Source: InviteReferrals

Every business today faces tough competition. Having a good-looking and highly functional website is no longer enough to help you stand out in the crowd. There is a powerful yet mostly untapped area where you can work in this regard. It is called the Word Of Mouth Marketing (or Word of Mouth Advertising).

What is Word of Mouth Marketing?

Word of mouth marketing is a marketing strategy that promotes a brand via personal recommendations. It has been around since time immemorial. However, in traditional word-of-mouth marketing, a word about a brand was spread from one individual to another in the real world. However, modern word-of-mouth marketing is done over social media.

Furthermore, in addition to the naturally occurring word-of-mouth marketing instances, marketers also direct their efforts to drive it. And unlike the traditional ones, the modern one is highly effective owing to the lightning-fast spread of information in today’s hyper-connected world.

The Importance of Word of Mouth Marketing

Source: InviteReferrals

Businesses and brands adopt several best practices and marketing tactics to facilitate natural word-of-mouth promotion. However, running social media campaigns in specific can foster a wide social exposure for an online business. Here are some facts and factors that convey the importance of word-of-mouth marketing.

  • A study says that people trust recommendations from family and friends more than any other form of advertising.
  • Researches have proved that it costs you 5 times lesser to keep an existing customer than acquire one.
  • You can increase your profits by 75% by increasing your customer retention by just 5%.
  • Customers gained via word of mouth marketing spend 200% more than your average customers and bring twice as many referrals as themselves.
  • Additionally, people trust a brand or product up to 50 times more than ads when it is recommended by family or trusted friends.

Thus, people value word of mouth more than any other marketing. So, businesses and marketers should focus their attention on it. For this, they need to know what works and what doesn’t. So, we have penned down the principles of this marketing. Read on.

What are the principles of word-of-mouth marketing?