We all remember them. “I saw a great movie last night.” “You have to try our favorite new Italian restaurant.” Or “See these shoes? They are the most comfortable shoes I’ve ever worn.” To most people, this is known as friendly conversation, but to merchants, especially direct-to-consumer (DTC) merchants, it’s solid gold for the marketing known as word-of-mouth marketing (WOMM).
The exciting news for those
DTC companies is that WOMM, deliver via social m ia, has the potential to be the most powerful tool in their social m ia portfolio. I say potential because many merchants are still trying to harness the full power of WOMM, or in many cases, they haven’t fully realiz how effective it is.
For the latter group, the following statistics prove the strength of WOMM and should be eye-opening for them to focus more time and energy on WOMM.
- A 2020 Kantar M ia study (registration requir ) shows that nearly all consumers (93%) trust the opinions of friends and family when purchasing a product or service.
- 83% of consumers would like to receive a referral from a positive experience, but only 29% actually do so.
With this quantifiable evidence, it’s no wonder why so many marketing experts hold WOMM in such high regard. In a Forbes article titl “Why Word-of-Mouth Marketing Is the Most Important Social M ia,” expert Kimberly Whitler advises brands to develop the three E’s of WOMM: attract, equip, and empower customers.
But until recently, this advice persist
That developing the three E’s and cultivating WOMMs was difficult and time-consuming. Brands would personally find the right customers to advocate for their product or service, recruit their customers to participate, strike a deal to incentivize them, try to track the customers to confirm that they actually advocat for the brand, and finally, find a way to measure the value of that customer’s advocacy.
This is a big ask for small and m ium-siz entrepreneurs belarus phone number library who risk their savings, work tirelessly, and sacrifice other opportunities to pursue their dreams. In reality, many entrepreneurs simply don’t have the time for this outdat approach. Due to budget constraints, most DTC brands typically don’t hire someone else to manage their WOMM.
This has prevent most brand marketers from passing on WOMM and opting to increase digital ad spend. This option is extremely expensive and does little to enhance brand trust.
Fac with a choice of two evils
Entrepreneurs in most cases would choose to invest more in digital advertising. An insurmountable problem, right? Wrong. Soon, it is now possible to reimagine advertising by facilitating collaboration between brands and their customers through social m ia.
Companies can increase WOMM through Instagramers who want to collaborate with their favorite brands. Customers can now engage, be equipp and empower to shop, share stories on Instagram and get વ્યવસાય વૃદ્ધિ વ્યૂહરચના કેવી રીતે વિકસાવવી? paid for doing so electronically. For brands, this democratizes marketing, allowing micro-transactions to be execut between brands and their loyal customers. This helps increase sales, deepen relationships with customers and retain customers while allowing brands to measure the success of their WOMM.
This deepening of the brand-customer relationship, which buy lead results in greater customer retention, is worthwhile. In fact, the case was first made in 2001, when a Bain & Company estimate found that a 5% increase in customer retention could increase a company’s profitability by 25%.
Additionally, WOMM via social m ia is a cost-effective way to attract new customers, build brand trust, and increase brand awareness. So whether you run a restaurant, sell clothing, housewares, or just about anything else, WOMM can score you high.
