Known for many years, marketing concept continues to exist by evolving rapidly. As an ancient concept, it simply is attracting the target audience's attention to a company's products and services and converting them into potential customers to boost the sales of the company's products or services. Today, marketing has diverse methods.
Everyone has their own opinions regarding products or services. Also, they always tend to share their positive or negative ideas with the people around them. Moreover, consumers keep in mind the experiences of these people during their decision-making processes. In fact, they value them to such an extent that they may even change their decisions according to these opinions.
Think about it… Before buying a product or a service, do you take advice from those with experience with these products and services? If your answer is yes, then you are familiar with the 'Word of Mouth Marketing' concept, among the essential marketing methods.
What does 'Word of mouth marketing' that you are also familiar with mean? This blog post will touch upon 'What is Word of Mouth marketing?', 'What are Word of Mouth marketing statistics?', and 'What are the benefits of Word of Mouth marketing?'. I wish you an enjoyable read.
What is Word of Mouth Marketing?
Word of mouth marketing is a marketing method where you manage the transfer of product or service-related experiences, positive or negative reviews of experienced consumers to other consumers by using various tools.
As a marketing method, word of mouth marketing has recently become among the most preferred and essential methods in conventional and digital marketing. Moreover, it will continue to play a vital role in the purchasing decisions of consumers, who will always be valuable at all times. Unlike traditional marketing methods, consumers value the positive or negative comments of other consumers around them and trust more in the product and service with positive feedback. When it comes to the advantages of products and services, it is for sure that there is no advertisement or sales professional as reliable to provide advice compared to the consumer's close circle. Today, businesses with this awareness have now turned to word of mouth marketing.
What are Word of Mouth Marketing Statistics?
· According to the famous research company Nielsen, 92% of consumers say they trust the word of mouth or recommendations from friends and family above all other forms of advertising.
· Moreover, 88% of consumers say they trust online comments and reviews as much as their personal recommendations.
· 74% of consumers identify word of mouth as a key influencer in their decision to buy a product or service.
· In an article in the International Journal of Market Research, academic Nick Hajili states that "Trust, encouraged by social media, significantly affects the intention to buy. Therefore, trust has a significant role in e-Commerce by directly influencing the intention to buy and value a product."
· On the other hand, only 33% of businesses seek comments and reviews about their products and services.
What are the Benefits of Word of Mouth Marketing?
· Since your products or services will primarily be advertised to potential customers by your existing customers, it allows you to allocate less budget to advertising expenses, among the traditional marketing methods.
· Considering that your existing customers, who will share their positive experiences about your products or services, are generally from the inner circle of your potential customers, they potentially share a strong bond of trust, which will improve the success of your marketing efforts.
· It is crucial in growing brand awareness and sales.
· It is also highly effective in brand loyalty. Lastly, it allows you to strengthen your brand's relationship with your potential customers and convert them into loyal customers.
Stay healthy and happy,
Furkan Melisa Çetin
Product Management Assistant Specialist