Especially when you are starting a new business, word-of-mouth referrals are extremely successful in aiding developing your business and your brand. Obviously having a great product/service is essential in spreading a shoot of word – of – mouth, the other understandable thing is the great customer service. But aside from the noticeable techniques to start a word-of-mouth, there are various methods that you can do.
Why is it important?
- 76% of consumers recommend a company they trust to their friends or colleagues.
- 92% of consumers will act upon recommendations from friends and family over any other form of advertising.
- 88% of people trust online reviews written by other consumers as much as they trust recommendations from personal contacts.
The Types of Word of Mouth
- Experiential:This happens when a customer experiences a product or service firsthand and offers their feedback. According to McKinsey, this first type encapsulates between 50-80% of WOM interactions.
- Intentional:This WOM concept covers campaigns like paid celebrity and influencer endorsements. This method isn’t implemented as much because of its difficulty to track and measure effectively.
- Consequential:This WOM type is generally a customer’s response to your brand’s marketing initiatives. According to McKinsey, brands often see better results from consequential WOM marketing than from direct advertising.