Word of Mouth Advertising: The Ultimate Marketing Tool You Need

Word of mouth marketing is one of the most valuable forms of marketing out there. Look around you and you’ll find it everywhere. If you can’t resist sharing your experiences about different products and services with others, you too have been involved in word of mouth marketing. But is it really the right strategy you should adopt to flourish your business? Here are the reasons you should embrace this marketing technique and bolster your sales.

Favorable Statistics

Word of mouth marketing is believed to steer over $6 billion of consumer spending annually, which is roughly 13 percent of consumer sales. Not only that, 90 percent of people are more likely to interact with brands recommended by friends. Moreover, word of mouth marketing results in 5 times more sales as compared to paid media.

Cheap Marketing Strategy

If you’ve ever had the chance to check out the rates for television advertising or newspaper placement, you would be aware that marketing can be quite expensive. Word of mouth marketing, however, is a form of cheap advertising that doesn’t require as much investment as other methods.

Extremely Viral

Word of mouth marketing doesn’t stop after a single interaction – it spreads on its own like wildfire. One person tells the information to another, who then passes it to someone else and a continuous chain is formed. In fact, your words can reach millions of people within seconds through social media.

Based on Trust

Essentially, word of mouth advertisement is based on trust between people. After all, people close to you know more about you than the sales representatives and hence, they tend to give you advice and opinion that are best for you. So if you hear a positive experience about a brand or product from your family or friends, you’re more likely to buy it.

The Safe Way to Do Business

Regardless of what kind of business you do and what your products and services are like, you can’t just go into business without assessing the situation first. There’s a lot to consider at all times when you’re doing a business and naturally, a lot of these things are often overlooked. Some business old-timers don’t really think that there’s anything they can learn from Business Studies since they’ve been working for a long time and have experience under their belt but knowing these things can still really help.

Knowing what you need to be careful of when doing business may not be necessary for your success all the time but it can save you from unfortunate experiences along the way. General Liability Insurance is one of the things that really needs to be considered. In fact, business insurance is one of the first things that all business owners should consider when they’re initially setting up a business.

If you don’t have business insurance yet, it’s not too late to get it now and we’re about to tell you why you should. You see, without insurance, your assets aren’t safe. Let’s say that your goods catch fire and are lost at some point. This kind of accident can happen to anyone, and the outcome can be disastrous. You can suffer huge losses this way.

With proper business insurance, your company is protected from damages, losses and you’re entitled to compensation in cases of anything unfortunate happening to your company. Insurance isn’t exactly very cheap but if you want your business to be safe from getting jeopardized like that, then you’ll find it wise to squeeze in business insurance as part of your initial budget for your business.