How important is the word of mouth marketing in growing your business?
The Hustle, Bangs Shoes, and similar companies are known for using word of mouth marketing to promote their businesses rather than investing in costly advertising campaigns. Despite that fact that a little, can do a lot. When specific case studies were analyzed, researchers found a 10% increase in word-of-mouth (off and online) translated into a sales lifts between 0.2 – 1.5%.
In growing businesses, word of mouth is way more impactful than through marketing with expensive campaigns marketing expert John Jantsch recommends that small businesses should ask customers to recommend their products to their friends and family. A report said that 92% of consumers believe suggestions from friends and family more than advertising.
In my opinion word of mouth creates customers who buy more often and recommend their friends more often, greatly increasing a company's return on time invested in the strategy, which in turn leads to greater customer lifetime loyalty.
Word of mouth strategies can be used to build engaged customer bases rather than to appeal to customers who will buy and bolt; that is, make a purchase and then never return.
Word-of-mouth marketing involves asking your customers to regularly recommend your company and products to others, based on their pre-founded trust in you as a business. It is a cost-effective way to spread the word about your company and products among online and in-person communities.
I think a lot of people think that word of mouth is a small start-up tactic, but really it is the most powerful marketing technique that will benefit you at any stage in your business. At first, it can be a great way to onboard people, but as you grow it then becomes a great source of credibility. That being said, you shouldn't just hope that people will recommend you. Don't be passive/ afraid to ask your clients for written or video reviews or even recommendations.
@elena_cirera In my opinion word of mouth is something that matters the most as it is the customers/consumers spreading it out without you giving them a penny to do so that purely means that your product/services are that impactful on them and now not only you but even your folks want that product to grow :)
It is really usefull, especially with small to mid size business, as word of mouth create more of a personal touch and gives a reliability and it kind of build trust towards the products, even if the company/product is relatively new. Also more often than not, we tend to buy things recommended to us by friends, family or sometime celebrity.
Hey Elena! Word of mouth really works well in growing any business, because even if you actively post about your business, people might ignore. But when it comes to other people talking about your product then that gives alot more faith to the audience. For our product, Boltic (launching tomorrow on 11th, i.e, Friday), we got most of our early users due to word of mouth and all the communication that was done by our internal users company wide. You should try doing that for your product too
The previous start-up in which I worked was bootstrapped. They did not have a marketing budget and had only word-of-mouth marketing. Based on that experience I have observed that the users acquired via referral have a better LTV as compared to users that come from performance marketing or other marketing campaigns. Do let me know what your experience has been like? Would love to understand what its like from other spectrums!
@heffendi According to Forbes, 64% of marketing executives believe that word of mouth marketing is an effective form of marketing. Customer testimonials are a form of word-of-mouth marketing; it is an economical and effective form of marketing. Word of mouth marketing is always good to boost any business.
Word of Mouth is an effective marketing strategy, and current has seen a good impact (indirect) on customer retention as well.
So Important! No wonder being a social media influencer is profitable these days :)
Mouth marketing is powerful and has greater power than any other form of marketing. People are much more likely to trust recommendations from family and friends than they are to trust an ad. There is no second opinion when it comes to mouth marketing.