You need all the assistance you can get when building a business. Word-of-mouth marketing, which should be a key component of your business strategy, helps create and sustain demand for what you are selling by nurturing a passionate community that speaks positively about you. At a minimum, this community should consist of your customers, who can serve as references, participate in webinars and speak at conferences. It should also include media and analysts who provide favorable coverage of your company and product. And can also include influencers such as industry luminaries and bloggers.
Referrals are especially important when you consider that 57% of B2B purchase decisions, and 72% of B2C ones, are made before a buyer contacts a vendor, according to McKinsey & Company. Many entrepreneurs think that good customer service is the most influential way to cultivate word-of-mouth marketing and referrals. But it’s
not. Although being attentive to customers is good policy and vital to the health of your business, it’s not at the core of building a referral-based business. This is because people have come to expect good customer service. If you want to build your referrals, you must actively cultivate your referral sources.
When implemented effectively, Word-of-mouth marketing can have a huge impact on demand generation.