Author: Lorenzo D'Amore
Publication date: 24.09.2024
Each of us is familiar with the mechanism of word of mouth. When we are asked to choose between trusting an advertisement or the advice of someone we know, we often prefer the second option. This happens for a simple reason: we are familiar with the person speaking. It is a natural process that facilitates decisions and forms the basis of many marketing strategies, easily adapting to new communication channels. With the advent of the Internet and social media, word of mouth has become very important, especially online. Customer opinions are of great value and spread rapidly among potential buyers. While in the past this form of recommendation reached a small audience, today, thanks to new technologies, it can reach millions of consumers. Wondering how to relaunch your business? This article on word of mouth in the age of digital marketing may prove to be the key to making your business go viral.
World of mouth 2.0: the digital era
The 2.0 version of word of mouth marketing (WOMM) manifests itself through social posts, video tutorials, reviews on blogs, opinions and comments on forums or e-commerce. Online words have significant importance, to the point that the term “reputation economy” is used to describe a market affected by discussions about a brand or product.
But what precisely is the link between reputation and economic value?
Potential customers, before making a purchase, seek information and read reviews from other buyers. Satisfied customers thus become a means of promoting the brand, helping to build a company's good reputation, increasing its visibility. However, it is different in the case of dissatisfied customers, who will be ready to tell about their negative experience. Naturally, if we speak negatively about a company, new potentials will tend to turn to the competition. To build a company's good reputation, it is essential to promote positive word of mouth and turn customers into true brand advocates.
We can say that a solid corporate reputation directly translates into tangible financial benefits, as demonstrated by the case of Apple. Its reputation for quality, innovation and customer service has had a significant impact on its financial performance. Firstly, consumer trust in the brand has led to increased sales. In 2022, Apple recorded sales of over USD 394 billion, thanks to customers willing to pay more for products considered premium, such as iPhones and Macs. This reflects how a strong reputation can increase demand. Secondly, Apple's reputation has contributed to increased customer loyalty. The iPhone upgrade programme and associated services, such as Apple Music and iCloud, encourage customers to stay within the Apple ecosystem, increasing overall customer lifetime value. In 2022, Apple achieved a 90% retention rate among its smartphone users, demonstrating how reputation influences purchase decisions.
In addition to this, Apple is also able to maintain higher prices than its competitors. In fact, consumer confidence in the quality and design of its products allows the company to charge higher margins, contributing to a net profit of more than $99 billion in 2022.
How do you increase brand advocates?
1) Increase positive reviews through favorable reviews that increase trust in the brand. This stimulates the psychological mechanism of social validation or testimony by encouraging other people to trust the opinions expressed.
2) Offer personalized experiences in order to increase the circle of contacts starting with regular customers. To attract new potential customers, the advice is to document the event with photos and videos and post them on the store's social profiles and in thematic groups.
3) Collaborate with influencers, i.e., the people who are most able to influence the purchasing choices of others nowadays.
4) Take advantage of viral marketing by sharing original and engaging content that could help create a positive image of the company. Videos, memes and gifs are examples of engaging content that, by stimulating emotions, encourage people to share them spontaneously.
5)Manage negative reviews. In fact, having a consistent number of positive reviews can reduce the impact of negative ones. It is essential to always respond courteously to dissatisfied customers, offering them the opportunity to try the product or service again.
Final considerations
In conclusion, word of mouth in the age of digital marketing represents a powerful and unstoppable force. Thanks to social media and online platforms, customers' opinions and experiences can reach a vast audience in a very short time. Companies that succeed in leveraging this tool not only improve their reputation, but can also turn their customers into true brand ambassadors. Investing in authentic relationships and providing quality service are key strategies for fueling positive word of mouth. In a world where trust plays a crucial role in purchasing decisions, making word of mouth the centerpiece of your digital marketing strategies can really make a difference. So be sure to listen to your customers' voices and encourage conversations-your business could reach new heights of success!
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