Word of mouth, or recommendation, is the most powerful tool marketers have in their arsenal for attracting and retaining customers. Despite this being the most powerful of the tools, it is one of the most overlooked, and hence I thought I would devote this blog to the importance of WOM.
Research indicates that customers are more likely to purchase a brand / product based on recommendation from a trusted source than from any other means. This includes advertising, PR, online marketing, etc. Moreover, researchers have found that those people who purchase a product based on recommendation from a trusted source are more likely to become loyal than those that went there as a result of other sources. Interestingly there is further research which states that more customers are likely to purchase a product based on recommendation than even their own past experience!
My research indicates that emotionally attached customers are the ones that are most likely to recommend a brand, and are the ones that will do it most frequently.
Recommendation is also a free tool for marketers. Usually you don’t spend money on this. However some companies have started to realize the importance of recommendation and reward their customers who recommend others with vouchers, discounts, and free gifts.
Social media has enabled our customers to use the power of the web to broaden their scope of friends. This now allows for our customers to reach a wider number of people, and much faster too.
The only problem with recommendation is that it is not really in the control of marketers, or at least not until now. Companies need to develop strategies, devote budgets, and create teams that will look after recommendation. With it being a very powerful tool, we must learn to take advantage of this, and not to let it evolve on its own. Companies need to devise strategies that will assist their customers in being better at WOM. Various rewards that are being used by firms is just one way to encourage customers to start recommending the company to others. However there much more to be done. Companies that can harness the pwoer
248 Responses to “WOM still the most powerful tool for a marketer”
Very nice blog. I had read this for 2 times and I am really amazed.Such a great article. It really make a sense.
thanks,
Wendy
I believe WOM is fundamental to a business. It is free, it encourages repeat business and I use it all the time, both on receiving good recommendations and in sharing great experiences.
Very nice blog. I had read this for 2 times and I am really amazed .Such a great article. I wll bookmark this page to know more. Excellent blog site. Keep blogging!
LinkedIn Groups
Group: Adventure Tourism and Travel Professionals
Discussion: Is word of mouth is still the most powerful tool for marketers
Agree, Dr. Khan! It is one of the best way of marketing, that is what I believe anyway!
http://www.nature-treks.com
LinkedIn Groups
Group: Customer Experience Professionals
Discussion: Is word of mouth is still the most powerful tool for marketers
I remember reading somewhere that 90% of customers say WOM is the best, most reliable and trustworthy source when it comes to products and services.
LinkedIn Groups
Group: Loyalty 360 - The Loyalty Marketer’s Association
Discussion: Is word of mouth is still the most powerful tool for marketers
No - not if you include social media as WOM. It’s so easy to squirt a ‘like’ onto facebook or tweet a hashtag, I think WOM has lost all meaning in this context. The point was WOM was the best because it a) took a bit of effort for a customer to bother recommending a company and b) they recommended to people who trusted them. Now both of those have changed drastically.
LinkedIn Groups
Group: Loyalty 360 - The Loyalty Marketer’s Association
Discussion: Is word of mouth is still the most powerful tool for marketers
In 2008, the loyalty marketing publication COLLOQUY conducted a consumer research survey exploring the intersection of consumers who participate in loyalty
programs and their word-of-mouth (WOM) activity (“TalkTalk: The
New Champion Customers”).
In 2011, they returned to the topic,looking even more deeply at the relationship between loyalty and advocacy and the role of customers we call WOM Champion
Customers (those who are both “Connectors” who are able to and do
recommend brands they like and “Advocates” willing to recommend
the brand).
With 91% of WOM Champions surveyed saying they
belong to one or more loyalty programs, the strong, powerful
connection between Connecting and Advocacy is crystal clear.
COLLOQUY found that social media and word-of-mouth are closely intertwined when it comes to WOM Champions: Its survey results show
that social media is significantly more useful and important to
Champions than ever. In 2008, 27% of Champions said they used
social media to recommend or discuss products or services. In 2011,
48% of Champions said they used social media—a jump of 77%.
Look for the full report on http://www.colloquy.com soon.
LinkedIn Groups
Group: Customer First UK
Discussion: Is word of mouth is still the most powerful tool for marketers
It is certainly one of the most powerful
My only concern is when businesses try to harness WOM by encouraging customers to promote them by WOM in return for a reward. Customer working for a reward are recommending for the wrong reason; soon hollow or like propagandists and the business will often suffer.
WOM that is genuine beats that driven by reward every time.
LinkedIn Groups
Group: FFP & Travel Loyalty Professionals
Discussion: Is word of mouth is still the most powerful tool for marketers
More ways to benefit from word of mouth marketing. http://www.go-travelgear.com/4WaysWord-of-MouthAdvertsisngWorksforYou.html
LinkedIn Groups
Group: B2B Marketing
Discussion: Is word of mouth is still the most powerful tool for marketers
Every recommendation is worth 50 leads in my book so word of mouth is the most powerful tool, however it depends if the recommendations you get are the recommendations you want so it has to be managed like any other form of lead generation tool. My favourite saying holds true here as well ‘you get what you get because you do as you do’ .
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Group: Airline marketing and branding pros
Discussion: Is word of mouth is still the most powerful tool for marketers
But thequestion is …how can you be at the center of every positive WOM ?
LinkedIn Groups
Group: Chartered Management Institute Network
Discussion: Is word of mouth is still the most powerful tool for marketers
Hi,
This is a very good point and I can say that all my business has come from recommendations and contacts. No advertising or direct mail has ever brought in any new customers – apart from once in thirteen years.
Your blog is touching on the social media aspect of being able to exploit this better and I think that is an area of social networking that certainly can work. I am still a little sceptical to how social networking is a must for all businesses though
I completely agree that a word of mouth recommendation is the most effective marketing tool for attracting and retaining customers. I also agree that social media has enabled customers to voice their opinions on a larger scale with a simple click of a button.
As a result, companies should leverage this technology to more actively engage their customers to improve their word of mouth marketing. The most effective way to do that is through a concept called Engagement Communications.
Engagement Communications create a dialogue with customers that not only makes a connection, but inspires them to take action. Engagement Communications applies high technology communications (voice mail, e-mail, text messaging and social media) in a way that creates a personal, human touch. The focus is not customer “contact”; it is engagement. Contact is one-directional while engagement is a two-way street. Creating these ongoing two-way dialogues helps build better customer relationships and creates a constant feedback loop that gives companies deeper insights into their customers’ motivations and needs.
In return, customers who feel engaged with a company are more likely to make additional purchases and refer the company to their friends and family. It’s important for companies to have the people and processes in place to manage, and even reward, those recommendations.
Thank you for the post.
Scott Zimmerman, President of http://www.televox.com
LinkedIn Groups
* Group: B2B Marketing
* Discussion: Is word of mouth is still the most powerful tool for marketers
WOM is still the most powerful tool because:
1. it resolves the issue of generating trust. Your referrer has already done that for you
2. you have a positive story to tell, from someone who has probably already told it to the prospect already - you just need to add to it
3. there are no costs involved except maybe a thank you to the referrer
LinkedIn Groups
* Group: European Customer Experience World (ECEW)
* Discussion: Is word of mouth is still the most powerful tool for marketers
Yes now its not word of mouth its tweets and FB(facebook)
LinkedIn Groups
* Group: Customer First UK
* Discussion: Is word of mouth is still the most powerful tool for marketers
Like many things the answer is “it depends”……………..
It depends on the source of the WOM. If it’s coming from a trusted source, whether individual or a group then it can be very powerful.
My problem with some WOM particularly on-line, in forums or even product reviews of say on-line retailers is you don’t know whether it is truly independent or if vested interests are at play. Another issue is the indecision it can cause a prospective customer when half the WOM is +ve and the other half is -ve