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A Quick and Simple Guide to Word-of-Mouth Advertising

Have you ever been in a situation where you needed to get the word out about a terrific product or service? At this point, word-of-mouth marketing or recommendations has the potential to become your company’s new preferred marketing superpower. Word-of-mouth advertising is essential for the success of any trade or service firm. When customers are happy with the products or services they receive, they are more likely to recommend your company to their friends and family. Recommendations made via word of mouth, when they are successful, help to increase your firm’s authority and engagement, provide free publicity, and contribute to the development of your brand’s positioning as a company that provides trades or services.

Since it is common knowledge that the presence of a personal connection has an effect on purchasing behaviour, implementing this forward-thinking strategy within your business, whether it specializes in trades or services, and being aware of how to put it into practice effectively can provide the push you need to increase your revenue from those ventures.

While you’re here:

Are you adequately insured as a tradie?

Trades insurance is a specialized form of commercial insurance that offers protection against the dangers that experts in skilled trade industries must deal with. Tools insurance, public liability insurance, employers’ liability insurance, and other types of coverage can all be incorporated into a custom insurance policy that is specifically designed for tradies.

Sometimes things don’t go as planned, and you may be unable to work until the situation has been resolved due to a dissatisfied client, accidental property damage, or an injury to you or an employee. You can continue working without any additional hassles if you have the appropriate insurance. Hiscox tradesmen’s business insurance offers protection against the unforeseen by paying for things like compensation expenses, legal fees, tool repair or replacement, and more.

The Value of Referrals Obtained Through Word-of-Mouth Communication Trust

Obtaining the trust of customers may require an initial investment of time and energy, but the benefits are well worth the investment.

Customers have a higher level of trust in suggestions that come from people they know personally. Therefore, new customers for your trades or services company will have a higher level of trust in your ability to deliver a high-quality service if they were referred to you by a reliable source.


The development of your brand as the proprietor of a trades or services firm might be aided by word-of-mouth referrals, which bring with them a number of benefits, the most significant of which is credibility. When people hear about your brand from someone they trust, it automatically makes the message more trustworthy. Customers will not have this level of trust in sponsored marketing communications.

Retaining Current and Prospective Customers

If you run a business that provides services or trades, getting referrals from satisfied customers often results in more loyal customers. This, in turn, improves your customer retention rates and starts a cascade referral effect. Customers who have been suggested to a firm have a lower propensity to shop elsewhere compared to customers who have not been referred.

The first step in retaining customers is to meet their expectations and fulfil their needs. The likelihood of their recommending you to other potential customers as a result of this is increased.

Boosts WOM

Customers that suggest your company to their friends and family help spread positive word of mouth about it, which makes scaling your business easier. It is a fantastic method for getting in touch with a large number of people to whom you might not ordinarily promote your product or service.

The word-of-mouth that is fostered as a result of referrals is another way in which your trades or services company’s target market might benefit. It is common practice to bring up a certain brand whenever one is discussing contemporary products and services. This typically results in a targeted audience, as the brand is offered to highly qualified and specifically targeted leads in the course of the marketing campaign.

Low Cost

Instead of using more typical marketing methods, which may quickly become expensive, referrals are a cost-effective way to promote your trades or services firm. When customers merely share their experiences with one another in the market, there are no direct expenses connected with this action. The clients with whom you have already developed a positive relationship can be an incredible advantage to your business, whether it be in the field of trades or services, and they can lend their support to your offline marketing strategy.

The Drawbacks Associated With “Word-of-Mouth” Referrals

Less Control

Referral marketing gives the impression that you have no influence over the messaging associated with your company because it relies solely on the positive or negative experiences of customers. Because of this, there is a possibility that the positioning of your business in the trades or services sector could suffer as a result. Satisfied clients could promote your company as the most reasonable and cost-effective alternative, despite the fact that you are actively working to achieve a luxury and high-end position in the market.

For reviews, you need to have the goodwill of your customers (and their memories!). WOM is fundamentally a product of chance, and there are many elements, including fear and uncertainty, that can make a consumer lose the incentive to bring you new consumers for your crafts or services organization. One of these things is that word-of-mouth marketing (WOM) is essentially a product of chance. It’s unfortunate, but it’s possible that your clients aren’t constantly taking you into consideration. Even your most committed customers are human and occasionally forget to tell their friends about you and your business.

Consumer Reports Versus Actual Results

Because each individual customer’s experience with your product or service will be different, managing consumer expectations can be difficult when word-of-mouth referrals are involved. The client’s experience can be either enhanced or diminished, depending on their expectations, which can lead to either positive or poor word-of-mouth marketing (WOM).

Preserving the Frisson of Anticipation

The initial excitement that surrounds a brand-new product or service eventually dies down over the course of time. When the initial buzz dies down, so does the interest of potential customers. If you rely solely on word-of-mouth marketing, there is a lower chance that your customers will have a comprehensive understanding of the history of your brand through a variety of channels, and this possibility will decrease as the amount of marketing you do decreases.

Word-of-mouth referrals from customers with longer than average tenure are often cost-effective, but they do require some effort to set up correctly. After building a good reputation and cultivating a relationship with your customers, you should urge them to “return the favour” by introducing new customers to your business. However, if you do customer surveys too soon, you may be viewed as a source of annoyance.

Evaluating Results is a Challenging Endeavour.

Because word-of-mouth (WOM) generally takes place in off-the-cuff conversations between customers, determining whether or not it has benefited a company’s bottom line can be a tricky endeavour. In order to establish how new customers learnt about a company, corporations often conduct brand awareness surveys, csat surveys, monitor sales data, or use point-of-sale (POS) enquiries. However, this is not always possible for organizations that deal in trades and services.

How can I Make marketing Through Referrals More Effective so that I can Bring in New Customers?

Because it is much more challenging to evaluate the effectiveness of WOM in comparison to that of more traditional marketing tactics, it should not serve as the primary source of promotion for your retail or service-based company. It is necessary to employ other strategies in addition to word-of-mouth referrals.

You may increase the efficiency of word-of-mouth referrals by developing solutions that simplify the process for customers to promote your store or service to others. This will help customers feel more positive about the experience they had with your company. Some examples of this include increasing your profile on social media platforms, as well as the use of online discussion forums, tools for feedback collection, and other similar applications.

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