What is Word of Mouth Marketing?
Word-of-mouth marketing involves oral or written recommendations made by current users to prospective customers. There are many different styles of word-of-mouth marketing, including referral marketing, user-generated content and influencer marketing. This style of marketing can be initiated with incentives for customers to promote your company, but many word-of-mouth marketing formats can be implemented with no financial investments.
Why Is Word Of Mouth Marketing Important?
Word-of-mouth marketing is the primary factor behind 20% to 50% of all purchasing decisions, according to research from McKinsey & Co. One of the reasons why word-of-mouth marketing is so effective is that the message comes from the customer, so it is viewed as more credible than a sales pitch. Leveraging the customer’s credibility leads to a better chance of closing more deals, as well as retaining the customers that have become valuable assets to the company’s bottom line. Advocate marketing applies an intentional, actionable process to word-of-mouth marketing.
Related Resources: Word of Mouth Marketing: Create Customer Buzz