For any business, a word-of-mouth (WOM) referral is worth its weight in gold. Think about it—92% of people trust recommendations from a peer, and a whopping 70% will even trust a stranger’s say-so.
That’s the kind of trust money can’t buy. For small business owners in New Zealand, harnessing WOM can be a game-changer. And with AI now able to consider reputation for consumers, you really need to take this seriously!
Why reputation management matters more than ever
Prior to COVID, it was easy to reply on personal business networks to generate referrals. After all, New Zealand is a close-knit community where who you know really does matter. But expectations have changed. Kiwi consumers are far more digitally savvy. So, a verbal referral may no longer be enough to seal the deal. Chances are, your customers now validate word-of-mouth referrals by checking what others are saying online. It’s a quick way of establishing trust.
This is where reputation management comes in. So how can you influence your online reputation to send your business sales skyrocketing. Spoiler alert: it’s easier (and cheaper) than you think!
What is Word-of-Mouth Marketing?
Word-of-mouth marketing is a form of marketing that leverages your existing customers to drive brand advocacy. It involves customers sharing positive opinions and information about your offerings with their peers. And considering that 88% of consumers trust consumer recommendations globally, with 32% exploring new products thanks to customer referrals, it’s safe to say that word-of-mouth marketing is, in fact, all that and then some more.
Foundations of trust: Why Reputation Management and Word-of-Mouth matter
Here’s a deal: Reputation management is akin to being a conductor of your business’s orchestra. You decide the tone, check the tempo, and take measures to ensure every note (ie. customer reviews) resonates with your audience. It’s about monitoring and shaping how your customers perceive your brand across channels, customer feedback, and reviews.
Pulling the right levers for WOM success
Online review platforms such as Google and Trustpilot help build brand credibility and NPS. Meanwhile, social media content works to make your business relatable and memorable. Thus, responding to customer feedback (both good and bad) makes your customer base feel valued. And when this happens, chances are high they will boost your lead generation efforts with their referrals.
What’s more, a sound reputation doesn’t just attract new customers. It also turns your existing ones into loyal brand advocates. Building a foundation of trust can make your business a go-to in the eyes of potential customers.
”Small businesses often start out with a basic online presence which needs to evolve as the business grows. Word of mouth is a great lead generator but business owners increasingly notice that prospective clients want to validate the referral by reviewing the business's reputation online. Our courses address that.
Optimise your business presence onlineWorkshop
How Effective Reputation Management Increases Sales
Boost business reputation and drive sales:
Offering social proof, such as customer testimonials and reviews, can drive your conversion rate (the percentage of prospects that become paying customers) by 270%.
- 87% of customers say customer reviews influence their purchase decisions.
- Displaying user-generated content or UGC (think social media influencer partnerships) can increase conversion rates by 166% while reducing cart abandonment rate by 2.5%.
When you manage your reputation, you drive your word-of-mouth outcomes. Importantly, this helps you increase sales without a hefty price tag.
Get started on upgrading your WOM and reputation management with a short course
Humans are social creatures at heart—we crave connection, belonging, and the reassurance of shared experiences. That’s why our decisions, big or small, are often influenced by the choices and opinions of those around us. This pack mentality is what makes word-of-mouth marketing so powerful and why managing your reputation is vital for success.
The good news is if you’re ready to take control of your online presence and boost your customer referrals, Good CX can help.
Join our workshops to boost your reputation online and drive WOM
Purposefully, our ‘Optimise Your Online Business Presence’ course is designed to help SMEs boost WOM with some simple tweaks. Moreover, you might be eligible for funding to attend a group workshop course. Ask us about the Regional Business Partner Network funding through MBIE.
Contact us for a chat about how you’d like to build your business reputation and generate leads that boost your sales today.
“If you make a sale, you make a living. If you make an investment of time and good service in a customer, you can make a fortune.”
Frequently asked questions about WOM
What impact can word-of-mouth have on a business's reputation?
Word-of-mouth can make or break a business’s reputation. Positive buzz builds trust, credibility, and customer loyalty, while negative chatter spreads just as fast, deterring potential customers. It’s the ultimate reflection of your brand’s real-world impact.
What are the benefits of word-of-mouth referrals?
Word-of-mouth referrals build trust, boost credibility, and attract high-quality leads — all without hurting the pocket. They create a ripple effect of recommendations, turning happy customers into your brand’s most powerful (and cost-effective) marketers!
How do online reviews contribute to word-of-mouth marketing and reputation management?
What is Reputation Management?
Reputation management is the practice of actively monitoring and influencing how a person or brand is perceived, particularly online. It’s closely tied to word-of-mouth (WOM), which is essentially what people say and share about you or your business. With effective reputation management, you can cultivate positive WOM. For example, you can do this by addressing feedback, highlighting strengths, and managing online reviews and social media discussions. Ultimately, it’s important because customer feedback and conversations directly shape your overall reputation and public trust.
How can I learn to improve my businesses online reputation and support word-of-mouth?
How does AI use WOM to help customers establish trust business based on what it sees online?
Therefore, actively managing your digital reputation and consistently encouraging positive customer experiences and feedback is no longer just beneficial. It’s essential to ensure that these AI-driven insights help consumers confidently establish trust in your brand. Ultimately, AI impacts consumer decisions to choose you over competitors.
2 Comments