Word of Mouth
Word of mouth in business is about people sharing their thoughts, opinions and experiences with others about a company’s products or services. Word of mouth is like a chain reaction. Let’s say you tell your friend Jane about the gadget, and she trusts your opinion. Jane might decide to check out the gadget herself and then tell her cousin, Mark, about it. Mark might share the news with his colleagues, and so on. Recommendations can lead to more people becoming interested in the gadget, all because of your initial excitement. Businesses love word of mouth as an intangible asset because it’s free promotion. When people hear about a product or service from someone they know and trust, they’re more likely to give it a try. Companies can encourage positive word of mouth by creating a great experience. Conversely, if the experience or product is disappointing, that negative experience can also spread quickly. Positive word of mouth can lead to increased trust, credibility, and loyalty, helping a company hold onto customers while doing a lot of the heavy lifting to attract new customers without incurring direct marketing expenses. It relies on the power of personal endorsements, making it a powerful and cost-effective marketing tool.