The Power Of Word Of Mouth Marketing
As I speak to small business owners it seems that I can’t hear enough of how word of mouth marketing is the #1 way to get business.
I do agree that word of mouth marketing is any businesses best form of advertising, but a business should not depend solely on word of mouth marketing to bring new customers. So let’s look at some of the Pros and Cons of word of mouth marketing.
The PROS -
1) It’s Free – Hardly suprising that this is the number one reason. Word of mouth marketing generates new customers for no money out of pocket. There is no question as to whether or not you are getting a good return on investment (ROI) with word of mouth marketing.
2) Builds Trust – Word of mouth marketing only happens when a customer is satisfied with the product or service that you provide. And in turn for a great experience the customer refers your business to family & friends. This honest recommendation to family & friends builds trust and credibility for your business.
The CONS -
1) Negative WOM – Sometimes you just can’t please everyone. So be aware that your business could also have some negative word of mouth circulating. Negative WOM tends to get around to twice as many people as positive word of mouth. One bad customer who is spreading negative comments about your business, could dramatically slow down the business you get from word of mouth marketing.
2) Uncontrollable – There are methods in which you could actively control word of mouth marketing, but most businesses just depend on passive WOM marketing. With passive word of mouth marketing you are hoping and waiting for satisfied customers to spread the “good news” about your business. You have no control over when, how, or even what they say. Therefore if your business runs primarily on WOM marketing, it will be less productive and dependant on others to survive. This is a very dangerous way of running a business, because if the town slows or stops talking about your business, then your customer traffic will sit idle.
3) Enables marketing – If your not advertising or marketing your business in conventional ways because you have great word of mouth marketing, then you will not learn what marketing methods work for your business. In the times when WOM marketing either slows or stops you need to have a huge toolbox filled with lots of proven advertising methods that can get your phone ringing. Otherwise you will put your business in risk of closing its doors.
Simply put, word of mouth marketing should be used as a bonus or icing on the cake. A business should be built on a foundation of structured, proven & trackable marketing methods. This will allow for more steady growth over the years.
Word of mouth marketing is great, but a business owner shouldn’t passively sit around waiting for people to talk about their business. Be active and take control. Make more money.
Let me help your business build a solid marketing foundation, contact me: dozierdd@mymediaprofit.com
www.DevinDozier.com
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