INTRODUCTION
In order for new businesses or ventures to be successful amidst the dense competition, it is necessary that they should have loyal customers. This is not exclusively applicable for small businesses, but is also for old businesses. Businesses, old or new, need their share of clients anytime of the day. The clienteles' trust and the familiarity of the non-clients invite more people and thus, help propagate the business. This is the mechanism by which word of mouth operates. Word of mouth (WOM) is basically an unpaid promotion of a product or service that are fueled by satisfied customers (Entrepreneur). Furthermore, this paper will answer why WOM and strategizing it is important.
BODY
Why Attend to WMO? Who would not trust the brand that their friends strongly recommend? It is only natural that humans develop preferences as influenced by the people around them, making WOM effective. More than 4 out of 5 consumers had reported that they trust recommendations when they come from families, friends, and colleagues. In addition to this, 88% of consumers also believe online reviews by customers who had experience with a product. When they see that the customers have negative feedback, they tend to secure themselves and find another product with higher reviews to ensure their purchase. Furthermore, another way companies use WOM is by providing incentives when they "like" or "share" a company’s page. Providing discounts upon promotion tend to attract people while many had been known to at least try products that were shared by their peers on social media (Ambassador).The unpaid testimonial of a trustworthy source is also effective as it diminishes the mentality that the statements were only made because of the cash involved. Provided the previous statements, it is only proper that companies attend to WOM and strategize it accordingly.
Why WOM Strategy is Important? Utilizing WOM in one's marketing plans is not enough to make the business successful. One must also know how to strategize WOM so that all resources put into it will not go to waste nor the failed WOM use would reflect the business poorly. Among the things to be considered in strategizing WOM is the budget. There are scenarios when one may overspend by giving away too much freebies or underspend. Both have negative implications as overspending may likewise be a liability to the business while underspending may mean that you spent, but did not go through it successfully (Entrepreneur). In both situations, money goes to waste due to poor WOM strategy.
Three Strategies to Spread WOM. In order to spread WOM for a product or service, there are three main strategies. One of them is the use of architecture. People are attracted to stores that are inviting, say a piano shop that looks like a huge piano or a fast food restaurant with a play place. Secondly, one may use a kinetic word of mouth or the display of the outstanding performance of the product. Lastly, one may opt to be generous. This means that you provide generous portions or experiences for the customer instead of spending on paid advertisements (Entrepreneur). Employing these strategies raises the chance of having ambassadors or persons that carry out WOM to promote your business.
CONCLUSION
Loyal customers and customers that have already considered products or services as satisfactory tend to recommend the product or service to others, thus, a probable exponential growth in the potential customers. WOM is a useful tool, and knowing how to use it is far more useful. Utilizing it, but failing at it due to poor strategies is likewise a waste of resources and time.
Works Cited
Entrepreneur. "Word-of-Mouth Advertising." Entrepreneur. Web. 27 Feb. 2016.
Ambassador. “3 Reasons Why Word-of-Mouth is Important for your Brand.” Ambassador. Web. 27 Feb. 2016.
