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The Effectiveness and Importance of Word-of-Mouth Marketing

By October 30, 2017January 17th, 2018Uncategorized

Word-of-mouth is something present in people’s lives every day. Talking about experiences and needs is something we are used to, but when you look at it from the marketing point of view, you may see that it has potential to be a great tool to spread the word around about products, services and brands. Thanks to the social media, word-of-mouth has moved online and has started having an impact on a much broader audience. Your friend on Facebook for example just raved about the new coffee shop and you, inspired by his praise, decide to go and check it out. This is a simplified version, but the principle of Word-of-Mouth Marketing is basically the same with some adjustments.

What do the stats say about Word-of-Mouth Marketing?

Marketing of any kind is based on research and surveys of the audience and its needs so brands can create compelling and attractive campaigns and strategies.  Statistics say that 59% of 29,000 online consumers actually like to tell others about their experience with new products or brands. What this actually means for you is that you can count on the half of your clients to talk about your brand.

Nielsen’s Global New Product Survey numbers show that 77% of people will try a product if the recommendation came from someone they trust, like a family member or a friend. On the other hand, 66% will put their trust in professionals, 55% will use something recommended by the colleagues and 41% will start using a brand due to some sort of public event promotion.

Market Force study has provided some excellent stats. Namely, they came to the conclusion that 81% of consumers are influenced to buy something by their friends’ social media posts, while a lower number of 78% will trust social media belonging to manufacturers and sellers. This is an important indicator how important is the word-of-mouth.

How to use it

We mentioned before the case of the coffee shop and how positive experience of your friend can influence you to visit it. Well, let’s kick it up a notch.
Word-of-Mouth Marketing is based on organizing events which will gather all the biggest bloggers and influencers to try out company’s new products. In this case, the coffee shop is promoting their new type of coffee beverages.Bloggers and influencers will take pictures, try the coffees, talk to other guests and post about their experience. Together with the company social profile, this will be a complete strategy to create and encourage potential consumers to buy and try the products.

The benefits

The main benefit is that you created a buzz. People are talking about you and your brand, using it, like it, and that’s all because of the positive effects of the Word-of-Mouth Marketing. Another very important benefit is that conversion rates are high when it comes to traffic created by the so much talking. This is due to the people’s familiarity with your brand before they visit your website and the trust they have in your products only because someone spoke highly you.

Word-of-Mouth is also an excellent way to create a bond with your customers before they even tried your products. Because of the positive feedback, they got from the trusted sources, your customers are not suspicious like they’d usually be. They will even feel more relaxed and inclined to contact you about any issue, which is something customers unfamiliar with your brand reluctantly does.

What to do when you need more buzz

If you want to create more buzz so you can get more customers, you will have to be proactive. Listen to the customers’ reviews and always give credit to their opinion. The way you manage complaints and suggestions will leave a good impression on the public. Companies like GWM have a long experience with creating positive marketing for brands, so if you can’t create the strategy on your own, it would be the best to consult the experts. Word-of-Mouth needs careful planning and deliberating your options. For example, if you want to give your unsatisfied customers their money back, you need to do it in a manner so that they don’t hold a grudge of dissatisfaction and spread it around.


Word-of-Mouth is free and a highly valued among the customers. Once it starts, it is not so easily shut down. This means that once your brand is out, the talk will start. And you need to use that momentum to your advantage, rather than just let the word spread around uncontrollably. Through your positive actions and attitudes toward your products and your customers, you’ll be able to create a brand everybody likes to talk about.