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Writer's pictureMike C

The Power of Word of Mouth: Why Businesses Should Prioritize Recommendations

As a small marketing agency, we believe in the power of word of mouth to get more business. According to Nielsen, 92% of people trust recommendations from friends and family over any other form of advertising. This is why word of mouth is such a valuable marketing tool for businesses of all sizes.


One of the biggest benefits of word of mouth is its ability to reach a highly targeted audience. When someone recommends a business to a friend or family member, it is likely because they know that person will have a genuine interest in the product or service. This can lead to more qualified leads and ultimately, higher conversion rates.



In addition to being highly targeted, word of mouth is also incredibly influential. People are more likely to trust the opinions of their friends and family over traditional advertising, making word of mouth a powerful tool for building brand awareness and credibility. According to a study by HubSpot, 81% of consumers' purchasing decisions are influenced by their friends' social media posts.

Another benefit of word of mouth is its cost-effectiveness. Unlike traditional advertising, which can be expensive and often has a low ROI, word of mouth is essentially free. Businesses can encourage word of mouth by providing excellent customer service, offering high-quality products or services, and creating a positive brand image.


Word of mouth can also lead to higher customer retention rates. When someone has a positive experience with a business and recommends it to a friend, they are more likely to become a repeat customer themselves. This can lead to a higher lifetime value of the customer and ultimately, increased revenue for the business.


Finally, word of mouth can also lead to increased online visibility. When people recommend a business to their friends and family, they may also share their experience on social media or review sites. This can lead to more positive reviews, which can improve a business's online reputation and help it rank higher in search results.


In conclusion, word of mouth is a powerful marketing tool for businesses of all sizes. With its ability to reach a highly targeted audience, influence purchasing decisions, and lead to higher customer retention rates, word of mouth should be a key focus for any business looking to grow. As a small marketing agency, we recommend that businesses prioritize creating a positive customer experience and encouraging word of mouth to see the benefits for themselves.

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