The power of Word of Mouth Marketing
Much research suggests that word of mouth (WOM) is more effective than other types of marketing. McKinsey, a worldwide management consulting firm, asserts that “word of mouth generates more than twice the sales of paid advertising in categories as diverse as skincare and mobile phones.” Why is word of mouth more effective? Two main reasons, trust and targeting. We trust our friends when they make a recommendation because it is based on their experience of using the product or service. WOM recommendations are targeted because people only tell you about things that they think are at least somewhat relevant to your interests. WOM can be successful at all levels ob business. In 1996 a fledgeling company called Telecom Plus launched a business providing cheap telephony to domestic and business customers through WOM marketing. Today, with no advertising and employing WOM Telecom Plus trading as The Utility Warehouse Discount Club have over 700,000 customers taking over 2.5 million services (including landline, mobile, broadband, gas, electricity and insurance) and are a FTSE 250 company worth just shy of £1 billion. That is the power of WOM marketing.
B2B networking is a great way to grow your business because it employs WOM. Club members know like and trust each other so each of us recommends each others products and services to our circle of friends and people that we know. At BtoB Ellesmere, we meet for Breakfast once every two weeks at the Boathouse Restaurant beside the Mere. At each meeting, in turn, one members spends 10 minutes presenting their business to the members and visitors in the room. After the breakfast we each have a one minute opportunity to tell our fellow members and visitors exactly what sort of business we are seeking over the next couple of weeks. Before the meeting closes we have an opportunity to pass on any business referrals that we have gathered for each other, as a result of listening and speaking to people we have encountered over the previous two weeks. The overarching concept proves the concept that “if I bring you business then you will bring me business in return”
BtoB Ellesmere meets every other Wednesday from 7am to 8.30am over breakfast at the Boathouse Restaurant, Ellesmere, so why not come along and see how WOM can help you grow your business.
See why The Utility Warehouse was nominated for The 2017 European Business Awards as The United Kingdom National Champion.
Club member Tony Griffiths is an Independent Distributor for The Utility Warehouse. Contact him today to become a member of the Discount Club.