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This marketing strategy leverages the most basic yet powerful form of communication – the organic spread of information from person to person – creating a ripple effect that can significantly influence consumer behaviour. Given the uniqueness of the Nigerian market where traditional and cultural values often intermingle with modern technology, marketing in Nigeria takes a somewhat different approach when compared to other climes. Word-of-mouth (WOM) as a marketing strategy transcends the boundaries of contemporary marketing. It draws on the deep-rooted cultural practice of communal decision-making common among Nigerians. So, understanding and leveraging word-of-mouth as a marketing strategy in Nigeria can be a game-changer for businesses looking to build trust and expand their reach. This article looks at the intricacies of Word-of-mouth (WOM) marketing, exploring why it works so effectively in Nigeria, how to effectively implement it, and the benefits it brings to businesses.
What Is Word-of-Mouth Marketing?
Word-of-mouth (WOM) marketing involves the organic spread of information about a product or service through verbal communication from one person to another. Unlike other forms of advertising, which involve one-way communication from the brand to the consumer, WOM relies on the trust and credibility established in personal relationships. When a friend or family member recommends a product, the recipient is more likely to consider and trust the suggestion because they are perceived as unbiased and credible. This form of marketing can occur naturally or be strategically encouraged by businesses through excellent customer service, unique products, and memorable experiences.Why Word-of-mouth Works in Nigeria
Nigeria has rich oral traditions and communal lifestyle that deeply influence consumer behaviour. This therefore makes word-of-mouth a highly effective marketing tool in Nigeria. Family, friends, and community play pivotal roles in decision-making processes. People often seek the opinions of those they trust before making purchases, especially for significant or high-value items. This cultural inclination towards seeking and valuing personal recommendations makes WOM a particularly effective marketing strategy in Nigeria. Also, Nigerians generally exhibit a form of healthy scepticism towards advertising, often questioning the authenticity and reliability of commercial messages. However, recommendations from trusted and personal sources easily bypass this scepticism, providing an added layer of credibility. When someone hears about a product from a friend or relative, the perceived risk of trying the product diminishes, making them more likely to give it a try. Take, for instance, Indomie, a popular Nigerian noodles brand. Its rise to becoming a market leader in the noodles sub-sector is not solely due to extensive advertising but also because of strong word-of-mouth recommendations. It is common for Nigerians to share their positive experiences with Indomie through conversations, social media, and even song lyrics, and this has contributed to turning it into a household name.Benefits of WOM Marketing
1. High Conversion Rates
One of the most significant advantages of WOM marketing is its high conversion rate. Recommendations from friends or family are usually more persuasive than any advertisement. According to Nielsen, 92% of consumers believe recommendations from friends and family over all other forms of advertising. In Nigeria, where community ties are strong, this effect is even more pronounced.2. Cost-Effectiveness
WOM marketing is also cost-effective. Unlike other forms of advertising, which can be expensive, WOM relies on satisfied customers to spread the word. This organic promotion saves costs while potentially reaching a broader audience. It’s an ideal strategy for small businesses or start-ups with limited marketing budgets.3. Enhanced Customer Loyalty
When customers are happy with a product and share their positive experiences, it not only attracts new customers but also strengthens their loyalty to the brand. This loyalty translates into repeat business and long-term customer relationships, which are invaluable for sustained growth.How to Implement the WOM Marketing Strategy in Your Business
Having shown you what the Word-of-mouth marketing strategy is and its benefits, we will now consider the practical steps you can take to implement it in your business:Deliver Exceptional Customer Service
The foundation of implementing successful WOM marketing lies in exceptional customer service. Exceptional customer service can turn satisfied customers into brand advocates. When customers have positive experiences with your products or services, they are more likely to talk about them. So, ensure your customers are satisfied at every touchpoint, from the quality of your product to after-sales support. As a business, training your staff to provide excellent service and addressing customer concerns promptly can foster positive word-of-mouth.Encourage User-Generated Content
How many times have you visited your mobile phone’s appstore to download an app and you head first of all to the review corner to get an idea of what others have to say regarding the app? Those are what we call user-generated content (UGC). And they include such things as reviews, testimonials, and social media posts. These can amplify your WOM marketing efforts. So, encourage your customers to share their experiences online and with others. They could do this through photos, video testimonials, or simply asking them to leave a review. UGC not only spreads the word but also provides authentic content that potential customers can trust. For example, the GTBank’s annual Food and Drink Festival effectively uses UGC. Attendees share their experiences on social media, often tagging the bank, which in turn shares this content on its official pages, creating a cycle of positive word-of-mouth promotion. Another good example is the daily Morning Prayer program – NSPDD by Rev. Jerry Eze. If you are active on Nigerian social media, you may have seen the content created by the participants of the early morning program.Leverage Influencers and Brand Ambassadors
Influencer marketing refers to the use of individuals with a large following to promote your products or services. Influencer marketing has gained traction in Nigeria, with many brands leveraging the reach and credibility of local influencers. These individuals can act as powerful conduits for WOM marketing. When you decide to go with influencers, you should choose influencers who resonate with your target audience and align with your brand values. Their endorsement can significantly boost your brand’s visibility and credibility.Create Shareable Experiences and Content
People love to share unique and memorable experiences. Whether it’s an innovative product feature, a surprise gift, an unforgettable customer service interaction, or educative content, creating moments that delight your customers can spark conversations. For instance, when itel phone first came into the Nigerian market, it easily gained prominence by surprising its customers with cash prizes or bonuses, encouraging them to share their excitement on social media.Implement Referral Programs
Referral programs incentivize existing customers to spread the word about your product or service. Offer discounts, freebies, or other rewards to customers who refer new clients. This not only motivates your current customers to promote your brand but also ensures that new customers are acquired through trusted recommendations.Other Things to Take Note of In Implementing WOM Marketing
Identify Your Advocates
Start by identifying your most loyal and satisfied customers. These are your brand advocates who are likely to spread positive word-of-mouth. Engage with them directly and encourage them to share their experiences. You can use customer surveys, feedback forms, or social media listening tools to identify these advocates.Craft a Compelling Story
A compelling brand story can make your product more relatable and memorable. Share stories about how your product solves problems, improves lives, or contributes to the community. In Nigeria, where storytelling is an integral part of the culture, a well-crafted narrative can resonate deeply with your audience.Monitor and Respond
Keep track of what people are saying about your brand online and offline. There are so many social media monitoring tools that can help you stay updated on conversations about your brand. For instance, you can set up Google Alerts to notify you whenever your brand is mentioned anywhere on the internet. Respond promptly to feedback, whether positive or negative. Engaging with your customers shows that you value their opinions and are committed to improving their experience.Measure Your Success
Finally, it is important to measure the success of your WOM marketing efforts. Track metrics such as referral rates, customer acquisition costs, and customer lifetime value. Use this data to refine your strategy and ensure you’re getting the most out of your WOM marketing efforts.Register to attend the CN Business Mixer
Concluding Thoughts
The Word-of-mouth marketing strategy is highly effective in Nigeria. This is because it is deeply rooted in the cultural fabric of communal trust and personal recommendations. No matter the size of your business – whether a small startup or an established brand, prioritizing WOM can lead to higher conversion rates and enhanced customer loyalty. Remember, a satisfied customer is a repeat customer and a powerful advocate for your brand. So, invest in creating exceptional experiences and while you are doing that, encourage your customers to share their stories, then, watch your brand thrive through word-of-mouth.Featured Image Source: Word-of-Mouth
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