One of the core advantages of WOM-marketing is versatility. This method can work perfectly for companies of all sizes, regardless of the type of business: whether you are a transnational corporation with hundreds of offices around the world, or a small hair salon, opened last Monday. Surprisingly for many, location is also not that crucial. However, of course there is a ‘but’.
This ‘but’ is the quality of your product and service. If it is fairly good and the customers are satisfied after the interaction with your company, their ‘words’ will work for you. And if not, it will level all the advertising of your brand. If you offer the quality that leaves much to be desired, WOM marketing as a method of advertising does not suit you. You will not just have to deal with a couple of unhappy customers, the problem to be solved may be truly huge, and the risk of provoking a real reputational collapse will grow.
Quality and trust are the foundational stones of WOM-marketing. Many marketers even argue that in this case, the word of mouth can be a ‘no-investment’ marketing weapon. If you are a good company, you will exponentially increase the recommendations should only give the first impetus to the Internet.
But is it really so? If you believe that WOM marketing may demand no resources at some point of time, then it’s the wrong attitude. Undoubtedly, there are examples where without any effort the company became popular and discussed, but these cases demand unmatched marketing brilliance and good luck. You may want to try getting in touch with industry experts, like HTP Digital, a far-famed b2b digital marketing famous for its range of successful marketing project for hi-tech companies. In other cases, you will inevitably have to invest in WOM-marketing.
With traditional marketing channels, there is a linear relationship between expenditure and return on investment. You get a certain number of requests for a particular value, for example, each $1 million of additional advertising investments generates a certain increase percentage in sales.
In case of word-of-mouth marketing things are different. Initially, the process will remind a J-curve, quite linear up to a point, rather than having a more exponential form. However, if good practices are taken advantage of, once the marketing campaign ends, the result will continue to grow and the amount of investments will decrease. At this point starts the organic sundresses marketing, which received a boost from paid. The effect of the campaign, there is still a long time after its completion – the conversation continues by inertia, and ultimately J-curve takes the form of the S-curve.
There’s a variety of different methods of word of mouth marketing, both online and offline. Internet plays a vital role in WOM, but it is not that overwhelming. This is where a trap for marketers is hidden – hundreds of specialists want to see WOM-marketing in action to evaluate its effect. But often they allocate too small budgets, collide with a lack of time and have unprecedentedly high expectations. And, with this approach, they are doomed to failure.