Word of mouth spread of information

«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]

HistoryEdit

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.

FactorsEdit

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/modelsEdit

Three modelsEdit

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]

BuzzEdit

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 effectsEdit

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 WOMEdit

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 disadvantagesEdit

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 alsoEdit

• 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

ReferencesEdit

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.

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)

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.

From Wikipedia, the free encyclopedia

Word of mouth, also called viva voce, is the passing of information from person to person using oral communication, which could be as simple as telling someone the time of day.^[1] Storytelling is a common form of word-of-mouth communication where one person tells others a story about a real event or something made up. Oral tradition is cultural material and traditions transmitted by word of mouth through successive generations. Storytelling and oral tradition are forms of word of mouth that play important roles in folklore and mythology. Another example of oral communication is oral history—the recording, preservation and interpretation of historical information, based on the personal experiences and opinions of the speaker. Oral history preservation is the field that deals with the care and upkeep of oral history materials collected by word of mouth, whatever format they may be in.

Storytelling[edit]

Storytelling often involves improvisation or embellishment. Stories or narratives have been shared in every culture as a means of entertainment, education, cultural preservation and in order to instill moral values.

The earliest forms of storytelling were thought to have been primarily oral combined with gesture storytelling for many of the ancient cultures.^[2] The Australian Aboriginal people painted symbols from stories on cave walls as a means of helping the storyteller remember the story. The story was then told using a combination of oral narrative, music, rock art, and dance.^[3]

Traditionally, oral stories were committed to memory and then passed from generation to generation. However, in literate societies, written, televised, and internet media have largely replaced this method of communicating local, family, and cultural histories. Oral storytelling remains the dominant medium of learning in some countries with low literacy rates.

Oral tradition[edit]

Oral tradition (sometimes referred to as «oral culture» or «oral lore») is cultural material and traditions transmitted orally from one generation to another.^[4][5] The messages or testimony are verbally transmitted in speech or song and may take the form, for example, of folktales, sayings, ballads, songs, or chants. In this way, it is possible for a society to transmit oral history, oral literature, oral law and other knowledges across generations without a writing system.

Sociologists emphasize a requirement that the material is held in common by a group of people, over several generations, and thus distinguish oral tradition from testimony or oral history.^[6] In a general sense, «oral tradition» refers to the transmission of cultural material through vocal utterance, and was long held to be a key descriptor of folklore (a criterion no longer rigidly held by all folklorists).^[7] As an academic discipline, it refers both to a set of objects of study and a method by which they are studied^[8]—the method may be called variously «oral traditional theory», «the theory of Oral-Formulaic Composition» and the «Parry-Lord theory» (after two of its founders). The study of oral tradition is distinct from the academic discipline of oral history,^[9] which is the recording of personal memories and histories of those who experienced historical eras or events.^[10] It is also distinct from the study of orality, which can be defined as thought and its verbal expression in societies where the technologies of literacy (especially writing and print) are unfamiliar to most of the population.^[11]

Oral history[edit]

Oral history is the recording of personal memories and histories of those who experienced historical eras or events.^[10] Oral history is a method of historical documentation, using interviews with living survivors of the time being investigated. Oral history often touches on topics scarcely touched on by written documents, and by doing so, fills in the gaps of records that make up early historical documents. Oral history preservation is the field that deals with the care and upkeep of oral history materials, whatever format they may be in.^[12]

Systems[edit]

Long-established systems using word-of-mouth include:

• the «grapevine»
• the salon
• the «bush telegraph»^[13]
• the lecture circuit
• preaching^[14]

See also[edit]

References[edit]

Can you think of the last time you had a positive experience with a brand and immediately had to share it with your friends? Maybe it was a new restaurant that opened or an electronic gizmo you purchased. The excitement of wanting to tell your friends about it is what drives word-of-mouth marketing.

Companies earn their customers’ loyalty because of how they make them feel. Happy, engaged shoppers are the most effective tool for marketing your business. Nowadays, customers are influenced by a variety of sources: they check out their friend’s social media posts, online reviews and eventually they buy from companies they know or have heard of, but most importantly from companies they trust. 

Loyalty programs are a great way to leverage word-of-mouth marketing. And when customers are rewarded for spreading the word about your product or service they will be even more enthusiastic about doing so.

Word-of-mouth marketing is the organic spread of information about your brand, products or services. It happens when a customer’s interest in your products or services are reflected in their everyday conversations. Word-of-mouth is a free form of advertisement triggered by customer experiences, usually by something beyond what’s expected.

By exceeding customers’ expectations or providing insider information about your product, you are giving them a reason to talk. Exemplary customer service makes customers feel the company is listening to them, which helps form a more emotional bond. The value of a single word-of-mouth impression is anywhere from 5 to 100+ times more valuable than a paid media impression.

How Does Word-of-Mouth Marketing Help You?

Many companies 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. Word-of-mouth helps you build trust and is a cost-effective means to reach customers. Also, it’s one of the most effective forms of advertisement for boosting brand recognition, loyalty and sales. 

71% of people are more likely to purchase based on social media referrals and believe recommendations from friends and family. This is especially true for millennials who are influenced by word-of-mouth marketing 115% more than by traditional advertising. This means when someone sees a friend or family member raving about a particular brand, they’re much more likely to buy. From this follows that your biggest marketing asset is your existing customer base. 

With every share, repost, or retweet, word-of-mouth marketing carries the potential for exponential growth. You can grow sales without the ad spend. What is more, people are 5X more likely to recommend your product to their friends and family when they have a good customer experience, which is where a loyalty program helps greatly.

8 Must-Have Word-of-Mouth Marketing Strategies

Loyal customers lead to positive word-of-mouth. Create experiences that get people talking and you’ll inherently spark word-of-mouth marketing. Fortunately, with social media around there are plenty of platforms at your disposal. People love to share their experiences, whether it’s on Snapchat, Instagram Stories, Twitter, Facebook, or any of the other popular social networks. So what actions can businesses take to motivate others to spontaneously talk about their products, services, or brand? Let’s see a few strategies:

1. Encourage User-Generated Content

Encourage your customers to create and share content about your products. It’s not only honest and builds trust, but also provides marketers extra collateral to work with. Incentivize customers to share pictures and videos on social media. User-generated content can be a good indicator of the quality of your service, can increase sales effectiveness, and can also create a sense of community. 

A great example of UGC is Sephora’s Beauty Insider Community with more than 5 million members. Customers can create their profile, upload photos and share beauty advice, inspiration, news, and recommendations with real people in real time.

Alongside User-Generated content, you could also consider taking the time to dive deeper into a few content marketing courses so that you can build a content distribution strategy that includes User-Generated content rather than relying solely on it.

2. Share Customer Reviews

Customer reviews are word-of-mouth marketing at its purest. Encourage your happy customers to leave reviews and product ratings of your business and products on different platforms by rewarding them within your loyalty program. Customers tend to trust testimonials and online reviews as much as personal recommendations. It makes them feel more comfortable by confirming the quality and value of your claims.

One of the most popular review sites is Yelp, which publishes crowd-sourced reviews about businesses. As of December 31, 2020, more than 200 million reviews were available on its business listing pages. They motivate reviewers by distributing badges and honors for actions and milestones, like being the first to review a new location.

3. Offer a Unique, Shareworthy Experience

Give customers a reason to share their experience with your brand by offering something memorable, which they cannot get anywhere else. They will want to tell everyone about it, even if you don’t ask them to. 

Simply Be, the go-to digital destination for fashionable size 12-32 women, created a loyalty program that rewards customers for who they are. As the company wishes to highlight body positivity, they encourage members to upload pictures of themselves wearing their favorite clothes.

4. Engage With Your Audience

Put your customers first, think of what would appeal most to them. An interactive contest? A behind-the-scenes video? Give them what they want in order to generate word-of-mouth. Make the effort to understand what they like about your business. How much meaningful exposure your company gets depends heavily on how well you can connect with your customers.

The convenience store 7Eleven encourages customers to post photos on social media using certain hashtags, like #7ElevenDay and #slurplife. In return, they receive a small slurpee cup on the company’s birthday, July 11.

5. Remember, Friends Always Tell the Truth

Most people trust their friends’ and family’s opinion more than any kind of paid advertisement. Offer exciting rewards in your referral program to encourage customers to recommend your brand to family and friends. This not only significantly reduces the cost of acquiring new customers, but also increases customer retention.

Love, Bonito, the women’s fashion brand, has a hybrid loyalty program merging earn & burn and tiered elements. Members of the program not only receive points for spending money, but also for friend referrals, which earns them 300 points.

6. Find Trustworthy Ambassadors

Encourage influencers to promote your product and raise brand awareness by offering various incentives. Give them extra discounts or sponsor them to attend an event. You can even create a special tier in your loyalty program exclusively for brand ambassadors. This makes ambassadors feel extra special and strengthens their emotional connection to your company.

Diamanti Per Tutti generates buzz and word-of-mouth around its brand by creating a special group just for influencers with exclusive perks and benefits. They give advocates and top spenders special treatment. A select few are even invited to a hidden VIP tier, which is aptly named ‘Ambassador’.

7. Tap Into Emotion

If customers feel strongly about your brand, they are less likely to turn to the competition. Create experiences that result in positive emotions, so customers will instinctively want to share those experiences with others.

Coca-Cola’s “Share a Coke With Friends” is a great example of omnichannel word-of-mouth marketing. The company asked its customers to participate by sharing a personalized soda bottle with friends and on social media. The campaign’s purpose was to create a more personal relationship with customers and inspire them to share moments of happiness.

8. Stay True to Your Brand

Customers trust businesses that are consistent and transparent in their promotions. What interests or characteristics do your customers share? You can build a community by encouraging people to bond over similar skills, priorities, or aspirations.

GoPro is one of the best examples of a brand using word-of-mouth marketing to build customer loyalty. People love sharing their greatest achievements and GoPro allows them to share their wildest life experiences with their friends and family.

GoPro cameras are also great talk triggers, meaning they drive people to raise awareness of the brand via word-of-mouth.

Making Advocacy Worthwhile

So how can you encourage customers to do the work for you? Encourage word-of-mouth marketing by incentivizing customer actions with a loyalty program:

• Offer points for writing reviews, but make sure customers can only write about a product if they have purchased it
• Encourage customers to participate in social media contests and offer prizes to the winners
• Spice up your friend referral program with exciting rewards, such as free gifts or extra discounts
• Create VIP tiers for influencers/brand advocates with special perks
• Incentivize social media activity by offering benefits when customers follow you or share content related to your brand

Unleash the Power of Word-of Mouth Marketing

Word-of-mouth marketing is less about coming up with super witty viral content. It is more about offering astonishing value that people can’t resist sharing with others. It pays to be kind and attentive to your customers. Word gets out when you deliver stellar service and show appreciation. If you keep meeting expectations, customers turn into long-time ambassadors for your brand.

The viral potential and cost efficiency of word-of-mouth marketing can be matched by very few other marketing strategies. Consider incorporating word-of-mouth the next time you plan a product launch or email campaign. Give the above strategies a try to spark the flame in your next campaign.

If you need assistance in deciding which loyalty program is the best for your company, our experts are more than happy to discuss your options with you. Just book a demo or include us in your RFP.  

Until then, read our definitive guide to learn more about the creation of successful loyalty programs and how they are implemented.

Looking for new ways to grow your customer base? Don’t forget about wowing the customers you already have, to generate word-of-mouth marketing.  Think of the last time you recommended your favorite restaurant, clothing item, or other product to a friend. You probably shared because you loved your experience. The same goes for your company – when customers are wowed by your business, they naturally want to spread the good word.

This excitement to share is what drives word-of-mouth marketing (also called WOM marketing, WOMM, or word-of-mouth advertising). And this sharing leads to new customers, because the people who hear your customers’ word of mouth highly trust the word of their peers. So, word-of-mouth marketing could be your secret weapon for growth – especially because it often happens for free.

Athough word-of-mouth marketing depends on your customers and fans, it’s not out of your control. There are many ways to further your word-of-mouth marketing strategy. Below, we cover everything about the power of word of mouth, from what sets word of mouth apart from all other types of marketing to how you can harness word-of-mouth marketing to scale your own business.

What prompts word-of-mouth marketing?

Usually, word of mouth is prompted by an above-and-beyond positive experience someone has had with your brand. Think about the last time you ate an amazing dinner out, or tried a cool new product that easily solved one of your problems. You probably couldn’t help but share this standout experience with your friends.

Why is word-of-mouth marketing so important?

Word-of-mouth marketing stands out because of its high level of trust.

Why do people trust word of mouth?

Usually, word-of-mouth recommendations come from friends, family members, and others within someone’s close circles. When someone sees a friend or family member raving about a particular brand, they’re much more likely to buy. That’s because peer recommendations are seen as especially valuable.

Source

Word-of-mouth marketing benefits

According to a Nielsen report, 92% of people trust word of mouth referrals from those they know, more than they trust all other forms of advertising.

Word-of-mouth marketing means your customers and other fans are essentially doing the marketing for you, at little to no cost to your business! They are promoting straight to their network, usually in person or on social media. This makes word of mouth not only cost-effective, but highly valuable.

Plus, thanks to social media, what someone shares can reach millions in mere seconds. And word of mouth doesn’t just stop after one interaction – one person will tell another, and another, and so on. With every share, repost, or retweet, word-of-mouth marketing carries the potential for exponential growth.

All this happens at a very low cost to your business – often, for free.

Source

Word of mouth statistics: How effective is word-of-mouth marketing?

These word-of-mouth marketing statistics further prove how successful word-of-mouth marketing can be:

• 83% of Americans say that word-of-mouth recommendations from people they know make them more likely to purchase a given product or service.
• According to Nielsen, consumers are 4 times more likely to buy when referred by a friend, so word of mouth produces high conversion rates.
• When it comes to products they have purchased, 74% of people identified word of mouth as a key factor in their purchase decision.
• Marketers rate the quality of leads brought in by word of mouth as a 4.28 out of 5.

Check out more word-of-mouth marketing statistics in the infographic below.

What are the types of word-of-mouth marketing?

Word-of-mouth marketing (word-of-mouth advertising) can be divided into two main types or categories: amplified word of mouth and organic word of mouth.

Amplified word-of-mouth marketing is directly encouraged by your business via a marketing campaign. Within the campaign, businesses will usually use some sort of reward to motivate this word of mouth. Amplified word of mouth strategies are also easy to track, since they are tied to a campaign.

Examples of amplified word of mouth include:

• Referral programs
• Affiliate programs
• Brand ambassador programs
• Influencer marketing campaigns
• Other customer endorsements you encourage with rewards
• Other campaigns and contests to encourage social media sharing

In contrast, organic word-of-mouth marketing occurs when someone recommends your brand naturally and without direct prompting from your business.

It is much harder to motivate and track. But this type of word of mouth isn’t fully out of your control. It is usually triggered by an event experienced by the customer. Whether that’s amazing customer service or a free gift with purchase, triggers set your brand apart from the competition and keep you top of mind. Plus, they make for great talking points and organic word of mouth.

We’ll dive into common ways to trigger word-of-mouth marketing in the next section.

Examples of organic word of mouth include:

• Spontaneous social media sharing (user-generated content)
• Reviews and comments from satisfied customers
• Natural sharing of a product through any type of conversation
• “Dark social” sharing in DMs and private emails, that doesn’t have a tracking tag

6 word-of-mouth marketing strategies for any campaign (+WOMM examples)

With the right word-of-mouth marketing campaign, you can successfully create a steady stream of referrals and repeatable word of mouth for your brand.

Fortunately, there are plenty word-of-mouth channels at your disposal: referral programs, influencer programs, brand ambassador programs, affiliate marketing, and many more. Whichever channel you choose, however, it’s important to develop an overall WOMM strategy to encourage organic sharing.

Here are a few proven WOMM strategies to help get you started, along with some word-of-mouth marketing examples that show the strategies in action.

1. Create triggers for word of mouth

Triggers are little cues that remind your audience about your brand, even without any actual advertising.

Wharton marketing professor Jonah Berger gives this example: What immediately comes to mind when someone says peanut butter? Was it jelly? In this case, peanut butter acts almost like an advertisement for jelly.

This is the type of association you want to create for your brand. One famous example is a KFC campaign that ran in Japan in the 1970s. Translated to “Kentucky is Christmas,” it promoted a party barrel of fried chicken as Christmas dinner. The campaign was so successful that until today, many families in Japan order Kentucky Fried Chicken when the holiday season rolls around.

Create your own triggers by finding something your audience sees or does on a regular basis. By associating your brand with these, you increase the likelihood of people remembering and talking about you.

2. Appeal to your audience

Like all marketing strategies, word of mouth works best when it puts its audience first. Think of what digital marketing content would appeal best to your audience – would it be an interactive contest, a behind-the-scenes video, or something else? By continuing to give your audience what it wants, you’re able to add to your social currency and generate word of mouth.

Social currency is all about reputation. People share what they think will make them look good in front of others, because every share puts their reputation on the line. They’ll only “spend” their social currency on your brand, and spread the word about you, if they think it will give their reputation a boost. So, make sure you’ve created something your audience loves, and will think it’s cool to share with others.

Source

3. Provide value to customers

The brands worth talking about are ones that provide value. Whether that means solving a problem with your product or delivering an unparalleled customer experience, a customer that sees value in your brand will both stick with you and share your brand with others.

Providing value is also one of the best ways to gain a customer’s good will. If you can offer value – and in a way that stands out – you may just earn a positive customer review, promote brand loyalty, and maximize your word of mouth.

4. Tap into emotion

Emotional attachments are one of the biggest drivers of word-of-mouth marketing. If people feel strongly about a brand or product, they are not likely to drop it, even if a more logical option comes along.

People respond more to emotions, as well. Whether it’s something happy, sad, funny, or otherwise, they instinctively want to share it with others.

If you can create experiences that result in positive emotions, your word of mouth efforts can go a long way. For instance, think of how Always fought against stereotypes and empowered young women with its #LikeAGirl ads.

And if your brand has a unique personality, this can also stir up emotions. Use your personality for emotional appeal, in a way that stands out from the crowd, and customers won’t be able to stop talking. This works especially well if you’re appealing to humor. Think back to Wendy’s – they went viral thanks to their signature snarky, humorous tweets.

5. Tell your story

Creating a compelling story goes hand in hand with giving audiences what they want, offering value and appealing to emotions. If customers love the “why” behind what you do – your mission and values – and that “why” is packaged in a story that’s moving and easy to tell, customers will share your story with others.

One example is 4Ocean’s story: they pull plastic from the ocean daily to help marine life, and then recycle much of that plastic into bracelets and other products.

6. Create exclusivity

Making people feel like they know secrets or insider information is another recipe for generating sharing. Think of how Starbucks “secret menu” drinks have gone viral on social media, and how In-N-Out Burger got people talking both online and offline with their own “secret menu” items (which were key in driving the brand’s overall success).

Secrets don’t just work for food brands, though. If you share new and exciting products with your most loyal customers first, or create a sale that people can only access with a code you emailed, people will want their friends to get in on the action, too. They’ll tell their friends quickly, meaning more buzz, and more sales, for you.

How do online reviews affect word-of-mouth advertising?

As we’ve outlined above, you can build word-of-mouth advertising in many ways. But one of the best ways is by getting positive customer reviews. A majority 90% of people read reviews before deciding whether or not to visit a business, and 72% will only push through with a purchase after reading positive reviews.

Plus, good reviews help build your brand’s social proof and boost your online reputation – both terrific ways to gain exposure and get even more people talking about you.

Customer reviews also allow you to expand into other channels and platforms. Say, a happy customer writes a review about you on Yelp. That review can then be searched and shared across other channels, as well. You can share some of the best reviews on your own social media accounts, or even post them as testimonials on your own website.

Here’s a step-by-step example of how reviews can play a role in word-of-mouth advertising:

• Winter season is about to start, and Ken and Val are talking about chimney sweeping services.
• Val tells Ken that she needs to hire someone to come to her house some time in the next few weeks.
• Ken shares that he’s also been searching for someone and found a few chimney services with good reviews online (thanks to previous word of mouth). He mentions a few that looked especially promising.
• Val takes a look at a few of the services, and ends up picking one that did an amazing job.
• Val starts telling all her friends, including Ken, and even posts a picture of her cozy fireplace with a newly cleaned chimney (further generating word of mouth!).

How to build word-of-mouth marketing on social media?

Stop collecting and start connecting. This is a key guideline for any strong word-of-mouth marketing strategy these days.

Sure, you can have millions of social media followers. But to effectively use social media platforms to drive word-of-mouth marketing, you have to be active and engaging.

This means providing valuable information, responding to comments and questions, and encouraging and sharing some of your audience’s user-generated content (UGC).

The more connected you are to your followers, the more likely they will become true fans and supporters. And what do true fans usually do? Share your brand with others and increase word of mouth in new markets you may not have been able to reach otherwise.

Social proof and social media: Get others to show, not just tell

People decide what to do based on what they see other people doing. If they hear someone talking about how good your product is, this word of mouth will make them more likely to try the product. But when they see someone using your product in their everyday life, this social proof gives word-of-mouth a bigger boost. And social media shares of your product mean many people see how your product is used, all at once.

Ambassadors’ and influencers’ posts using your product, affiliates’ product reviews on social networks, and UGC images and videos from any customer show off your product and further inspire people to try it for themselves.

How is WOMM different from referral marketing?

Word-of-mouth marketing is all about getting people talking about your brand or business. It looks for the best ways to promote sharing, often through general consumer interest or unique content. WOMM is all about spreading brand awareness to your audience. Depending on the types you choose to focus on, though, you may have difficulty tracking and controlling it.

Referral marketing is a segment of word-of-mouth marketing. It’s common for word of mouth to occur naturally in the process of referring others. But at its core, referral marketing is a proactive way to gain new customers, focused on key targets and specific results.

Referrals occur when someone who uses or knows your brand recommends it to others in their network, usually friends, family members, or colleagues. Since they are sharing your brand with others, they are generating word of mouth. But this recommendation is direct and purposeful, not just casually mentioned.

Combining word of mouth and referral marketing

Most types of marketing use word of mouth in one way or another. Referral marketing is no different. In fact, word of mouth helps companies get new customers all the time – which is the main aim of referral marketing.

Instead of doing a mass shout-out, however, referral marketing allows you to get more personal.

Referral marketing is all about motivating individual customers to share a product or service with others they know, by offering incentives whenever these recommendations bring in first-time customers. In time, this type of marketing works to build customer loyalty and establish long-term relationships, both among existing and newly referred customers.

Referral marketing also allows you to monitor your conversions, engagement, and other metrics.

With a formal referral program, businesses can incentivize customer sharing and organize their entire referral process. The right referral software can also generate automatic referral links and track each step of the process, so you know exactly where referrals are coming from.

Using referral marketing with other word of mouth strategies maximizes brand awareness and increases the odds of  creating a viral sharing effect. By integrating diverse types of word-of-mouth marketing into your overall marketing strategy, you increase the odds of achieving success.

To learn more about referral marketing, check out our referral marketing guide or learn essential referral program tips.

Other related word-of-mouth marketing terms

As a major business strategy, WOMM can be seen alongside many other marketing concepts. Here are a few common ones you may come across:

• Buzz marketing: This involves getting key ambassadors or influencers to spread the conversation about your brand. It’s focused on building viral growth around certain products or campaigns, usually using attention-grabbing techniques (i.e., videos, memes) and generating online buzz.
• Viral marketing: This type of marketing relies on one’s existing network to spread information from person to person in a rapid manner. This often occurs online or using social media, with content so compelling that people can’t help but send it with others.
• Blog marketing: When used for word of mouth, blog marketing involves blog posts that an influencer or brand ambassador creates. With a few strategic ads or sponsored posts, bloggers create content that quickly travels to their followers, who in turn, share it with their friends. By recruiting the right bloggers, a business can generate fair amount of word of mouth through their content marketing.
• Social media marketing:  Thanks to hashtags and rapid shares, the content created on social media has a way of reaching people outside of the original group following. And as we’ve seen, shared content has a higher value when it comes from someone people know and trust.

Wrapping up

Don’t sleep on word-of-mouth marketing, because recommendations and referrals are powerful. People trust the word of their family and friends. This makes them more likely to purchase from you when their peers recommend your products.

The best way to use this to your advantage is to leverage multiple types of word-of-mouth marketing, including by encouraging user-generated content, asking for reviews, and starting a referral program.

No matter which marketing tactics you use to generate buzz, it’s key to apply the fundamental word-of-mouth strategies: creating sharing triggers, appealing to your fan base, offering value, and stirring up an emotional response.

Ready to generate word of mouth in a way that’s easy to measure? Check out our complete guide to starting a referral program.