Trust Me: Word-of-Mouth Proves Super Effective
"So, how'd you hear about us," asks my barber. That took me aback. We don't really think about questions like that, do we? A friend had mentioned Chops—the barber in question—in passing, which ended up leading to a long relationship and years of great hair. Now, a brand new infographic from ReferralCandy delves into just how important the ever-elusive "word-of-mouth" can be to your business.
Whether it's a barber recommendation from one friend to another, or hearing about that great new coffee shop from that bespectacled hipster at that one party, word-of mouth is absolutely critical. If you don't already care, then it's time to start—before it's too late. The infographic lists seven reasons why you should, and we've got four right here:
- Word-of-mouth is more trusted than any other kind of recommendation. 92 percent of consumers trust recommendations from friends, 12 percent more than would trust an online review, and a full 34 percent more than those who would take the advice of an editorial on your business.
- Word-of-mouth generates more than two times the amount of sales that paid advertising can drive. Surveys in categories across the board are continuing to show that marketing-driven word-of-mouth can drum up sales at twice the rate of any paid advertising.
- Word-of-mouth is the most disruptive to the customer decision making process. "Disruption" might be the hot new buzzword as we close out 2014 and head into 2015, but it's an important thing to consider. In the word-of-mouth sphere, it's absolutely critical to keep in mind that the power that WOM has lends itself naturally to disruption. I've certainly persuaded friends towards or away from certain Philadelphia coffee shops, based on whether my particular experiences were good or bad.
- Word-of-mouth is the primary factor behind 20 percent to 50 percent of customer purchasing decisions. Shocking? Maybe at first. But the more that you think about it, the more you'll realize how truly influenced by subtle recommendations we truly are. Are you reading this on a Mac, iPhone or iPad? Perhaps its because one of your friends told you how much they love their Apple products.
Even though many of us don't ever even think about it, word-of-mouth is something that plays on a fundamental aspect of human communications: building relationships! If your company or brand is building effective relationships with consumers, then they'll naturally (or even subconsciously) be inviting their friends and those around them to experience that relationship for themselves. And if you're ever in Philadelphia? Skip the overly pretentious and over-hyped La Colombe and head to Reanimator for your cuppa joe. Trust me.