New technology, more digital channels and the force of social media filled with commercial messages have changed consumer behavior. This also means we become more careful when we select what type of messages we are interested in and who we want to hear from. Word-of-Mouth has taken over as the most important channel to reach individual consumers. Trust is everything in this environment. Engage your customers and fans to broadcast your message and they will act, listen and influence new customers.
TURN YOUR SATISFIED CUSTOMERS INTO MICRO INFLUENCERS
Transforming customer satisfaction into committed influencers that make active recommendations is among the most important marketing strategies to stimulate brand awareness, creating long-term growth and a loyal customer base. In recent years, the world has seen a number of new e-retailers who are growing tremendously quickly largely through effective Word-of-Mouth strategies with Referral and Influencer Marketing. Some well-known and famous examples are NA-KD and Daniel Wellington who have been growing in record speed thanks to the large amount of influencers that are talking about their brands.
These are just two examples of a larger phenomenon, but their success and the attention they have received have led to an increasing number of companies understanding that they have to rethink their strategy to stay relevant to their target group, simply because the digital and social landscape changes the conditions so radically fast. This is now an extremely important success factor when all types of media spaces become more crowded while the recipients suffer from information fatigue and low confidence in messages from commercial sources. We are all becoming harder to reach through traditional media channels, simply put. Consumers are carefully choosing whose opinion to trust, who is relevant and credible. If a satisfied customer can be convinced to promote a brand or a product, they turn into ambassadors or micro influencers for that business and while they may have small reach, their message is highly relevant to the people they talk to.
A PERSONAL RECOMMENDATION IS WORTH UP TO 100X MORE THAN A PAID MESSAGE...
Recent studies by Word Of Mouth Marketing Association (WOMMA) in the US shows that the value of a recommendation from one friend to another is 5-100 times more valuable that paid advertisements.
It is a well-known fact that positive word-of-mouth is one of the most effective ways to create increased brand awareness, reach new customers and create instant sales for most industries. It has been repeatedly measured in surveys in the US on the entire retail market both online and offline. Still, many companies struggle with their referral marketing strategies.
The proportion of sales revenue that comes directly from "word of mouth" recommendations turned out to be as much as 13% of total sales turnover, according to the same study.In addition, a new potential customer who has received a recommendation is 5 times more likely to convert to purchases. This means that the acquisition cost is considerably lower for customers who come through recommendations.
Every satisfied customer a business has is a potential "Micro Influencer" that (if treated properly) is likely to recommend this business to their friends. This can result in hundreds or thousands of relevant recommendations everyday.
EFFECTS OF WORD-OF-MOUTH
- W-O-M generates 13% of all sales revenue, offline as well as online.
- W-O-M increases effects of paid advertising +15 %.
- W-O-M gives faster effects than traditional advertising.
- One W-O-M impression drives 5x as much sales as a bought impression, and MUCH more (up to 200x more) for "high-consideration" categories where "expert advice" is important for customer decisions.
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