Word of Mouth Marketing Tactics To Grow Your Business
Word of Mouth Marketing Statistics
- Nielsen report that 92% of consumers believe suggestions from friends and family more than advertising.
- Beyond friends and family, 88% of people trust online reviews written by other consumers as much as they trust recommendations from personal contacts.
- And 74% of consumers identify word of mouth as a key influencer in their purchasing decisions.
- But only 33% of businesses are actively seeking out and collecting reviews.
- Despite that fact that a little, can do a lot. When specific case studies were analyzed, researchers found a 10% increase in word-of-mouth (off and online) translated into a sales lifts between 0.2 – 1.5%.
The Advantages of Word of Mouth Marketing:
- Grow sales without the ad spend: Many brands from The Hustle to Bangs Shoes and more use word of mouth marketing instead of advertising spend to increase sales and fanbase.
- Build a community, not a commodity: Word of mouth marketing works to build an engaged fan base rather than a buy and bolt customer. Higher engaged customers buy more often and recommend their friends more often, extended your return on time spent on the strategy, and generating a high customer lifetime loyalty.
- More funding, more freedom: Brands with high customer lifetime loyalty and therefore repeat purchases receive more angel and venture funding. Why? Because CAC to LTV, or Customer Acquisition Cost to Lifetime Value, is considered one of the most important aspects of a healthy business model in the early days of a company’s lifecycle.
- Know yourself.
The first thing you need to do before using word-of-mouth marketing tactics is to know your brand and product or service thoroughly.
Some questions to ask:
What is your brand all about?
What are your values?
What does your product or service do?
How can it help people?
Having in-depth knowledge about your brand and its mission statement can help you present your products and services in a way that your audience appreciates.
- Research your competition.
Being aware of your competitors is a necessary step to stay ahead of them. You need to understand your industry and the questions or issues plaguing it. It’s important that you determine what your competition has to offer in terms of answers and solutions to those issues.
What can you do to be better than them?
How are they different from you and how can you benefit from this?
Are there any weaknesses you can capitalize on?
By properly analyzing your competitors, you’ll be able to determine what they’re doing right and what mistakes they’re making. This allows you to strengthen your word-of-mouth marketing tactics.
- Define your audience.
One of the most important steps to launching successful word-of-mouth marketing tactics is to thoroughly understand your audience. Getting to know your target group will help you determine what they like and don’t like. Then you can build your marketing strategy and services around those preferences.
I suggest dividing your audience into different “buyer personas” so you can tackle each problem faced by a specific demographic. When you speak to a problem that’s very specific to a niche group, it’ll be as if you’re taking personal care of their issues. That’s a great way to deliver excellent service to your customers and make them more likely to recommend you.
- Embrace exclusivity.
People want what they can’t have and that’s exactly what drives this strategy. Offering exclusive access to your product or service can be an effective method for implementing word of mouth marketing tactics. This has been successfully carried out by sites like Spotify and Gilt Groupe where people can access the service only through an invitation.
When introducing a product or service, consider inviting influencers to try it exclusively instead of making it available for everyone. These influencers can provide valuable feedback and invite their community of fellow influencers to help the product or service go viral.
- Find your uniqueness.
For your brand to become truly noteworthy, there has to be something about you that people will remember. You need to offer something unique that people want to talk about with their friends and family. If you’re just like every other name in your industry, your audience might not even remember you.
Maybe you’re offering a one-of-a-kind product or your company has a quirky work culture. Identify what makes your brand unique and capitalize on that so that people will want to share your story. You could even brainstorm some unique and creative word of mouth marketing tactics that your audience will remember.
- Build an engaged social community.
72% of marketers use social media to develop loyal fans. A tight-knit community on social media is a necessity for a successful word of mouth marketing tactics.
This is where knowing your audience plays an important role. You need to understand your target audience to determine where and how they like to communicate online. Perhaps they’re more active on channels like Instagram and Vine than on Twitter. Or maybe Quora appeals more to them than Facebook.
Once you’ve identified the right social media channel to reach out to your audience, start engaging with them. Conduct some research to help you understand how you can speak to them in a manner that feels natural to them. What kind of humor appeals to them? What type of language do they use?
- Add a human touch.
The more people connect with your brand, the more likely they are to recommend you to others. That’s great for your word of mouth marketing tactics. To build a strong connection with your audience, humanize your brand on social media. Let your customers know that they’re interacting with a brand that has personality.
Responding to mentions and comments is a great way to add a human touch in your social interaction. Whether it’s positive or negative, try to be responsive when followers engage with you.
- Invest in customer experience.
customer recommendations fuel word of mouth marketing tactics. The best way to get these recommendations is through positive brand experiences. People don’t talk about an average customer experience. What they do talk about is either an outstanding experience or a negative one. Going the extra mile can significantly improve your word-of-mouth campaign.
- Reward loyalty.
One of the most effective word of mouth marketing tactics for turning customers into loyal brand advocates is by offering incentives. You could give customers special offers or exclusive content that would make them feel privileged and special. Capitalize on their loyalty by making them want to share their great experience with friends and family.
When used correctly, word of mouth marketing tactics can be the most effective tool to promote your brand. You can use them to create awareness about your brand, products, or services among a larger audience. Word-of-mouth marketing tactics will ultimately result in better sales and customer retention. Apply these 10 steps to successfully implement a word-of-mouth approach in your next marketing campaign.