Last post we began our series on ‘word of mouth’ and discussed ways to keep your customers purchase experience short and sweet. Today we’re going to talk about the power of word of mouth and how to use it to your advantage.
The reality is, sometimes we need an advisor to guide us when making purchase decisions. We rely on the expertise of others to give us confidence that we have made the right decision when making a purchase. When you take the time to understand exactly how word of mouth works, you’ll see all the great advantages it has to offer you.
Traditional advertising draws approximately one response per every thousand ads and most of those responses are wanting more information before even considering making a purchase. When you get information from a friend, you are more likely to take their word for it and take action. On average customers purchase two out of every five recommendations their friends make. That’s a HUGE difference.
So, what exactly is word of mouth? Well, we know how powerful it can be, but to define it: Word of mouth is a communication that happens between a customer and a potential customer. There is usually a relationship of some kind between these two people with an established level of trust.
Now, compare this to advertising where you are providing a message to a potential customer where they have not established relationship with you or level of trust. Who are they more likely to take advice from? The answer is clear!
We talked above about the benefits of word of mouth now let’s take a look at some reasons why it works. Some of these are:
- The information is custom tailored to the potential customer because of the friendly relationship of the referrer.
- It’s more personal, relevant and believable.
- It’s customer driven.
- It’s self generating and can take on a life of its own, especially with the information age of the Internet.
- It becomes part of the product’s description.
- The source of word of mouth can be important and more effective when coming from an expert.
- Word of mouth saves you time and money.
To fully utilize word of mouth you need to understand:
- Where is your word of mouth coming from?
- What products are being affected by word of mouth?
- How is your word of mouth traveling?
Once you have an understanding of this, you can put a plan in place to trigger more word of mouth for your business. This wraps up todays post, if you need help understanding word of mouth and how it can positively impact your business, try our GUIDED TOUR to access a wealth of resources and tools.