Word of mouth is the most powerful tool brands can use. Why wouldn’t you trust a recommendation from someone you know? Well, according to Nielsen, 92% of consumers around the world now say they trust word-of-mouth or recommendations from friends and family, above all other forms of advertising. How has trust in word of mouth evolved?
Word of mouth marketing has been around since the beginning of time, but only in the recent years has it truly gained it’s recognition. Recognititon that is worth a $6 trillion of annual consumer spending, and is estimated to account for 13% of consumer sales. That is a lot of talking.
But surely, word of mouth is just another form using the media to spread the word? Well not exactly, as word of mouth marketing, or referral marketing as we like to call it, results in 5x more sales than a paid media impression. It is all down to trust. You are much less likely to trust a paid media post, than a person you know. And this is not only you, as 64% of marketing executives believe word of mouth is the most effective form of marketing.
The question facing marketers now is: have you taken steps towards connecting with your customers and leveraging word of mouth?
Clearly the ways in which brands connect with their customers is changing. Companies toned to leverage their happy customers and brand advocates to garner new clients through trusted recommendations, fully taking advantage of the power found in word-of-mouth. If companies aren’t utilizing these consumer advocates, then they risk ignoring an extremely powerful marketing channel.
We suggest that the first step you take is to learn more about word of mouth and recommendation marketing.
To learn how to monetize word of mouth through refer-a-friend programs and referral marketing, contact us – we’d be happy to answer any questions you may have.