What is Word of mouth Marketing? A quick overview
The article is about word of mouth marketing, and how it's important in the social age. It defines what word of mouth marketing (WOMM) is, and how it can be a powerful tool. The article also talks about the importance of WOMM and some cases where it's been successful.
Word of mouth is the strongest form of marketing because it is so effective. People will share what they like amongst their peers, which can attract new customers without you having to do anything. As social media and the internet are constantly getting more popular, word of mouth marketing becomes more helpful for businesses
Word of mouth marketing definition
Oral or written communication from a customer recommending a product or service to someone else is known as WOMM.
With word of mouth being a personal preference, it's more likely to convert at a higher rate than other forms of marketing. Word of mouth can be positive or negative and so is influential in driving good along with bad outcomes.
There is no one better for word of mouth marketing than a client who has been happy with the product or service. As such, the best way to improve advertising ROI is with word of mouth marketing or WOM.
Word of mouth marketing is discussed in this article and has both positive and negative effects. WOMM also has a variety of tools that are used for it, as well as its importance to startups. An example of word of mouth marketing includes
Cases of word of mouth marketing
Case 1
You go to a retail clothes shop and really like the clothes. You tell your friends, who then go and buy their clothes there too.
Case 2
Last summer, you randomly picked a resort for your holiday. The resort is a perfect place because it has everything you need and it catered to your every need. You strongly recommend the resort to your friends and family because of the satisfying experience you had there. This is word of mouth marketing at its finest.
Case 3
Brands with online merchandise are using word-of-mouth marketing. With Amazon, they have a trustworthiness from other Amazon customers. Trust is built from people telling their friends about great deals and free two day shipping. Walmart builds their credibility by having "Everyday Low Prices" on the products because when people buy something that's the best price in the area, they tell their friends about it.
Case 4
Zara, a brand which never advertises, focuses on its own design and word of mouth due to its unique positioning.
Above is some cases of small and large businesses successfully using word of mouth marketing to their advantage.
Importance of Word of mouth marketing or WOMM
Word of mouth marketing is a very important type of marketing. Here's why:
Impact
Word of mouth marketing is the best kind of marketing because it touches 92% of people.
High ROI
It is a myth that word of mouth marketing doesn't work and you don't need to invest in it. Once you provide the service, you get a huge return on investment.
Brand Recognition Expansion
Some people who use your product will become advocates for your company, for free! They'll share great experiences with your company, and are a super easy way to promote your business.
A strong weapon for small businesses
To small entrepreneurs, word of mouth marketing nowadays is enjoying increased prominence, especially among those who lack the funds to advertise extensively. Regardless of what product they sell, providing good service and creating strong personal ties with customers will contribute to achieving their business goals because people are more likely than ever before to act on recommendations from real people in their personal networks.
Negative WOMM causes huge losses
Word of mouth can have major impacts on brands, depending on the nature and tone. Negative word of mouth could result in a huge loss for a company. Tata Nano suffered a backlash because people called it the “poor man's car”.
Word of mouth in the Social Age
Word of mouth marketing is a powerful tool because social media is so influential. Most people watch a recent movie release, decide whether they liked it, then go online to share that information with their friends and family. If they liked the movie, they'll tweet or post on Facebook; as more people share their thoughts, it'll become a hit.
Due to the overwhelming power of social media, all political elections are happening primarily on social media now. Many politicians want to improve their online image by uploading high quality images and posting messages regularly. If a politician makes a mistake, it will be shared across the internet.
If you want your business to spread by word of mouth, social media is one of the best ways to do that. By only focusing on social media and having a good reputation, there will be more people who come to your business for different reasons because they trust you online.
The effect of Negative word of mouth
Negative word of mouth publicity creates major problems for businesses. With the internet and social media, customers have a way to speak negatively about companies and products. It's important to mitigate negative word ofmouth publicity so that customers keep coming back.
Negative word-of-mouth has a huge impact on any company's bottom line. For example, negative reviews can immediately result in a decline in product sales on an Ecommerce platform.
However, there are many smart customers who take the negative ratings with a pinch of salt. The reason? People who have had negative experiences are much more likely to give negative ratings as compared to people who have had positive experiences. If you love a product or a service, then ensure that you are giving a positive rating for it, otherwise, the negative ratings will pull down the product or service and might destroy it from the market.
Let us explain with a few example
Examples of Negative word of mouth
1. Zamato
If a restaurant has a bad experience, it will be rated poorly by services like Zomato. If this continues people are less likely to visit the restaurant, which means the restaurant owner will be in a slump for a long time.
2. Hospitals and Doctors
Looking for a doctor? Google _____ is a popular choice. Ask friends or family members your plans and try their recs on Google reviews.
You might find cases in the hospital where doctors are not up to standards, where they've spoilt a case, or are not trustworthy. You'll also find unresolved complaints about the hospital. Probably won't visit there again.
When creating marketing campaigns, brands need to focus on generating a positive word of mouth. The goal of this effort is twofold. The first goal is to increase inquiries and walk-ins due to the positive word of mouth that the brand has generated. The other objective is to squash the effects of negative marketing efforts with a positive campaign.
Tools for word of mouth marketing
Find out which tools are useful for word of mouth marketing
Customer Service
If a company provides excellent customer service, then customers will have a more positive view of the brand or product.
Quality Control
If a customer has a high expectation for good quality, and the product or service is better than their expectations, then there is a higher chance of getting a positive WOM for your product or service. If the quality was lower than expected when brought to light, you can also expect negative feedback as well.
Social Triggers
Social media is one of the strongest tools for word of mouth marketing. Apps like Snapchat and Instagram show the power of social media – from overnight success to gaining friends at first sight. After all, friends want their friends to come online and stay in touch.
It's important to be aware of the people at your company because they make a big difference. For example, if you have rude employees, chances are customers will not like them and go elsewhere. Employees with politeness, patience, listening skills and smiling often bring more people to the store since people feel welcomed and happy when they're around them.
How to increase word of mouth marketing?
1. Offer uniqueness to your customers
If you are aware of how important word of mouth marketing is to your business, you need to make sure it's a priority. You want to motivate word-of-mouth by thinking about your brand in a holistic way—what aspects of your product or company encourage customers to talk about it and recommend it? Here are some ways customer referral programs can do that.
To generate a conversation with your product, you need to be willing and proactive in giving customers what they want.
2. Never depend on your staffs to drive it
Great customer service is difficult to advertise, as customers never know how they'll end up in conversation with their friends.
It's hard for people to promote a great experience they had when they're not sure their friends can't benefit from it too.
It's better to rely on the employees who understand your message and have your interests at heart to tell others about what you offer.
3.Use impactful physical and nonverbal statements
Packaging and conveying your message to clients strategically will allow for effective word of mouth marketing. Using architectural and kinetic statements is among the other steps to take in communicating with clients.
With the system, you will be able to attain the best results. This is because it will help marketing ambassadors spread relevant information about your business. To do this, ensure that you get it right and nothing less.
4. Never mention any goodies in the ads
It is tempting to inform potential customers about the good things you are offering, but it decreases the effectiveness of this strategy because most ambassadors would be reluctant. Their reluctance is a result of believing that people will see it for themselves and decide on whether or not to buy.
5. Come up with an appropriate budget for this particular program
You may think that this marketing strategy does not require funding, but if you want to spread the news about your business and attract potential customers, you'll need some sort of advertising budget.
To make this scheme work, you will need to set aside a budget and make sure they are funded well. If you do not fund them well, it will be hard to get new customers and your business will not do as well.
Word of mouth marketing is an important aspect of every business. If people are happy with your company, they're more likely to spread positive reviews as opposed to if they were unhappy. A company needs to have customer satisfaction surveys and take action if customers are unhappy. Word of mouth publicity can be a big contribution in either the success or the failure of a brand.
Frequently Asked Questions (FAQ)
Word of mouth marketing is when customers recommend a product or service to their friends and family, creating a buzz and increasing brand awareness.
Word of mouth marketing works by leveraging satisfied customers to spread the word about a product or service. This can be done through social media, online reviews, or in-person conversations.
Word of mouth marketing is important because it is one of the most effective ways to build trust and credibility with potential customers. People are more likely to trust recommendations from friends and family than traditional advertising.
Some examples of successful word of mouth marketing campaigns include the ALS Ice Bucket Challenge, the Dollar Shave Club viral video, and the launch of the iPhone.
Businesses can encourage word of mouth marketing by providing excellent customer service, creating a unique and memorable product or service, and incentivizing customers to share their experiences with others through referral programs or social media contests.
