In today’s world even with all social media, search engine optimization, blogs the best way to grow any business is for your customers to grow it for you. Its called the word of mouth where customers going out of their way to tell other people about your products or services.
There is nothing new about the word of mouth. It has been prevalent since cavemen days and has been the most cost-effective form of customer acquisition. Yet we are surrounded by advertising options and let our marketing talk to our customers instead of a customer talking to each other.
We at Allkonnect think that every company in the world can benefit from the word of mouth strategy. But some companies need it more than others. How do you know that your brand needs a word of mouth boost? Here is a quick checklist
1. Your customer acquisition cost is going up
Your lead acquisition cost is only rising. Does your marketing have to buy every click or spend a lot of time generating the content or run lot of campaigns before the deal is closed? Then you are simply working too hard and word of mouth can help.
2. Your sales team has to spend a lot of time closing the deal
This is more B2B than B2C. Does your sales team have to tell the entire story to the customer every time? If prospective customers don’t know anything about your company or your offering, it is because nobody told them before. Even if your lead is generated through google search you will need an incredible sales team to close the lead and such cold leads are the hardest and the most expensive to close.
3. Your search traffic is not great quality
Using Google analytics you can find the demographics of the customer visiting your website. If very few people are searching for the name of your company or your products/ services then it shows you have insufficient brand awareness and demand. This can be solved a lot by word of mouth strategy.
4. You budget expenditure is not right
A report from Adobe says that 80% of the average B2B company’s revenue comes from existing customers. Yet those brands spend less than 2% on customer experience and customer service. So if your marketing and operations budget for customer acquisition is far larger than customer service then it is time to consider word of mouth strategy.
5. Your brand is not able to compete on price
If your prospective customers looking at you vs your competitors and always going with low price then your brand has nothing emotional or psychological to prove the value. Here again, word of mouth strategy can help. Look at how Apple has done it over the decades. They have cult-like followers and it is those customers that power their brand.
6. You don’t have a unique selling point in the social
Customers are looking for unique ways to solve their problem. They expect to hear something new. The word of mouth strategy gives your brand that edge. Your brand becomes more talkable in the circle and it creates the FOMO experience.
7. You need to up your game on social media management
While you can push a lot of advertisements to gain followers the best form is organic growth. A strong word of mouth can help here. At the end of the day, customers are looking to interact with brands and tell their stories to their friends.
8. Your employee turnover is higher
Like social media engagement, we find that strong word of mouth also helps in creating an empowering culture for the employees. Ultimately it comes down the values of the company, leadership and what stories are being told about them.