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«WOMM» redirects here. For the American radio station, see WOMM-LP.
Word-of-mouth marketing (WOMM, WOM marketing, also called word of mouth advertising) differs from naturally occurring word of mouth, in that it is actively influenced or encouraged by organizations (e.g. ‘seeding’ a message in a networks rewarding regular consumers to engage in WOM, employing WOM ‘agents’). While it is difficult to truly control WOM, research[1] has shown that there are three generic avenues to ‘manage’ WOM for the purpose of WOMM:
- build a strong WOM foundation (e.g. sufficient levels of satisfaction, trust and commitment),
- indirect WOMM management which implies that managers only have a moderate amount of control (e.g. controversial advertising, teaser campaigns, customer membership clubs),
- direct WOMM management, which has higher levels of control (e.g. paid WOM ‘agents’, «friend get friend» schemes).
The success of word-of-mouth marketing depends largely on the nature of the rewards that are used. Research has shown that when the wrong incentives are used to motivate consumers or agents to spread positive word-of-mouth about products or brands, the campaigns can backfire on the organization.[2] Proconsumer WOM has been suggested as a counterweight to commercially motivated word of mouth.[3]
History[edit]
George Silverman, a psychologist, pioneered word-of-mouth marketing when he created what he called «teleconferenced peer influence groups» in order to engage physicians in dialogue about new pharmaceutical products. Silverman noticed an interesting phenomenon while conducting focus groups with physicians in the early 1970s. «One or two physicians who were having good experiences with a drug would sway an entire group of skeptics. They would even sway a dissatisfied group of ex-prescribers who had had negative experiences!»[4]
With the emergence of Web 2.0, many web startups like Facebook, YouTube, MySpace, and Digg have used buzz marketing by merging it with the social networks that they have developed.[citation needed][clarification needed] With the increasing use of the Internet as a research and communications platform, word of mouth has become a more powerful and useful resource for consumers and marketers. It has become possible because, with the advent of the Internet, the process of communication has been simplified due to the disappearance of such communication barriers as distance, linguistic and others. People have become more willing to share their opinions, create thematic communities, which ultimately influenced the WOM.
In October 2005, the advertising watchdog group Commercial Alert petitioned the United States FTC to issue guidelines requiring paid word-of-mouth marketers to disclose their relationship and related compensation with the company whose product they are marketing.[5] The United States FTC stated that it would investigate situations in which the relationship between the word-of-mouth marketer of a product and the seller is not revealed and could influence the endorsement. The FTC stated that it would pursue violators on a case-by-case basis. Consequences for violators may include cease-and-desist orders, fines or civil penalties.[6]
The Word of Mouth Marketing Association, a US American trade group that represents hundreds of companies, has adopted an ethics code stating that manufacturers should not pay cash to consumers in return for recommendations or endorsements.[7]
Research firm PQ Media estimated that in 2008, companies spent $1.54 billion on word-of-mouth marketing. While spending on traditional advertising channels was slowing, spending on word-of-mouth marketing grew 14.2 percent in 2008, 30 percent of that for food and drink brands.[8]
Word of mouth marketing today is both online and through face-to-face interaction. The Ehrenberg-Bass Institute for Marketing Science has shown that to achieve growth, brands must create word of mouth beyond core fan groups—meaning marketers should not focus solely on communities such as Facebook.[citation needed] According to Deloitte, further research has shown that ‘most advocacy takes place offline’—instead it happens in person. According to the Journal of Advertising Research, 75% of all consumer conversations about brands happen face-to-face, 15% happen over the phone and just 10% online. On the other hand, some see social media interaction as being inextricably tied to word of mouth marketing.[9] In 2003, Fred Reichheld implemented the strategy of word-of-mouth marketing by introducing Net Promoter Score, which analyzes the number of Promoters a brand has, who recommend the brand to other people they know through such marketing tactic.
Factors[edit]
According to academic research[10] and Jonah Berger’s bestselling book Contagious: Why Things Catch On,[11] there are six key factors that drive what people talk about and share.[12] They are organized in an acronym called STEPPS, which stands for:
- Social currency — The better something makes people look, the more likely they will be to share it.[13]
- Triggers — Things that are top of mind (i.e., accessible) are more likely to be tip of tongue.[14]
- Emotion — When we care, we share. High arousal emotions increase sharing.[13]
- Public — The easier something is to see, the more likely people are to imitate it.[14]
- Practical value — People share useful information to help others.
- Stories — Trojan horse stories carry messages and ideas along for the ride.
Another key psychological driver of word-of-mouth is interest.[15] As Sernovitz suggests, “nobody talks about boring companies, boring products, or boring ads,”.[16]
Concepts/models[edit]
Three models[edit]
When further research went into developing the concept word-of-mouth marketing, many models behind the word of mouth strategy also developed. These models include the organic inter consumer influence model, the linear marketer influence model and the network coproduction model.
When dealing with the initial and simplest form of word of mouth Marketing it is related to the model of the organic inter-consumer influence model.[17] This means that organizations having no direct input of what is being said about the particular product, it is just one consumer talking to another about product reviews and or customer service experience. The main motivation behind this model is for others to warn and inform potential consumers of a product out of their best interest not for personal gain.[17] This model is referred to being organic because it occurs naturally, meaning it is not planned by the firm and occurs when the consumer wants to share their experience with a certain brand or product.
As research started to progress, marketers found the importance of «influential consumers».[17] So the linear marketer influence model was adopted. The linear marketer influence model introduces the idea of influential customers creating conversations with potential customers and consumers about how a certain product can be beneficial for them to purchase. This model allows organizations to make sure that credible influential sources are spreading the word/ message of the organization and presenting the value proposition of the organization successfully and accurately to the target consumer.[17] This can be done through «targeted advertisements and promotions through credible sources that review the product».[17] Marketers found this model to be an effective model of word-of-mouth marketing and it decreased the chances of negative opinions and attitudes from being spread about a particular product of the organization.
The Network Coproduction Model: This saw marketers introduce «one to one seeding and communication programs».[17] This model encourages conversations between customers about the certain product through releasing information on a particular product.[18] This word-of-mouth model is more focused on online activities, using blogs and online communities as sources in communicating the message of the product. The network coproduction model gives marketers the opportunity to control and manage word of mouth activity online.[17]
- Seeding is one example of how Marketers use the network coproduction model of word-of-mouth marketing. With seeding marketers can use various techniques and approaches these approaches can be indirect like engineering WOM conversations and direct approaches[18][19]
- The engineering approach consists of marketers constructing conversations, so there is more buzz created and the number of conversations based on an organizations product increases.[18]
- A direct approach to seeding is targeting special selected consumers and allowing them to sample products that an organization has. This allows these selected customers to present their feelings towards these products through online communities or blogs.[18]
- Seeding campaigns can offer marketers the ability to reach a new set of consumers. It is most effective when the product is at the beginning stage of its product life style and helps to set the reputation of the brand and product into motion.[18][19]
Buzz[edit]
Marketing buzz or simply «buzz» is a term used in word-of-mouth marketing—the interaction of consumers and users of a product or service serve to amplify the original marketing message.[20] Some describe buzz as a form of hype among consumers,[21] a vague but positive association, excitement, or anticipation about a product or service. Positive «buzz» is often a goal of viral marketing, public relations, and of advertising on Web 2.0 media. The term refers both to the execution of the marketing technique, and the resulting goodwill that is created. Examples of products with strong marketing buzz upon introduction were Harry Potter, the Volkswagen New Beetle, Pokémon, Beanie Babies, and the Blair Witch Project.[21]
Viral effects[edit]
Viral marketing and viral advertising are buzzwords referring to marketing techniques that use pre-existing social networks to produce increases in brand awareness or to achieve other marketing objectives (such as product sales) through self-replicating viral processes, analogous to the spread of virus or computer viruses. It can be word-of-mouth delivered or enhanced by the network effects of the Internet.[22] Viral promotions may take the form of video clips, interactive Flash games, advergames, ebooks, brandable software, images, or even text messages. The goal of marketers interested in creating successful viral marketing programs is to identify individuals with high social networking potential (SNP) – and have a high probability of being taken by another competitor—and create viral messages that appeal to this segment of the population. The term «viral marketing» has also been used pejoratively to refer to stealth marketing campaigns—the unscrupulous use of astroturfing on-line combined with undermarket advertising in shopping centers to create the impression of spontaneous word-of-mouth enthusiasm.[23]
Analyzing WOM[edit]
Consumers may promote brands by word-of-mouth due to social, functional, and emotional factors.[24]
Research has identified thirteen brand characteristics that stimulate WOM, namely:[25]
- Age of the brand in the marketplace: A long history of a brand or product can create an emotional relationship between the consumer and itself. This can stimulate WOM if the brand is known to be reliable or effective evident by the existence of its place in a market, this can be effective for companies for communicating their strength to other competitors.
- Type of good: Depending on the type of product, experiences customers have with a product may mean that WOM can be used to suggest brands and products to others when in different forms of situations. An example of this could be a household or garden object.
- Complexity: WOM is used in this instance to help explain the use of a product or its effectiveness to whether of not it will serve its purpose or need.
- Knowledge about a brand: Similar to complexity, WOM can be used to describe the effectiveness of a brand, the history behind it and what the main purpose of the product is. WOM is also used to identify a company’s future whether it be positive or negative.
- Differentiation: An experience with different products within a market can mean that WOM can offer solutions to others and explain which products and brands could be more effective than others when looking at similar products serving the same need. Previous consumers can help describe strengths and weaknesses of products and help make the correct decision.
- Relevance of a brand to a broad audience
- Quality: esteem given to a brand
- Premium: WOM regarding premiums can refer[26] too different packaging of a brands products e.g. during Easter or over Christmas. Different and exciting packaging and deals can stimulate a huge source of WOM communication and can lead to brands becoming extremely popular over short periods of time. An example of this would be supermarket ‘bulk buy’ deals over the Christmas holiday period.
- Visibility
- Excitement: WOM can be used to promote up and coming products which results in huge amounts of excitement. An example of this could be new technology being released to the public and advances in medical technology and vehicles. These examples are best used to demonstrate excitement as a result of word of mouth marketing.
- Satisfaction
- Perceived risk: WOM can be used to warn other potential buyers that a product is not what it claims to be. An example of this may be online buying as a result of marketing strategies from phony companies who focus on producing fake goods that look and seem like the legitimate product. An example of this would be fake iPhones and clothing (most significantly shoes and sports wear).
- Involvement
This research also found that while social and functional drivers are the most important for promotion via WOM online, the emotional driver predominates offline.
Advantages and disadvantages[edit]
Word of mouth marketing can be very effective in the communication of the advertising campaign as it can offer a solution to «penetrating consumers guards» to get them talking about a particular product.[citation needed]
Many marketers find this type of marketing strategy advantageous to the entire advertising campaign of a certain product. One positive aspect of this marketing strategy is that sources of this word-of-mouth advertising are mostly personal. This means that they are not subject to persuasion from the organization for personal gains or subject to being biased.[citation needed] This has a positive effect on the advertising campaign as it shows what consumers honestly think about a product and the motivation to try the particular product or services increases, due to the consumer being recommended by a trusted reliable source.
However, there are some disadvantages and criticisms with word-of-mouth marketing. Word-of-mouth marketing is subject to a lot of clutter. Unlike traditional word of mouth, electronic WOM is able to include not only positive reviews but also negative reviews made by former, actual and potential customers online in a timely manner.[27] As a result, word-of-mouth marketing may sometimes not be beneficial in changing or influencing consumer’s attitudes and perception especially from an organic source as negative conversations may be held about the brand.[citation needed] This is due to the organic source not finding the product beneficial and therefore has a negative perception of the product, which is then shared. Although positive word-of-mouth positively influences purchase intention while negative word-of-mouth decreases customer purchase intention, the effect is asymmetric. Compared with positive word-of-mouth, negative word-of-mouth has a larger effect on purchase intentions.[28]
One more criticism about this marketing strategy is that people tend to be offput and feel deceived when they find out that a person who influenced their attitude about a product has been working towards or benefiting from doing that.[29] This ultimately has the potential to make consumers change their attitude, which can have a negative impact on the firm’s product reputation. This may be the case as consumers feel that it wasn’t in the source’s interest to tell what their full perceptions were of the brand.[29] Similarly, engineered word of mouth by internet-campaigns companies can be seen as artificial and sometime based on information considered private.[19]
See also[edit]
- Social media marketing
- Two-step flow of communication
- Evangelism marketing
- Viral marketing
- Marketing buzz
- Guerrilla marketing
- User-generated content
- Online Brand Defense — A type of consumer behavior that has been considered creating significant impact on Word-of-mouth
References[edit]
- ^ Lang, Bodo; Hyde, Ken (2013). «Word of mouth: what we know and what we have yet to learn». Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behavior. 26: 1–18.
- ^ Anghelcev, George (2015). «Unintended effects of incentivizing consumers to recommend a favorite brand». Journal of Marketing Communications. 21 (3): 210–223. doi:10.1080/13527266.2012.747980. S2CID 167589726.
- ^ Lang, Bodo; Lawson, Rob (2013). «Dissecting Word-of-Mouth’s Effectiveness and How to Use It as a Proconsumer Tool». Journal of Nonprofit & Public Sector Marketing. 25 (4): 374. doi:10.1080/10495142.2013.845419. S2CID 168011975.
- ^ «The history of word of mouth marketing. — Free Online Library».
- ^ «Is Influencer Marketing Ethical?». GrowInfluence.com. Retrieved 2015-06-11.
- ^ Shin, Annys (December 12, 2006). «FTC Moves to Unmask Word-of-Mouth Marketing». The Washington Post. Retrieved 2009-01-10.
- ^ Joshi, Pradnya (2009-07-13). «Approval by a Blogger May Please a Sponsor». The New York Times. ISSN 0362-4331. Retrieved 2015-06-17.
- ^ «Adweek».
- ^ «Word of Mouth Trumps All in Today’s Marketing». Austin Business Journal. December 16, 2014. Retrieved December 16, 2014.
- ^ Berger, Jonah (2014). «Word of mouth and interpersonal communication: A review and directions for future research». Journal of Consumer Psychology. 24 (4): 586–607. doi:10.1016/j.jcps.2014.05.002.
- ^ Berger, Jonah (2013). Contagious: Why Things Catch On. UK: Simon & Schuster. pp. 22–24. ISBN 978-1471111709.
- ^ ««Fifty Percent of ‘The Tipping Point’ is Wrong.» Jonah Berger Shows You Which Half». 18 March 2013.
- ^ a b Berger, Jonah; Milkman, Katherine L (2012). «What Makes Online Content Viral?». Journal of Marketing Research. 49 (2): 192. doi:10.1509/jmr.10.0353. S2CID 29504532.
- ^ a b Berger, Jonah; Schwartz, Eric M (2011). «What Drives Immediate and Ongoing Word of Mouth?». Journal of Marketing Research. 48 (5): 869. doi:10.1509/jmkr.48.5.869. S2CID 145193373.
- ^ Berger, Jonah A. and Schwartz, Eric M., What Do People Talk About? Drivers of Immediate and Ongoing Word-of-Mouth (April 25, 2011). Journal of Marketing Research, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1822246
- ^ Sernovitz, Andy (2006). Word of Mouth Marketing: How Smart Companies Get PeopleTalking. Chicago: Kaplan Publishing. p. 6. ISBN 978-0983429036.
- ^ a b c d e f g Robert V. Kozinets; Kristine de Valck; Andrea C. Wojnicki & Sarah J.S. Wilner (March 2010). «Networked Narratives: Understanding the Word-of-Mouth Marketing in Online Communities». Journal of Marketing.
- ^ a b c d e Koeck, Benjamin; Marshall, David (2015). «Word of Mouth Theory Revisited: The Influence of New Actors on Seeding Campaigns». Advances in Consumer Research.
- ^ a b c Sela, A., Shekhtman, L., Havlin, S., & Ben-Gal, I. (2016). «Comparing the diversity of information by word-of-mouth vs. web spread» (PDF). In EPL (Europhysics Letters), 114(5), 58003.
{{cite web}}
: CS1 maint: multiple names: authors list (link) - ^ Thomas Jr, Greg (2006-07-11). «Building the buzz in the hive mind». Journal of Consumer Behaviour. 4 (1): 64–72. doi:10.1002/cb.158. Archived from the original on 2017-10-19. Retrieved 2009-06-08.
- ^ a b Renée Dye (2001-01-29). «the Buzz on Buzz». Harvard Business Review.
- ^ Howard, Theresa (2005-06-23). «USAToday: Viral advertising spreads through marketing plans». USA Today. Retrieved 2010-05-27. June 23, 2005, 2005
- ^ «Wired: Commentary: Sock Puppets Keep It Shill on YouTube». 2007-05-08. May 8, 2007
- ^
Lovett, Mitchell; Peres, Renana; Ron Shachar (2013). «On brands and word-of-mouth» (PDF). Journal of Marketing Research. 50 (4): 427–444. doi:10.1509/jmr.11.0458. S2CID 31344589.[…] this empirical analysis […] argues that consumers spread the word on brands as a result of three drivers: social, emotional, and functional.
- ^
Lovett, Mitchell; Peres, Renana; Ron Shachar (2013). «On brands and word-of-mouth» (PDF). Journal of Marketing Research. 50 (4): 427. doi:10.1509/jmr.11.0458. S2CID 31344589. - ^ «5 of the biggest concepts in word of mouth». WordofMouth.org. Retrieved 2016-03-30.
- ^ Teng, Shasha; Wei Khong, Kok; Wei Goh, Wei; Yee Loong Chong, Alain (2014). «Examining the antecedents of persuasive eWOM messages in social media». Online Information Review. 38 (6): 746. doi:10.1108/OIR-04-2014-0089.
- ^ Baker, Andrew M.; Donthu, Naveen; Kumar, V. (2016-04-01). «Investigating how Word-of-Mouth Conversations about Brands Influence Purchase and Retransmission Intentions». Journal of Marketing Research. 53 (2): 225–239. doi:10.1509/jmr.14.0099. ISSN 0022-2437. S2CID 145566481.
- ^ a b Kotler, Philip; Keller, Kevin Lane (2012). Marketing Management. Prentice Hall. ISBN 978-0-13-210292-6.
Last Update: Jan 03, 2023
This is a question our experts keep getting from time to time. Now, we have got the complete detailed explanation and answer for everyone, who is interested!
Asked by: Watson Beer DVM
Score: 4.4/5
(28 votes)
Word-of-mouth marketing differs from naturally occurring word of mouth, in that it is actively influenced or encouraged by organizations. While it is difficult to truly control WOM, research has shown that there are three generic avenues to ‘manage’ WOM for the purpose of WOMM: 1. Build a strong WOM foundation, 2.
What do you mean by word of mouth advertising?
Word-of-mouth marketing (WOM marketing) is when a consumer’s interest in a company’s product or service is reflected in their daily dialogues. Essentially, it is free advertising triggered by customer experiences—and usually, something that goes beyond what they expected.
What is an example of word of mouth advertising?
Word of mouth marketing is when a consumer’s interest is reflected in their everyday dialogue. … Netflix, for example, used word of mouth marketing to make binge-watching popular with its organic tagline Netflix and chill. The company promoted it on social media which became a huge success.
How successful is word of mouth advertising?
In a recent study, 64% of marketing executives indicated that they believe word of mouth is the most effective form of marketing. However, only 6% say they have mastered it.
How do I advertise on word of mouth?
7 ways to implement word-of-mouth marketing in your strategy
- Encourage user-generated content (UGC) …
- Share customer testimonials/reviews. …
- Get product ratings on your site. …
- Offer an incentive: …
- Create a referral program. …
- Connect with industry influencers and thought leaders.
34 related questions found
Why word of mouth advertising is the best?
Consumers trust their friends. This is why word of mouth marketing is the most valuable source of marketing. According to a Nielsen study, 92% of consumers believe suggestions from friends and family more than they do advertising — this stat alone solidified the word of mouth use case.
What is word of mouth recommendation?
Word of mouth definition: Influencing and encouraging organic discussions about a brand, organization, resource, or event. To put it most simply, word of mouth marketers and advertisers seek to create something worth talking about and then actively encourage people to talk about it.
Is word of mouth Kumar valuable?
According to Kumar, Petersen, and Leone, your most valuable customers are those whose word of mouth brings in the most profitable new customers, regardless of how much they themselves buy. … High-purchasing customers who say they’ll recommend your firm to others often don’t bother.
What percentage is word of mouth?
Word of mouth is the most powerful tool brands can use. Why wouldn’t you trust a recommendation from someone you know? Well, according to Nielsen, 92% of consumers around the world now say they trust word-of-mouth or recommendations from friends and family, above all other forms of advertising.
What percentage of business comes from word of mouth?
85 Percent of Small Businesses Get Customers Through Word of Mouth.
What companies rely on word of mouth?
5 Brilliant Examples of Word-of-Mouth Marketing
- Pinterest. Pinterest thrives on user-generated content. …
- Threadless. Growing a community is an invaluable way to gain insight about your audience while grooming brand advocates. …
- Coca-Cola. …
- Dropbox. …
- Casper Mattress Company.
Is word of mouth a channel?
So, what is word of mouth as a channel? Successful businesses often rely on many different marketing channels. Paid ads, content marketing, social media, and email marketing are among the most popular. But word of mouth is never mentioned as a channel.
Is Word of Mouth inbound marketing?
Word of mouth marketing (WOMM) powered by the emergence of inbound marketing, has the power to quickly build up or tear down the reputations of products, services and organizations. But for so long, WOMM was intangible. … Word of mouth inbound marketing has two distinct phases in the new model.
Why is word-of-mouth so important?
The importance of word of mouth.
WOM recommendations are a crucial marketing tool for any brand. This is mainly because since they come from sources familiar to us already, i.e. friends and family, and due to the ‘buzz’ user-generated content can induce, they’re more trustworthy and valuable.
What are the benefits of word-of-mouth?
Advantages Of Word Of Mouth Marketing
- Free-of-Cost Advertising. …
- Develop Brand Loyalty. …
- Online Community. …
- Build Brand’s Social Proof. …
- Increase Your Conversions & Sales. …
- Highlight Your USP. …
- Create Interesting “Viral” Campaigns. …
- Visuals Trigger WOM.
What is word-of-mouth means?
: orally communicated also : generated from or reliant on oral publicity word-of-mouth customers a word-of-mouth business. word of mouth. noun phrase. Definition of word of mouth (Entry 2 of 2) : oral communication especially : oral often inadvertent publicity.
Why word of mouth is bad?
An advantage of word-of-mouth advertising is the message can spread quickly. At the same time, this is a disadvantage. If one customer has a bad experience, the company may lose repeat business from the customer. … Some companies spark word-of-mouth advertising by participating on social media networks.
Are reviews word of mouth?
Online reviews make people take action. They are either going to contact you or physically visit your business. … And, while word of mouth can be a great way to make new customers aware of your business, you will still need a good online reputation to hook those word-of-mouth referrals and turn them into a customer.
What is word of mouth and how can it be more powerful than advertising?
Whether compared to traditional advertising, media mentions, or promotional events, word of mouth is more useful in creating new users and customers. Indeed, McKinsey suggests that “word of mouth generates more than twice the sales of paid advertising in categories as diverse as skincare and mobile phones.”
Is word of mouth a metric?
It was tied to active users, it was a stable metric, and we could influence it with product and marketing initiatives. After Zynga I teamed up with Mike Taylor (co-founder at Ladder) to broaden this concept beyond DAU and for other industries, to what we now call the Word of Mouth Coefficient (or WOM coefficient).
Which is more powerful positive or negative word of mouth?
Abstract. Negative information normally has more impact on attitude and cognition than positive information, but there is evidence that positive word of mouth (PWOM) usually has more effect on purchase intention than negative word of mouth (NWOM).
What are the elements of mouth?
The two main functions of the mouth are eating and speaking. Parts of the mouth include the lips, vestibule, mouth cavity, gums, teeth, hard and soft palate, tongue and salivary glands. The mouth is also known as the oral cavity or the buccal cavity.
How do you increase word of mouth referrals?
8 Ways Retailers Can Increase Word of Mouth and Referrals [Updated for 2019]
- Offer exceptional products and customer service. …
- Spell it out for customers. …
- Incentivize people to refer their friends. …
- Identify and engage brand advocates. …
- Run an influencer campaign. …
- Run a contest and use it to measure word of mouth.
What are some tips for enjoying positive word of mouth?
Here are ten ways to grow positive word of mouth.
- Provide Good Customer Service. …
- Make It Easy for Your Customers to Contact You. …
- Maintain a Positive Image. …
- Clean and Pleasant Surroundings Are a Must – Even on the Web! …
- Ask for Testimonials and Display Them Prominently. …
- Give Lessons or Seminars.
How fast does negative word-of-mouth spread?
Negative word-of-mouth reviews have a higher impact and spread faster than positive feedback. According to word-of-mouth marketing statistics, 96% of unhappy customers don’t complain to the company about a bad experience; however, they share their bad experience with about 9-15 people.
Word-of-Mouth Advertising Definition:
An unpaid form of promotion in which satisfied customers tell other people how much they like a business, product or service
Word-of-mouth advertising is important for every business, as
each happy customer can steer dozens of new ones your way. And it’s
one of the most credible forms of advertising because a person puts
their reputation on the line every time they make a recommendation
and that person has nothing to gain but the appreciation of those
who are listening. What are you doing to make sure your potential
ambassadors feel confident enough in your business to recommend it?
What are you doing to trigger word-of-mouth?
Here are some tips to help you generate word-of-mouth:
Word-of-mouth is triggered when a customer experiences
something far beyond what was expected. Slightly exceeding
their expectations just won’t do it. You’ve got to go above and
beyond the call of duty if you want your customers to talk about
you.
Don’t depend on your staff to trigger word-of-mouth by
delivering «exceptional customer experience.» Good customer
service is sporadic, even in the best establishments. The customer
who receives exceptional service today can’t be sure their friends
will receive the same tomorrow, so even the most well-served are
unlikely to put their necks on the line and make a recommendation.
Deep down, customers know service comes from an individual, not
from an establishment. And even the best people have bad days.
Physical, nonverbal statements are the most dependable in
triggering word-of-mouth. These statements can be
architectural, kinetic or generous, but they must go far beyond the
boundaries of what’s normal. If you don’t want to be average, why
do you insist on being normal? Here are some examples of these
statements:
- Architectural. The piano store that looks
like a huge piano, with black and white keys forming the long
awning over the long front porch. The erupting volcano outside the
Mirage in Las Vegas. A glass-bottom floor that allows customers to
see what’s happening on the floor below them. Do you remember when
McDonalds began building attached playgrounds to all their
restaurants? It’s worked like magic for more than 20 years. - Kinetic. The tossing of fresh fish from one
employee to another at Pike Place Market in Seattle. The magical,
twirling knives of the tableside chefs at Benihana. Kissing the
codfish when you get «screeched in» at any pub in Newfoundland. (A
screech is a loud and funny ceremony during which
non-Newfoundlanders down a shot of cheap rum, repeat some phrases
in the local dialect and kiss a codfish. Everyone who visits that
wonderful island returns home with a story of being «screeched
in.») While it may at first seem like a kinetic word-of-mouth
trigger is a violation of #2 above, «Don’t depend on your
staff…,» it’s really not. A kinetic word-of-mouth trigger is
constantly observable by management. It isn’t a «customer service»
experience delivered privately, one on one. - Generous. Are you willing to become known
as the restaurant that allows its guests to select—at no
charge—their choice of desserts from an expensive dessert menu?
You can cover the hard cost of it in the prices of your entrees and
drinks. Flour, butter and sugar are cheap advertising. Are you the
jewelry store that’s willing to become known for replacing watch
batteries at no charge, even when the customer hasn’t purchased
anything and didn’t buy the watch from your store? Word will
spread. And watch batteries cost less than any type of
advertising.
Architectural, kinetic, generous: These are the flour, butter
and sugar of effective word-of-mouth. Will you put these rich
ingredients into the mouths of your potential word-of-mouth
ambassadors?
Budget to deliver the experience that will trigger
word-of-mouth. Sometimes your word-of-mouth budget will be
incremental, so that its cost is tied to your customer count. Other
times it’ll require a capital investment, so that repayment will
have to be withheld from your advertising budget over a period of
years. The greatest danger isn’t in overspending but in under
spending. Under spending on a word-of-mouth trigger is like buying
a ticket that only takes you halfway to Europe.
Don’t promise it in your ads. Although it’s tempting to
promise the thing you’re counting on to trigger word-of-mouth,
these promises will only eliminate the possibility of your
customers becoming your ambassadors. Why would a customer repeat
what you say about yourself in your ads? You must allow your
customers to deliver the good news. Don’t rob your ambassadors of
their moment in the sun.
Word-of-mouth marketing is a marketing method that encompasses any and all ways people talk about your company with others. It’s a marketing method that organically drives discussions about your business.
A word-of-mouth marketing strategy is a plan to generate buzz and interest in a product or service through organic, viral methods. This can be done through online channels like social media and forums, or offline through face-to-face interactions and events.
Definition
Word-of-mouth marketing is defined as a marketing strategy that brands use to encourage, influence, or impress people or target audiences to organically talk about your brand, product, service, campaign, event, or experience with others.
This marketing strategy is usually used to generate more interest in what you’re offering, to increase sales or conversions, or simply to get your name out there. Word-of-mouth marketing can be a very effective way to promote your business. After all, people are more likely to listen to and trust recommendations from people they know, rather than a faceless company.
Why Word-of-Mouth Strategy Matters for Retailers
There are a few key reasons why retailers should focus on word-of-mouth advertising:
- It’s cost-effective. Word-of-mouth marketing is one of the most cost-effective marketing strategies there is. It doesn’t require a big budget, and it can be done through organic channels like social media, online forums, and face-to-face interactions.
- It’s credible. People are more likely to listen to and trust recommendations from people they know, rather than a faceless company. Word-of-mouth marketing can help build trust and credibility for your brand.
- It’s viral. Word-of-mouth marketing is a form of organic or viral marketing. It’s a way to organically spread the word about your brand or product through social interactions. If people are talking about your brand, it can quickly lead to more people talking about your brand.
- It’s trackable. With the right tools, you can track word-of-mouth marketing campaigns and measure their effectiveness. This data can be used to improve future campaigns.
How to Build Word-of-Mouth Marketing Strategies
There are a few key things you can do to build word-of-mouth marketing strategies
1. Make it easy for people to talk about your brand
Make sure your branding is strong and easily recognizable. Use social media, online forums, and face-to-face interactions to get people talking about your brand.
2. Create shareable content
Create content that is interesting, informative, and shareable. This could be blog posts, infographics, videos, or any other type of content that people will want to share with others.
3. Focus on customer service
Giving outstanding customer service is a great way to get people talking about your brand. Word-of-mouth marketing is all about creating positive experiences that people will want to share with others.
4. Host events and meetups
Hosting events and meetups is a great way to get people talking about your brand in person. This could be anything from a simple meetup to a larger conference or event.
5. Offer incentives and discounts
Offering incentives and discounts are a great way to get people talking about your brand. This could be anything from a simple discount code to a more elaborate referral program.
6. Keep track of your progress
Keep track of your word-of-mouth marketing campaigns with the help of social media analytics, Google Analytics, and other tools. This data can be used to improve future campaigns.
Word-of-Mouth Marketing Strategies
Some of the ways to make and use word-of-mouth marketing strategies are
1. Create triggers for word of mouth
Make sure your branding is strong and easily recognizable. Use social media, online forums, and face-to-face interactions to get people talking about your brand.
2. Monitor mentions and responds ASAP to keep conversations rolling
Keep track of your word-of-mouth marketing campaigns with the help of social media analytics, Google Analytics, and other tools. This data can be used to improve future campaigns.
3. Appeal to your audience
Create content that is interesting, informative, and shareable. This could be blog posts, infographics, videos, or any other type of content that people will want to share with others.
4. Provide value to customers
Giving outstanding customer service is a great way to get people talking about your brand. Word-of-mouth marketing is all about creating positive experiences that people will want to share with others.
5. Actively gather and curate user-generated content
Offering incentives and discounts are a great way to get people talking about your brand. This could be anything from a simple discount code to a more elaborate referral program.
6. Tap into emotion
Focus on creating emotional connections with your audience. This could be anything from evoking happiness or laughter to tugging at heartstrings. Emotional content is more likely to be shared than rational content.
7. Get product ratings on your site
Including customer ratings and reviews on your site can help to increase word-of-mouth marketing. This is because potential customers will see that others have had positive experiences with your brand.
8. Encourage user-generated content (UGC)
Encouraging users to generate their own content, such as blog posts, videos, or photos, is a great way to get people talking about your brand. This is because it helps to create a sense of community around your brand.
9. Ask for reviews and recommendations directly
Asking customers for reviews and recommendations is a great way to get people talking about your brand. This is because it helps to create social proof around your brand.
10. Tell your story
Telling your brand’s story is a great way to get people talking about your business. This is because it helps to create an emotional connection with your audience.
11. Extend your brand’s reach through employee advocacy
Encouraging employees to talk about your brand is a great way to extend your reach. This is because employees are trusted sources of information.
12. Create exclusivity
Creating a sense of exclusivity around your brand is a great way to get people talking about your business. This could be anything from offering exclusive discounts to VIP members.
13. Assemble your army of influencers and brand ambassadors
Working with influencers and brand ambassadors is a great way to get people talking about your brand. This is because they have a large reach and can help to create social proof around your brand.
14. Boost positive social comments and customer stories
Highlighting positive social comments and customer stories is a great way to get people talking about your brand. This is because it helps to create a sense of community around your brand.
15. Provide customer service that over-delivers
When customers are happy with your product or service, they’re more likely to tell their friends and family about it. This word-of-mouth marketing is incredibly valuable, as it can help attract new customers and create loyalty among your existing customer base. Word-of-mouth marketing is all about creating positive experiences that people will want to share with others.
16. Create hashtags
Creating branded hashtags is a great way to get people to talk about your brand. This is because it helps to create a sense of community around your brand.
17. Offer freebies
Offering freebies is a great way to get people talking about your brand. This could be anything from a free product sample to a discount code.
18. Conduct giveaways and contests
Conducting giveaways and contests is a great way to get people talking about your brand. This is because it helps to create a sense of community around your brand.
19. Focus on creating great content
Content is king when it comes to Word-of-Mouth Marketing. This is because great content is something that people will want to share with others.
20. Make it easy to share your content
Make sure that your content is easy to share by using social sharing buttons or embeddable links. This will make it more likely for people to share your content with their social network.
21. Use influencers and brand ambassadors
Working with influencers and brand ambassadors is a great way to get your content seen by more people. This is because they have a large reach and can help to promote your brand.
Word-of-Mouth Marketing and Referral Marketing
are two terms that are often used interchangeably, but they actually refer to two different types of marketing. Word-of-Mouth Marketing is when customers talk about your brand to their friends, family, and acquaintances. Referral Marketing is when customers share your brand with their social network through a link or code.
While Word-of-Mouth Marketing can be more organic and happen naturally, Referral Marketing is more structured and deliberate. Both Word-of-Mouth Marketing and Referral Marketing can be extremely effective in growing your business.
Examples of Word-of-Mouth Marketing Campaigns
1. Coca-Cola’s Share a Coke campaign:
Coca-Cola’s Share a Coke campaign was a Word-of-Mouth Marketing campaign that encouraged people to share photos of themselves drinking Coca-Cola with their friends. The campaign was extremely successful, generating millions of social media impressions and increasing sales by 3%.
2. Ford’s Word of Mouth Marketing campaign
Ford’s Word of Mouth Marketing campaign was a brand-advocate-based Referral Marketing campaign that also channelized influencer movements. Using referral programs was also useful for the business model. The campaign was successful, generating over 1 million leads.
3. Netflix
Netflix understands its customers’ wants and needs by using the data they provide. This way, Netflix not only recommends shows to users but creates entire seasons of new content that is suited to the platform’s biggest interests. Using this data in a logical manner, the firm has been able to improve consumer sentiment, resulting in an army of Netflix influencers who extol the company’s virtues on several social media platforms. This free advertising has allowed the business to expand rapidly beyond its competitors such as Amazon Prime, Hulu, and even YouTube.
4. Sephora’s Beauty Talk Word of Mouth Marketing campaign
Sephora’s Beauty Talk Word-of-Mouth Marketing campaign was a Word-of-Mouth Marketing campaign that encouraged customers to share their favorite Sephora products with their friends. The campaign was successful, generating millions of social media impressions and increasing sales by 5%.
5. Dunkin’ Donuts
Not only is Dunkin’ Donuts a vital part of American culture, but it has become a tourist destination for many. The delicious and affordable product has been made into a brand that Americans love, with staunch followers around the world. Thanks to these amazing people, Dunkin’ Donuts have found innovative ways to utilize word-of-mouth marketing. Social media is a powerful platform for brands to connect with their customers. By posting unique content and running competitions, followers are encouraged to engage with the brand on a regular basis. This can involve liking or sharing content, or even creating their own around the brand to show their experience. For example, one company’s hard work paid off with 15 million Facebook fans, 1.5 million Instagram followers, and 1.2 million Twitter followers.
Here is a video by Marketing91 on Word of mouth Marketing.
Benefits of Word-of-Mouth Marketing
1. Increased trust and brand visibility
When potential customers see that their friends, relatives, or other people they know and trust are talking about your brand, they’re more likely to pay attention. Word-of-mouth marketing can help increase trust in your brand, as well as brand visibility.
2. Make a meaningful impact on customers through authenticity
People can smell in authenticity from a mile away. Word-of-mouth marketing is an opportunity to make a meaningful impact on potential customers by being authentic and transparent. When people see that you’re genuine, they’re more likely to trust you and do business with you.
3. Earn long-term brand loyalty
People are more likely to be loyal to a brand that they trust. Word-of-mouth marketing can help you earn long-term brand loyalty from customers. If you can get people talking about your brand, you’re more likely to keep them as customers for the long haul.
4. Get more bang for your buck
Word-of-mouth marketing is one of the most cost-effective marketing strategies there is. It doesn’t require a big budget, and it can be done through organic channels like social media, online forums, and face-to-face interactions.
5. Reach a wider audience
Word-of-mouth marketing can help you reach a wider audience than you would with traditional marketing methods. If people are talking about your brand, it can quickly lead to more people talking about your brand.
6. Boost sales and conversions
If done right, word-of-mouth marketing can be a powerful tool for boosting sales and conversions. People are more likely to listen to and trust recommendations from people they know, rather than a faceless company.
7. Get feedback and improve your product
Word-of-mouth marketing can also be a way to get feedback about your product or service. If people are talking about your brand, you can quickly learn what they like and don’t like. This data can be used to improve your product or service.
8. Drive social media engagement
Word-of-mouth marketing can help drive social media engagement. When people are talking about your brand, they’re more likely to share it on social media. This can help increase your reach and get more people talking about your brand.
9. Word of mouth is the most powerful form of marketing
Last but not least, word of mouth is the most powerful form of marketing. It’s trusted, authentic, and free. What more could you ask for? If you can get people talking about your brand, you’re on your way to success.
Conclusion!
Word-of-mouth or WOM marketing is still one of the most powerful tools in a business’s arsenal to optimize a business or brand presence via positive organic word. In the digital and social media marketing age, it has taken on a new form, but the bottom line is that satisfied customers lead to new customers.
There are a few key things to remember when pursuing word-of-mouth marketing:
- First, focus on creating satisfied customers. This is the foundation of any good word-of-mouth marketing strategy.
- Second, take advantage of social media and online reviews. Make it easy for customers to leave positive reviews and word-of-mouth recommendations.
- Finally, focus on customer loyalty. Once you have a satisfied customer, work hard to keep them coming back.
By following these tips, you can tap into the power of word-of-mouth marketing and create a steady stream of new customers.
What are your thoughts on word-of-mouth marketing? Let us know in the comments below!
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What Is Word-of-Mouth Marketing?
Word-of-mouth marketing (or WOM marketing) is when a consumer’s interest in a company’s product or service is reflected in their daily dialogues. Essentially, it is free advertising triggered by customer experiences—and usually, something that goes beyond what they expected.
Word-of-mouth marketing can be encouraged through different publicity activities set up by companies or by having opportunities to encourage consumer-to-consumer and consumer-to-marketer communications. Also referred to as «word-of-mouth advertising,» WOM marketing includes buzz, viral, blog, emotional, and social media marketing.
Key Takeaways
- Word-of-mouth marketing (WOM marketing) happens when consumers talk about a company’s product or service to their friends, family, and to others with whom they have close relationships.
- WOM marketing is one of the most powerful forms of advertising as 88% of consumers trust their friends’ recommendations over traditional media.
- Companies can encourage WOM marketing by exceeding expectations on a product, providing good customer service, and giving exclusive information to consumers.
- The Word of Mouth Marketing Association (WOMMA) cites the best word-of-mouth marketing strategies as being honest, credible, social, repeatable, measurable, and respectful.
- WOM marketing includes various marketing techniques, such as buzz, blogs, and social media marketing.
Understanding Word-of-Mouth Marketing
Word-of-mouth marketing differs from natural word-of-mouth references to a company’s products and services in how it may come as the result of a promotion, encouragement, or other influence by a company, otherwise known as «seeding.»
When a diner has a wonderful time at a restaurant because their expectations were exceeded and later tweets about it, or when someone had a great experience using a product in a new way and tells everyone they know about it, those are examples of word-of-mouth marketing. Also, word-of-mouth marketing does not stop at the first interaction; it tends to lead to a cascade of follow-on interactions.
The encouragement on the part of a company may take one of several forms. The best way is to give them a reason to talk, such as exceeding expectations or providing insider skills or information about a product.
Other strategies include offering consumers new ways to share information about a company’s products and services, and engaging and interacting with the consumer, such as through exemplary customer service. This is especially valuable with social media-based customer service, which provides for seamless sharing and promotion.
Benefits of Word-of-Mouth Marketing
Eighty-eight percent of people around the world said they trust recommendations from friends and family (earned media) above all other forms of advertising. This shows just how effective word-of-mouth marketing can be.
Consumers are more emotionally bonded to a company when they feel they are listened to by the company. That is why many companies will have sales representatives discuss their products and services with consumers personally or through a feedback phone line. This kind of interaction, as well as promotional events, can stimulate conversations about a company’s product.
There is a significant temptation to fabricate word-of-mouth marketing. Accordingly, the Word of Mouth Marketing Association (WOMMA) crafted a code of ethics checklist for the industry, advising that the best word-of-mouth marketing strategies are credible, social, repeatable, measurable, and respectful, and there is no excuse for dishonesty.
WOM marketing expert Andy Sernovitz has boiled down WOMMA’s code of ethics into three key rules to avoid issues:
- Say who you are representing (always disclose a relationship)
- Say only what you believe (be honest with an opinion)
- Never lie about who you are (be honest about your identity)
What Are Some Examples of Word-of-Mouth Marketing?
Word-of-mouth marketing includes the marketing tactics companies use to prompt their consumers to talk about their levels of satisfaction with the company’s service or product. These strategies include brand loyalty programs, which reward customers for repeated business and provide them platforms to provide user feedback; giveaways, contests, and sponsored influencers.
What Is the Digital Version of Word-of-Mouth Marketing?
Digital word-of-mouth marketing employs technology, particularly the Internet, to facilitate word-of-mouth exchanges. Review boards, social media sites, and blogs are popular digital platforms consumers use to share their experiences, good and bad, and these shared testimonials significantly influence consumer purchase decisions.
Why Is Word-of-Mouth Marketing So Important?
Word-of-mouth marketing is important as it is an effective way to increase sales, promote products and services, increase brand recognition, and build customer loyalty. Many companies employ strategies that prompt customers to recommend their services and/or products and share positive experiences. Essentially, companies create the spark that causes the firestorm of chatter among consumers, and since studies show that most people trust the advice of family and friends, focusing on word-of-mouth marketing can be more beneficial and cost-effective than other forms of marketing.
The Bottom Line
Word-of-mouth (WOM) marketing is when a consumer shares a positive experience with their peers about a good or service. WOM marketing is great for businesses as it generates business without incurring additional marketing costs. Businesses can, however, purposely contribute to word-of-mouth marketing efforts.
WOM marketing is usually experienced over dinner parties, texts, and casual encounters between friends and family. It can also be set through buzz, viral media, blogs, and social media marketing.
Looking for new ways to grow your customer base? Don’t forget about wowing the customers you already have, to generate word-of-mouth marketing. Think of the last time you recommended your favorite restaurant, clothing item, or other product to a friend. You probably shared because you loved your experience. The same goes for your company – when customers are wowed by your business, they naturally want to spread the good word.
This excitement to share is what drives word-of-mouth marketing (also called WOM marketing, WOMM, or word-of-mouth advertising). And this sharing leads to new customers, because the people who hear your customers’ word of mouth highly trust the word of their peers. So, word-of-mouth marketing could be your secret weapon for growth – especially because it often happens for free.
Athough word-of-mouth marketing depends on your customers and fans, it’s not out of your control. There are many ways to further your word-of-mouth marketing strategy. Below, we cover everything about the power of word of mouth, from what sets word of mouth apart from all other types of marketing to how you can harness word-of-mouth marketing to scale your own business.
Word-of-mouth marketing (WOM marketing) occurs when people talk to others about your brand, products, or services, via any medium. It also includes any actions your business takes to encourage people to share their experiences with your brand and recommend others on your behalf. This results in free, or nearly free, advertising for your brand.
Some common forms of word-of-mouth marketing are reviews, social media shares, and referrals.
What prompts word-of-mouth marketing?
Usually, word of mouth is prompted by an above-and-beyond positive experience someone has had with your brand. Think about the last time you ate an amazing dinner out, or tried a cool new product that easily solved one of your problems. You probably couldn’t help but share this standout experience with your friends.
Why is word-of-mouth marketing so important?
Word-of-mouth marketing stands out because of its high level of trust.
Why do people trust word of mouth?
Usually, word-of-mouth recommendations come from friends, family members, and others within someone’s close circles. When someone sees a friend or family member raving about a particular brand, they’re much more likely to buy. That’s because peer recommendations are seen as especially valuable.
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Word-of-mouth marketing benefits
According to a Nielsen report, 92% of people trust word of mouth referrals from those they know, more than they trust all other forms of advertising.
Word-of-mouth marketing means your customers and other fans are essentially doing the marketing for you, at little to no cost to your business! They are promoting straight to their network, usually in person or on social media. This makes word of mouth not only cost-effective, but highly valuable.
Plus, thanks to social media, what someone shares can reach millions in mere seconds. And word of mouth doesn’t just stop after one interaction – one person will tell another, and another, and so on. With every share, repost, or retweet, word-of-mouth marketing carries the potential for exponential growth.
All this happens at a very low cost to your business – often, for free.
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Word of mouth statistics: How effective is word-of-mouth marketing?
These word-of-mouth marketing statistics further prove how successful word-of-mouth marketing can be:
- 83% of Americans say that word-of-mouth recommendations from people they know make them more likely to purchase a given product or service.
- According to Nielsen, consumers are 4 times more likely to buy when referred by a friend, so word of mouth produces high conversion rates.
- When it comes to products they have purchased, 74% of people identified word of mouth as a key factor in their purchase decision.
- Marketers rate the quality of leads brought in by word of mouth as a 4.28 out of 5.
Check out more word-of-mouth marketing statistics in the infographic below.
What are the types of word-of-mouth marketing?
Word-of-mouth marketing (word-of-mouth advertising) can be divided into two main types or categories: amplified word of mouth and organic word of mouth.
Amplified word-of-mouth marketing is directly encouraged by your business via a marketing campaign. Within the campaign, businesses will usually use some sort of reward to motivate this word of mouth. Amplified word of mouth strategies are also easy to track, since they are tied to a campaign.
Examples of amplified word of mouth include:
- Referral programs
- Affiliate programs
- Brand ambassador programs
- Influencer marketing campaigns
- Other customer endorsements you encourage with rewards
- Other campaigns and contests to encourage social media sharing
In contrast, organic word-of-mouth marketing occurs when someone recommends your brand naturally and without direct prompting from your business.
It is much harder to motivate and track. But this type of word of mouth isn’t fully out of your control. It is usually triggered by an event experienced by the customer. Whether that’s amazing customer service or a free gift with purchase, triggers set your brand apart from the competition and keep you top of mind. Plus, they make for great talking points and organic word of mouth.
We’ll dive into common ways to trigger word-of-mouth marketing in the next section.
Examples of organic word of mouth include:
- Spontaneous social media sharing (user-generated content)
- Reviews and comments from satisfied customers
- Natural sharing of a product through any type of conversation
- “Dark social” sharing in DMs and private emails, that doesn’t have a tracking tag
6 word-of-mouth marketing strategies for any campaign (+WOMM examples)
With the right word-of-mouth marketing campaign, you can successfully create a steady stream of referrals and repeatable word of mouth for your brand.
Fortunately, there are plenty word-of-mouth channels at your disposal: referral programs, influencer programs, brand ambassador programs, affiliate marketing, and many more. Whichever channel you choose, however, it’s important to develop an overall WOMM strategy to encourage organic sharing.
Here are a few proven WOMM strategies to help get you started, along with some word-of-mouth marketing examples that show the strategies in action.
1. Create triggers for word of mouth
Triggers are little cues that remind your audience about your brand, even without any actual advertising.
Wharton marketing professor Jonah Berger gives this example: What immediately comes to mind when someone says peanut butter? Was it jelly? In this case, peanut butter acts almost like an advertisement for jelly.
This is the type of association you want to create for your brand. One famous example is a KFC campaign that ran in Japan in the 1970s. Translated to “Kentucky is Christmas,” it promoted a party barrel of fried chicken as Christmas dinner. The campaign was so successful that until today, many families in Japan order Kentucky Fried Chicken when the holiday season rolls around.
Create your own triggers by finding something your audience sees or does on a regular basis. By associating your brand with these, you increase the likelihood of people remembering and talking about you.
2. Appeal to your audience
Like all marketing strategies, word of mouth works best when it puts its audience first. Think of what digital marketing content would appeal best to your audience – would it be an interactive contest, a behind-the-scenes video, or something else? By continuing to give your audience what it wants, you’re able to add to your social currency and generate word of mouth.
Social currency is all about reputation. People share what they think will make them look good in front of others, because every share puts their reputation on the line. They’ll only “spend” their social currency on your brand, and spread the word about you, if they think it will give their reputation a boost. So, make sure you’ve created something your audience loves, and will think it’s cool to share with others.
Source
3. Provide value to customers
The brands worth talking about are ones that provide value. Whether that means solving a problem with your product or delivering an unparalleled customer experience, a customer that sees value in your brand will both stick with you and share your brand with others.
Providing value is also one of the best ways to gain a customer’s good will. If you can offer value – and in a way that stands out – you may just earn a positive customer review, promote brand loyalty, and maximize your word of mouth.
Pro tip: Remember that the best way to provide value is to deliver a unique experience. What sets you apart from your competitors?
- Do you market differently than others in your space, like Red Bull does with its extreme stunts and sports events?
- Meet a need that no one else does with your product/service, like Browndages first did with their bandages and wraps made for darker skin?
- Solve a specific problem (even one that people didn’t realize they needed solving), like Omsom does with “starter” packets that include all the flavors needed to make authentic Asian dishes?
- Deliver above-and-beyond customer service that competitors can’t match, like Zappos has built a reputation for?
- Provide a uniquely high-quality product at a lower pricing point than competitors?
Know, deliver on, and emphasize this unique selling point, and watch the word of mouth roll in.
4. Tap into emotion
Emotional attachments are one of the biggest drivers of word-of-mouth marketing. If people feel strongly about a brand or product, they are not likely to drop it, even if a more logical option comes along.
People respond more to emotions, as well. Whether it’s something happy, sad, funny, or otherwise, they instinctively want to share it with others.
If you can create experiences that result in positive emotions, your word of mouth efforts can go a long way. For instance, think of how Always fought against stereotypes and empowered young women with its #LikeAGirl ads.
And if your brand has a unique personality, this can also stir up emotions. Use your personality for emotional appeal, in a way that stands out from the crowd, and customers won’t be able to stop talking. This works especially well if you’re appealing to humor. Think back to Wendy’s – they went viral thanks to their signature snarky, humorous tweets.
5. Tell your story
Creating a compelling story goes hand in hand with giving audiences what they want, offering value and appealing to emotions. If customers love the “why” behind what you do – your mission and values – and that “why” is packaged in a story that’s moving and easy to tell, customers will share your story with others.
One example is 4Ocean’s story: they pull plastic from the ocean daily to help marine life, and then recycle much of that plastic into bracelets and other products.
6. Create exclusivity
Making people feel like they know secrets or insider information is another recipe for generating sharing. Think of how Starbucks “secret menu” drinks have gone viral on social media, and how In-N-Out Burger got people talking both online and offline with their own “secret menu” items (which were key in driving the brand’s overall success).
Secrets don’t just work for food brands, though. If you share new and exciting products with your most loyal customers first, or create a sale that people can only access with a code you emailed, people will want their friends to get in on the action, too. They’ll tell their friends quickly, meaning more buzz, and more sales, for you.
How do online reviews affect word-of-mouth advertising?
As we’ve outlined above, you can build word-of-mouth advertising in many ways. But one of the best ways is by getting positive customer reviews. A majority 90% of people read reviews before deciding whether or not to visit a business, and 72% will only push through with a purchase after reading positive reviews.
Plus, good reviews help build your brand’s social proof and boost your online reputation – both terrific ways to gain exposure and get even more people talking about you.
Customer reviews also allow you to expand into other channels and platforms. Say, a happy customer writes a review about you on Yelp. That review can then be searched and shared across other channels, as well. You can share some of the best reviews on your own social media accounts, or even post them as testimonials on your own website.
Here’s a step-by-step example of how reviews can play a role in word-of-mouth advertising:
- Winter season is about to start, and Ken and Val are talking about chimney sweeping services.
- Val tells Ken that she needs to hire someone to come to her house some time in the next few weeks.
- Ken shares that he’s also been searching for someone and found a few chimney services with good reviews online (thanks to previous word of mouth). He mentions a few that looked especially promising.
- Val takes a look at a few of the services, and ends up picking one that did an amazing job.
- Val starts telling all her friends, including Ken, and even posts a picture of her cozy fireplace with a newly cleaned chimney (further generating word of mouth!).
How to build word-of-mouth marketing on social media?
Stop collecting and start connecting. This is a key guideline for any strong word-of-mouth marketing strategy these days.
Sure, you can have millions of social media followers. But to effectively use social media platforms to drive word-of-mouth marketing, you have to be active and engaging.
This means providing valuable information, responding to comments and questions, and encouraging and sharing some of your audience’s user-generated content (UGC).
The more connected you are to your followers, the more likely they will become true fans and supporters. And what do true fans usually do? Share your brand with others and increase word of mouth in new markets you may not have been able to reach otherwise.
Social proof and social media: Get others to show, not just tell
People decide what to do based on what they see other people doing. If they hear someone talking about how good your product is, this word of mouth will make them more likely to try the product. But when they see someone using your product in their everyday life, this social proof gives word-of-mouth a bigger boost. And social media shares of your product mean many people see how your product is used, all at once.
Ambassadors’ and influencers’ posts using your product, affiliates’ product reviews on social networks, and UGC images and videos from any customer show off your product and further inspire people to try it for themselves.
Pro tip: How to encourage user-generated content (UGC)? Try:
- Creating branded hashtags
- Commenting on UGC posts you love to build connections and thank customers for sharing
- Featuring the best posts about your brand on your own channels (your social accounts and your website), with the creators’ permission
- Running contests and giveaways, where the creators of the best branded UGC earn valuable prizes or unique features (as Apple did with their #shotoniPhone campaign)
How is WOMM different from referral marketing?
Word-of-mouth marketing is all about getting people talking about your brand or business. It looks for the best ways to promote sharing, often through general consumer interest or unique content. WOMM is all about spreading brand awareness to your audience. Depending on the types you choose to focus on, though, you may have difficulty tracking and controlling it.
Referral marketing is a segment of word-of-mouth marketing. It’s common for word of mouth to occur naturally in the process of referring others. But at its core, referral marketing is a proactive way to gain new customers, focused on key targets and specific results.
Referrals occur when someone who uses or knows your brand recommends it to others in their network, usually friends, family members, or colleagues. Since they are sharing your brand with others, they are generating word of mouth. But this recommendation is direct and purposeful, not just casually mentioned.
Combining word of mouth and referral marketing
Most types of marketing use word of mouth in one way or another. Referral marketing is no different. In fact, word of mouth helps companies get new customers all the time – which is the main aim of referral marketing.
Instead of doing a mass shout-out, however, referral marketing allows you to get more personal.
Referral marketing is all about motivating individual customers to share a product or service with others they know, by offering incentives whenever these recommendations bring in first-time customers. In time, this type of marketing works to build customer loyalty and establish long-term relationships, both among existing and newly referred customers.
Referral marketing also allows you to monitor your conversions, engagement, and other metrics.
With a formal referral program, businesses can incentivize customer sharing and organize their entire referral process. The right referral software can also generate automatic referral links and track each step of the process, so you know exactly where referrals are coming from.
Using referral marketing with other word of mouth strategies maximizes brand awareness and increases the odds of creating a viral sharing effect. By integrating diverse types of word-of-mouth marketing into your overall marketing strategy, you increase the odds of achieving success.
To learn more about referral marketing, check out our referral marketing guide or learn essential referral program tips.
Other related word-of-mouth marketing terms
As a major business strategy, WOMM can be seen alongside many other marketing concepts. Here are a few common ones you may come across:
- Buzz marketing: This involves getting key ambassadors or influencers to spread the conversation about your brand. It’s focused on building viral growth around certain products or campaigns, usually using attention-grabbing techniques (i.e., videos, memes) and generating online buzz.
- Viral marketing: This type of marketing relies on one’s existing network to spread information from person to person in a rapid manner. This often occurs online or using social media, with content so compelling that people can’t help but send it with others.
- Blog marketing: When used for word of mouth, blog marketing involves blog posts that an influencer or brand ambassador creates. With a few strategic ads or sponsored posts, bloggers create content that quickly travels to their followers, who in turn, share it with their friends. By recruiting the right bloggers, a business can generate fair amount of word of mouth through their content marketing.
- Social media marketing: Thanks to hashtags and rapid shares, the content created on social media has a way of reaching people outside of the original group following. And as we’ve seen, shared content has a higher value when it comes from someone people know and trust.
Wrapping up
Don’t sleep on word-of-mouth marketing, because recommendations and referrals are powerful. People trust the word of their family and friends. This makes them more likely to purchase from you when their peers recommend your products.
The best way to use this to your advantage is to leverage multiple types of word-of-mouth marketing, including by encouraging user-generated content, asking for reviews, and starting a referral program.
No matter which marketing tactics you use to generate buzz, it’s key to apply the fundamental word-of-mouth strategies: creating sharing triggers, appealing to your fan base, offering value, and stirring up an emotional response.
Ready to generate word of mouth in a way that’s easy to measure? Check out our complete guide to starting a referral program.
Word of mouth marketing is when a consumer’s interest is reflected in their everyday dialogue. It’s a low-cost (sometimes even free) and effective marketing method.
Many businesses consider word of mouth marketing the most valuable form of marketing because it enables you to spread good reviews about your product or service to a large audience, boosting brand awareness and loyalty.
Word of mouth marketing has been successfully used by many companies to get their customers to promote their brand by talking about experiences that they’d like to share with their friends and families.
Netflix, for example, used word of mouth marketing to make binge-watching popular with its organic tagline Netflix and chill. The company promoted it on social media which became a huge success.
In this article, we’ll take a closer look at how businesses have used word of mouth marketing to connect with their target audience and boost sales. Along the way, we’ll share actionable tips that you can use to engage customers with your brand.
But first, let’s quickly take a look at why word of mouth marketing is arguably one of the most valuable sources of advertising.
Why Is Word of Mouth Marketing Important?
Word of mouth marketing – also called word of mouth advertising – is a modern form of simple word of mouth. It’s one of the most effective forms of advertising for boosting brand recognition and sales.
Many businesses have adopted strategies that encourage customers to talk about positive experiences with their products.
According to HubSpot, consumers discuss specific brands casually around 90 times per week! The same study also reports that around 71% of people trust consumer reviews online. In simple words, consumers trust recommendations made by family and friends.
Word of mouth marketing is an honest promotion which helps you build trust with prospective customers. In fact, The Nielsen Company reports that 83% of customers trust recommendations from family, friends, and peers when making purchasing decisions. This goes to show that people don’t believe advertisements to the extent they trust suggestions from family and friends.
In the context of digital marketing, user-generated content is basically a form of word of mouth marketing that enables customers to promote your brand. And one of the most effective types of user-generated content is online reviews.
This involves existing customers sharing their positive experiences with your products and services with prospective customers. According to BrightLocal, 72% of respondents say positive product reviews boost their trust in a company.
Check out our in-depth article to learn more about how product reviews increase conversions.
Before we dig deeper into how you can come up with an effective word of mouth marketing strategy for your business, let’s quickly step through some of the advantages of word of mouth marketing.
Instills brand loyalty
Successful businesses, whether online or brick-and-mortar – quickly realize that loyal customers lead to positive word of mouth about their product. To make the most of it, they focus more on building customer loyalty.
The thing is, these businesses know that while people don’t always trust paid advertisements, they are much more likely to heed a recommendation by someone they trust. Trust drives consumer decisions and, in turn, sales.
Associating positive emotions with the brand through word of mouth can help differentiate them from the competition and enhance the company’s brand image.
It’s cost-effective
As mentioned earlier, word of mouth marketing is an inexpensive method of promoting your products and services. While businesses spend thousands (or even millions) of dollars to run TV or online marketing campaigns, word of mouth marketing is a comparatively low-cost strategy.
Moreover, it doesn’t cost the consumers anything to spread the word about your company or your products. This is precisely why more and more companies are relying on their customers to share good product experiences with their friends and families.
Builds a community of brand advocates
Word of mouth marketing can help you build a community of brand advocates. This means when customers purchase your product, they tell their friends, families, and peers about it and share their experience on social platforms. These customers will likely support and vouch for your product online as well as offline.
Take a look at how this customer recommends the Shoptimizer WooCommerce theme to a first-time online store owner and highlights its key advantage i.e. conversion optimization.
As a result, you can attract more and more consumers that will continue to interact with your brand post-purchase. A loyal community of fans stands as proof of your brand quality. It can help promote your brand and persuade others to buy your products, helping you increase customer retention.
3 Strategies for Word of Mouth Marketing
Here are some ways you can use word of mouth marketing to promote your brand.
#1: Ask for reviews
As a business owner, you should always be encouraging customers to leave a review. Online reviews are engaging, shareable, and (perhaps most importantly) unbiased.
You can use online product reviews to establish social proof. To take things up a notch, you can publish customer reviews and testimonials on your product pages and social media pages. This way, prospective customers will be more likely to purchase from you based on reviews they read from other people.
You can collect reviews and ratings on your product pages, social media, and email newsletters. CommerceKit, for example, is a powerful tool that can help you automatically collect reviews directly on your site.
Along the way, you might receive some negative reviews. But don’t worry, we got you! Check out our article on why a bad review is actually good for tips on how to interact with customers that leave negative reviews.
Online reviews aren’t the only type of user-generated content that can bolster your word of mouth marketing strategy.
Savvy digital marketers use social media to promote their content all the time. As your sales grow, you’ll notice customers sharing user-generated content on their social pages. This includes engaging and shareable content containing images, videos, Tweet threads, or Instagram captions that highlight their positive experience with your products.
Forever21 example
Apparel brand Forever21, for example, encourages buyers to share their style by uploading their favorite outfit photos on Instagram. Organic sharing like this is an effective way to boost your word of mouth outreach.
Promotional incentives, like coupons and exclusive discounts, are a great way to boost brand awareness. You can use your affiliate or referral program to give away points or perks for different types of user-generated content – more on this later.
Cluse example
Here’s how Cluse does it:
Cluse’s giveaway post encourages its followers to tag their friends in a user-generated content post and also asks them to get their friends to follow its Instagram page.
Check out our article on how to ask for a review for actionable tips!
#2: Interact over social media
When brands start or join conversations over social media, it generates many opportunities for word of mouth marketing. Positive and memorable social media interactions help build a community around the brand.
Aviation American Gin example
Last year, when Popeyes Chicken announced a new chicken sandwich, it started an online battle between two fast-food giants Wendy’s and Chick-fil-A. This gave Aviation American Gin a chance to get in the conversation in a playful way, and swoop thousands of valuable retweets on Twitter.
Aviation American Gin moved quickly at the fast-food heavyweights using other companies’ social posts to its advantage.
This is a great example of why word of mouth marketing is one of the most effective types of outreach. This sort of savvy social media campaign has helped the company attract the attention of a large number of social media users looking for entertaining content to consume and share online.
Netflix Film example
It’s simple, really. Social media offers a powerful medium to communicate with your target audience and build a strong and authentic brand image. You can use it to inform, educate, and entertain your consumers as well as find new customers by getting them to engage with your content.
Another way you can increase your brand recognition on social media is by creating a hashtag. Remember the Forever21 example? The apparel giant tells customers to upload their outfit photos using the hashtag #F21xME.
Hashtag campaigns are useful for building brand recognition and driving traffic. You can also use a hashtag on social platforms to start an online word of mouth campaign to share your promotional messages.
In other words, use your business hashtag every time you share a post on Instagram or Twitter and your customers will likely follow suit. Plus, hashtag feeds offer a quick and easy way to get in the conversations around your products. As a result, you can tap into conversations and respond to them in a timely manner. This, in turn, generates positive word of mouth from your customers!
Away example
A branded hashtag is a useful tool that can help you collect user-generated content. Here’s an example of Away using #travelaway in their Instagram post:
#3: Engage with consumers
A well-designed referral program can help you boost the results of your word of mouth marketing efforts. Encouraging existing customers to share positive words about you with their family, friends, and peers is a great way to attract new customers.
Your aim is to give customers a reason to share your brand with others, online or offline, and referral incentives are just the tools you need. You can offer coupons, credits, discounts, or free products to the referrer that leads to a purchase.
Similarly, you can incentivize customers to share user-generated content by tagging your brand on social posts or sharing product links on social pages.
7-Eleven example
The convenience store 7-Eleven encourages customers to post photos on social media using the hashtags #7ElevenDay, #TFW, and #slurplife for a free small Slurpee cup on July 11th.
Affiliate marketing is also a great way to acquire new customers. Here’s how you build an affiliate network: after you make a successful sale, ask the customer to refer their friend and earn a commission for the sale if their friend uses their referral link.
Niche bloggers can also help you promote your products on their blogs by including affiliate links in their content. Every sale leading from their referral will generate a commission for them while helping you boost your brand recognition.
You can also organize giveaways, contests, and lucky draws. All you have to do is tell customers to share user-generated content or the giveaway post on their social pages. This way, you’ll be able to get customers to interact with your brand and generate organic traffic along the way.
Examples of Word of Mouth Marketing
Here’s a quick question for you: What does a beverage company, a cloud storage solution, and a mattress manufacturer have in common? Word of mouth marketing.
Let’s take a look at how different types of companies use word of mouth marketing strategies to create positive feelings and emotions about their products.
Coca-Cola
It’s no secret that Coca-Cola is one of the world’s most popular drinks. Over the years, it has run multiple campaigns which have led to positive word of mouth promotion for the brand and increased the consumption of Coke worldwide.
Its “Share a Coke” campaign was launched in 2014 to get consumers to view Coke in a way that boosts its consumption i.e. by getting people to share it with their friends and family. Its social media campaign asked customers to find bottles with common names (and uncommon spellings of common names!) on them and share it online using the hashtag #ShareaCoke.
Dropbox
Dropbox is an online storage company that has successfully used word of mouth to attract a lot of new customers. It offered free storage space in the early days with bonus free space for referrals that drew a lot of attention.
It offered 500 MB extra storage space to new users and the people referred by them. This campaign led to rapid growth in Dropbox’s revenue.
Casper
Casper is an online company that produces mattresses, bedding, and other sleep-related products. For each of their mattresses, it offers a trial period for 100 days from purchase. Consumers can then decide to keep the mattress or return it.
This customer-focused approach has clicked with consumers who prefer testing a product’s comfort and durability. Casper also ran aggressive social media campaigns sharing customer reviews, helping it acquire more than one million customers in eight countries.
Conclusion
Word of mouth marketing is one of the most effective forms of marketing that involves giving customers reasons to share good opinions about your products with their friends and family. It helps you influence the customer’s purchase decisions, build trust, and boost brand awareness.
To recap, word of mouth marketing builds a community of brand advocates who vouch for your products online and offline. There are tons of ways to make your business a topic of conversation. Asking for reviews, interacting over social media, and engaging with consumers is just the tip of the iceberg.
Ready to collect reviews and leverage word of mouth marketing to increase sales? Sign up for CommerceKit updates as we build it!
Solely having a pleasant looking Web store is not enough to make a business stand out. There is one powerful area of e-commerce marketing that gets neglected-that is word-of-mouth advertising. Word-of-mouth advertising ( also called as WOM marketing) is when a consumer’s interest in a company’s goods or services is indicated in their everyday conversations. It is a free advertising triggered by consumer experiences—and usually, something that goes ahead what they demanded.
Word-of-mouth advertising is one of the most potent forms of advertising, as 92% of consumers trust their associates over conventional media.
In today’s hyper-connected society, a single recommendation can have a considerably eminent impact – reaching to the word of mouth marketing (WOMM) or word of mouth advertising strategies to capitalize on the opportunity.
Advantages of Word-Of-Mouth Advertising
Top 3 Word-of-Mouth Advertising Examples
Ways To Implement Word-Of-Mouth Advertising In Business
FAQ’s
Conclusion
Advantages of Word-Of-Mouth Advertising
Numerous brands from The Hustle to Bangs Shoes and more use word of mouth marketing instead of advertising spend to increase sales and consumer base.
Word of mouth advertising strives to create an associated customer base rather than a buy and bolt customer. Engaged customers shop more often and recommend more often.
More funding, more freedom
Brands with high customer continuance loyalty and therefore repeat purchases gain extra angel and venture funding.
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Top 3 Word-of-Mouth Advertising Examples
1. TOMS: Creating Organic Buzz By Doing Virtue
When a customer buys a pair of shoes from TOMS, one pair of shoes is donated to a child in need. This business model was praised and accepted as a charity driven model, and as a result, the company reached a valuation of over $600 million in 2014.
TOMS understood that company gives shoes to those in need every time you buy, made for a far extra buzzworthy headline than the company donates money to needy people.
While TOMS opted to build its business model around, it could make buzz-worthy, this is not an option for most businesses. Rather, these businesses have the opportunity to build something appealing that people will get excited about and then spread the word.
2. Chipotle: Creating WOM Buzz Through Storytelling
Casual dining chain Chipotle has slightly differentiated itself from being a national chain that sources its ingredients locally.
To initiate word of mouth, Chipotle devised a haunting video with an
iPhone app, depicting a bleak, over-processed world run by machinery. The video and app combined generated above 614 million media impacts, making it a significant WOMM win for Chipotle.
Coca-Cola’s campaign asked for buyers to join by sharing a personalized soda bottle with friends, in person, and on social media
Coca-Cola also promoted the campaign with events where consumers could build their own personalized Coke bottle.
Coca-Cola Vs. PepsiCo Business Model
They are the world’s largest beverage manufacturers. We can find so many key similarities and key differences between these two business models. PepsiCo has revenue of $13.88 billion in the first quarter of 2020. Coca-Cola has revenue of $8.60 billion in first quarter of 2020.
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Ways To Implement Word-Of-Mouth Advertising In Business
Encourage User-Generated Content
UGC(User-Generated Content) is content created and shared by customers about brands or commodities. It is honest, builds trust, and gives marketers additional security to work with. User-Generated Content videos can boost sales effectiveness by 20%.
How to get users to generate content?
- Have a novel hashtag to identify content created by consumers.
- Incentivize sharing pictures, videos, and gifs on social media.
- Give a gift, discount, or feature.
- Create a feeling of community.
- Present your user-generated content on your webpage or main profile.
79 percent of people trust credentials and online reviews as much as personal recommendations. They aid reassure the performance, quality, and value of claims and make customers feel more comfortable doing business with you.
Get product Ratings On Your Site
Depending on your business model, you may want to provide people the facility to rate or review particular products, services, etc. directly on your eCommerce website like Amazon, Flipkart, Snapdeal, etc.
- 63% of visitors are more likely to buy when a website has reviews/ratings
- Reviews can produce an 18% rise in sales
- Customer reviews are 12 times more trusted than reports from the brand
Grant An Incentive
- Big or small, people are always willing to do something if they receive some value in return. So, consider providing your consumers with a discount or a gift in exchange for referrals
- Example: Dropbox provides free storage to its customers
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Create A Referral Program
The company can take this a level ahead by creating a formal referral program. A good referral program:
- Makes spreading the word easy and quick
- Makes it worthwhile for both parties (with an incentive or other benefit)
- Measures the results of your campaigns
Top Referral Tools
- ReferralCandy
- Friendbuy
- LoyaltyLion
- Influitive
- Woobox
Connect With Influencers And Leaders
Influencers are individuals with a strong following and power to influence the opinions and behavior of people. Because of their established reputation and popularity, WOM Marketing from them is unquestionably the most worthy.
- 40% of people purchased an item online after seeing it used by an influencer on Social Media.
- 49% people say they rely on suggestions from influencers when making a buy decision.
- 73% sellers say that they have allocated budgets for influencer marketing.
The simplest way to generate word-of-mouth advertising in this digital era is to offer a unique, worthy experience.
If you give consumers something remarkable; they cannot get anywhere else, they will want to share it with their friends and family.
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FAQ’s
What does word of mouth mean in marketing?
Word-of-mouth marketing (WOM marketing) is when a consumer’s interest in a company’s product or service is reflected in their daily dialogues.
Is word of mouth a form of advertising?
Word of mouth is a free form of advertisement or promotion (just one reason it’s so important).
What is word of mouth marketing examples?
Netflix, for example, used word-of-mouth marketing to make binge-watching popular with its organic tagline Netflix and chill. The company promoted it on social media which became a huge success.
How does word of mouth help businesses?
Word of mouth has always been an important tool for small businesses because when someone speaks positively about what you sell, it helps build the buyer’s confidence and trust that their purchase won’t be a mistake.
Conclusion
Word-of-mouth marketing can be promoted through various advertising activities set up by businesses to encourage customer-to-customer and customer-to-seller relations. Also referred to as WOM or word-of-mouth advertising, WOM marketing involves buzz, viral, blog, emotional, and social media marketing.
If you’ve ever recommended a restaurant or sung the praises of your favorite clothing brand after receiving a compliment on your outfit, then you intuitively understand what word-of-mouth marketing is — and how powerful it can be.
Did your friends and family take you up on your recommendation? Perhaps after doing so, they became loyal customers themselves and spread the word to their loved ones in turn.
One of the most untapped (and inexpensive) marketing channels in existence, word-of-mouth marketing occurs when a brand wows a customer to such an extent that they tell their friends. And while these conversations may seem entirely out of a business’s control and may even backfire — customers won’t hesitate to disparage brands that provide a poor experience — you have several strategies at your disposal to get people talking about your business in a positive light.
Amplified word-of-mouth (WOM) is when marketers launch campaigns designed to encourage or accelerate these naturally occurring conversations within their existing customer base.
Here’s how to use word-of-mouth strategy to your advantage.
Create an Epic First Experience
Offering a standout customer experience that overshoots people’s expectations is the surest way to get them to rave about you. In addition to providing a stellar product that solves a major pain point — these days, that’s table stakes — consider throwing in a personalized ‘Thank you’ note and free gift along with their online purchase.Whatever you do, aim to impress. Providing an average or negative experience will not motivate customers to advocate for your business.
Sell quality products.
Sourcing and selling quality products are crucial to providing an outstanding customer experience. Attentive customer service, an effortless buying experience and products that perform as advertised are the key ingredients for a WOM-worthy experience.
Make sure the experience you provide measures up to the branding. For example, if your restaurant bills itself as a family-friendly establishment serving healthy food, don’t ruin the experience by not providing enough space for baby strollers in the dining area.
Seamless order process and site UX.
On average, only 1.53 percent of ecommerce website visits convert into a purchase, which suggests that most brands aren’t getting site functionality right.
Don’t let a poor user experience cause would-be customers to abandon their shopping carts out of frustration.
One of the most common reasons for cart abandonment are an un-intuitive shopping process and lack of information. Make your site easy to navigate by enabling customers to self-identify their needs.
For example, you can provide a chatbot or intake form that asks new website visitors what product category they’re searching for and filter items by price range. Provide thorough product descriptions, videos or photographs of the product in action.
Run a tight operation.
Incorrect orders, late deliveries or appointment no-shows will motivate customers to spread the word about your business — but for all the wrong reasons. Data shows that 58% of consumers stop doing business with a company because of a single poor customer experience.
Use just-in-time inventory management (using historical data to reorder supplies ahead of anticipated demand) so you’re never over- or under-stocked, and partner with a reliable supplier who can fulfill large orders with a short turnaround.
Finally, make it easy for customers to get in touch with a human for complaint resolution.
Go above and beyond for the customer.
Exceeding customer expectations looks different for every business, but it can be as simple as working with a customer to create a custom item, sending a personalized thank you note or performing an act of kindness.
Case in point: a Trader Joe’s in Wayne, PA, delivered a week’s worth of groceries free of charge to an elderly gentleman who was stranded at home during a snowstorm.
Note: Trader Joe’s doesn’t usually provide delivery, but they made an exception. Complaint resolution is another key factor in the customer experience. Sometimes you can turn a bad situation around and blow the customer away in the process.
Spark WOM Among Influencers
Having your products reviewed by credible influencers is a surefire tactic to increase brand awareness because influencers have the power to sway their followers’ purchasing decisions.
A recent study by Sideqik found that 7 out of 10 consumers trust influencers’ recommendations just as much as the opinion of real-world friends.
If you have the budget for influencer marketing, you can even hire a brand ambassador — someone who acts as the “face” of your company by regularly talking about your products and services rather than just doing a one-off social media post.
Send products for free.
Identify relevant influencers, send them your product, and see if they review it. However, note that some influencers are regularly deluged with freebies and may not wish to review your product unless they truly like it, so don’t expect reviews from every influencer.
Instead of focusing exclusively on big names with a massive amount of followers, try working with micro-influencers — bloggers, videographers or DIYers with a smaller following whose goal is to share subject matter expertise by producing tutorials, shout-outs, how-to-guides, day-in-the-life vlogs and so on.
Connect with a worthy cause.
According to IBM research, 40% of consumers said they seek out companies that align with their values, such as sustainability or racial equality. Influencers also want to show support for causes they believe in, so associating your brand with a purpose will give influencers additional reasons to partner with you.
In 2020, Starbucks launched the #WhatsYourName campaign to illustrate the journey of a young transgender person who was struggling to embrace their name change — until he walks into a Starbucks one day.
The barista asks for his name — “James,” he intones confidently — and writes it on his cup, sealing James’s new identity as a male. The ad was inspired by real-life experiences of people who were transitioning and found Starbucks to be a safe space where their new name was accepted.
Solve a real challenge (yes, even influencers have them!).
The best products solve customer pain points and leave a lasting impact. For example, social media users routinely post about LARQ, a self-cleaning water bottle that uses UVC-light to sterilize the bottle, and how it makes it so much easier to stay hydrated while traveling.
Building Your Word-of-Mouth Marketing Strategy
Rather than leaving WOM marketing up to chance, create triggers that will make people want to talk about your brand.
Here are some ways to launch your own word-of-mouth marketing campaign:
Set up word-of-mouth triggers.
Triggers are memorable experiences or feelings that make people want to talk about your business — think of it as your ‘X factor.’
Take it from luxury hotel chain Ritz-Carlton, which often makes headlines for its reputation for going the extra mile for its guests.
When a young guest at a Ritz-Carlton in Florida lost his beloved stuffed giraffe, Joshie, hotel employees not only mailed the giraffe back but they sent pictures of Joshie lounging by the pool, getting a massage at the spa and driving a golf cart to reassure the little boy that his beloved stuffed animal had been well cared for in his absence.
The giraffe even received a Ritz-Carlton ID badge and was made an honorary member of the Loss Prevention team.
The Ritz-Carlton viral marketing example shows that WOM triggers needn’t be expensive or extravagant. Simply demonstrating empathy and creativity can go a long way.
Use visual triggers.
Create remarkable visual experiences so customers will want to take photos and share them.
For example, ‘Instagrammable’ restaurants have one thing in common — they provide an aesthetically pleasing environment that makes people want to share their dining experience on social media. Providing visual triggers in a digital experience is trickier but doable.
One of the best word-of-mouth marketing examples comes from feminine product brand, Always.
As part of its #LikeAGirl campaign, the brand pushed for more gender-diverse emojis on mobile and social media platforms. Before, the female emojis on instant messaging apps showed girls dancing in bunny ears or walking down the aisle. The Always campaign introduced new girl-power symbols, like female doctors, athletes, chefs, wrestlers, soccer players and so on.
Do or create something unique.
Selling a unique product, using a different business model or bucking industry norms are other ways to harness the power of word of mouth. Standing out in a crowd, whether it’s with your product or shipping method, could prove to be beneficial.
Emotional provocation.
Tapping into people’s emotions can be an immensely powerful way to generate shares.
In 2019, Dove launched the #ShowUs campaign partnering with women and non-binary individuals to create a collection of 10,000+ stock images that offer a more inclusive vision of beauty for all media and advertisers to use.
By enabling people to feel seen, regardless of race, body type or gender, Dove expertly tapped into people’s emotions by making them feel like they were a part of something bigger than themselves.
Encourage user-generated content (UGC).
According to UGC marketing platform Offerpop, 85% of social media users say they trust UGC more than they trust branded content.
However, brands don’t want to appear pushy, so only 16% provide specific directions on how consumers can create and share content. UGC builds trust by establishing social proof — the notion that something is desirable because other people like it.
Encourage satisfied customers to share UGC by hosting giveaways on social media for people who post pictures of your products alongside your branded hashtag. Similarly, if you offer a loyalty program, you can tie rewards to UGC, thereby encouraging your most loyal customers to post photos or videos of your products.
Push ratings and reviews hard.
Customer reviews are the modern WOM marketing. Set up feedback channels to collect testimonials — Yelp reviews, emails, feedback surveys and website analytics. Collect and prominently display honest reviews of your business in as many places as possible — review websites, social media posts, online marketplaces and your own website.
Consumers read an average of seven reviews before trusting a business and 85% of consumers trust online reviews as much as personal recommendations.
Create an official referral program.
Referral marketing is a form of marketing that encourages happy customers to advocate on behalf of your brand in exchange for incentives. Sometimes called refer-a-friend programs, referral marketing has become a go-to method for ecommerce stores looking to grow their sales while minimizing the cost per action.
By providing customers with incentives to talk about your brand, you increase the likelihood of WOM.
Rewards can be anything from:
- Discount off first-time purchase.
- A gift card or coupon.
- Cash payments or cashback.
- Free gifts.
Know your Customer Lifetime Value (LTV).
Average customer lifetime value refers to the amount of revenue a single customer brings in over the course of your business relationship. The LTV metrics tells you how much money to spend on customer acquisition.
For example, if a customer typically spends $200, then your WOM initiatives should not exceed this amount, otherwise, you will end up losing money.
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The Final Word
Word of mouth advertising can be an impactful yet relatively inexpensive strategy for growing your online business. But before busting out the bells and whistles, start with the fundamentals.
If you provide a positive experience and run a tight operation, you’re already halfway there.
What are the Advantages of Word of Mouth Marketing?
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Word of mouth is a type of marketing that helps brands build trust, credibility and loyalty.
Brand loyalty
Customers who like your brand enough to tell their friends and family about it are more likely to remain loyal and have a higher lifetime value.
Brand trust
Word-of-mouth recommendations help brands build trust with new customers more effectively than traditional advertising because the recommendations come from a trusted friend.
Creating a buzz
The most effective word-of-mouth triggers generate hype about your brand, be it on social networks or offline. WOM triggers that go viral on social media can have a lasting impact beyond the marketing campaign itself.
How to Deal with Negative Word of Mouth?
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Investigate the root cause of the problem. If customers are dissatisfied with late shipments or faulty products, switch suppliers or work with a different fulfillment company.
Next, contact the aggrieved customer directly. If the complaint was made on a public platform — a social media site or review website — issue a public response so that existing and potential customers will see that you take customer feedback seriously and are resolving the issue.
Organic Word of Mouth vs. Amplified Word of Mouth
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Organic word of mouth occurs when customers naturally mention your brand in conversation without any specific effort from you. Amplified word of mouth consists of a series of strategies designed to encourage customers to spread the word about your business, such as providing a stellar customer experience or starting a referral program.
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