Word of Mouth according to Wikipedia –
” Word of mouth is a reference to the passing of information from person to person. Originally the term referred specifically to oral communication (literally words from the mouth), but now includes any type of human communication, such as face-to-face, telephone, email, and text messaging. “
Word of Mouth ( WOM ) works as a great consumer insight tool for understanding consumer behavior. Consumers have always valued opinions expressed directly to them. Marketers may spend millions of dollars on elaborately conceived advertising campaigns, yet often what really makes up a consumer’s mind is not only simple but also free: a word-of-mouth recommendation from a trusted source. As consumers overwhelmed by product choices tune out the ever-growing barrage of traditional marketing, word of mouth cuts through the noise quickly and effectively.
Indeed, word of mouth is the primary factor behind 20 to 50 percent of all purchasing decisions. Its influence is greatest when consumers are buying a product for the first time or when products are relatively expensive, factors that tend to make people conduct more research, seek more opinions, and deliberate longer than they otherwise would. And its influence will probably grow: the digital revolution has amplified and accelerated its reach to the point where word of mouth is no longer an act of intimate, one-on-one communication. Today, it also operates on a one-to-many basis: product reviews are posted online and opinions disseminated through so cial networks. Some customers even create Web sites or blogs to praise or punish brands.
As online communities increase in size, number, and character, marketers have come to recognize word of mouth’s growing importance. But measuring and managing it is far from easy. We believe that word of mouth can be dissected to understand exactly what makes it effective and that its impact can be measured using what we call “word-of-mouth equity”— an index of a brand’s power to generate messages that influence the consumer’s decision to purchase. Understanding how and why messages work allows marketers to craft a coordinated, consistent response that reaches the right people with the right content in the right setting. That generates an exponentially greater impact on the products consumers recommend, buy, and become loyal to.
But how do you en-cash on this great consumer insight is the question. This is difficult to conclude as your product is used by many consumers and customers. They are different from each other so they may do good or bad to your product or brand. Tt all depends on your product or brand to be “Good” “Satisfying” “one that develops great loyalty” and “differentiated”. Trust us if your product is boring and just another available in the market consumers are not going to spend their money on it. You need to be unique and different – Uniquely Differentiated to generate positive Word of Mouth.