A customer, who is pleased beyond expectation from a goods or services he/she purchases, often recommends this purchase to friends and family. This recommendation is referred to as word-of-mouth communication. Consumers are more likely to trust and buy the products they hear about from their friends and family. This has been proven in a study as well. A study conducted by Nielsen, a global marketing research firm 92% of people trust the products recommended to them by their friends and family over all other forms of advertising. Word-of-mouth promotion serves as free advertising for a company. There are two types of word-of-mouth marketing: organic and amplified. Organic word-of-mouth marketing happens when satisfied customers recommend a certain company or product to their close ones by their own free will. These people are not encouraged to act in this manner by the company. Amplified word-of-mouth marketing is when a company launches campaigns to encourage its existing customers to share their positive experiences with the rest of the world. This type of word-of-mouth marketing has gained a lot of traction in the social media age. It has become much easier for the ordinary customer to share their experience and opinions with hundreds of people. Word-of-mouth is more effective than other promotional tools and techniques. The information is passed from one customer to another very quickly with expression. Most customers believe in what their friend and relative suggest instead of watching promotional ads on TV or other promotional platforms.
Word-of-Mouth Marketing Strategies
There are many strategies available to a company to encourage its customers to talk about the products to their friends and family. One such strategy is for a company to create triggers for word-of-mouth. Triggers act as cues, and they remind customers of the brand without actual advertising. An example of a trigger is peanut butter; when someone hears this word, they think of jelly. Triggers have to be created by careful advertising. A company must also be active and engaging on social media. This keeps the company in the minds of its customers. Can do this by making interesting and informative content for social media. Hence, it is common to see social media handles of companies sharing memes and videos to keep their customers engaged. The simplest strategy for encouraging customers to recommend a product is to give them the best value for money with that product. When customers receive satisfaction from a product or service beyond their expectations, they are much more likely to recommend that product or service to their friends and family.
Reviews as Word-of-Mouth
Reviews of products on e-commerce websites can act as an important word-of-mouth tool to assure customers about the quality of the product. When customers read the reviews from other ordinary customers about the product they want to buy, they get valuable insight into the use cases and all the hidden details of the product
A study shows that more than 62% of customers look for reviews online before buying their product. Hence, reviews have become incredibly important in the e-commerce space.
Advantages of Word-of-Mouth Promotion
The most important advantage of word-of-mouth promotion is its effectiveness. In other promotion tools like advertising and social media marketing, potential customers get informed about a product and a company by the intermediaries and employees of the company itself. Hence, the customers do not know how much of the information they are getting is reliable. However, when customers get to know about a product or company via their friends, they know they can trust the information. Another advantage of word-of-mouth promotion is that, it is incredibly cheap. Organic word of mouth promotion costs firms nothing, while amplified word of mouth marketing costs firms very little. All types of mouth marketing are so cheap because it uses the existing customer base for promotion.
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