The Value of Word of Mouth

We all know that word of mouth marketing is important. It is the simplest way to get new customers in the door: have your happy customers talk about you to their friends. The problem though has always been how to control it. When word of mouth happens off-line, there is no way to track it; you are just left to assume that people are saying nice, or not-so nice, things about you. And when it happens online, the same problem arises only now that nice or not-so nice review can be seen by the world. Word of mouth was always this intangible buzzword that seemed to have little measurable impact on your business, and if there was any impact you couldn’t tell.

Thanks to a recent study by ShareThis, word of mouth finally has a value assigned to it. When a referred customer walks in the door, their purchase intent increases by 9.5%. In addition, recommendations are more influential in the customer’s purchase decision than anything else, including the price of the product. No matter what the product, when there is a social share, the perceived value and desirability of that product increase, which is what leads to the 9.5% increase in purchase intent.

This is great news for businesses. Not only do we now know the true impact customer-generated referrals can have on a new customers, we know that your business is more desirable after a social share. This then ties back to acquiring these social reviews. How do you get people to write about you online? And this is not just referring to Yelp or review sites, but to talk about you on the customer’s own newsfeed so it is directed at people they actually know. This is where ModernComment comes in (sorry for the self-promotion but this is for your benefit). By getting your customers to write reviews on their newsfeeds, you can increase your customer acquisition in a measurable way.

What do you think is the best way to get customers talking about you?

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