Electronic Word of Mouth (eWOM) is a powerful tool in digital marketing and sales, impacting consumer behavior and brand perception. Here’s how it plays a role in both positive and negative contexts:
Positive eWOM (Good)
- Boosts Credibility: Positive reviews, testimonials, and social media shares build trust among potential customers. When people see others praising a product or service, they are more likely to trust the brand and make a purchase.
- Increases Brand Awareness: Positive eWOM can spread rapidly, reaching a large audience without significant marketing expenditure. Influencers, satisfied customers, and brand advocates can amplify your brand message, making it more visible to new potential customers.
- Enhances Customer Loyalty: When customers share their positive experiences, it not only reinforces their loyalty but also encourages others to engage with the brand. This can lead to repeat purchases and long-term customer relationships.
- Improves SEO: Positive eWOM in the form of reviews and user-generated content can improve your brand’s online visibility. Search engines tend to favor sites with genuine, positive user feedback, which can lead to higher rankings and more organic traffic.
- Drives Conversions: Positive eWOM can directly influence purchasing decisions. Potential customers are more likely to convert when they see others have had a good experience with a product or service.
Negative eWOM (Bad)
- Damages Reputation: Negative reviews or feedback can quickly spread across social media and review platforms, potentially damaging a brand’s reputation. This can lead to a loss of trust and make it harder to attract new customers.
- Reduces Sales: Bad eWOM can deter potential customers from making a purchase. If people see consistent negative feedback, they might choose to buy from competitors instead.
- Increases Customer Acquisition Costs: To counter negative eWOM, companies often have to invest more in marketing and customer service to rebuild their reputation. This can increase the overall cost of acquiring new customers.
- Impacts SEO Negatively: Just as positive reviews can boost SEO, negative reviews can harm it. A flood of bad eWOM can result in lower search engine rankings, making it harder for potential customers to find your brand online.
- Affects Customer Retention: Negative eWOM can lead to higher churn rates. If existing customers see negative feedback or have bad experiences themselves, they might leave for competitors.
Strategies to Manage eWOM
- Encourage Positive Feedback: Actively ask satisfied customers to leave reviews or share their experiences on social media. Offering incentives like discounts or loyalty points can motivate them.
- Monitor Social Media & Review Sites: Regularly check platforms where customers discuss your brand. Quick responses to complaints or negative feedback can mitigate damage.
- Engage with Negative Feedback: Address complaints publicly and offer solutions. This shows that your brand cares about customer satisfaction and is willing to make things right.
- Leverage Positive eWOM: Highlight positive reviews and testimonials on your website and in marketing materials. Sharing user-generated content can also build trust and authenticity.
- Improve Products/Services Based on Feedback: Use both positive and negative eWOM to understand customer needs and improve your offerings. Continuous improvement can turn negative feedback into a positive experience in the future.
In summary, eWOM is a double-edged sword in sales and marketing. While positive eWOM can significantly boost your brand, negative eWOM can be detrimental. Proactive management and engagement are key to harnessing its power effectively.
