Technology and Internet
How can word of mouth be leveraged as a marketing strategy with an extremely low CAC?
20 Feb 2023
In
the following sections, we will try to understand how word of mouth can be
leveraged as a marketing strategy with an extremely low CAC. Further, we will
also discuss the importance of word of mouth for your brand..
- Increases referral rates: Brands
that manage WoM have 3-4X higher referral rates vis-à-vis brands with weak
emphasis on WoM marketing
- Reduces pressure on customer
service / care: When customers speak highly of a brand, customers are more
understanding in case of issues
- Improves outcomes in performance
marketing initiatives: Surprisingly, brands with strong WoM presence have
better outcomes in performance marketing budgets and higher efficiency of spend
- Significantly reduces CAC: WoM is organic, free
and creates a lasting brand presence
Overall,
WoM is able to build a solid brand equity that also reflects in retail investor
sentiment!