Social MediaArts, Entertainment, Media, Advertising & PRSales & MarketingContent Marketing
By Pavel Shynkarenko
Word-of-mouth marketing is one of the most effective ways to generate new leads. Last year, 45.2% of our leads that came to us through the recommendation of a B2C client ended up becoming paying customers and generated 48% of our total revenues. This represents the highest conversion rate among all of our marketing channels. By comparison, only 20% of leads that came through targeted advertising ended up converting to paying customers.
Word-of-mouth marketing is a controlled process. Here are five steps to successfully implement this marketing strategy in your business.
How small businesses can successfully utilize word-of-mouth marketing
1. Gain some authority before speaking
Follow thematic discussions on social media and other online platforms such as Reddit, Quora, and Telegram that are relevant to your industry. Keep in mind that the more anonymous the service is, the less effective and credible the comments are. You can use tools like Mention, Syften, or YouScan to find thematic conversations. These services not only help you monitor your online presence, but also categorize reviews based on factors such as product quality, service level, and convenience.
After joining any community, take time to study the rules, and follow the discussion for one to two weeks before jumping in. Leave likes on other messages, participate in conversations, and tag as many people as possible.
If you've helped someone in the community, be sure to share your experience. If there is a discussion regarding a problem with your company, contact the admin and ask permission to share your insights. Don't pretend that you are not affiliated with the company. If your contributions are useful, you will be welcomed.
Remember that this is a long-term game that requires constant involvement. Leaving one message is not enough to achieve the desired results.
2. Boost employee social media engagement
Encourage your employees to post on their personal social media accounts at least twice a week on LinkedIn and Twitter. The posts should not be work-related, but rather interesting and engaging content that draws people to their profile and also shows where they work. Designate someone in the company to help provide content. Limit company mentions to no more than one out of every five posts.
3. Find brand ambassadors
Identify top-performing customers to become brand ambassadors for your company. These people can help generate word of mouth by recommending your services to their network.
Keep in mind that brand ambassadors don't have to be clients. Expand your search to meetings and events related to your industry, and identify and engage with the most active participants. Offer these people exclusive access to new products or services, and give them PR support, such as mentioning them in your articles or featuring them on your social media channels.
4. Think outside the box
Ask your clients to mention the name of your product or service as a specific item they utilize in their business operations. For example, if you are a payroll or task management company, you can ask businesses to specify that payments will be made through your service, or that proficiency in using your software is required. Your goal is to establish your product as an industry standard.
5. Don’t confront scammers
Misinformation can quickly spread in online groups and chats. And it can take nearly 40 positive experiences to fix the damage of a single bad review or experience with your brand. Keep an eye out for scammers and competitors who may be impersonating your brand or spreading false information.
If you encounter misinformation, don't reveal that you are a representative of the company. Instead, ask questions about the misinformation being spread. If the person is lying, there may be inconsistencies in their complaint and their deception will be apparent to the community. Some people like to spread misinformation about companies. Check to see whether this person has written false information about other companies.
If the person adequately responds to your questions and doesn't have a pattern of posting misinformation, there's a possibility that they are actually a dissatisfied customer. In this case, write a message in the general discussion from the company's account, requesting that the customer contact you through a personal message. Show your willingness to help. If the customer is genuine, they will contact you, and you can work towards resolving the issue. The customer may even return to the community and acknowledge that there was a misunderstanding and the problem has been resolved.
If the customer does not contact you, post a follow-up message in the community asking why the customer hasn’t contacted you. This can draw attention to the fact that the complaint is false and the user's goal was to spread disinformation rather than to solve a problem.
FAQs about word-of-mouth marketing
Below we have summarized the most important questions and answers on the subject.
What is word-of-mouth marketing?
It is the process of spreading information about a brand or product through customers or other individuals who are familiar with it. They may talk about it with others, provide recommendations, or share their thoughts on social networks. It can increase brand awareness and attract potential clients.
Is word-of-mouth marketing effective?
People tend to trust personal recommendations, so when someone hears about a product from a person they know, they are likely to believe that the information they receive is honest and genuine. If the opinion is positive, the recommendation can be very influential.
What is a weakness of word-of-mouth marketing?
It can be difficult to control. You cannot influence the message or tone, and negative experiences can also be shared. Another challenge is that it can be hard to determine the return on investment (ROI) if you allocate financial resources and effort toward word-of-mouth marketing.
About the Author
Post by: Pavel Shynkarenko
Pavel Shynkarenko is an entrepreneur with over 20 years of experience in financial, HR, and legal technologies. Pavel began his entrepreneurial journey in Ukraine and has since founded three successful businesses. His latest venture, Solar Staff, a fintech payroll company for freelancers, achieved $12M revenue in 2022 showing a 196% YoY growth. Pavel is a noted IT expert and has been a speaker at major industry conferences, such as the Digital Marketing Conference in Cologne and CeBIT in Hanover.
Company: Solar Staff
Website: www.solar-staff.com
Connect with me on LinkedIn and Twitter.