Saturday, December 1, 2012

Why is word of mouth so powerful? (a little technical)

Simple: WOM is awesome because WOM gives rises to MORE WOM. The elasticity of WOM compared to other forms of marketing is much higher (about 30% to 50% in some cases), meaning, word of mouth puts your business on a growth cycle which lasts much longer than when you market the product using traditional online marketing.

Word of mouth is not only powerful, it is sustainable too. Sustainability is the future. Everything from food production to using human resources to distributing wealth will be sustainable in future. So it makes sense that marketing will go back its roots and take a form which is sustainable, AKA, word of mouth marketing. Google also has shown interest in this area and this is a old Google article showcasing the importance of word of mouth and how it affects the way consumers buy online. Are you leveraging word of mouth for your business?