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.
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.
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.