The importance of word of mouth marketing

Word of mouth marketing is one of the most effective and efficient tools in your arsenal if you wish to take your direct selling network marketing company to the next level. While word of mouth marketing has changed drastically in the past few years thanks to the developments in social media and the internet, the core concepts remain the same.

What is word of mouth marketing?

In the simplest form, word of mouth marketing means the exposure and publicity that you receive when someone who has used your service or product talks about it to others and recommends it. While traditionally this means getting reviews and recommendations about a brand or company from a friend or family member, today it includes ratings and reviews, social media buzz, blogs and social media marketing.

As you can already see, word of mouth marketing is very crucial for a company’s success. Most of us have made our decisions on which product to buy or use based on what our friends and family feel about the product.

Importance of Word of mouth marketing

Studies have found that word of mouth marketing is one of the most influential means of marketing. According to a study conducted by Neilson, more than 90% of customers trusts recommendations that they receive from their friends and family members when it comes to making a decision on what product to buy.

In additions to recommendations from friends and family, reviews and comments from other customers online also have a strong impact on a consumer’s decision. More than 80% of customer admits to being affected by online reviews and comments.

While the impact that good word of mouth marketing can have customers is pretty evident, the same study found that only 30% of companies and businesses invested in collecting customer feedback in the form of reviews and comments.

The advantages of Word of Mouth advertising

Word of mouth advertising or marketing has some distinct advantages when it comes to conventional methods.

Zero to very low extra cost on ads

Many top direct selling companies in India like Qnet has turned exclusively to good word of mouth advertising to become successful. With good quality products and customer service, you can manage to improve your profits without spending any extra money on ads or other marketing techniques.

Builds a loyal customer base

Good word of mouth marketing has the added advantage to help in building a good and loyal base of customers for the company and product. This is important because customer retention is essential if you wish to run a successful direct selling network marketing enterprise in India. It also means that your customers will bring in more customers for you as they put a good word for your product and services to their close friends and family.

More funding and Freedom

One of the biggest factors that decide your company’s future and profits is its Customer Acquisition Cost to Lifetime Value. Simply put, this is a measure of how much you will have to spend to get a new customer and how much the customer will spend on your company. Having a favourable Customer Acquisition Cost to Lifetime Value can help you to get more investments and funds in the future.

As you can see, word of mouth marketing is crucial if you wish to succeed as a direct selling network marketing company. There are many smart, yet simple things that you can do to improve word of mouth marketing surrounding your business, but that is for another article.