Introduction: For any business to succeed in today’s business scenario, it must focus on customer retention, as now days’, only making new customers is not enough to keep the business profitable. As the expectations of customers have risen to a level which is beyond their basic expectations, in order to keep customers loyal, an organization needs to retain them by surpassing their expectations. Word of mouth marketing, in today’s context, is the best form of advertising as it directly relates to an authentic propagation of attitude, either positive or negative, about a product or service It’s often said that satisfied clients will inform at least 4 human beings approximately their revel in with a commercial enterprise. On the alternative facet, unhappy customers will inform minimal ten human beings of their bad enjoy with a business. When a member of the family or a chum told that they’d special carrier at a selected employer, there’s an excellent threat that the recipient of this high quality propagation will patronize the corporation. Today’s economic situation will not just be remembered as a prominent period of global recession, but also as a customer based relationship driven economy. As never before, it has been so crucial to guard customer relationships. The requirement to get new customers has evolved into the need to enhance loyalty by retaining existing customers.
The Marketing Department of a given organization, a Word of Mouth motion is deliberate to get some of human beings to pass on precise facts to different clients in order that they become attracted and get them.
- There are forms of Word Of Mouth:
- Organic: going on obviously, without being deliberate earlier.
- Planned: evolved in a deliberate manner, usually growing one or several networks on which to test its effectiveness.
In the first kind, the way to discover and decide the effect of Word of Mouth can be through Brand Tracking, Reputation case studies or monitoring a few effectiveness-indexes. Moreover, within the 2nd type, we can be able to follow the commonplace techniques of ROI, since such action might be connected to an funding, in addition to tracking actual stories in networks or managed groups.( Marketing Analytical Consulting)
As indicated by an examination by Forrester Research, the Nielsen Company, and Vizu Corporation, around 80 percent of clients are conviction on verbal more than any kind of data with regards to assessing potential buys. In spite of the development of publicizing and showcasing channels, the present purchasers are significantly more expected to confide in a relative, companion, or friend’s referral than direct deals and promoting messages. More often than not, the guarantee of informal exchange is very basic. As the Word of Mouth Marketing Association (WOMMA) states, “It’s tackling the voice of the client for the benefit of the brand.”
Traditional Marketing vs. Word of Mouth (WOM)
Conventional Marketing systems can get you quick outcomes yet they are costly. Informal, nonetheless, conveys a slower return however at a lower speculation cost. Indeed, there are two different ways that don’t demonstrate totally unrelated alternatives, on the opposite side, WOM can be an extremely helpful enhancement which customary Marketing could conceivably have the option to achieve. A Communication battle can bring out new clients, and hence such an impact will turn out to be clear in a noteworthy deals raise in the month in which the crusade was propelled. A correspondence battle can get new customers to bring others, who thus will bring all the more new buyers and the chain proceeds, just in case of valid.
Examples of Word of Mouth
Netflix, Chipotle, Coca Cola-A coke for everyone, Crossfit, Slack, Twitter, Tinder, Tesla’s Referral Program, Ice Bucket Challenge, Uber and Ola cabs, Dropbox, Detoll, Starbucks, Adidas etc.
Online Reviews: An another form of word of mouth
The contribution of this paper is that it provides the evidences that word of mouth (WOM), WOW can retain customers because in the present era of competition, the target of each and every company is to achieve higher rate of profitability and to attain greater market share. There are different types of market structures. One is perfect competition and another is imperfect competition. Imperfect competition further constitutes monopolistic competition, oligopoly, duopoly etc. As we all know that in case of monopolistic competition there are large number of buyers and large number of sellers with product differentiation. In this case by product differentiation we mean that the close substitutes of the products are available in the market. In the case of oligopoly there a few sellers and large number of buyers and duopoly contains only two sellers and large number of buyers. Now the issue is that in three above mentioned cases there is competition prevailed in the market and it is very difficult for a company to retain their customers because of availability of different products with similar features. When we talk about Pepsi and coke, both are very popular brands especially in India. Because in India these two are the major giants in the case of beverages and soft drinks, juices etc. It is the positive word of mouth which can increase the customer retention. When a customer says WOW, means a positive word of mouth, which is worked more than any other tool used in order to retain a customer. In order for any business to succeed, they need to target client retention. Retention is that the key to making an outsized consumer base, wherever they come back over and once more. The goal of any business is largely to possess customers always. Management and staff ought to try to make sure that the purchasers don’t have a reason to frequent another institution. Now can one company/organization can create WOW with customers is the important issue. It’s frequently believed that the happy clients will tell other five people about their practical contact with a business and at the same time, an not happy client will say to ten people of their negative experience with a business. Positive word of mouth marketing is one of the best methods of advertising. When a relative or friend states that they had exceptional service at a particular company, there’s a better chance that the recipient of this positive statement will patronize the establishment.
In Modern business world, satisfying customers are not enough to keep them get back. Their expectations have increased where they expect something above and beyond the norm. In order to keep a client loyal and get back, a company has to exceed their expectations. This is the reason where WOW factor comes into picture. In order to exceed expectations, the customer needs to feel that the company went out of their way to make them happy. They should leave the clients thinking, “Wow, now that’s customer service” In order to achieve the WOW factor, think of something out of the ordinary that’s related to the business. Take a proactive approach to exceed the customer’s expectations.
Even though, the organizations are putting their efforts to make the customers, their customers for life time. But in today’s competitive market place, where customers are hopping, thus leaving the organizations in a spool. Based on the literature survey it is concluded that WOM plays a crucial role in retaining customers because of its authenticity and credibility, in turn determining the loyalty of the customers. Moreover, as a confidence building measure, it helps the organizations to create more loyal customers, which eventually leads to higher profitability.
Limitation of paper: This paper is a qualitative paper based on evidences taken from some previous studies and available resources.
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