Traditional advertising has a low response rate with mostly inquiries rather than purchases. In contrast, advice from friends often prompts action. On average, people buy two out of every five products their friends recommend. This is a huge difference!

So, what is word-of-mouth? It's a conversation between a customer and a potential customer, usually with an established trust level, which outperforms advertising where trust isn't pre-existing. It's clear who advice is likely to be taken from!

Now, let's examine why word-of-mouth works:

• Information is tailored to the potential customer due to the friendly relationship.

• It’s personal, relevant, and believable.

• It’s customer-driven and self-generating, especially in the digital age.

• It becomes part of the product's narrative.

• If the source is an expert, it's more effective.

• Word-of-mouth saves time and money.

For successful word-of-mouth marketing, understand:

• Where your word-of-mouth is originating?

• Which products are being influenced by word-of-mouth?

• How is your word-of-mouth being distributed?

By understanding these elements, you can stimulate more positive word-of-mouth. This concludes our second installment on word-of-mouth marketing. If you need help comprehending this potent tool and its impact on your business, consider our FREE consultation for access to a selection of resources and tools.

In the next part, we'll examine the nine levels of word-of-mouth, helping you differentiate the positive from the not-so-positive.