Word of mouth and advertising

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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]

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. Relevance of a brand to a broad audience
  7. Quality: esteem given to a brand
  8. 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.
  9. Visibility
  10. 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.
  11. Satisfaction
  12. 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).
  13. 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]

  1. ^ 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.
  2. ^ 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.
  3. ^ 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.
  4. ^ «The history of word of mouth marketing. — Free Online Library».
  5. ^ «Is Influencer Marketing Ethical?». GrowInfluence.com. Retrieved 2015-06-11.
  6. ^ Shin, Annys (December 12, 2006). «FTC Moves to Unmask Word-of-Mouth Marketing». The Washington Post. Retrieved 2009-01-10.
  7. ^ Joshi, Pradnya (2009-07-13). «Approval by a Blogger May Please a Sponsor». The New York Times. ISSN 0362-4331. Retrieved 2015-06-17.
  8. ^ «Adweek».
  9. ^ «Word of Mouth Trumps All in Today’s Marketing». Austin Business Journal. December 16, 2014. Retrieved December 16, 2014.
  10. ^ 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.
  11. ^ Berger, Jonah (2013). Contagious: Why Things Catch On. UK: Simon & Schuster. pp. 22–24. ISBN 978-1471111709.
  12. ^ ««Fifty Percent of ‘The Tipping Point’ is Wrong.» Jonah Berger Shows You Which Half». 18 March 2013.
  13. ^ 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.
  14. ^ 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.
  15. ^ 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
  16. ^ Sernovitz, Andy (2006). Word of Mouth Marketing: How Smart Companies Get PeopleTalking. Chicago: Kaplan Publishing. p. 6. ISBN 978-0983429036.
  17. ^ 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.
  18. ^ 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.
  19. ^ 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)
  20. ^ 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.
  21. ^ a b Renée Dye (2001-01-29). «the Buzz on Buzz». Harvard Business Review.
  22. ^ Howard, Theresa (2005-06-23). «USAToday: Viral advertising spreads through marketing plans». USA Today. Retrieved 2010-05-27. June 23, 2005, 2005
  23. ^ «Wired: Commentary: Sock Puppets Keep It Shill on YouTube». 2007-05-08. May 8, 2007
  24. ^
    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.
  25. ^
    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.
  26. ^ «5 of the biggest concepts in word of mouth». WordofMouth.org. Retrieved 2016-03-30.
  27. ^ 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.
  28. ^ 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.
  29. ^ a b Kotler, Philip; Keller, Kevin Lane (2012). Marketing Management. Prentice Hall. ISBN 978-0-13-210292-6.

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.

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. 

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 and testimonials are an extremely effective way to promote your products.

Let’s start with the facts. 92% of consumers will believe a recommendation from friends and family over any other type of advertising. That simple statistic casually hides one of the most powerful truths in marketing: Your biggest marketing asset is your existing customer base

Today, many businesses spend millions on advertising to new audiences, while completely neglecting the marketing potential of their existing customers. And while there are many different ways to harness your existing user base, few are as powerful as word of mouth marketing, and that’s the strategy we’ll be discussing today.

What Is Word of Mouth Advertising?

Word-of-mouth advertising (WOM advertising), also called word of mouth marketing, is the process of actively influencing and encouraging organic word of mouth discussion about a brand, organization, resource, or event.

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.

As we noted earlier, people love referrals and they tend to trust the opinions of their friends when making purchasing decisions. Word of mouth advertising is essentially seeking to kickstart an exponential referral chain that drives continuous traffic, leads, and sales for the brand.

Need a «word of mouth» strategy? Try starting with a referral program

Learn more

Word of Mouth Advertising Statistics: Why Does WOM Work So Effectively?

While some customer marketing tactics require a strong pitch, when it comes to word of mouth advertising, the statistics speak for themselves.

Just take a look at a few of the top statistics, and it doesn’t take long to see how powerful word-of-mouth marketing really is:

top word of mouth marketing statistics

So what makes it work?

Essentially, it comes down to trust. People trust what others have to say, which means when they hear about something from a friend or previous consumer, they’re more likely to buy. But there’s more at work.

Studies by marketing expert Jonah Berger have found two driving factors that power WOM marketing content. These factors are social currency and triggers.

Top 2 Reasons Word-of-Mouth Marketing Works:

  1. Social Currency
  2. Triggers

Social currency relies on the idea of exclusivity. In short, we like to feel special. Hearing about an underground club or secret menu item triggers our need to belong to an exclusive group.

Insider knowledge gives us social currency that we then use to spread the word to other friends.

Accordingly, an easy way to encourage word of mouth discussion is through marketing strategies that pick up on the social currency factor, offering insider secrets or exclusive information (ex. secret menus). Triggers are a natural social mechanism that remind us about a brand or product even when we don’t see advertising.

For example, imagine your friend told you about a special happy hour deal on Tuesdays at a bar near your house. On Tuesday, when another friend mentions grabbing drinks after work, you will be triggered to remember the place you heard about with Tuesday specials. Tuesday becomes the trigger amplifying the effect of WOMM. In this way, word of mouth can also be a way to improve existing customer engagement strategies.

Word of mouth marketing & user-generated content

Another reason why word-of-mouth marketing works is because of the same principles that marketing with user-generated content is so successful.

Word of mouth marketing and user-generated content marketing are closely related.

User-generated content is voluntarily created and shared by everyday consumers, while word of mouth is the organic sharing of information or opinions about a product, company, or brand, from one consumer to the other.

One powerful type of user-generated content is reviews — and getting customers to write reviews is one way to facilitate the spread of word-of-mouth marketing. When potential shoppers read reviews, it builds customer trust by showing them that a verified customer offers their endorsement of your brand.

Related post: Learn how to use consumer generated media to amplify your word-of-mouth marketing.

How to Build a Word of Mouth Marketing Strategy

Successful implementation of word of mouth campaigns can’t be accomplished via cookie cutter tactics.

There is an inherently creative element to the process that must be artfully and uniquely applied to each brand.

As I mentioned earlier, word of mouth promotion tends to incorporate two key components:

  1. Create something buzz-worthy
  2. Encourage the buzz

In other words, word of mouth promotion doesn’t simply attempt to get people excited about a business’ logistics, daily operations, or profit model.

The key to a successful word of mouth marketing strategy is to either identify something about a brand that can generate organic buzz OR create something that will generate that buzz.

To find out how to do this effectively, look to successful word of mouth marketing examples for inspiration.

Top 3 Word-of-Mouth Marketing Examples

One of the best ways to build a successful strategy of your own is by looking at what worked for other brands.

TOMS: Creating organic buzz by doing good

As you are no doubt aware, TOMS became a famous, massively profitably shoe company thanks to the viral popularity of their One-for-One business model.

Toms one for one word of mouth marketing example

When you buy one pair of shoes from TOMS, one pair is also donated to a child in need of shoes. This model was touted and received as a form of consumer-driven charity, and as a result, the company exploded, reaching a valuation of over $600 million in 2014.

In the cold reality of hard numbers, the Alpargatas shoes TOMS sells retail for around $2-5 in South America, indicating an incredibly low manufacturing cost.

With a price point of $60, its fair to say that TOMS shoes’ actual charity contributions are relatively marginal.

Despite this, TOMS realized that “company gives shoes to those in need every time you buy” made for a far more buzzworthy headline than “company donates money to poor people”.

As a result, the company focused its branding around this buzzworthy portion of its business model, and then blitzed the media with its message, generating tons of news coverage and hundreds of thousands of backlinks.

TOMs profited from their word of mouth campaign

While TOMS opted to build its business model around something it could make buzzworthy, this isn’t an option for most businesses. Instead, these businesses have the opportunity to create something interesting that people will get excited about and then spread the word.

Chipotle: Creating WOM Buzz Through Storytelling

Casual dining chain Chipotle has somewhat distinguished itself being a national chain that sources its ingredients locally.

That said, “ingredients sourced locally” isn’t necessary something that is going to blow up anyone’s Facebook feed.

In order to spearhead word of mouth, Chipotle created a haunting video, with an accompanying iPhone app, depicting a dreary, over-processed world run by machinery.

The video and app combined have generated over 614 million media impressions, according to Cision, making it a major WOMM win for Chipotle.

Key Takeaway:

You can make anything newsworthy with the right story. While local sourcing isn’t inherently newsworthy, the Chipotle marketing team made it newsworthy through a combination of art, storytelling, and a targeted media blitz.

Coca-cola “Share a Coke With Friends”: Omnichannel WOM

Coca-cola’s campaign asked for consumers to participate by sharing a personalized soda bottle with friends, in person and on social media.

coca cola word of mouth share a coke with friends

Coca-cola even supported the campaign with events where consumers could create their own personalized Coke bottle.

Key Takeaway:

Social media makes digital WOM marketing much easier, but real WOM marketing happens both on and off the web.

Build omnichannel WOM marketing with campaigns that encourage users to integrate information they gain about your product on and off the web.

Learning from these brands:

The processes from these examples can be repeated by virtually any company looking to generate grassroots word of mouth coverage of their brand.

When coming up with word of mouth marketing ideas, it’s important to see what worked for other successful brands.

Get ideas for your word of mouth marketing campaign by looking to successful brands who did it right.

Conclusion

Very few marketing strategies can match WOMM in terms of viral potential or cost-efficiency.

The right strategy can explode a company onto the scene for mere pennies, but it doesn’t just happen by itself.

Word of mouth marketing requires a genuine and meaningful customer engagement with the target audience. It’s a two-way participation.

Use the strategies we discussed here today, but remember that ultimately, it’s meaningful connection, rather than technique, that motivates customers to become brand ambassadors.

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