In the ancient times, when there was no internet, television, telephone and very few mediums of communications, companies relied only on a single strategy to market their products. This strategy was known as the Word of Mouth (WoM) marketing strategy. It literally relied on the people’s mouth and their willingness to share, and it was known as one of the best forms of marketing, in history.
Of course, times have dramatically, since then, changed, and the world has become much simpler; but WoM has still retained its place as one of the most vital forms of marketing. And, integrated with today’s technology and communication channels, the WoM has become even more important and vital tool for the companies. In fact, some experts also believe that, with correct mixture and blending, WoM can be still regarded as one of the best, if not the best, tools of marketing in today’s contemporary world.
Let’s find out why;
WoM creates the humanistic touch and trust
One of the most significant reasons of WoM being so popular and effective is all thanks to its strategy of associating with humans. Word of mouth totally and indiscriminately depends on one human being talking about or recommending a product to another human soul.
These humans, most of the times, are actually real users of the service or the product, giving an accurate and “absolutely correct” description and depiction of their experience. And, when a friend, a co-worker or even a family member recommends a product or a service, the chances of sale becomes much higher.
WoM is also done directly by humans to humans, rather than by salesmen or women to customers. And, many people crave for this kind of attention.
Now, one of the most important aspects of WoM is the referral system or tapping system. Of course, most will refer you to an entity only if they are happy with the service or a product in the first place. Thus, you can also say a referral can also be marked as a gesture of appreciation for the product.
But, the system also suggests that the customer indirectly does WoM marketing without even knowing about it! I mean, hasn’t your friend told you to use his or her referral coupon for an app or any service? I mean sure he or she must have.
WoM marketing strategy can easily reach people, even if they are registered with do not disturb or do not call.
Goodwill and brand building
Building up a decent brand name is not an easy task for any company. Many firms, especially the smaller ones, depend on WoM to make sure their faith reaches the ears of many. WoM, if done correctly, can help with brand building. If you’re offering referral options to your existing customers, along with a benefit, then it is always certain that he or she will preach about your service or product to his or her friends and family. And, this in turn can create brand value and also recognition.
It’s a win-win for all:
When WoM depends on referrals, both the companies and also the user doing the referral, wins!
It’s cheaper for companies:
It is never easy to run a complete social media, traditional media, print media, online, offline and experimental media marketing campaigns all together. It is hectic, and it costs a lot too!
This is where WoM, combined with some of the aspects, can be a much cheaper option for the companies. The return on investment on this form of strategy is also higher.