Word of mouth or referrals is still one of the most effective marketing channels for your business. Peer information is very valuable to other consumers. They trust recommendations from fellow consumers more than they do from businesses.
Some of the most important points to consider with word-of-mouth marketing include:
- 74% of consumers will use word-of-mouth referrals in their purchasing decision
- 91% of B2B buyers are influenced by word-of-mouth information
- 56% of B2B buyers consider offline, word-of-mouth as valuable information
- A 10% increase in word-of-mouth can translate to up to a 1.5% increase in sales
Asking potential and current customers to recommend you is a good tactic for generating referrals. Many tactics generate referrals, such as offering rewards and gamification – but there is one way that is often missed off – direct mail.
Direct mail is an excellent conversion tactic. The physical approach is a real reminder of your brand and is harder to ignore than an email, or social media update.
If you have a referral program that pays or offers rewards to your customers, you can use direct mail to send them the details. That includes what they have to do, and what rewards they can receive. It can be a very effective way to get them to realize the benefits of participating in your word-of-mouth marketing campaign.
Remember that it is important to state how much of a reward is available should they participate. Here are a few examples:
- A mock check detailing the average reward for your referrers
- A case study of those that have previously recommended you to their peers
Direct mail is an essential element of your marketing mix. Customers and prospects show an unwavering demand for peer recommendations. It is also a good way to engage your audience in your business’ activities.
Combined with your online marketing channels, you can have a great word-of-mouth marketing campaign that should increase the number of referrals you generate.
Do you use word-of-mouth marketing or referral marketing? What results do you get?
Let us know in the comments below.