Why Word of Mouth (Advertising) is the ONLY Advertising you should rely on!
Posted by Scott Dunn on February 9, 2008
In today’s blog, I cover why Word of Mouth Advertising is the most powerful form of advertising your business can ever do. The Return on Investment with Word of Mouth Advertising is higher than any other form of advertising you implement.
Why is it so powerful and why does it work so well? Easy… it’s called Raving Fans. Raving Fans not only purchase from your business on a regular interval, they also are the ones telling people to do business with you.
You are probably thinking to yourself how much money you are going to save this year in advertising. Not so fast. LESS THAN FOUR PERCENT of your client base turn into raving fans. (Let me say that again: LESS than FOUR PERCENT!!!!) This means that 96% of your business comes from your customers and clients. How do they find you? Through traditional advertising.
Most businesses use Word of Mouth as a cop-out because they either do not understand their Target Market or have not developed their Unique Selling Proposition. Do not put your organization in that predicament. Understand how to harness ALL forms of advertising and grow your business. Traditional advertising works. If yours is not working, then make changes today and start making it work for you.
Bottom line: While Word of Mouth Advertising is the most effective form of advertising for your business, it is simply a spoke in a wheel. For a wheel to roll properly, their must be multiple spokes. Understand your target market and use different advertising mediums to reach them. Word of Mouth Advertising is simply not enough to sustain your business. DO NOT MAKE THE MISTAKE THAT WORD OF MOUTH ADVERTISING IS THE ONLY ADVERTISING YOUR BUSINESS NEEDS!
Please click on the arrow below and I look forward to your comments, questions and input.
Guerrillero said
You have a reason, but the only word-of-the-mouth based ad strategy is to be combined with other tools. everything comes in combination. it is like in investing business: you diversify your portfolio.
Scott Dunn said
Guerrillero,
You hit the nail on the head. If word of mouth advertising is only responsible for 3% of your yearly revenue, other forms of advertising must be used to make up the other 97%.
The point of this blog is simple: Don’t use word of mouth as a cop out to not advertise.
Thanks for your post!
Guerrillero said
That’s right!
David Bradley said
Scott,
Once again, I am going to have to say that you know what you are talking about. In this day and age, word of mouth, is just not good enough. I have a very unique product which makes it easy for me to create clients and raving fans, but after being in this business for 13 years I realize that marketing my business is a full-time job.
Clint Boquet said
Scott,
You brought up some great points and I’ll say from experience, it’s the only true advertsing that counts when it comes to building and keeping any company in any business afloat.
Thanks,
Clint