AUGUST 5, 2008

Word-of-Mouth Marketing… It Works!

In the latest edition of an EPM Communications Research Alert newsletter that I follow as part of the New Persuasion team here at TMG Strategies, I saw a startling piece about world-of-mouth marketing.  According to the article, ”WOM marketing” is the fastest growing segment of the marketing industry.  Surprisingly, in 2007, spending on this form of marketing exceeded $1 billion and is expected to hit $3.4 billion in 2011.

There is no substitute for word-of-mouth marketing  - it’s a dire necessity for the success of a company.  Studies have proven that consumers trust their friends, families, and even complete strangers more than they trust big corporations.  This is why understanding word-of-mouth marketing and its importance is a key element for any growing or fully-established business.  According to my Research Alert, about 90% of WOM marketing takes place offline in face-to-face or phone conversations.  People are also more likely to think that offline WOM is more credible– which directly correlates to the intent to purchase at a later date.

This is something that everyone needs to keep in mind– no matter what type of company they work for or what type of business they are in.  After all, how else could Google have risen to the top as quickly and as efficiently as it has in the recent past?