Friday, March 21, 2008

Word of Mouth - Your Best Strategy in a Tight Economy

Excerpted from
"Word-of-mouth may be the voice of a new era in marketing"

by Kerry Leonard Mar 12, 2008
Over ninety percent of consumers say the number one place they go to get information on products and services are friends, family members or trusted “influencers.” said Rand. Traditional advertising is moving farther and farther down the list.

“The ability to interrupt people into paying attention dwindles by the day,” he said

With sobering economic news streaming in almost daily, people will likely be spending less in coming months. Television advertising may reach a large number of people, but high costs and media fragmentation may not deliver the desired return on investment.

They’re looking for effective. And word-of-mouth, the proponents say, is the answer.

“Were not saying that traditional marketing is over with,” said Geno Church, word of mouth inspiration officer for Brains on Fire, a marketing firm in Greenville, S.C. “People pick and choose what they want to listen to.”

“And that’s where word-of-mouth can help a company in a recession,” he added.

Consumers are exposed to roughly 3,000 commercial messages a day, he said. “Word-of-mouth breaks through that clutter,” he said.

My Take

Do word-of-mouth referrals contribute significantly to your sales? Asking your customers is an excellent first step. Inviting them into your own referral network can begin a self regenerating stream of sales.