Word-of-mouth marketing (WOM) is one of the oldest forms of marketing which remains as effective as ever. Whenever an app or website asks if you would recommend their product or service to a friend, they gauge their word-of-mouth marketing performance.
Although it may seem like the simplest thing in the world, gaining popularity through word-of-mouth marketing is one of the most complex tasks. In this article, we will take a deep dive into WOM, revealing why it is so effective, and how you can implement different word-of-mouth marketing techniques to propel your brand or company to success.
What Is Word-of-Mouth Marketing?
Word-of-mouth marketing, also known as WOM or WOMM, is an organic marketing process that takes place when customers share a company’s goods or services with their friends, family, and network.
Therefore, word-of-mouth marketing is not a type of advertising that can be directly bought like an ad on social media or a top paid search result on Google.
Simply put, WOM is free marketing brought on by consumer experiences, which are typically above and beyond their expectations.
When a customer is highly satisfied with a product or a service they are compelled to share their experience with the ones closest to them, and in some cases even recommend your company.
It is clear that reaching and surpassing the expectations of the customer is one of the keys to effective word-of-mouth marketing.
Key Takeaways
WOM is an organic marketing method, which does not require any type of monetary investment;
Word-of-mouth marketing rises from positive customer experiences, which is why it is important to exceed customer expectations whenever possible;
Since word-of-mouth referrals generally come from friends and family members it is effective in building brand trust and brand loyalty.
How to Define Word-of-Mouth Marketing?
Word-of-mouth marketing involves the strategies your company employs to encourage customers to discuss their experiences with your brand and eventually refer you to others.
These strategies can be challenging to pinpoint and implement successfully. One essential practice is creating a memorable first experience, such as including a gift and personalized “Thank you” card with online purchases, to leave a lasting impression.
Ensuring a high-quality product or service that aligns with your branding is also crucial.
For example, suppose your restaurant promotes itself as a family-friendly establishment with excellent customer service and affordable meals. In that case, the experience should reflect these promises, avoiding situations like insufficient seating or exorbitant prices that deter the average family from visiting again.
A real-life example of successful word-of-mouth marketing is the campaign by Dropbox. When Dropbox launched, it offered users additional storage space for free if they referred friends. This strategy significantly boosted their user base and made Dropbox a household name, illustrating the power of word-of-mouth marketing when implemented effectively.
Why Is Word-of-Mouth Marketing Important?
Word-of-mouth marketing may seem like an impractical form of advertisement to some, but it is of great importance for any brand looking to become a market leader. The reasons for the importance of WOM are numerous, but the main one is most likely trust.
1. Word-of-mouth marketing builds trust
Word-of-mouth referrals typically come from intimate friends, family members, and acquaintances. These are the people that the average customer will trust the most, and if they learn for themselves how great your brand is, even greater trust is built.
2. Increased likelihood of purchase
Customers are much more inclined to purchase when they hear a friend or member of their family speaking enthusiastically about a certain brand.
This phenomenon is quite natural because people value the thoughts and recommendations of their loved ones highly.
3. Enhanced brand credibility
When people hear positive feedback from those they trust, it enhances your brand’s credibility and reputation, making it more likely that new customers will choose your products or services over competitors.
WOM vs Social Media Marketing
A common mistake in understanding word-of-mouth marketing is equating it to likes or shares on social media.
Although sharing a product from a brand on social media is technically word-of-mouth, it is more of a marketing metric than effective WOM. Mainly, because there is no guarantee that a shared piece of media will reach your target audience.
Word-of-mouth refers to a story or spoken recommendation. Social media serves as a means of spreading that story.
What Are The Best Word-of-Mouth Marketing (WOM) Strategies?
Giving people something they “can’t help but talk about” is the first step in creating effective word-of-mouth. A WOM strategy can be carried out in several ways, but it is important to keep in mind that the objective is to raise awareness of your brand or product.
Here are some good ways to help you implement an effective WOMM.
1. Social media marketing
The beauty of social media marketing lies in its interconnection. However, even if you reach the folks who aren’t interested in your products or services, there are huge chances that they know someone who is.
It’s important to create engagement by posting frequently so that your audience feels connected to you and craves new information. Interacting with your followers also helps to establish deep ties between your brand and your target audience.
2. Referral marketing
A referral marketing network is a fantastic tool to have. It’s comparable to hiring a committed group of promoters who will increase business for your firm. One effective referral marketing technique is affiliate advertising.
In order to advertise your items in their blog posts, articles, videos, and on social media channels, you may team up with one, two, or many more affiliate marketers in your field.
3. Influencer partnerships
Partnering with influencers who have a significant following can amplify your brand’s reach. Influencers can create content that showcases your products in an authentic way, encouraging their followers to try them out.
By leveraging their credibility and audience, your brand can gain exposure to potential customers who trust the influencer’s recommendations.
4. Customer loyalty programs
Implementing a customer loyalty program can incentivize repeat purchases and encourage satisfied customers to spread the word about your brand.
Offering rewards, discounts, or exclusive perks for referrals can motivate your existing customers to bring in new ones, fostering a community of loyal brand advocates.
5. User-generated content
Encouraging customers to create content related to your brand can significantly boost word-of-mouth marketing.
This can include sharing photos, videos, or testimonials on social media, participating in contests, or writing reviews.
Showcasing user-generated content on your platforms not only provides social proof but also makes customers feel valued and more connected to your brand.
Additional Tips & Tricks
- A person who becomes a happy customer at your brand may eventually become a brand ambassador and continue sharing their positive experience, raising brand awareness;
- Over 90% of customers trust the brand recommendations provided by their friends and family;
- 85% of small businesses attract new local clients through word-of-mouth recommendations;
- Enhancing customer service can be done in a variety of ways, and excellent customer service generally creates loyal customers who spread positive word-of-mouth.
The Bottom Line
Word-of-mouth marketing is an organic way of creating brand awareness and it is generally achieved through exceptional customer service or other positive experiences which remain in the memory of the customer. WOM marketing boosts brand trust by bringing in each new customer via person-to-person recommendations.
You learned what Word-of-Mouth Marketing is, why it is important, and strategies for WOM marketing. Now it’s up to you to determine if word-of-mouth is the marketing approach you need to implement in your company or organization.
Word-of-Mouth Marketing FAQs
The benefits of WOM are manifold. It helps to boost brand loyalty and brand trust, it is a free marketing strategy that helps to engineer viral marketing campaigns, and much more.
When it is successful, the data supports that word-of-mouth marketing is more successful than other forms of advertising. When it becomes viral, word-of-mouth can be more effective at attracting new users and clients than traditional advertising, media mentions, or promotional events.
Positive WOM is often the result of good customer service. To promote a product or service through positive word-of-mouth, one must enlighten consumers about its benefits and persuade them to use it, which is best done by other happy customers.
Yes, word-of-mouth marketing is highly effective due to its authenticity and trustworthiness.
WOM relies on organic recommendations, while influencer marketing involves paid promotions by individuals with a large following.
It is hard to control and measure, and negative feedback can spread quickly.
