Word of mouth Vs Referral marketing

Referral marketing and word of mouth marketing both are technically used for getting  referrals through our customers but logical meaning of these two terms are little bit different. Do you understand the difference between these two terms? Of course, no one bother to differentiate between these two terms. Therefore, I am going to distinguish between both the terms.

Let us consider you have just started up your business and you are getting some attention from few peoples and you are doing well with your goods and services. If you are able to reach at your customer’s satisfaction level they will defiantly talk more about you in front of their contacts. You will be getting automatically referrals for your good will this is called “word of mouth marketing” in actual manner.

“Word of mouth marketing” is a very powerful term. If your are able to survive in the digital marketing industry with your good will and you have huge lead of your customers then you no need do not put much stress on advertisements. Your customers will automatically do referrals for you. But try to retain your visibility and good will among your customer otherwise it can backfire your business because everyone knows that a bad news spread very fast. If one person is happy with your service he will refer 2-3 friends to you but if they find you failure in business they will spread 10-11 peoples.

This is the only point which differ “word or mouth marketing” with referral marketing. Basically word of mouth marketing is passive in this you don’t need to work directly for that, all the work will be done by your existing customers. Therefore, it is inexpensive and you no need to spend money on it. You have to just work out for it indirectly and need consistency in your good influence.

Referral marketing also stands for getting referrals from your existing customers but in an active manner. In this, you have to do actively something for your customers so that they will refer their contacts to you. It doesn’t hundred percent depends upon your good will in it but you have to give an effective reason to your customers so that they will find doing this for you is very useful. This may a return gift in form of discount voucher and other effective offers.

Suppose you are not able to attract more people towards your customers and maintain your goodwill among them. In this case, the referral marketing will be very helpful for you. In this you no need to ask from your customer for referrals directly but you can send them referral links through e-mails and massages. You need to setup software to generate referral programs which can be purchased from any of the referral marketing company or you can take services of referral marketing from such companies.

If you generate great offers with referrals then it is quit obvious your customers will be eagerly do this for you which will also help in generating great lead on your business and retention of old customers.

Author Bio

I am Mamta, an electronics engineer and a freelance content writer. I have 1.5 year experience in SEO based content writing. I have passion in creative writing and worked on various niche, besides of writing I love singing, sketching and watching movies. I love to weave my ideas, visions and knowledge into words and expression that’s why I am here as writer.