Word of mouth commercial

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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.

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 is when a consumer’s interest is reflected in their everyday dialogue. It’s a low-cost (sometimes even free) and effective marketing method.

Many businesses consider word of mouth marketing the most valuable form of marketing because it enables you to spread good reviews about your product or service to a large audience, boosting brand awareness and loyalty.

Word of mouth marketing has been successfully used by many companies to get their customers to promote their brand by talking about experiences that they’d like to share with their friends and families.

Netflix, for example, used word of mouth marketing to make binge-watching popular with its organic tagline Netflix and chill. The company promoted it on social media which became a huge success.

In this article, we’ll take a closer look at how businesses have used word of mouth marketing to connect with their target audience and boost sales. Along the way, we’ll share actionable tips that you can use to engage customers with your brand.

But first, let’s quickly take a look at why word of mouth marketing is arguably one of the most valuable sources of advertising.


Why Is Word of Mouth Marketing Important?

Word of mouth marketing – also called word of mouth advertising – is a modern form of simple word of mouth. It’s one of the most effective forms of advertising for boosting brand recognition and sales.

Many businesses have adopted strategies that encourage customers to talk about positive experiences with their products.

According to HubSpot, consumers discuss specific brands casually around 90 times per week! The same study also reports that around 71% of people trust consumer reviews online. In simple words, consumers trust recommendations made by family and friends.

Nielsen Global Trust in Advertising survey

Nielsen Global Trust in Advertising survey shows that 83% of respondents trust recommendations from people they know.

Word of mouth marketing is an honest promotion which helps you build trust with prospective customers. In fact, The Nielsen Company reports that 83% of customers trust recommendations from family, friends, and peers when making purchasing decisions. This goes to show that people don’t believe advertisements to the extent they trust suggestions from family and friends.

In the context of digital marketing, user-generated content is basically a form of word of mouth marketing that enables customers to promote your brand. And one of the most effective types of user-generated content is online reviews.

This involves existing customers sharing their positive experiences with your products and services with prospective customers. According to BrightLocal, 72% of respondents say positive product reviews boost their trust in a company.

Check out our in-depth article to learn more about how product reviews increase conversions.


Before we dig deeper into how you can come up with an effective word of mouth marketing strategy for your business, let’s quickly step through some of the advantages of word of mouth marketing.

Instills brand loyalty

Successful businesses, whether online or brick-and-mortar – quickly realize that loyal customers lead to positive word of mouth about their product. To make the most of it, they focus more on building customer loyalty.

Wendy's and McDonald's on Twitter

Remember when Wendy’s trolled McDonald’s on Twitter and generated word of mouth marketing for their brand?

The thing is, these businesses know that while people don’t always trust paid advertisements, they are much more likely to heed a recommendation by someone they trust. Trust drives consumer decisions and, in turn, sales.

Associating positive emotions with the brand through word of mouth can help differentiate them from the competition and enhance the company’s brand image.

It’s cost-effective

As mentioned earlier, word of mouth marketing is an inexpensive method of promoting your products and services. While businesses spend thousands (or even millions) of dollars to run TV or online marketing campaigns, word of mouth marketing is a comparatively low-cost strategy.

Moreover, it doesn’t cost the consumers anything to spread the word about your company or your products. This is precisely why more and more companies are relying on their customers to share good product experiences with their friends and families.

Builds a community of brand advocates

Word of mouth marketing can help you build a community of brand advocates. This means when customers purchase your product, they tell their friends, families, and peers about it and share their experience on social platforms. These customers will likely support and vouch for your product online as well as offline.

Shoptimizer word of mouth example

A customer recommends the Shoptimizer WooCommerce theme on Facebook.

Take a look at how this customer recommends the Shoptimizer WooCommerce theme to a first-time online store owner and highlights its key advantage i.e. conversion optimization.

As a result, you can attract more and more consumers that will continue to interact with your brand post-purchase. A loyal community of fans stands as proof of your brand quality. It can help promote your brand and persuade others to buy your products, helping you increase customer retention.


3 Strategies for Word of Mouth Marketing

Here are some ways you can use word of mouth marketing to promote your brand.

#1: Ask for reviews

As a business owner, you should always be encouraging customers to leave a review. Online reviews are engaging, shareable, and (perhaps most importantly) unbiased.

You can use online product reviews to establish social proof. To take things up a notch, you can publish customer reviews and testimonials on your product pages and social media pages. This way, prospective customers will be more likely to purchase from you based on reviews they read from other people.

You can collect reviews and ratings on your product pages, social media, and email newsletters. CommerceKit, for example, is a powerful tool that can help you automatically collect reviews directly on your site.

Along the way, you might receive some negative reviews. But don’t worry, we got you! Check out our article on why a bad review is actually good for tips on how to interact with customers that leave negative reviews.

Online reviews aren’t the only type of user-generated content that can bolster your word of mouth marketing strategy.

Savvy digital marketers use social media to promote their content all the time. As your sales grow, you’ll notice customers sharing user-generated content on their social pages. This includes engaging and shareable content containing images, videos, Tweet threads, or Instagram captions that highlight their positive experience with your products.

Forever21 example

Forever21 Shop the Gram

Forever21 encourages customers to upload photos of their favorite outfit.

Apparel brand Forever21, for example, encourages buyers to share their style by uploading their favorite outfit photos on Instagram. Organic sharing like this is an effective way to boost your word of mouth outreach.

Promotional incentives, like coupons and exclusive discounts, are a great way to boost brand awareness. You can use your affiliate or referral program to give away points or perks for different types of user-generated content – more on this later.

Cluse example

Here’s how Cluse does it:

Cluse UGC

Cluse encourages followers to tag their friends.

Cluse’s giveaway post encourages its followers to tag their friends in a user-generated content post and also asks them to get their friends to follow its Instagram page.

Check out our article on how to ask for a review for actionable tips!

#2: Interact over social media

When brands start or join conversations over social media, it generates many opportunities for word of mouth marketing. Positive and memorable social media interactions help build a community around the brand.

Aviation American Gin example

Last year, when Popeyes Chicken announced a new chicken sandwich, it started an online battle between two fast-food giants Wendy’s and Chick-fil-A. This gave Aviation American Gin a chance to get in the conversation in a playful way, and swoop thousands of valuable retweets on Twitter.

Aviation American Gin tweet

Aviation American Gin joins in on a tweet battle

Aviation American Gin moved quickly at the fast-food heavyweights using other companies’ social posts to its advantage.

This is a great example of why word of mouth marketing is one of the most effective types of outreach. This sort of savvy social media campaign has helped the company attract the attention of a large number of social media users looking for entertaining content to consume and share online.

Netflix Film example

Netflix Film on Twitter

Netflix Film starts a conversation on Twitter to generate user engagement.

It’s simple, really. Social media offers a powerful medium to communicate with your target audience and build a strong and authentic brand image. You can use it to inform, educate, and entertain your consumers as well as find new customers by getting them to engage with your content.

Another way you can increase your brand recognition on social media is by creating a hashtag. Remember the Forever21 example? The apparel giant tells customers to upload their outfit photos using the hashtag #F21xME.

F21xME hashtag on Instagram

Forever21’s F21xME hashtag on Instagram.

Hashtag campaigns are useful for building brand recognition and driving traffic. You can also use a hashtag on social platforms to start an online word of mouth campaign to share your promotional messages.

In other words, use your business hashtag every time you share a post on Instagram or Twitter and your customers will likely follow suit. Plus, hashtag feeds offer a quick and easy way to get in the conversations around your products. As a result, you can tap into conversations and respond to them in a timely manner. This, in turn, generates positive word of mouth from your customers!

Away example

A branded hashtag is a useful tool that can help you collect user-generated content. Here’s an example of Away using #travelaway in their Instagram post:

Away UGC example

Away uses the #travelaway hashtag to collect user-generated content.

#3: Engage with consumers

A well-designed referral program can help you boost the results of your word of mouth marketing efforts. Encouraging existing customers to share positive words about you with their family, friends, and peers is a great way to attract new customers.

Your aim is to give customers a reason to share your brand with others, online or offline, and referral incentives are just the tools you need. You can offer coupons, credits, discounts, or free products to the referrer that leads to a purchase.

Similarly, you can incentivize customers to share user-generated content by tagging your brand on social posts or sharing product links on social pages.

7-Eleven example

The convenience store 7-Eleven encourages customers to post photos on social media using the hashtags #7ElevenDay, #TFW, and #slurplife for a free small Slurpee cup on July 11th.

7-Eleven Day example

7-Eleven gives out free Slurpee cups on July 11th.

Affiliate marketing is also a great way to acquire new customers. Here’s how you build an affiliate network: after you make a successful sale, ask the customer to refer their friend and earn a commission for the sale if their friend uses their referral link.

Niche bloggers can also help you promote your products on their blogs by including affiliate links in their content. Every sale leading from their referral will generate a commission for them while helping you boost your brand recognition.

You can also organize giveaways, contests, and lucky draws. All you have to do is tell customers to share user-generated content or the giveaway post on their social pages. This way, you’ll be able to get customers to interact with your brand and generate organic traffic along the way.


Examples of Word of Mouth Marketing

Here’s a quick question for you: What does a beverage company, a cloud storage solution, and a mattress manufacturer have in common? Word of mouth marketing.

Let’s take a look at how different types of companies use word of mouth marketing strategies to create positive feelings and emotions about their products.

Coca-Cola

It’s no secret that Coca-Cola is one of the world’s most popular drinks. Over the years, it has run multiple campaigns which have led to positive word of mouth promotion for the brand and increased the consumption of Coke worldwide.

Coca-Cola Share a Coke campaign

Coca-Cola ran an uber-successful word of mouth marketing campaign in 2014.

Its “Share a Coke” campaign was launched in 2014 to get consumers to view Coke in a way that boosts its consumption i.e. by getting people to share it with their friends and family. Its social media campaign asked customers to find bottles with common names (and uncommon spellings of common names!) on them and share it online using the hashtag #ShareaCoke.

Dropbox

Dropbox is an online storage company that has successfully used word of mouth to attract a lot of new customers. It offered free storage space in the early days with bonus free space for referrals that drew a lot of attention.

Dropbox example

Dropbox offers free storage space to new users and referrals.

It offered 500 MB extra storage space to new users and the people referred by them. This campaign led to rapid growth in Dropbox’s revenue.

Casper

Casper is an online company that produces mattresses, bedding, and other sleep-related products. For each of their mattresses, it offers a trial period for 100 days from purchase. Consumers can then decide to keep the mattress or return it.

Casper mattress company example

Casper offers customers a 100 day trial period as part of their word of mouth campaign.

This customer-focused approach has clicked with consumers who prefer testing a product’s comfort and durability. Casper also ran aggressive social media campaigns sharing customer reviews, helping it acquire more than one million customers in eight countries.


Conclusion

Word of mouth marketing is one of the most effective forms of marketing that involves giving customers reasons to share good opinions about your products with their friends and family. It helps you influence the customer’s purchase decisions, build trust, and boost brand awareness.

To recap, word of mouth marketing builds a community of brand advocates who vouch for your products online and offline. There are tons of ways to make your business a topic of conversation. Asking for reviews, interacting over social media, and engaging with consumers is just the tip of the iceberg.

Ready to collect reviews and leverage word of mouth marketing to increase sales? Sign up for CommerceKit updates as we build it!

If you’ve ever recommended a restaurant or sung the praises of your favorite clothing brand after receiving a compliment on your outfit, then you intuitively understand what word-of-mouth marketing is — and how powerful it can be. 

Did your friends and family take you up on your recommendation? Perhaps after doing so, they became loyal customers themselves and spread the word to their loved ones in turn.  

One of the most untapped (and inexpensive) marketing channels in existence, word-of-mouth marketing occurs when a brand wows a customer to such an extent that they tell their friends. And while these conversations may seem entirely out of a business’s control and may even backfire — customers won’t hesitate to disparage brands that provide a poor experience — you have several strategies at your disposal to get people talking about your business in a positive light. 

Amplified word-of-mouth (WOM) is when marketers launch campaigns designed to encourage or accelerate these naturally occurring conversations within their existing customer base. 

Here’s how to use word-of-mouth strategy to your advantage.

Create an Epic First Experience

Offering a standout customer experience that overshoots people’s expectations is the surest way to get them to rave about you. In addition to providing a stellar product that solves a major pain point — these days, that’s table stakes — consider throwing in a personalized ‘Thank you’ note and free gift along with their online purchase.Whatever you do, aim to impress. Providing an average or negative experience will not motivate customers to advocate for your business. 

Sell quality products.

Sourcing and selling quality products are crucial to providing an outstanding customer experience. Attentive customer service, an effortless buying experience and products that perform as advertised are the key ingredients for a WOM-worthy experience. 

Make sure the experience you provide measures up to the branding. For example, if your restaurant bills itself as a family-friendly establishment serving healthy food, don’t ruin the experience by not providing enough space for baby strollers in the dining area. 

Seamless order process and site UX.

On average, only 1.53 percent of ecommerce website visits convert into a purchase, which suggests that most brands aren’t getting site functionality right. 

Don’t let a poor user experience cause would-be customers to abandon their shopping carts out of frustration. 

One of the most common reasons for cart abandonment are an un-intuitive shopping process and lack of information. Make your site easy to navigate by enabling customers to self-identify their needs. 

For example, you can provide a chatbot or intake form that asks new website visitors what product category they’re searching for and filter items by price range. Provide thorough product descriptions, videos or photographs of the product in action. 

Run a tight operation.

Incorrect orders, late deliveries or appointment no-shows will motivate customers to spread the word about your business — but for all the wrong reasons. Data shows that 58% of consumers stop doing business with a company because of a single poor customer experience. 

Use just-in-time inventory management (using historical data to reorder supplies ahead of anticipated demand) so you’re never over- or under-stocked, and partner with a reliable supplier who can fulfill large orders with a short turnaround. 

Finally, make it easy for customers to get in touch with a human for complaint resolution. 

Go above and beyond for the customer.

Exceeding customer expectations looks different for every business, but it can be as simple as working with a customer to create a custom item, sending a personalized thank you note or performing an act of kindness. 

Case in point: a Trader Joe’s in Wayne, PA, delivered a week’s worth of groceries free of charge to an elderly gentleman who was stranded at home during a snowstorm. 

Note: Trader Joe’s doesn’t usually provide delivery, but they made an exception. Complaint resolution is another key factor in the customer experience. Sometimes you can turn a bad situation around and blow the customer away in the process.

Spark WOM Among Influencers

Having your products reviewed by credible influencers is a surefire tactic to increase brand awareness because influencers have the power to sway their followers’ purchasing decisions. 

A recent study by Sideqik found that 7 out of 10 consumers trust influencers’ recommendations just as much as the opinion of real-world friends. 

If you have the budget for influencer marketing, you can even hire a brand ambassador — someone who acts as the “face” of your company by regularly talking about your products and services rather than just doing a one-off social media post.

Send products for free.

Identify relevant influencers, send them your product, and see if they review it. However, note that some influencers are regularly deluged with freebies and may not wish to review your product unless they truly like it, so don’t expect reviews from every influencer. 

Instead of focusing exclusively on big names with a massive amount of followers, try working with micro-influencers — bloggers, videographers or DIYers with a smaller following whose goal is to share subject matter expertise by producing tutorials, shout-outs, how-to-guides, day-in-the-life vlogs and so on. 

Connect with a worthy cause.

According to IBM research, 40% of consumers said they seek out companies that align with their values, such as sustainability or racial equality. Influencers also want to show support for causes they believe in, so associating your brand with a purpose will give influencers additional reasons to partner with you. 

In 2020, Starbucks launched the #WhatsYourName campaign to illustrate the journey of a young transgender person who was struggling to embrace their name change — until he walks into a Starbucks one day. 

The barista asks for his name — “James,” he intones confidently — and writes it on his cup, sealing James’s new identity as a male. The ad was inspired by real-life experiences of people who were transitioning and found Starbucks to be a safe space where their new name was accepted. 

Solve a real challenge (yes, even influencers have them!).

The best products solve customer pain points and leave a lasting impact. For example, social media users routinely post about LARQ, a self-cleaning water bottle that uses UVC-light to sterilize the bottle, and how it makes it so much easier to stay hydrated while traveling.

Building Your Word-of-Mouth Marketing Strategy

Rather than leaving WOM marketing up to chance, create triggers that will make people want to talk about your brand.

Here are some ways to launch your own word-of-mouth marketing campaign:

Set up word-of-mouth triggers.

Triggers are memorable experiences or feelings that make people want to talk about your business — think of it as your ‘X factor.’ 

Take it from luxury hotel chain Ritz-Carlton, which often makes headlines for its reputation for going the extra mile for its guests. 

When a young guest at a Ritz-Carlton in Florida lost his beloved stuffed giraffe, Joshie, hotel employees not only mailed the giraffe back but they sent pictures of Joshie lounging by the pool, getting a massage at the spa and driving a golf cart to reassure the little boy that his beloved stuffed animal had been well cared for in his absence. 

The giraffe even received a Ritz-Carlton ID badge and was made an honorary member of the Loss Prevention team. 

The Ritz-Carlton viral marketing example shows that WOM triggers needn’t be expensive or extravagant. Simply demonstrating empathy and creativity can go a long way. 

Use visual triggers.

Create remarkable visual experiences so customers will want to take photos and share them. 

For example, ‘Instagrammable’ restaurants have one thing in common — they provide an aesthetically pleasing environment that makes people want to share their dining experience on social media. Providing visual triggers in a digital experience is trickier but doable. 

One of the best word-of-mouth marketing examples comes from feminine product brand, Always. 

As part of its #LikeAGirl campaign, the brand pushed for more gender-diverse emojis on mobile and social media platforms. Before, the female emojis on instant messaging apps showed girls dancing in bunny ears or walking down the aisle. The Always campaign introduced new girl-power symbols, like female doctors, athletes, chefs, wrestlers, soccer players and so on. 

Do or create something unique.

Selling a unique product, using a different business model or bucking industry norms are other ways to harness the power of word of mouth. Standing out in a crowd, whether it’s with your product or shipping method, could prove to be beneficial.

Emotional provocation.

Tapping into people’s emotions can be an immensely powerful way to generate shares.

In 2019, Dove launched the #ShowUs campaign partnering with women and non-binary individuals to create a collection of 10,000+ stock images that offer a more inclusive vision of beauty for all media and advertisers to use. 

By enabling people to feel seen, regardless of race, body type or gender, Dove expertly tapped into people’s emotions by making them feel like they were a part of something bigger than themselves. 

Encourage user-generated content (UGC).

According to UGC marketing platform Offerpop, 85% of social media users say they trust UGC more than they trust branded content. 

However, brands don’t want to appear pushy, so only 16% provide specific directions on how consumers can create and share content. UGC builds trust by establishing social proof — the notion that something is desirable because other people like it.

Encourage satisfied customers to share UGC by hosting giveaways on social media for people who post pictures of your products alongside your branded hashtag. Similarly, if you offer a loyalty program, you can tie rewards to UGC, thereby encouraging your most loyal customers to post photos or videos of your products. 

Push ratings and reviews hard.

Customer reviews are the modern WOM marketing. Set up feedback channels to collect testimonials — Yelp reviews, emails, feedback surveys  and website analytics. Collect and prominently display honest reviews of your business in as many places as possible — review websites, social media posts, online marketplaces and your own website. 

Consumers read an average of seven reviews before trusting a business and 85% of consumers trust online reviews as much as personal recommendations.

Create an official referral program.

Referral marketing is a form of marketing that encourages happy customers to advocate on behalf of your brand in exchange for incentives. Sometimes called refer-a-friend programs, referral marketing has become a go-to method for ecommerce stores looking to grow their sales while minimizing the cost per action. 

By providing customers with incentives to talk about your brand, you increase the likelihood of WOM. 

Rewards can be anything from:

  • Discount off first-time purchase.
  • A gift card or coupon.
  • Cash payments or cashback.
  • Free gifts.

Know your Customer Lifetime Value (LTV).

Average customer lifetime value refers to the amount of revenue a single customer brings in over the course of your business relationship. The LTV metrics tells you how much money to spend on customer acquisition. 

For example, if a customer typically spends $200, then your WOM initiatives should not exceed this amount, otherwise, you will end up losing money.

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The Final Word

Word of mouth advertising can be an impactful yet relatively inexpensive strategy for growing your online business. But before busting out the bells and whistles, start with the fundamentals. 

If you provide a positive experience and run a tight operation, you’re already halfway there.

What are the Advantages of Word of Mouth Marketing?

Layer 1

Word of mouth is a type of marketing that helps brands build trust, credibility and loyalty. 

Brand loyalty

Customers who like your brand enough to tell their friends and family about it are more likely to remain loyal and have a higher lifetime value. 

Brand trust

Word-of-mouth recommendations help brands build trust with new customers more effectively than traditional advertising because the recommendations come from a trusted friend. 

Creating a buzz

The most effective word-of-mouth triggers generate hype about your brand, be it on social networks or offline. WOM triggers that go viral on social media can have a lasting impact beyond the marketing campaign itself.

How to Deal with Negative Word of Mouth?

Layer 1

Investigate the root cause of the problem. If customers are dissatisfied with late shipments or faulty products, switch suppliers or work with a different fulfillment company. 

Next, contact the aggrieved customer directly. If the complaint was made on a public platform — a social media site or review website — issue a public response so that existing and potential customers will see that you take customer feedback seriously and are resolving the issue.

Organic Word of Mouth vs. Amplified Word of Mouth

Layer 1

Organic word of mouth occurs when customers naturally mention your brand in conversation without any specific effort from you. Amplified word of mouth consists of a series of strategies designed to encourage customers to spread the word about your business, such as providing a stellar customer experience or starting a referral program.

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WOM (Word-of-Mouth, сарафанный маркетинг или сарафанное радио) — это распространение информации от человека человеку, включающее в себя  реальное и виртуальное общение. Использование данного метода в маркетинге недорого, однако, требует много времени на разработку эффективной стратегии. Он по-прежнему остается активным способом продвижения бренда. Положительные отзывы или любая другая информация о продукте распространяется среди пользователей устно, словесно, от Клиента к будущему Клиенту.

WOM является частью вирусного маркетинга и хорошо комбинируется с Social Proof, так как люди не считают эти подходы рекламой и доверяют рекомендациям других людей. Это неотъемлемый компонент так называемого партизанского маркетинга, который используют для распространения коммерческого предложения или любой другой информации.

Отличие классического сарафанного радио от вирусной рекламы — в каналах обмена информацией. Интернет, к примеру, открывает более динамичные и массовые возможности, когда пользователи могут быстро делиться отзывами и рекомендациями, писать комментарии, высказывая экспертные мнения или комментарии на различных сайтах, тогда как классическая формаWOM-маркетинга предполагает личное общение. В буквальном смысле — передачу рекламы из уст в уста.

Однако перед тем, как внедрять такой инструмент, WOM-маркетинг, необходимо изучить следующие факторы.

  • Социальные потребности и пожелания аудитории.
  • Наличие платформы для передачи рекламного сообщения, то есть форума или тематической группы в социальной сети.
  • Инструменты для создания эффективного коммерческого предложения.

Стратегия рекламного Word-of-Mouth во многом зависит от социальных, эмоциональных и экономических факторов. Надо учитывать и то, что потребители могут обсуждать не только преимущества, но и недостатки товара, услуги или компании. Это скажется на формировании мнения о вашем продукте, но по-прежнему будет являться элементом рекламы.

Сегодня выделяют несколько десятков характеристик бренда, которые можно использовать в процессе продвижения маркетинга из уст в уста. Эмоциональная составляющая играет важнейшую роль на любом этапе продвижения, даже при использовании популярного вирусного видео.

От чего зависит эффективность маркетинга из уст в уста?

  • Тип рекламируемого продукта или услуги.
  • Возраст компании или бренда, а также уже существующих результатов его продвижения (если таковые есть).
  • Способы выражения мысли о товаре и его характеристиках.
  • Предрасположенность аудитории к обсуждению и обмену информацией о данном продукте.
  • Имидж компании или торговой марки, уровень доверия потребителей.
  • Сложность подачи информации, используемые инструменты.
  • Ценность бренда для широкой аудитории.

Маркетинг из уст в уста должен стимулировать целевую аудиторию к обмену положительными отзывами. При этом Клиент даже не подозревает о своем участии в бизнес-процессе. В этом и есть суть использования сарафанного радио и распространения вирусного контента.

Это довольно выгодный рекламный канал, поскольку удовлетворенный покупкой или заказом потребитель, готов рекомендовать понравившийся продукт другим пользователям абсолютно бесплатно.

Бесплатное обучение маркетингу от Edugusarov.by на 7 дней

У нас вы сможете учиться в удобном темпе, понять, как работает маркетинг, и оценить необходимость его изучения.

Едугусаров картинка

Преимущества Word-of-Mouth

  • Эффективный канал рекламы, распространения информации о продвигаемом бренде.
  • Охват широкой целевой аудитории.
  • Эффективное продвижение через SMM при использовании различных методов в соцсетях.
  • Минимальные траты на рекламную кампанию.
  • Высокая степень узнаваемости торговой марки, товара или сайта.

Подделывать сообщения в рамках продвижения посредством WOM-маркетинга считается неэтичной практикой. При обнаружении обмана целевой аудитории, бренд формирует негативное мнение о себе, отталкивая потенциальных заказчиков. Но риски и возможные негативные последствия часто игнорируются рекламными агентствами. Многие из них на этапе продвижения используют инструменты крауд-маркетинга, которые подразумевают применение платных экспертных отзывов, написанных под заказ.

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