Word-of-Mouth Marketing: Critical For the SMB
The sheer volume of information available today has dramatically altered the balance of power between companies and consumers. As consumers have become overloaded, they have become increasingly skeptical about traditional company-driven advertising and marketing and increasingly prefer to make purchasing decisions largely independent of what companies tell them about products. —Excerpt from an April 2010 McKinsey Report on Word-of-Mouth Marketing
Social media continues to gain momentum. Big brand strategists are formalizing their approach to and measuring the effects of word-of-mouth marketing. Word-of-mouth is nothing new to small and medium businesses (SMBs). WOM is arguably an even stronger force for the SMB, or freelancer who's trying to make an impact within an extended circle of influence.
As sales and marketing converge, there's a strong need for SMBs to consider how they use online marketing tools and to ensure word-of-mouth marketing is working in their favor.
For example, decision makers are increasingly turning to the Web to review information on products and services. Chances are great that buyers will increasingly turn to online reviews and information as a reputable collection of authentic and trustworthy reviews from real people - the next best thing to hearing it in person.
...Its [word-of-mouth's] influence is greatest when consumers are buying a product for the first time or when products are relatively expensive, factors that tend to make people conduct more research, seek more opinions, and deliberate longer than they otherwise would. And its influence will probably grow: the digital revolution has amplified and accelerated its reach to the point where word of mouth is no longer an act of intimate, one-on-one communication. Today, it also operates on a one-to-many basis: product reviews are posted online and opinions disseminated through social networks. Some customers even create Web sites or blogs to praise or punish brands. —Excerpt from an April 2010 McKinsey Report on Word-of-Mouth Marketing
The Take-Away For SMBs
I think the take-away is clear. Word-of-mouth marketing has never gone away. In fact, it has become amplified by the one-to-many phenomenon that the Web has made possible. Make it easy for your customers and prospects to find you online. Make it easy for them to comment on and share information about your products and services.
If you're delivering quality and value, you'll come out a winner.
