Have you ever recommended a restaurant or told friends about a great clothing brand? If so, you already know what word-of-mouth marketing is and how powerful it can be. Word-of-mouth marketing happens when a brand impresses customers so much that they tell their friends and family about it. It’s one of the most effective and affordable marketing methods available.
Think about it – when you recommend something to your loved ones, they are more likely to trust your opinion than any other form of advertising. This is because word-of-mouth recommendations come from real people they know and trust.
Businesses often overlook the potential of their existing customers and focus solely on acquiring new ones through expensive advertising campaigns. But the truth is, your existing customers can be your greatest marketing asset.
While word-of-mouth marketing relies on your customers, you can still take steps to encourage and amplify it. In this guide, we’ll explore the power of word of mouth and how you can harness it to grow your business.
What Is Word-of-Mouth Marketing?
Word of Mouth Marketing, or WOM marketing, is when people naturally talk about a company’s products or services in their everyday conversations. It’s like free advertising when customers have a great experience that exceeds their expectations.
Companies can encourage word-of-mouth marketing through promotions or creating opportunities for customers to share their experiences. It can occur in conversations between customers or between customers and the company.
Word-of-mouth marketing is different because the company can influence or encourage it. For example, if someone tweets about a fantastic restaurant experience or tells their friends about a new way to use a product, that’s word-of-mouth marketing.
It aims to create something worth talking about and actively encourage people to spread the word. It relies on the trust and recommendations of friends. Reviews, social media shares, and referrals help promote a brand without expensive advertising.
Why Do You Need Word-of-Mouth Marketing?
Word-of-mouth marketing is when people talk about your product or service to others. It’s like recommending a good restaurant to your friends or telling them about a cool gadget you bought. But why is word-of-mouth marketing important?
Well, nowadays, people are smart shoppers. They don’t just buy things randomly. They go online and check out reviews and what other people are saying. They want to know if a product or service is good before they spend their hard-earned money on it. That’s where word-of-mouth marketing comes in.
When people hear good things about your business from their friends or family, they are more likely to trust you and give you a try. And guess what? Word-of-mouth marketing doesn’t cost you a penny. It’s free! So, if you’re a small business with a tight budget, it’s a great way to promote your business and build a good reputation.
So, word-of-mouth marketing is a powerful tool for any business. So, ensure you provide a great experience to your customers so they can’t help but talk about you to others.
Types of Word of Mouth Marketing
Word-of-mouth marketing refers to the process of people talking about and recommending a business, product, or service to others. With the rise of online connectivity, businesses can use various types of word-of-mouth marketing to reach their customers. Let’s explore some of the popular ones.
Publicity
Publicity is about attracting attention and creating awareness for a business. It involves shaping media coverage, managing crises, and developing a positive reputation.
Buzz Marketing
Buzz Marketing aims to create viral awareness for a campaign or product. It sparks enthusiastic conversations both online and offline, generating excitement and interest.
Viral Marketing
Viral Marketing relies on a select audience to gradually spread awareness about a brand or product. Viral campaigns aim to reach a wider audience beyond the initial target group over time. Sometimes, negative reactions can also contribute to its growth.
Blogging
Blogging allows businesses to self-publish content online, such as articles, videos, or other media. It helps build customer trust, loyalty, and deeper connections by aligning with their interests and beliefs.
Emotional Marketing
Emotional Marketing uses specific human emotions to influence consumers. It often involves visually appealing messages tied to current events or news, evoking strong emotional responses.
Referral Marketing
Referral Marketing incentivizes customers to promote products through word of mouth. By offering rewards or incentives, businesses encourage customers to share their opinions and experiences with others.
Social Media Marketing
Social Media Marketing is another popular form of word-of-mouth marketing. It leverages social networks to connect with consumers, both online and offline. Social media has been proven effective for businesses.
Businesses can choose the strategies that align with their goals and effectively engage with their customers by understanding these different types of word-of-mouth marketing.
The Benefits of Word-of-Mouth Marketing
1. Trustworthy Recommendations
88% of people trust recommendations from friends and family more than any other form of advertising. This means that when someone you know recommends a product or service, you are more likely to trust their opinion.
2. Emotional Bonding
When a company listens to its customers and engages with them personally, it creates an emotional bond. Sales representatives talking to customers or feedback phone lines allow for interaction, and promotional events can spark conversations. When customers feel heard, they become more connected to the company.
3. Code of Ethics
The Word of Mouth Marketing Association (WOMMA) has set ethical guidelines for word-of-mouth marketing. These guidelines stress the importance of credibility, social engagement, repeatability, measurability, and respect. Being honest and transparent is essential, and there’s no excuse for dishonesty.
4. High Trust Factor
According to Nielsen, 92% of people trust word-of-mouth referrals from people they know. This trust surpasses trust in other forms of advertising. When someone you trust recommends a product or service, you’re more likely to believe in its quality.
5. Cost-Effective Marketing
Word-of-mouth marketing relies on customers and fans promoting a company’s products or services. It’s like free advertising! People talk about your business to their network in person or on social media. This type of marketing doesn’t require a significant financial investment.
6. Exponential Growth Potential
Thanks to social media, word-of-mouth messages can reach millions of people within seconds. When someone shares their positive experience, it can lead to a chain reaction. One person tells another, who tells another, and so on. Each share, repost, or retweet has the potential for exponential growth.
7. Low Cost to Business
Word-of-mouth marketing often comes at a very low cost or no cost at all. Customers and fans voluntarily spread the word about a company, making it an affordable marketing strategy. The positive buzz generated by word of mouth can bring in new customers without draining the company’s budget.
So, Word-of-Mouth Marketing is a win-win situation for businesses and customers.
Create Buzz Among Influencers With Word-of-Mouth Marketing
Influencers have a large social media following and can influence others’ opinions and choices. They can be bloggers, YouTubers, or even celebrities. Many brands are now using influencers to promote their products because it is an effective form of marketing.
A study showed that word-of-mouth marketing, which is when people talk about a product or recommend it to others, is more successful than regular advertisements. Influencer marketing is a type of word-of-mouth marketing because influencers share their opinions and experiences with their followers. This helps brands reach a wider audience and increase sales.
There are different types of influencers. Some have a lot of followers, while others have a smaller but more dedicated audience. Brands can also partner with celebrities who have a large reach. Each type of influencer has its own advantages.
However, there are some challenges with influencer marketing. Brands must choose the right influencers who align with their brand values and target audience. They also need to consider the demographics of the influencers’ followers. Using the right social media platforms where the target audience is most active is important.
Measuring the success of influencer marketing can be tricky. Brands look at factors like reach or impressions, engagement (such as comments and shares), customer acquisition, and earned media (mentions and conversations about the brand). However, there is no standardized measurement system, and some influencers may have fake followers or engagement.
Influencer marketing can be a valuable tool for brands to connect with their target audience and promote their products. It provides an opportunity for authentic and genuine recommendations but requires careful planning and evaluation to ensure its effectiveness.
How To Build Your Business With Word-of-Mouth Marketing Strategies?
Building your business through word-of-mouth marketing strategies can effectively gain exposure and attract new customers. Rather than relying on chance, you can proactively create triggers that make people want to talk about your brand. Here are some strategies to launch your own word-of-mouth marketing campaign:
1. Set up word-of-mouth triggers
Create memorable experiences or feelings that make people want to discuss your business. For example, the Ritz-Carlton hotel made headlines by going the extra mile for a young guest who lost his stuffed giraffe. The hotel sent the giraffe on a fun adventure and even made it an honorary team member.
2. Use visual triggers
Create visually appealing experiences that customers want to capture and share on social media. Always, a feminine product brand, introduced gender-diverse emojis to empower women and received widespread attention.
3. Do something unique
Stand out by offering a unique product, using a different business model, or challenging industry norms. Being different can attract attention and generate word-of-mouth buzz.
4. Tap into emotions
Connect with people’s emotions to generate shares. Dove’s #ShowUs campaign, featuring inclusive stock images, made people feel seen and part of something bigger.
5. Encourage user-generated content
Trust user-generated content (UGC) more than branded content. Encourage customers to share their experiences with your products or services through giveaways, loyalty programs, or branded hashtags.
6. Push ratings and reviews
Collect testimonials and prominently display honest reviews on review websites, social media, and your own website. Positive reviews build trust and influence potential customers.
7. Create a referral program
Encourage satisfied customers to advocate for your brand by offering incentives for referrals. Discounted purchases, gift cards, or cash back rewards can motivate customers to spread the word.
To effectively implement word-of-mouth marketing, consider the following:
- Create specific personas to understand your target audience.
- Gain deep knowledge about your product, service, company, and industry.
- Build a close-knit social media community and interact regularly.
- Identify and engage community influencers who can promote your brand.
- Connect with influencers’ sources of information, such as news outlets or publications.
- Embrace negative comments and guide the conversation.
- Consider exclusivity to generate curiosity and viral sharing.
Remember, word-of-mouth marketing requires creativity and tailoring strategies to your brand. Focus on creating something buzz-worthy and encouraging the buzz to spread organically.
Final Thoughts
Word-of-mouth marketing is a powerful and cost-effective strategy for growing your business. When customers share positive experiences with their friends and family, it generates buzz and trust in your brand.
To make it work, focus on providing a great product or service people love and want to discuss. Engage with your customers and encourage them to leave reviews, share on social media, and refer others.
Remember, word-of-mouth marketing doesn’t happen independently; you must actively participate and foster genuine connections with your customers. Integrating word-of-mouth strategies with your overall marketing goals and other tactics like content marketing is important.
So, don’t overlook the power of word-of-mouth marketing and its ability to drive success.
Further Reads:
Multi-Level Marketing (MLM): Definition, Pros & Cons!
Lifecycle Marketing and its Impact in The Modern Day!
Transactional Marketing & How Does it Benefit Businesses?
Relationship Marketing Strategies To Boost Your Business Growth!
Tofu, Mofu & Bofu: The 3 Ingredients To Craft The Sales Funnel!
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