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What is Word of Mouth Marketing?

What is Word of Mouth Marketing?

Posted on July 25, 2017

Word of mouth marketing is not a new concept.

People love to talk and have been passing on information since time began.

Small businesses have always relied on word of mouth to drum up business for them, as people often ask friends and family members for local recommendations and even now they still get much of their new business via existing customers.

Word of mouth is not only more personal than generic advertising, but its also extremely cost-effective, especially nowadays as the internet has made it straightforward for us to share our thoughts and opinions online. Social media has opened up a fantastic opportunity for businesses and bloggers who can promote themselves to a huge audience for free.

9/10 of consumers trust recommendations from family and friends above all other forms of advertising. If a friend tells you about a bad experience with a certain brand or product, it might deter you from purchasing something from the same brand. Similarly if someone you know raves about a certain coffee shop or restaurant, you might check it out for yourself.

Customer loyalty is a key aspect of any small business strategy, not least because customer retention is far more cost-effective than securing new customers. However, if your customers are loyal enough then they will bring you new business. A happy customer is one of the biggest assets there is – they will advertise them to people they know, for free!!!

The concept of loyalty should ever be overlooked by a business, especially as it can also be used to gain new business and reward existing customers through referral schemes.