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Word-of-Mouth Marketing: What is it, and How Does it Benefit Your Business?



Since the introduction of social media, word-of-mouth marketing has dramatically increased.

Before the internet, someone would tell a friend or two if they had a good experience. Today, if they have a good experience, they tell thousands with a short post.

Word-of-mouth marketing allows your business’s brand to potentially get noticed by thousands of consumers, which, if done correctly, can spread like wildfire.

Understanding how word-of-mouth marketing works and how it can benefit your business helps increase your chances of attracting new customers.  

Why Word-of-Mouth Marketing Is Important

According to the American Marketing Associated and the Word of Mouth Marketing Association, 64 percent of marketing executives believe that word-of-mouth marketing is the most effective form of advertising.

However, only about 6 percent claim to have mastered this marketing technique.

With a majority believing in word-of-mouth marketing and so few learning the skill, understanding this marketing tool can put your business in front of the competition and keep your products and services in the minds of consumers.

Even if a person does not need a product or service, they may be more inclined to tell friends and families about what they know about your business through word-of-mouth marketing. 

Using the Three Es of Word-of-Mouth Marketing

Three tactics can help you increase your word-of-mouth marketing reach, often referred to as the “Three Es.”

1. Engage

The first E is “Engage,” which means you engage with your followers and customers by setting up a presence in their lives.

Some ways to engage include sending birthday cards, offering special discounts and gifts, and consistently responding to social media posts, comments, and messages related to your business. 

2. Equip

The second E is “Equip,” which means giving your customers something to talk about, such as a fantastic product, high-quality customer service, and fun facts about your business.

When consumers like a company and have things to talk about and share with others, it encourages them to let everyone know about their favorite products and services, which could be yours. 

3. Empower

The final E is “Empower,” giving consumers different ways to talk and share their experiences and recommendations.

The more methods you offer for consumers to share your business, the greater the chance they will. Additionally, empower consumers to feel like they are a part of the process, such as asking questions, running contests, etc. 

Word-of-mouth marketing has been around since the first caveman started trading, and with technological advancements, it has become significantly easier to utilize this advertising method.

Additionally, it has become more crucial for businesses to understand how word-of-mouth marketing works to use this tool best and achieve optimal advertising results. 

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