Word of Mouth Marketing
Posted by Orrin Woodward on October 19, 2015
Word of Mouth advertising is the most effective form of advertising and thus why LIFE Leadership leverages the concept through its Compensated Community to spread its message. The Financial Matrix looms larger everyday for those without financial literacy. Thankfully, however, there is a community of people who are doing something about it. Below are some thoughts I am working on about Word of Mouth marketing.
Sincerely,
Word of Mouth Advertising
LIFE Leadership leverages word-of-mouth marketing to compound its growth. Instead of paying millions of dollars per year to advertise in print, radio, or TV, LIFE Leadership instead rewards people who recommend our products. This is a major competitive advantage! For example, authors Huba and McConnell proclaimed, “Word-of-mouth is THE valuable currency in today’s advertising-saturated world.” Meanwhile, Nielsen Global Trust in Advertising noted that 92% of respondents surveyed trusted recommendations received from friends about products or services. Last but not least, a recent McKinsey study identified word-of-mouth as the most effective form of marketing and advertising in the world. According to the McKinsey study, word-of-mouth marketing generates twice as much sales as paid advertising, and over 50% of all purchases are influenced by word-of-mouth. Indeed, the buzz generated by word-of-mouth marketing is vital to the growth of a company.
Because word-of-mouth marketing is so effective, LIFE Leadership built all of its marketing and advertising budget around it. We reward loyal customers and members who are effective in recommending our products to others. All word-of-mouth marketing can be boiled down to a three-step process:
- 1. Discovery: Somebody encounters a new idea.
- 2. Wow: This person is convinced that the idea is worth sharing.
- 3. The Share: The person shares the new information with others.
Once this process loop is started, the share stage for one person corresponds with the discovery stage of another one, and the word-of-mouth chain reaction has started. Seth Godin, author of Unleashing the Ideavirus, emphasized the importance of making it easy to share the product or company’s message: “How easy is it for an end user to spread this particular ideavirus? Can I click one button or mention some magic phrase, or do I have to go through hoops and risk embarrassment to tell someone about it?”
16 Responses to “Word of Mouth Marketing”
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Lloyd weiler said
I love it!! Orrin gave a whole talk on this in Pennsylvania and it was awesome!! He broke down the whole thought process behind the financial matrix marketing strategy to simple details!! Love being in business with smart people!
Gyorgy Veszpremi said
Great article Orrin. Thank you for the vision.
John HATCHELL said
Great useful , powerful information for us at Life Ledership. In our system book Tipping point by Malcolm Gladwell had a couple of analogies about “Word of Mouth” Orrin I LOVE the graph for belief and Inspirtion for us building our communities..
Rock n Roll , fired up for Major and Life 2.0 roll out!!!
Renee Oettinger said
Relational marketing, sharing personally to add value in someone’s life is very rewarding. Thank you Life Leadership for providing this vehicle to make a difference.
Jerry Chen said
Can’t agree with you more, Orrin. This comes from someone in the professional marketing industry having clients in many niches… Word of mouth and credibility-lending from inter-personal relationships cannot be matched by any other form of advertising!
Swamp Fox said
It’s what communities were originally and need to become again.
Elaine Mallios said
Let’s see: Life offers fabulous products, people can order fairly easily on our own website, Life handles the sale and shipping AND returns, subscriptions are available for ongoing orders – Oh and Life handles that too. How much easier can it get!! It’s awesome!
Steve Duba said
Thanks Orrin. I have been reading ” Contagious” by Jonah Berger and he also breaks down the importance of word of mouth marketing. Great job. Thanks for all the wisdom and research. Enjoy being in the journey. Keep moving forward in faith. God bless
Marcia said
I love the simplicity of the “three step chain.” Thank you for sharing your thoughts.
Tim Marks said
Orrin
Great post!! Speaking of word-of-mouth advertising we went to watch the movie “Woodlawn” last night and it was excellent !!! It’s a great football/Christian movie but the entire family will enjoy and it’s based on a true story .
Travis Labell said
WWJD. If I remember correctly The Good Book did not say anything about social media. Jesus invited himself in. How many times did He say “dont tell anyone”, and what did they do anyway, it spread by word of mouth😀
Bob Rasmussen said
Great post Orrin! In my past construction biz word of mouth provided 100% of my business, therefore happy customers and a great product were the key. We not only have those but also the best business in the world to talk about!!! Unstoppable!!! Love Lifeleadership!!! God Bless
Malissa Betz said
People don’t trust advertisers anymore. The matrix will say anything to sell its products and propaganda. It’s what they taught us in the college Marketing program I took as a 18 year old high school grad. I wanted to “do” something that involved helping people, not manipulating them. Thanks for Life Leadership, it’s a way we can help people answer Jim Collins 3 questions in his hedgehog concept in Good to Great, to live the life they’ve always wanted
Chad Palmer said
All truth originates from God and in the mouth of two or three witness shall all His works be established. This is exactly what Orrin and Laurie Woodward and the leaders are doing with Life Leadership. With the restored gospel of Jesus Christ and Life Leadership in our hands, we are called out of the world to reach out to help our brothers and sisters by sharing these truths with our hearts open to break the chains of false evidence appearing real and live our lives with purpose. Godspeed the Truth and it shall set us free.
Rick Tillmann said
I’ve been in private practice for 22 years and have not advertised in 21&1/2 years. Word of mouth seemed to help start the foundation of a community of loyal patients before they even got to my office. If only I could find a business that would link a strong community of loyal people together and be compensated for it! Hmmm…
Thanks, Orrin
Dwight Tamanaha said
Orrin I’m learning and feeling the spirit of character in word of mouth transcendence of the Life business. Am starting to become more transparent and more connected with people. DVD 17 is a brilliant jet spot that will continue to accelerate and more clearly identify the vital issue in life one really has which can lead to a deeper meaning of ourselves. Thanks for helping start to ride against the 95% with the truth current.