Originally Syndicated on May 16, 2024 @ 1:54 am
How often do you find yourself discussing your recent purchases with family and friends? Probably quite a bit!
You may be surprised to learn that you are engaging in marketing without even realising it. This practice is known as Word of Mouth (WOM) advertising, which has been a staple in the Direct Selling industry since the 1940s.
Recently, you may have noticed popular terms like “buzz” or “viral” being thrown around. Companies now incentivise and motivate consumers to share their experiences with products across various markets.
Notably, Walmart is among the frontrunners in WOM, having offered RV owners compensation for travelling nationwide and blogging about their experiences. This strategy has become so prevalent that it has led to the establishment of a dedicated organization, WOMMA (Word of Mouth Marketing Association).
In this discussion, we will explore the significance of WOM in society, its impact on Direct Selling, and the potential risks associated with it.
From the Buyers’ Perspective
When it comes to purchasing decisions, recommendations from acquaintances serve as a trustworthy source. Typically, you engage in WOM conversations with your social circles, including friends, family, and colleagues. There’s a strong tendency to trust individuals with whom we share personal connections, as we are often aware of who has genuinely helped us and who hasn’t. Word of Mouth not only saves us time but also mitigates risks; whether feedback is positive or negative, we value our peers’ opinions as they tend to be genuine regarding their experiences.
From the Sellers’ Perspective
For sellers, WOM marketing presents a distinct advantage, allowing them to tap into the preferences and aversions of their peers. This knowledge enables targeted communication strategies to potential customers. Research indicates that a significant amount of WOM occurs through face-to-face conversations, which enhances the credibility of the salesperson and, consequently, increases the conversion rate.
While Word of Mouth is a reliable marketing technique, consistent pitching of new products can jeopardise the trust of your peers. It’s crucial to ensure that advice given is sound; otherwise, their reliance on your recommendations may wane. Just as social media influencers wield power, so do certain individuals within WOM.
Success in this arena is not universal; those with outstanding communication skills tend to exert more influence through their endorsements. Additionally, possessing technical knowledge about a product amplifies credibility; for example, when considering designer clothing, a recommendation from a fashion designer friend is likely to be more persuasive.
Like all marketing strategies, WOM carries both positive and negative aspects. Although it’s not a new concept, developing the skills needed to become a trusted advisor to peers is essential. Approach product promotions with confidence so that consumers feel assured in their purchasing decisions. When striving for virality, authenticity is key. Ensuring transparency engenders confidence among consumers and paves the way for guaranteed success.
Happy selling!
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