Word of mouth is the only promotion method that is of consumers, by consumers, and for consumers.
The importance of word of mouth marketing is that it travels fast and it can have some magnificent results. When a past customers tells other people how great a service is, it makes people feel secure, and safe. It gives them a reason why to buy that service or product. It also gives past customers a chance to brag about the company, Companies in turn can use these testimonies. Testimonies can be used as powerful tools to increase sales dramatically. Emaunal Rosen states that WOMM is important for three reasons. "First, potential customers are more skeptical than ever before about ad messages coming from companies. Research from the public relations firm Porter Novelli shows that only 37% of the public thinks promotional information from a software or computer company is believable, and that sinks to 18% for car companies. At the same time, most consumers are overloaded by the avalanche of commercial messages. To protect themselves, they filter out most ads. They do, however, listen to their friends. And thanks to the Internet they are more connected with each other. It's easier for them to share information and ask for advice about products. The explosion of wireless communications devices will increase connectivity even further."".
From the statement above and the following statistics it shows the significance of WOMM on the marketing to consumers. Statistics from a recent study released by Euro RSGC, the world's fifth-largest advertising agency network, mass advertising is the least effective way for technology marketers to reach their target audience. The most effective tactic: word-of-mouth. Some stats from the report:.
How consumers get most of their information about products:.
- 13% from advertising.
- 20% from Web sites.
- 34% from word-of-mouth.
What "generated excitement" about a product or service:.
