What is word of mouth in business

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.

Last Update: Jan 03, 2023

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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.

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.

How does word of mouth work?

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.

What is word of mouth means?

(Entry 1 of 2) : orally communicated also : generated from or reliant on oral publicity word-of-mouth customers a word-of-mouth business. word of mouth. noun phrase.

What is word of mouth in service?

Word of mouth marketing definition

When a customer experiences a product or a service, and recommends the product or the service to someone else, orally or via written communications, then that is known as Word of mouth marketing or WOM marketing or WOMM.

37 related questions found

Why is word of mouth so powerful?

Word-of-mouth can be defined as a form of communication among consumers based on their personal experiences and impressions of a product or service. This process can be the most powerful information source since it involves friends and family mem- bers, typically viewed as trustable people.

Is Word of Mouth effective?

Yes. But not always. A great deal of research finds that word of mouth is more effective than other types of marketing. Whether compared to traditional advertising, media mentions, or promotional events, word of mouth is more useful in creating new users and customers.

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 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. … Also referred to as «word-of-mouth advertising,» WOM marketing includes buzz, viral, blog, emotional, and social media marketing.

What is word of mouth marketing examples?

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.

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.

What does it mean if a message is spread by word of mouth?

Word of mouth or viva voce, is the passing of information from person to person using oral communication, which could be as simple as telling someone the time of day. … Oral tradition is cultural material and traditions transmitted by word of mouth through successive generations.

How can I increase my word of mouth?

Quick word-of-mouth wins:

  1. Identify and nurture your top customers.
  2. Ask for reviews/ratings when things are going well; don’t wait!
  3. Use social media as a referral channel.
  4. Go above and beyond with unexpected customer service gestures.
  5. Use tools to automate the process.
  6. Make sure you have amazing service, staff, and support.

How can I spread the word about my business for free?

8 Ways to Spread the Word About Your New Business

  1. Social Media Awareness. This is an easy one. …
  2. Email Promotion. Don’t go violating email regulations and spamming everyone, now. …
  3. Mastermind Groups. …
  4. Interviews. …
  5. In-person Connections. …
  6. LinkedIn. …
  7. Referrals. …
  8. Directories.

How do you create a word-of-mouth marketing?

Ideas For Building Your Word of Mouth Marketing Strategy

  1. Set up word of mouth triggers. …
  2. Use visual triggers. …
  3. Do or create something unique. …
  4. Emotional provocation. …
  5. Encourage user generated content. …
  6. Push ratings and reviews hard. …
  7. Create an official referral program. …
  8. Know Your Customer LTV.

What is the impact of word of mouth in marketing?

Did you know word of mouth marketing drives $6 trillion of annual consumer spending and is estimated to account for 13% of consumer sales. Word of Mouth marketing impression results 5x more sales than a paid media impression and people are 90% more likely to trust and buy from a brand recommended by a friend.

What companies use word-of-mouth marketing?

Check out how top brands get customers talking with these brilliant word-of-mouth marketing examples.

  • 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.

Which is more powerful positive or negative word-of-mouth?

The short answer is that positive WOM is usually more powerful than negative WOM – and by a wide margin. Two-thirds of people exposed to positive WOM describe it as “highly credible,” while less than half of negative WOM is seen in the same light.

Why word of mouth is bad?

It can spread misinformation.

And the only thing worse than a bad review is an untruthful one. Word-of-mouth marketing can trigger a release of inaccurate information that’s misleading at best and reputation-damaging at worst.

Why is positive word of mouth valuable?

Why is WOM Marketing Important? 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.

How does negative word of mouth affect a business?

Lasting Negative Effects

The «Practical Guide to Brand Promotion» states negative word-of-mouth advertising can have lasting effects on a company. It can cause the company to experience a decline in sales and damage the company brand.

What is positive word-of-mouth?

1. Positive WOM is to provide information for consumers which highlights the strengths of a product or service and encourages consumers to adopt a product or service.

What percentage of business comes from word of mouth?

Eighty-five percent of the small businesses surveyed said customers learn about them through word of mouth. The chart above shows all the responses. As you can see, no other type of marketing or advertising even comes close. Search engines come in a distant second at 59%.

What is the value of a referral?

Referrals Are Some Of The Most Valuable Leads You Can Get

78% of B2B marketers say that referral programs generate good or excellent leads. 60% of marketers say that referral programs generate a high volume of leads. 54% say that referral programs have a lower cost-per-lead than other channels.

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

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

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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Word of mouth marketing isn’t just about getting customers to talk about your brand. It’s about turning your customer into a raving fan.

Look at someone like Taylor Swift. She didn’t build her empire by getting someone to buy her album one time. Nope. She built her empire by building relationships. She occasionally sends flowers, gifts or special event invites to her hardcore fans.

And what do those fans do? They don’t just buy an album. They’ll also get their friends to buy albums, go to concerts with them, and more.

Her hardcore fans usually don’t just buy one album either. When she was promoting her 1989 album, she added five different sets of 13 imitation Polaroids, which were 65 pictures of her with song lyrics written on them, inside each CD. 

And what did fans do? They bought several of the same album. Why? To collect all 65 Polaroids. The result? She sold 1.287 million albums in one week.

Not bad.

While the marketing strategy on its own is quite clever, it never would’ve worked unless she had built up a hardcore fanbase.

So if you wanna know how to really get people talking about your brand to the point of obsession, in this article you’ll learn all about word of mouth marketing. This includes, what word of mouth marketing is, the importance of word of mouth marketing, the benefits, and word of mouth marketing strategies, alongside much more.  

Post Contents

  • What is Word of Mouth Marketing?
  • What is Word of Mouth Advertising?
  • Benefits of Word of Mouth Marketing
  • Why is Word of Mouth Important?
  • 10 Word of Mouth Marketing Strategies
    • #1. Influencer Marketing
    • #2. Hashtag Effect
    • #3. User-Generated Content
    • #4. Get Reviews
    • #5. Create a Referral Program
    • #6. Get Social on Social Media
    • #7. Give People No Choice But To Talk
    • #8. Surprise with Freebies
    • #9. Host Giveaways
    • #10. Affiliate Networks
  • Word of Mouth Marketing Statistics
  • 4 Great Word of Mouth Marketing Examples
    • ALS Ice Bucket Challenge
    • Dunkin’ Donuts
    • Netflix
    • Lush Loyalty
  • Word of Mouth Marketing: Conclusion
  • Want to Learn More?

Word of mouth marketing is a form of promotion that relies on happy customers and fans to promote a brand organically. This can be done through many forms of media like images, video, vlogs, etc. Word of mouth marketing is a great way of championing your product as those who create organic content around it genuinely care for it. As this form of marketing is free and can result in additional sales without your staff needing to do anything, offering a top-quality product that is easy to capture and describe can sell itself through your customers.

What is Word of Mouth Advertising?

By contrast, word of mouth advertising can result in the same impact as word of mouth marketing but typically involves payment to an influencer. Word of mouth advertising is a form of paid advertising where brands have control over the content pushed out by other people about the brand. The important thing to consider as a brand is if the person pushing out the content is the right person for the job. Do they represent the brand? Do they believe in your brand as much as you do? Are you willing to put your reputation on the line to use this person? There is much to consider before going down the route of word of mouth advertising.

Benefits of Word of Mouth Marketing

If you’re on the fence about whether or not to try increasing your word of mouth marketing, these benefits will help you consider trying it out.

1. Free marketing: Unless you’re doing word of mouth advertising, word of mouth marketing is free. You’ll still need to put effort in to get customers and build a strong enough relationship. However, their word of mouth promotion doesn’t come at a cost for you unless you’re paying for a loyalty app on the Shopify app store. For the most part, if you’re offering a shopping experience worth talking about, over time some customers may start raving about your brand to their friends.

2. More Sales: You benefit from the additional sales from the free referral your customer made. But you also get a few sales from the customer who recommended your brand. Why? Because if a customer loves your brand enough to recommend your brand to their friends, they’ll likely keep shopping with you. Learn how I made $743.65 with a customer loyalty program.

3. Grow brand at a faster rate: Word of mouth marketing has a viral marketing element to it. If you add enough hype around your brand or build an epic experience for your customers, it’s possible that a popular customer will help your brand go viral. When starting out, word of mouth may only lead to a couple of sales. However, as your brand grows bigger you might notice that more people start tagging friends on your social media posts, forwarding emails to friends and more. Over time, you’ll find your brand grows at a faster rate than if you were to just rely on Facebook advertising or social media marketing.

Why is Word of Mouth Important?

There are many benefits of word of mouth marketing but why is it so important? Well, according to SDL, about more than half of all consumers (58%) share their positive experiences with a company on social media.

What does this mean? It means that after buying from your store or interacting with your brand, your customers are engaging in word of mouth promotion online.

It can come in the form of posting a photo of a package they just received or taking a selfie wearing your product. They might tag you in a post to thank you or to show off their product.

On top of that, Nielsen shared an article where they found that 84% of consumers say they completely or somewhat trust product recommendations from those around them like friends, family, and coworkers.

Not only do customers share their experiences but their network are also likely to trust those recommendations. Organic Word of mouth marketing is not forced like word of mouth advertising, therefore, it is easier to interact with.

So, word of mouth marketing can be a powerful way to help you build your brand and customer base.

10 Word of Mouth Marketing Strategies

#1. Influencer Marketing

If you’re looking for a word of mouth advertising tactic you can have control over, influencer marketing is for you.

word of mouth marketing

With influencer marketing, you’ll need to pay an influencer to feature your products on their social media. Since you’re paying them, you can have some control over what they post, when they post and how they post it.

The best thing about word of mouth advertising is that you can pay to start creating conversations around your product and potentially gain some sales from it.

The downside? It’s not really organic. Having real customers honestly rave about your products is a great feeling. And while you might get excited about getting sales this way, over the long haul this word of mouth tactic can get expensive.

#2. Hashtag Effect

Whenever I create a new Instagram account for my store, I always create a hashtag. It’s never anything super fancy, I usually just do my business name after the hashtag like #businessname.

ASOS - word of mouth

At first, all the posts are my brand’s posts. However, every time without fail, eventually other people start using that hashtag too. Customers and fans of the niche end up using the hashtag for their posts too. Hashtags are a subtle but easy way to get your customers to do word of mouth marketing.

And as a result, it ends up making the hashtag more popular. While it can be hard to track whether the sales came from the hashtag or some other channel, this simple tactic helps build a stronger brand awareness.

Since the hashtag is the same as your brand name, you’ll be more likely to get found on Instagram. Plus, if your posts are dominating the hashtag feed, you’re more likely to get found. If you’re more likely to get found, you have a better chance of getting more sales.

#3. User-Generated Content

As your store grows, customers will start sharing user-generated content. What’s that? It’s content they create. It could be an Instagram post showing them wearing your product or a blog post on their website where they rave about your products.

word of mouth advertising

You can take simple steps to encourage word of mouth by getting customers to create content. How? Post customer photos on your social media or on your product pages. Don’t forget to credit them in the post!

Offer incentives for promoting your brand. Maybe you have a referral or affiliate program where you offer perks or points for various types of content customers create.

Create a contest where you ask customers to send pictures of them with your product for a chance to win a free product or gift card to your store. You can even ask them to get their friends to vote on their post to help them win which can also boost your word of mouth outreach. Be careful with this type of marketing to ensure that it is not perceived as word of mouth advertising by tracking interactions closely.

#4. Get Reviews

Reviews work as an effective word of mouth strategy. The customer leaves a product review on the product page for the product they purchased. Then, store visitors end up seeing the post and may become influenced to buy the product based on the reviews they’ve read from real customers.

You can use Shopify apps like Product Reviews Addon to automate the collection of product reviews on your store. The emails are sent directly to your customers for you. If customers leave negative reviews, they’ll be redirected to your customer support team so that you can improve their experience.

#5. Create a Referral Program

A referral program can be designed to help you increase the success of your word of mouth marketing campaigns. You can offer perks for different levels of promotion. For example, if your customer refers a friend who purchases, you can offer a financial reward as a token of appreciation.

You can also offer non-monetary perks for other levels of promotion such as sharing user-generated content, posting product links on social media, tagging your brand on product posts and more.

You can use Shopify apps like Smile.io and Referral Candy to easily build a referral program on your online store.

So about a year ago, Carter Wilkerson tweeted Wendy’s asking how many retweets he’d need to get free nuggets. Wendy’s tweeted back saying an astronomical 18 million and while he didn’t get 18 million tweets, his tweet still became the most retweeted tweet of all time.

word of mouth marketing

Imagine if Wendy’s didn’t respond to his tweet. That word of mouth campaign never would’ve happened. Becoming the most retweeted tweet of all time is a pretty big deal. It ended up amassing a ton of free media coverage because of the nature of the tweet, the record he broke and the nuggets he ended up receiving despite not achieving the goal.

As you build your store, you’re going to have countless interactions with your customers. If you can be positive, playful and active with them all, you may have a home run one day. It might not be as big as ‘the most retweeted tweet’ but it could still help boost your brand’s success.

#7. Give People No Choice But To Talk

There’s no brand who can get people talking as much as Red Bull. They often do these extreme stunts that go viral just because of how insane they are. Felix Baumgartner skydived from the edge of space. Paul Steiner climbed off one plane onto another while in the air. Basically, every stunt Red Bull does is fast and dangerous.

Naturally, when you do something extreme to get attention, you’re going to get people talking. While most brands don’t have the budget to do extreme and dangerous stunts, you can still get a similar impact with easy to execute ideas.

Some ecommerce brands hand deliver packages if customers need it delivered by a specific deadline. You can also surprise a customer with a free gift on their birthday using the Happy Birthday Email app. Your customer support team can respond to emails with video responses instead of text or talk in silly accents like a pirate.

#8. Surprise with Freebies

Shoppers love free stuff. And Sephora uses that fact to their advantage.

Multiple times a week Sephora sends emails with discount codes customers can use to get a free product. If a customer spends a certain amount of money, they can even use that money to get even more free stuff.

On a customers birthday month, they can collect their free gift from any Sephora location for free or with purchase if buying online. But does it result in word of mouth promotion? Yup, on my birthday back in January, even I posted about my free gift online.

word of mouth campaign

You might think that freebies cost more money than they make. However, the 2017 birthday gift I got resulted in me buying that free gift multiple times. And now two years in a row I’ve spent over $300 each year on Sephora’s website. And I’m just one example. Truth is, the freebie can hook a person in and build their loyalty.

#9. Host Giveaways

Giveaways and contests are a great word of mouth marketing idea for those starting out. You can give away a free product on your store. You can have entries that require customers to share the giveaway on social media for a chance to win the prize. This helps you reach a newer audience organically.

You can use Shopify apps like ViralSweep or Social Boost to create contests and giveaways on your store.

The best part? After your contest has ended, you can reach out to everyone who lost and offer a runner-up prize. The runner-up prize could be a $5 gift card to your store. That way you can incentivize people to buy from your store despite not winning the contest. Just make sure that customers can’t score any freebies with the free gift card so you don’t lose money.

#10. Affiliate Networks

Affiliate marketing can help you increase your word of mouth marketing. You have a few key options you can experiment with.

First, you can get customers to sign up for your affiliate program. After a customer has made a purchase on your store, you can ask them to refer their friends and receive a commission for the sale if their friend using their referral link.

Second, you can reach out to niche bloggers. You can ask them to write articles about your products and brand. They can include affiliate links that allow them to monetize the post.

While you’re offering a monetary incentive, the reality is the risk is low as you only need to pay a commission if a sale is made. Also, even when sales aren’t made a brand awareness is being created by affiliates to help make more people familiar with your brand. 

Word of Mouth Marketing Statistics

Why should you believe us? Word of mouth marketing is a great strategy for some but how do you know if it is worthwhile for your business. Statistics can answer many of your questions and tell you if word of mouth marketing is the right strategy for you.

  1. 51 percent of marketers say that Word of Mouth marketing outperforms brand-created content

    word of mouth marketing

Searchers, and indeed customers, have increasingly found it hard to believe branded content due to the rise in companies claiming to be the number 1 service provider in their area, or the best in the business without providing proof behind the claim. It is only fair to believe a customer’s word over a brand’s for this very reason. Customers can give a great first-hand account of their experience with a brand and be 100 percent truthful as they have nothing to lose.

2.  40 percent of desktop searchers use ad-blockers

Ad Blockers

Ad-blockers are making it harder for brands to advertise their products to potential customers. Due to the ever rising use of these plug-ins companies need to find other ways of generating new leads. Word of mouth marketing is the obvious first choice to replace ads as it is honest and organic.

3. Searchers need, on average, 2-6 reviews to instill trust in a brand

Online Reviews Instil Trust

Reviews on Google, Yelp, and other review sites have never been more important, especially for smaller and local businesses. Reaching out to happy customers and asking them for online reviews can help increase trust in your brand among people who are thinking to buy from you. By having more than two reviews online you can increase sales of your product without doing any work yourself.

4 Great Word of Mouth Marketing Examples

  1. ALS Ice Bucket Challenge

    In 2014 ALS released their ice bucket challenge as a fundraiser presented in the form of a challenge. Nominees poured a bucket of ice-cold water over themselves, capturing it in the form of an image or video, and donated money to the charity. The challenge was then posted over social media, and friends or family members were nominated to do the challenge. This campaign blew up with videos coming in from all over the world. The campaign was partaken by celebrities also. The biggest success for the campaign, of course, was the money raised which amounted to $115 million during the 8-week period in 2014

  2. Dunkin’ Donuts

    Dunkin’ Donuts is an important part of America culture. Locals and tourists alike enjoy the delicious treat and it has become a beloved brand to the US. Because of their great product, they have earned staunch followers across the world and Dunkin’ Donut’s have found great ways to utilize word of mouth marketing through these great people. Using social media to launch competitions and post unique content, followers engage with them regularly. They engage in different ways like liking content, sharing it or even creating their own content around the brand to portray their experience of it. Their hard work paid off with their social media profiles growing hugely –  15 million Facebook fans, 1.5 million Instagram followers, and 1.2 million Twitter followers.

  3. Netflix

    Using customer information to really understand what customers want on their platform, Netflix has not only been able to recommend shows to users but they have been able to create Netflix originals that are tailored to the biggest interests on the platform. Using this information in a smart way the company has been able to grow their customer sentiment positively creating an army of Netflix influencers who rave about the brand over the many social media platforms available to them. This free publicity has allowed the company to grow exponentially over its competitors like Amazon Prime, Hulu, and even YouTube.

  4. Lush Loyalty

    Lush, as a beauty brand, offer ethical products that have not be tested on animals. Fighting for both social and environmental causes like animal testing and fair trade the company has collected an army of cult-like followers who believe in their values. These young followers are comfortable on most social media channels and also have more disposable income than the generations before them. Using unique content and promoting gifting Lush products, the company has been able to grow its profits year on year without needed to splash out on any advertising.

Word of Mouth Marketing: Conclusion

Creating a word of mouth marketing campaign can help you build brand recognition and get sales in the process. Turning your customers into raving fans isn’t easy. But you can apply the word of mouth marketing ideas from this article to help you start getting your customers talking. You may need to invest in word of mouth advertising in the beginning to build the hype but as your brand continues to grow, you’ll start to notice word of mouth happening on your social media quite regularly. Encourage customers to tag friends on social media posts, share their product photos online and leave product reviews. These little steps done regularly can help you master word of mouth marketing, even if you’re just starting out. The benefits are endless when you use word of mouth marketing alongside other forms of marketing.

Want to Learn More?

  • 50 Most Inspiring and Successful Shopify Stores
  • 9 Marketing Strategies That’ll Level Up Your Ecommerce Store
  • 20 Great Customer Service Ideas to Surprise and Delight Shoppers
  • Customer Retention: 8 Tips to Keep Your Customers Coming Back

How have you been building up hype around your brand? Share in the comments!

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.

top 8 ways to generate word of mouth

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.

the power of word of mouth marketing

Source

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.

wom statistics

Source

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.

word-of-mouth-marketing-statistics

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.

amplified word of mouth marketing

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.

organic word of mouth marketing

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.

kfc japan christmas

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.

stepps jonah berger

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.

Browndages

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.

likeagirl campaign

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.

Wendy's roast 1

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.

4ocean story: pulling plastic out of oceans

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).

in n out menu

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.

great yelp review

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)

apple shot on iphone 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.

grover referral program

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.

shipt-referral-program-call-to-action

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. 

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