or their experience with product rather than just circulating their name. So, if you can utilize this sphere, then that means you don’t spend on other advertising since people would be doing that for you and free of cost!
  • Offline advertising: According to statistics, a vast majority of the customers who share and promote products tend to do it offline rather than online. The said information can have a pretty large effect on where the marketers focus their advertising strategies at. While choosing a brand, the word mouth communication is one of the most effective and critical part of it. Among the usual conversations that Americans have every day, talk about brands and products is almost every day. Many large and continuous surveys have been conducted to conclude that only 8% of the communication is online. A shocking 90% is through offline methods. While the numbers may change a little from time to time, however a large part of the communication being offline is a fact that remains consistent. This issue can be tackled most effectively by estimating what media is relevant and used by your customer and not just what is easily available for you.
  • Viral: Moving on, these days one of the most interesting aspect of social media is the potential for anything or any product to go viral. One would hope that with little investment, one can reach customers who would then promote it to others through an upward spiral thereby reaching a very wide range of customers. While it sure is an interesting way,  reports suggest that less than 1 % of the content goes viral. Although, it is really good if and when you achieve it, spending lots of money and resources just to get it can be a bad choice. Therefore, making ‘go viral’ your main goal may not be the best idea.
Photo Source: revengineinsider.com

Photo Source: revengineinsider.com

For anyone who can thus utilize the word of mouth marketing, can in theory double or triple their profits. However, in order to accomplish that, one needs to understand how you are marketing your product, what impression does it leave on your primary customers, the relevant media that your customers use in order to spread the word and furthermore as to what the customer has to say to others regarding your products and services. The importance of word of mouth marketing lies in the question how social and traditional media interact with each other. Do they create a mixed impact or does one amplify the other or are they really distinct from each other?

In order to make most out of the word of mouth marketing, marketers need to understand that while social media is a popular platform, they cannot underestimate the power of offline communication. While there might be some ways to effectively utilize it,  it isn’t simple is what is there for a fact. It requires marketers to research the social media, gather the important elements and then apply them systematically so that the customers carry the word to mouth from their online platforms to their offline ones and thereby creating a better market and demand for the marketers.



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