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.
Even though technological advancements have given birth to a variety of marketing channels and tools, word of mouth or WOM marketing hasn’t lost its relevance.
People continue to interact with each other in social settings and share their experiences as customers and consumers, albeit the modes of these interactions have changed with time. Word of mouth is still the most common way customers learn about new offerings and promotions. It can either help you win more business or cause you to lose clients. Not convinced?
Let’s take a look at some word-of-mouth marketing statistics to see the role this kind of customer engagement plays in business marketing and how it can affect a business’s reputation. We will also give some word-of-mouth marketing examples.
Let’s do this!
Can you see yourself asking for or sharing your personal experience with your friends and family? Well, join the rest of us, and let’s dive into the word of mouth marketing statistics we collected for you!
Fascinating Facts
- Being one of the most trusted channels, WOM marketing is key when it comes to decision making.
- 92% of consumers trust recommendations from friends.
- WOMM brings in 5 times more sales than paid media.
- 74% of consumers identify word of mouth as a critical influencer in their purchasing decision.
- 88% of customers trust online reviews.
- 64% of marketing executives consider word-of-mouth to be the most effective form of marketing.
- Brands that are able to create an emotional connection receive three times more word-of-mouth than those that don’t.
- Word of mouth drives $6 trillion of annual consumer spending.
Word of Mouth Marketing Statistics 2022
Here are some interesting WOM marketing statistics to make you realize the importance of word of mouth in the world of business:
1. Word-of-mouth promotion is the most trusted of all forms of marketing – 86% of customers trust word-of-mouth reviews and recommendations.
(Source: Referral Candy)
The latest research reveals that word-of-mouth effectiveness supersedes all other major marketing channels. These include television advertisements, print ads, and even social media.
2. 59% of customers like to give word-of-mouth feedback – they tell others about new products and services.
(Source: Referral Candy)
More than half of the buyers tend to share their reviews of new products and services with other people. Depending on individual preferences, this could either be done online, offline or both.
3. People are 4 times more likely to buy a product or work with a business when referred by friends.
(Source: Impact)
The trust factor plays a major role here. Since people trust their friends to give honest reviews of a product, service, or company, they are more likely to purchase from the brands recommended by friends.
4. According to the word-of-mouth advertising statistics, 85% of small businesses are discovered by customers due to word-of-mouth recommendations.
(Source: Writer’s Block Live)
Since small businesses do not have huge marketing budgets, they rely heavily on word-of-mouth marketing to gain new customers, and the majority of them are discovered through word-of-mouth channels.
5. 13% of all sales are driven by word-of-mouth marketing.
(Source: Invesp)
The sales percentage may not seem too impressive. But, it can translate to a significant number of sales for big businesses with hundreds or thousands of customers.
6. Customers acquired through word of mouth promotion spend 200% more than the average customer.
(Source: Referral Candy)
Word of mouth marketing not only helps you attract more people but also gets them to spend more money. Simply put, people spend more money when buying from brands they have been referred to or recommended by other buyers than the ones that they have discovered through other channels.
7. When it comes to products, Gen Z statistics are clear. 82% of this generation trusts their friends and family most when it comes to advise on products.
(Source: Forbes)
Add to that 69% of them who think ads are disruptive, and you’ll begin to realize that word of mouth is invaluable when it comes to this generation.
How Effective Is Word of Mouth Marketing?
By definition, word-of-mouth marketing is free and accessible by any business. This makes it one of the most common forms of promotion. People are happy to share their experience with goods or services – either online or face-to-face, either positive or negative.
The word-of-mouth marketing statistics in 2019 reveal its great influence. Why is that? What makes word of mouth marketing so important?
It’s all about the driving force – the people. There’s nothing more powerful to us than our own experiences, right?
8. Being one of the most trusted channels, WOMM is key when potential customers make decisions.
(Source: Forbes)
- Half of Americans would choose a word of mouth when deciding on a source of information.
- Americans trust word-of-mouth recommendations from friends and family 41% more than social media.
- Millennial marketing stats say this generation is more than twice as likely to be influenced by word of mouth when voting.
We seek our friends’ advice on just about every topic we can think of. And if influencer marketing statistics are to be trusted, many of us also rely on social media stars. When it comes to planning a wedding, though – it’s a must that we receive a hands-on experience recommendation about every bit of it. Recommendations from friends are valued over 300 times more than anything else when it comes to planning the big day.
Review42 Fun Fact: 43% of Millenials and 71% of Boomers rely on word of mouth and previous experience when making a purchasing decision about wine and Champagne. Cheers!
9. 92% of consumers trust recommendations from friends.
(Source: BigCommerce)
- Over 65% of US internet users refer to word of mouth recommendations from family, friends, and co-workers when looking for a physician, while 51% trust insurance providers.
- 56% of all grocery shoppers count on friends and family to make sense of new products, while 21% of book purchasing decisions are influenced by recommendations.
- Movie theater addicts looking for recommendations from friends on social media account for 40%.
With the boom of social media channels, another layer of word-of-mouth advertising emerged. Now we have at our disposal a good amount of online recommendations shared by our fellow social media friends. As the saying goes: the more word of mouth channels – the merrier, right!
Social media is the perfect environment to get as many viewpoints as we need, to share ours with a broad audience, to take only what fits our interests. All of that with ease, with a great reach, and as fast as your internet connection allows.
10. WOM marketing brings in 5 times more sales than paid media.
(Source: Invesp)
- 19% of a brand’s sales – between 7 and 10 trillion USD in the USA alone, are driven by social conversions – both online and offline.
- 80% of furniture retailers identify word of mouth as their most powerful marketing approach.
- According to referral marketing statistics, friend referrals make consumers four times more likely to make the purchasing move.
Paid marketing campaigns can be expensive, time-limited, and inefficient. Instead, why not make your customers the ambassadors of your brand. Let them spread the word about the quality and satisfaction with your services.
Your successful word-of-mouth marketing strategy would be to go the extra mile and inspire both online and offline conversations about your business.
11. 74% of consumers identify word of mouth as a critical influence in their purchasing decision.
(Source: Ambassador)
- Speaking about the influence of word-of-mouth marketing, 2017 stats show that most influenced by a word-of-mouth recommendation are people looking for a place to have dinner – close to 38% followed by the electronics category – 33%.
- Unlike Generation X and Boomers, Millennials are 99% more likely to refer to social media when it comes to choosing a restaurant.
- In 2015, 7% of the US population received product recommendations through social media.
Whether you posted your review online or shared it with your friends face-to-face, it still makes а difference. But we are already very much used to social media, so if you are a business owner, chances are that you will receive a lot of reviews online too. You need to pay close attention to those.
Two-step recipe for success: First, create your Brand – put your heart in it, and second, add Value to your product or service – offer quality above anything else. The final result – a happy customer. One happy customer equals an X amount of potential leads, don’t forget that!
12. 88% of customers trust online reviews.
(Source: Ambassador)
- People read an average of 10 online reviews before trusting a brand.
- Most negative and outraged comments often get the most traction on social media.
- Customer reviews online are valued by 70% of us.
- Among the most trusted celebrities, these days are Oprah Winfrey (4%), Donald Trump (2.8%), and Warren Buffett (2%).
Correct – we trust strangers way more than ads nowadays. Wait, they’re not simply strangers but people with experience that we value and seek. From unboxing and assembling a new drawer – to fixing an irritating error popping up in Outlook.
Word of mouth marketing stats is clear that we seek reviews of other people. 77% of people would write a review if asked, so give people the means to do so, sit, watch and analyze the feedback.
Negative Word of Mouth Stats
We touched on this already – outrageous comments get the most attention on the web. How exactly impactful is negative word of mouth? Let’s see.
13. Negative word-of-mouth reviews have a higher impact and spread faster than positive feedback.
(Source: Reputation Refinery)
- According to word-of-mouth marketing statistics, 96% of unhappy customers don’t complain to the company about a bad experience; however, they share their bad experience with about 9-15 people.
- About 13% of unhappy customers share their bad experiences with 20 people.
- A happy customer, on the other hand, only tells 3 people about it.
- A whopping 91% of unhappy customers will not buy from a company they’ve had a bad experience with again.
- It takes about 40 positive customer experiences to undo the damage done by 1 negative review.
Negative word-of-mouth marketing can ruin your business’s reputation since consumers are more likely to share bad experiences and with more people than they would share a good experience with. What makes this behavior even more troubling is that most customers do not register their complaints with the brand they have had bad experiences with. This means, in most cases, that brands won’t even know how many potential customers they are losing due to negative word-of-mouth marketing and, hence, won’t be able to do anything to control or rectify the damage.
Word of Mouth Marketing vs Advertising Statistics
How is the advertising industry performing in 2020 compared to people’s recommendations – offline and online?
14. 64% of marketing executives consider word-of-mouth to be the most effective form of marketing.
(Source: Forbes)
- Word-of-mouth is influencing 99% of all B2B purchases.
- Only 33% of businesses seek and collect reviews.
- Word-of-mouth boosts marketing effectiveness by up to 54%.
- 75% of people don’t believe advertisements.
There’s clearly a contradiction here. While product recommendations are a standard and the results are clear, businesses still tend to somewhat disregard the word of mouth influence.
The popularity of social media has us spending longer on our mobiles doing all sorts of things – and we’re constantly interacting with each other. Word of mouth is more powerful than ever.
Review42 Fun Fact: Walmart, Coca-Cola, and Samsung are the brands people have chatted most about offline, while Fox News, the NBA, and the NFL are the most-talked-about in the online communities in 2017.
15. Brands that create an emotional connection receive three times more word-of-mouth than those that don’t.
(Source: FriendsBuy)
How do we do that? It’s not a simple process, of course, but it’s doable.
Here are some word of mouth marketing ideas that you can work on and apply to your marketing approach:
• High-Quality product
• Excellent customer service
• Intuitive order process
• Reliable delivery channel
• Customer ‘flattering policy’
• Seek out reviews
With an estimation that by 2040, 95% of all purchases would be made through eCommerce, you should think again about your web presence. Design your website with a smooth checkout process, ask for feedback, create a community on social media, and interact with your customers – the happy and the not-so-happy ones.
Word of mouth marketing statistics demands that you take the good with the bad. Make it right!
At the end of the day, WOMM is the power of people to build brand awareness and why not bet on it as a business owner? With a polished product and outstanding service, a word-of-mouth marketing strategy can get your business to the next level.
Review42 Fun Fact: Amazon is the most loved brand in America in 2019 with 68% of consumers trusting the brand and about 80% with a favorable opinion about it.
16. Word of mouth drives $6 trillion of annual consumer spending.
(Source: Invesp)
- Word of mouth marketing spend is expecting to grow by 70% for online WOMM and 30% for its offline counterpart.
- 43% of marketers using WOMM are estimating an increase in sales.
- Offline word of mouth increases sales by about 20%.
- WOM drives 200 times more sales of products in sensitive niches (such as baby food) compared to paid advertisements.
WOMM is the perfect advertising strategy to create buzz and sentiment around your product or service and has people organically raise your brand’s popularity. The best part of it – it’s free of charge!
Wrap Up
Marketers are well aware of the effects of the word of mouth marketing techniques. Being arguably the most dynamic, evolving, and impactful industry today, marketing specialists are equipped with the tools to measure that effect.
While the core of WOMM is still the advice based on personal experience, there are still ways to take this concept further. For example, good survey sites can help you glance over what your audience likes and dislikes, by getting opinions from those willing to share them. As with anything that brings money, marketers have taken WOMM down to a science. As such, it has the potential to bring in great results. And if it doesn’t do so for you, there are plenty of other ways to bring in customers – ads, lead generation companies, and many more.
We hope that with the word-of-mouth marketing statistics we talked about, we triggered your interest to learn more about WOMM. Why not implement it into your marketing strategy?
See you soon!
Never underestimate the power of positive word of mouth.
Shout-outs. Positive comments. Reviews and recommendations.
At a glance, these might seem like little more than pleasantries for your business.
The reality? Customer conversations are among your most valuable marketing assets. This is especially true for brands in crowded industries (think: ecommerce, SaaS) where it’s so simple to bounce to a competitor.
And despite popular belief, driving more discussions and recommendations doesn’t happen organically or by accident.
With a defined word of mouth marketing strategy, you can create a consistent flow of customer conversations that regularly result in new business. In this guide, we’ll show you how it’s done.
- What is word of mouth marketing, anyway?
- The not-so-hidden power of word of mouth advertising
- How to build a word of mouth marketing strategy: 8 tactics and examples
What is word of mouth marketing, anyway?
Word of mouth marketing represents brand promotion that’s driven by customer experiences and stories. Common examples include product recommendations, reviews and customer photos. These stories and experiences are typically shared organically (think: not paid), although brands can prompt customers to share them as well.
Although word of mouth marketing is a form of advertising, keep in mind that WOM doesn’t represent an ad or ads. Far from it, actually.
In most cases, word of mouth is totally free. Organic conversations, feedback and reviews can’t quite literally be bought. This is why word of mouth has such a positive connotation: it’s advertising that often occurs without any sort of sales pitch or sleazy tactics.
Gymshark, Threadless and Casper are shining examples of brands that flourished thanks to community-building and word of mouth. Companies with plenty of positive buzz and frequent social mentions grow rapidly in the age of social media.
What are some examples of word of mouth marketing?
Good question! Here are the most common types of word of mouth marketing that consumers encounter in the wild:
- Social shout-outs. This includes @mentions of your brand and tagged posts.
- Employee advocacy. In short, this is when employees or colleagues boost your promotions and content on their own accounts.
- User-generated content and hashtags. When customers share photos of their photos, experiences or purchases. Typically, these posts are attached to brand @mentions and hashtags.
- Reviews. Either on-site, social media, Google or third-party review aggregators.
- Blog posts, press mentions and earned media. Coverage in industry publications is a powerful form of word of mouth typically reserved for brands doing something truly noteworthy.
- Brand ambassadors. In short, customers who consistently promote your products and brand in exchange for discounts or products.
There is no “best” type of word of mouth. Likewise, most brands benefit from having multiple types of conversations around their business as they build trust with different audiences.
For example, user-generated content is more relevant to a past customer that hasn’t made a purchase recently. rating or review is most valuable to someone researching a brand for the first time or buying a new product. See how that works?
The not-so-hidden power of word of mouth advertising
To say that word of mouth is an underrated marketing technique would be an understatement.
In fact, recent research from R.R. Donnelly notes that most consumers (28%) prefer to learn about new brands or products via word of mouth (note that social media close behind at 23%).
But contrast that with the meager 4% of marketers that feel that same.
The disconnect here is telling, though. Consumers overwhelmingly prefer to learn about and research products organically via conversations versus being bashed over the head with ads.
But the data above highlights how marketers at large are still missing this.
Translation? There’s a massive window of opportunity for brands that can effectively encourage and leverage positive word of mouth. Consider the key benefits of doing so below:
1. Increased trust and brand visibility
A staggering 75% of shoppers evaluate and discover products via online reviews and shared content.
Although this isn’t a huge surprise, this stat showcases the importance of people shouting you out.
Consider how the volume of conversations impacts your ability to create awareness. This is fairly obvious on social media: the more positive mentions, the better.
But what about product pages? Search engines? Review sites?
All of these represent places to not only establish trust and increase visibility with customer conversations.
For example, ecommerce brands rely on star ratings and positive reviews to convert first-time customers and skeptics. When your product boasts thousands of positive reviews, that trust is pretty much immediate.
The same rules apply for SaaS brands. Review aggregation sites are crucial for software brands, as is Google search. Again, a high volume of positive ratings results in greater visibility.
And on the flip side, ask yourself: when’s the last time you bought something from a brand with no reviews or significant social presence?
2. Make a meaningful impact on customers through authenticity
Keep in mind that in-depth reviews aren’t the be-all, end-all of word of mouth marketing.
Heck, even the simplest of social shout-outs and recommendations are invaluable for scoring sales.
Food for thought: recent research from Bazaarvoice notes that recommendations from everyday social media users (36%) are the most meaningful to consumers, handily beating out influencers and even subject matter experts.
That’s because social comments are unfiltered and authentic. This circles back to what we said earlier about diversifying your word of mouth marketing: off-the-cuff conversations and formal reviews are both beneficial in their own way.
3. Earn long-term brand loyalty
Encouraging conversations among your audience is central to building customer relationships and, in turn, brand loyalty.
There’s a reason why so many ecommerce brands are going all-in on user-generated content and hashtag campaigns that require customers to share photos and reviews — they get people talking.
Look no further than the recent boom of brand ambassador programs as evidence of how well word of mouth works. When done right, such programs serve as a goldmine of content and social proof.
How to build a word of mouth marketing strategy: 8 tactics and examples
Perhaps the biggest upside of word of mouth marketing is that any type of brand can get on board.
Regardless of your budget or industry, there are actionable steps you can take to encourage more comments, recommendations and reviews from your customers. Below we’ve broken down eight tactics to try.
1. Boost positive social comments and customer stories
This is probably the most straightforward way to start building a sense of community and driving conversations.
In short, make a conscious effort to integrate customer reposts (think: retweets, regrams, reposts) into your content strategy.
Doing so represents a low-hanging tactic to highlight that you’re listening to your customers and want to hear from them. This likewise breaks the monotony of purely promotion posts while also saying “Hey, check out our satisfied customers.”
Random photo tag? Someone share a positive review? Boost it!
2. Extend your brand’s reach through employee advocacy
This is especially important for B2B brands.
If you’re posting solely from a brand account, your reach is largely restricted to our own followers.
But if you have your employees boost your content, you’re immediately reaching an exponentially larger network.
Think about it. Ever notice that a lot of brand content on LinkedIn doesn’t rack up a ton of likes and shares? Seems like personal counts get the most love, right?
Whether you have just a few or a few hundred employees, investing in an employee advocacy program is a surefire way to introduce your brand to more players in your industry. As an added bonus, employee advocacy is an example of word of mouth marketing where your brand has a sense of control over conversations and comments.
Check out Employee Advocacy by Sprout Social if you’re interested in getting your employee advocacy efforts off the ground!
3. Actively gather and and curate user-generated content
While big-box brands can generate user-generated content by simply existing, up-and-coming brands need to actively promote their company #hashtags and customer photo campaigns.
Likewise, you can’t be shy about asking people to share photos and feedback. If your tags are underperforming or you want to increase the visibility of your UGC, consider:
- Feature a hashtag (and call-to-action) in your bio (think: Instagram, Twitter) encouraging people to share photos
- Include invitations for customers to promote hashtags on-site, in-person and via email (see an example below)
- Regularly publish and repost UGC as part of your content calendar (circle back to tactic #1)
4. Monitor mentions and respond ASAP to keep conversations rolling
When word of mouth ramps up, it’s both a blessing and a curse.
Sure, conversations with customers are awesome.
But when they start flooding your @mentions and inbox, you have to start prioritizing tasks and making sure you’re responding accordingly. After all, your responses highlight your brand voice and likewise signal that you want to hear from your customers.
Other priority tasks to take care of as you keep an eye on your mentions include:
- Responding to all customer questions, comments and concerns
- Defusing difficult situations and negative comments (hint: escalation management)
- Keeping track of your conversation history so you can build better relationships with customers
This is where a tool like Sprout Social can help in a big way. With our Smart Inbox, you have a bird’s eye view of all your social media mentions and messages across all platforms. You can also measure your average response time and make notes on specific customers.
5. Ask for reviews and recommendations directly (hint: provide an incentive)
Fact: 41% of shoppers say that “robust” online reviews (featuring photos, keywords and more) are important for a positive shopping experience.
As noted earlier, a lack of meaningful reviews is a red flag for new customers. Getting more reviews not only represents positive word of mouth but also a proven way to gain trust.
Much like UGC, sometimes scoring reviews is as simple as asking. Ideally, this can be done non-intrusively via email. Many brands implement post-purchase autoresponders to ask for reviews by default, meaning that each purchase is a potential opportunity to earn a much-needed review.
But how you ask for reviews matters. Beyond putting on a smiling face, also consider additional incentives (think: discounts or free shipping). Your customers’ time is valuable and sweetening the deal is worth it if it means a rave review.
6. Assemble your army of influencers and brand ambassadors
Although most word of mouth marketing is focused on organic engagement, don’t neglect the value of influencer marketing.
Having influencers shout out your product or give it a review not only introduces you to a new audience but once again serves as social proof. In fact, recent data shows that reviews are actually considered “the most valuable type of content” that influencers publish. Chances are there are relevant influencers out there that’d be the perfect fit for your brand.
If you already have a dedicated customer base, you might alternatively consider starting your own ambassador program. Doing so does require an investment of time as you manage relationships with your ambassadors. That said, fostering a community of people that already love your product is easier than reaching out to influencers cold.
7. Provide customer service that overdelivers
It’s been proven time and time again that social customers will show unprompted love to brands that provide stellar support and service.
Okay @SweetwaterSound yet again saves the day. My consultant Brad got me some new badass @SennheiserUSA inear monitors JUST in time for the show this Friday. Musicians- shop Sweetwater if you need ANY kind of new gear. Amazing company.
— Sarah 》》 (@sarahsuitmiss) October 27, 2021
For example, brands like Sweetwater and Chewy are regularly praised and put on a pedestal for regularly going above and beyond for their customers.
https://twitter.com/cjdiercks/status/1481310435680866310
Remember that customer service and word of mouth go hand in hand. Stepping up your response time and personalizing customer care can cement your positive reputation.
8. Run campaigns that are actually worth talking about
Piggybacking on the point above, word of mouth promotion isn’t something you can force.
Instead, you encourage it.
And what better way to get people talking than actually doing something that gets people buzzing? We’re not talking about PR stunts or viral marketing attempts, but rather:
- Launching a genuinely unique or high-remand product
- Running a creative campaign or giveaway
- Promoting a steep offer or sale
We get it: “just do something awesome” is easier said than done. Even so, injecting a bit of excitement and creativity into your social content can go a long way.
What does your word of mouth marketing strategy look like?
Listen: word of mouth should be a top priority for any business today.
But this is particularly true if you’re selling through social media.
As consumers become wary of ads and seek out authentic recommendations, word of mouth becomes even more valuable. Ask yourself: what does your strategy look like?
If you need more inspiration or are looking to build a tight-knit community that talks up your business, make sure to check out our guide to building customer relationships.
Word-of-mouth marketing is a marketing method that encompasses any and all ways people talk about your company with others. It’s a marketing method that organically drives discussions about your business.
A word-of-mouth marketing strategy is a plan to generate buzz and interest in a product or service through organic, viral methods. This can be done through online channels like social media and forums, or offline through face-to-face interactions and events.
Definition
Word-of-mouth marketing is defined as a marketing strategy that brands use to encourage, influence, or impress people or target audiences to organically talk about your brand, product, service, campaign, event, or experience with others.
This marketing strategy is usually used to generate more interest in what you’re offering, to increase sales or conversions, or simply to get your name out there. Word-of-mouth marketing can be a very effective way to promote your business. After all, people are more likely to listen to and trust recommendations from people they know, rather than a faceless company.
Why Word-of-Mouth Strategy Matters for Retailers
There are a few key reasons why retailers should focus on word-of-mouth advertising:
- It’s cost-effective. Word-of-mouth marketing is one of the most cost-effective marketing strategies there is. It doesn’t require a big budget, and it can be done through organic channels like social media, online forums, and face-to-face interactions.
- It’s credible. People are more likely to listen to and trust recommendations from people they know, rather than a faceless company. Word-of-mouth marketing can help build trust and credibility for your brand.
- It’s viral. Word-of-mouth marketing is a form of organic or viral marketing. It’s a way to organically spread the word about your brand or product through social interactions. If people are talking about your brand, it can quickly lead to more people talking about your brand.
- It’s trackable. With the right tools, you can track word-of-mouth marketing campaigns and measure their effectiveness. This data can be used to improve future campaigns.
How to Build Word-of-Mouth Marketing Strategies
There are a few key things you can do to build word-of-mouth marketing strategies
1. Make it easy for people to talk about your brand
Make sure your branding is strong and easily recognizable. Use social media, online forums, and face-to-face interactions to get people talking about your brand.
2. Create shareable content
Create content that is interesting, informative, and shareable. This could be blog posts, infographics, videos, or any other type of content that people will want to share with others.
3. Focus on customer service
Giving outstanding customer service is a great way to get people talking about your brand. Word-of-mouth marketing is all about creating positive experiences that people will want to share with others.
4. Host events and meetups
Hosting events and meetups is a great way to get people talking about your brand in person. This could be anything from a simple meetup to a larger conference or event.
5. Offer incentives and discounts
Offering incentives and discounts are a great way to get people talking about your brand. This could be anything from a simple discount code to a more elaborate referral program.
6. Keep track of your progress
Keep track of your word-of-mouth marketing campaigns with the help of social media analytics, Google Analytics, and other tools. This data can be used to improve future campaigns.
Word-of-Mouth Marketing Strategies
Some of the ways to make and use word-of-mouth marketing strategies are
1. Create triggers for word of mouth
Make sure your branding is strong and easily recognizable. Use social media, online forums, and face-to-face interactions to get people talking about your brand.
2. Monitor mentions and responds ASAP to keep conversations rolling
Keep track of your word-of-mouth marketing campaigns with the help of social media analytics, Google Analytics, and other tools. This data can be used to improve future campaigns.
3. Appeal to your audience
Create content that is interesting, informative, and shareable. This could be blog posts, infographics, videos, or any other type of content that people will want to share with others.
4. Provide value to customers
Giving outstanding customer service is a great way to get people talking about your brand. Word-of-mouth marketing is all about creating positive experiences that people will want to share with others.
5. Actively gather and curate user-generated content
Offering incentives and discounts are a great way to get people talking about your brand. This could be anything from a simple discount code to a more elaborate referral program.
6. Tap into emotion
Focus on creating emotional connections with your audience. This could be anything from evoking happiness or laughter to tugging at heartstrings. Emotional content is more likely to be shared than rational content.
7. Get product ratings on your site
Including customer ratings and reviews on your site can help to increase word-of-mouth marketing. This is because potential customers will see that others have had positive experiences with your brand.
8. Encourage user-generated content (UGC)
Encouraging users to generate their own content, such as blog posts, videos, or photos, is a great way to get people talking about your brand. This is because it helps to create a sense of community around your brand.
9. Ask for reviews and recommendations directly
Asking customers for reviews and recommendations is a great way to get people talking about your brand. This is because it helps to create social proof around your brand.
10. Tell your story
Telling your brand’s story is a great way to get people talking about your business. This is because it helps to create an emotional connection with your audience.
11. Extend your brand’s reach through employee advocacy
Encouraging employees to talk about your brand is a great way to extend your reach. This is because employees are trusted sources of information.
12. Create exclusivity
Creating a sense of exclusivity around your brand is a great way to get people talking about your business. This could be anything from offering exclusive discounts to VIP members.
13. Assemble your army of influencers and brand ambassadors
Working with influencers and brand ambassadors is a great way to get people talking about your brand. This is because they have a large reach and can help to create social proof around your brand.
14. Boost positive social comments and customer stories
Highlighting positive social comments and customer stories is a great way to get people talking about your brand. This is because it helps to create a sense of community around your brand.
15. Provide customer service that over-delivers
When customers are happy with your product or service, they’re more likely to tell their friends and family about it. This word-of-mouth marketing is incredibly valuable, as it can help attract new customers and create loyalty among your existing customer base. Word-of-mouth marketing is all about creating positive experiences that people will want to share with others.
16. Create hashtags
Creating branded hashtags is a great way to get people to talk about your brand. This is because it helps to create a sense of community around your brand.
17. Offer freebies
Offering freebies is a great way to get people talking about your brand. This could be anything from a free product sample to a discount code.
18. Conduct giveaways and contests
Conducting giveaways and contests is a great way to get people talking about your brand. This is because it helps to create a sense of community around your brand.
19. Focus on creating great content
Content is king when it comes to Word-of-Mouth Marketing. This is because great content is something that people will want to share with others.
20. Make it easy to share your content
Make sure that your content is easy to share by using social sharing buttons or embeddable links. This will make it more likely for people to share your content with their social network.
21. Use influencers and brand ambassadors
Working with influencers and brand ambassadors is a great way to get your content seen by more people. This is because they have a large reach and can help to promote your brand.
Word-of-Mouth Marketing and Referral Marketing
are two terms that are often used interchangeably, but they actually refer to two different types of marketing. Word-of-Mouth Marketing is when customers talk about your brand to their friends, family, and acquaintances. Referral Marketing is when customers share your brand with their social network through a link or code.
While Word-of-Mouth Marketing can be more organic and happen naturally, Referral Marketing is more structured and deliberate. Both Word-of-Mouth Marketing and Referral Marketing can be extremely effective in growing your business.
Examples of Word-of-Mouth Marketing Campaigns
1. Coca-Cola’s Share a Coke campaign:
Coca-Cola’s Share a Coke campaign was a Word-of-Mouth Marketing campaign that encouraged people to share photos of themselves drinking Coca-Cola with their friends. The campaign was extremely successful, generating millions of social media impressions and increasing sales by 3%.
2. Ford’s Word of Mouth Marketing campaign
Ford’s Word of Mouth Marketing campaign was a brand-advocate-based Referral Marketing campaign that also channelized influencer movements. Using referral programs was also useful for the business model. The campaign was successful, generating over 1 million leads.
3. Netflix
Netflix understands its customers’ wants and needs by using the data they provide. This way, Netflix not only recommends shows to users but creates entire seasons of new content that is suited to the platform’s biggest interests. Using this data in a logical manner, the firm has been able to improve consumer sentiment, resulting in an army of Netflix influencers who extol the company’s virtues on several social media platforms. This free advertising has allowed the business to expand rapidly beyond its competitors such as Amazon Prime, Hulu, and even YouTube.
4. Sephora’s Beauty Talk Word of Mouth Marketing campaign
Sephora’s Beauty Talk Word-of-Mouth Marketing campaign was a Word-of-Mouth Marketing campaign that encouraged customers to share their favorite Sephora products with their friends. The campaign was successful, generating millions of social media impressions and increasing sales by 5%.
5. Dunkin’ Donuts
Not only is Dunkin’ Donuts a vital part of American culture, but it has become a tourist destination for many. The delicious and affordable product has been made into a brand that Americans love, with staunch followers around the world. Thanks to these amazing people, Dunkin’ Donuts have found innovative ways to utilize word-of-mouth marketing. Social media is a powerful platform for brands to connect with their customers. By posting unique content and running competitions, followers are encouraged to engage with the brand on a regular basis. This can involve liking or sharing content, or even creating their own around the brand to show their experience. For example, one company’s hard work paid off with 15 million Facebook fans, 1.5 million Instagram followers, and 1.2 million Twitter followers.
Here is a video by Marketing91 on Word of mouth Marketing.
Benefits of Word-of-Mouth Marketing
1. Increased trust and brand visibility
When potential customers see that their friends, relatives, or other people they know and trust are talking about your brand, they’re more likely to pay attention. Word-of-mouth marketing can help increase trust in your brand, as well as brand visibility.
2. Make a meaningful impact on customers through authenticity
People can smell in authenticity from a mile away. Word-of-mouth marketing is an opportunity to make a meaningful impact on potential customers by being authentic and transparent. When people see that you’re genuine, they’re more likely to trust you and do business with you.
3. Earn long-term brand loyalty
People are more likely to be loyal to a brand that they trust. Word-of-mouth marketing can help you earn long-term brand loyalty from customers. If you can get people talking about your brand, you’re more likely to keep them as customers for the long haul.
4. Get more bang for your buck
Word-of-mouth marketing is one of the most cost-effective marketing strategies there is. It doesn’t require a big budget, and it can be done through organic channels like social media, online forums, and face-to-face interactions.
5. Reach a wider audience
Word-of-mouth marketing can help you reach a wider audience than you would with traditional marketing methods. If people are talking about your brand, it can quickly lead to more people talking about your brand.
6. Boost sales and conversions
If done right, word-of-mouth marketing can be a powerful tool for boosting sales and conversions. People are more likely to listen to and trust recommendations from people they know, rather than a faceless company.
7. Get feedback and improve your product
Word-of-mouth marketing can also be a way to get feedback about your product or service. If people are talking about your brand, you can quickly learn what they like and don’t like. This data can be used to improve your product or service.
8. Drive social media engagement
Word-of-mouth marketing can help drive social media engagement. When people are talking about your brand, they’re more likely to share it on social media. This can help increase your reach and get more people talking about your brand.
9. Word of mouth is the most powerful form of marketing
Last but not least, word of mouth is the most powerful form of marketing. It’s trusted, authentic, and free. What more could you ask for? If you can get people talking about your brand, you’re on your way to success.
Conclusion!
Word-of-mouth or WOM marketing is still one of the most powerful tools in a business’s arsenal to optimize a business or brand presence via positive organic word. In the digital and social media marketing age, it has taken on a new form, but the bottom line is that satisfied customers lead to new customers.
There are a few key things to remember when pursuing word-of-mouth marketing:
- First, focus on creating satisfied customers. This is the foundation of any good word-of-mouth marketing strategy.
- Second, take advantage of social media and online reviews. Make it easy for customers to leave positive reviews and word-of-mouth recommendations.
- Finally, focus on customer loyalty. Once you have a satisfied customer, work hard to keep them coming back.
By following these tips, you can tap into the power of word-of-mouth marketing and create a steady stream of new customers.
What are your thoughts on word-of-mouth marketing? Let us know in the comments below!
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Before picking a movie, you probably check reviews on IMDb or Allocine.fr. Before booking a hotel, you probably read comments on TripAdvisor. When ordering a book online, you probably check vendor ratings on Amazon. The list goes on. Information published online about goods, services or brands in the form of user comments, ratings, reviews, video testimonials, or other consumer-generated content (termed “electronic word of mouth,” or eWOM) is “one of the most significant developments in contemporary consumer behavior,” write the four researchers in their paper about this phenomenon. They point out that with some three billion consumers and seven billion devices connected to the Internet, “eWOM has become ubiquitous and accessible, turning consumers into ‘web-fortified’ decision-makers”.
Electronic word of mouth is not limited to user reviews: even photos of people using branded products that are posted on Instagram or Facebook can be considered eWOM, according to Ana Babić Rosario, one of the researchers. “All consumers are exposed to some form of electronic word of mouth, whether they are seeking it out or not, at some point in their consumer journey, just because we spend so much time online,” she says.
Studying the effect on the bottom line
The significant impact of eWOM on corporate bottom lines has been heavily documented over the past 15 years. “There is a very strong effect of eWOM, not just on online sales but also in regular stores,” confirms Ana Babić Rosario. That is why companies work at inducing, collecting and displaying eWOM as part of their efforts to stimulate sales. The researchers write that the average billion-dollar company spends $750,000 per year on earned (user-generated) media. However, despite the recognized market relevance of eWOM, many professionals have not yet determined how to manage eWOM successfully.
The fact that empirical studies disagree on how online platforms, products or features of eWOM (such as volume or positive or negative nature) moderate effects on sales is part of the problem. To help marketers make more informed decisions about word of mouth management, Ana Babić Rosario and her colleagues conducted a meta-analysis that offers a comprehensive synthesis of multiple studies. By compiling the results of a diverse sample (covering 40 platforms and 26 product categories), they were able to encompass many more contexts and investigate dimensions of eWOM that were not part of the primary studies. For instance, to evaluate the effect of platform characteristics, the researchers even went so far as to use an Internet archive called the Wayback Machine, which allowed them to see a snapshot of what the platforms looked like in the past.
eWOM has become ubiquitous and accessible, turning consumers into ‘web-fortified’ decision-makers.
An unquestionable effect on sales
Overall, the researchers found that there was a significant and positive relationship between eWOM and sales, a result that was consistent across different platforms and products. The sheer volume of interactions, regardless of their positive or negative nature, was the most important measure across different scenarios. As the authors write in their paper, the underlying dynamic that explains the effect of eWOM on sales is the bandwagon effect, in which the mere availability of other consumer opinions influences others. Unsurprisingly, “valence” (the favorable or unfavorable nature of the review) also has an effect, but negative comments are less harmful for sales than one might think.
After all, wouldn’t unanimously glowing reviews look suspicious? “Marketers believe they should have no negative reviews, so they often want to minimize them, but in fact intense consumer disagreement – the scenario where some consumers love a product and some hate it – is more dangerous,” says Ana Babić Rosario. The reason why eWOM variability can harm sales more than negativity is that eWOM, in theory, is a way for consumers to reduce risk and uncertainty – which does not happen when other consumers’ feedback is highly inconsistent. It is important to note, however, that polarized consumer opinion is a more important problem for companies “aiming at a mainstream consumer base” than for those shooting for a “niche, not intended to please everyone.”
The effect of product and platform characteristics
The researchers fine-tuned their analysis to examine which product and platform features shaped the overall effect on sales. They found that the effect of eWOM was more pronounced on new products than on mature products, which comes as a result of consumers’ desire to reduce the uncertainty associated with a product in the early stages of its life cycle. Regarding platforms, they found that eWOM was more effective on e-commerce platforms than on social media. Even though it is challenging to interpret such results without breaking them down to the level of individual decision making, Ana Babić Rosario believes the overall finding is linked to the difference of what stage each platform is used at during the consumer journey: “When you’re looking up eWOM on an e-commerce platform, it is likely because you’re already close to finalizing the purchase.” Meanwhile, the effect on sales of social media eWOM increases when receivers can assess their similarity to senders, based, for example, on the username or geographic location.
The researcher states: “When you see that a user similar to yourself has liked a company page on Facebook, it will drive your purchase decision, so in general it is a good idea for companies to provide more of such information to their users.” Such details about users are “cues to credibility”, as Ana Babić Rosario puts it, in a merciless online world where fake reviews are not unheard of. Among other factors, the researchers also found that eWOM effectiveness tends to be higher when eWOM is more prominently placed on a page (no need to scroll down) and lower when the display of eWOM is structured (with titles or a classification, as opposed to bundles of information).