word of mouth marketing

Word-of-Mouth Marketing: What Is It?

Word-of-mouth (WOM) is a marketing strategy that relies on customers’ experiences with brands and the recommendations they then share with others. It’s a type of unpaid advertising triggered by the impressions, feelings, and thoughts of buyers. Essentially, word-of-mouth is an organic way of spreading information – positive or negative.

There are two forms of word-of-mouth marketing (WOMM for short) – organic and amplified. Organic is when customers naturally mention your brand in a conversation, without any effort from you. However, amplified is when you design a series of strategies to encourage your customers to spread the word about your business. Both are beneficial to your business.

There are different ways businesses can utilize WOMM, such as freebies – because who doesn’t like free things? An example of this is Wild, a natural deodorant company that provides referral cards for consumers to give to friends or family who can get their first order for free. This way, the company builds its brand awareness and sees an increase in monthly subscribers that (hopefully) stay subscribed after their free trial.

It is a simple method, but are you making the most of it? In this article, we get into detail about why you should be prioritizing word-of-mouth marketing.

Why should you care about it RIGHT NOW?

Word-of-mouth marketing (WOMM) is a game changer. It is a fact that people trust their friends and family over random reviews on the internet. A survey by Nielsen found that 83% of customers trust companies their family or friends have recommended. It also found that 92% of consumers believe recommendations from friends and family over all forms of advertising. This clearly demonstrates the importance of word-of-mouth marketing.

People are getting bored of traditional advertising. It wouldn’t surprise me if you are using an ad blocker right now, we wouldn’t blame you. Alternative advertising methods are needed now more than ever. And that’s where word-of-mouth marketing comes in. Word-of-mouth marketing has always been ‘a thing’, however, normally it’s unintentional rather than a carefully planned strategy. Over the last decade, social media has drastically shaped marketing methods and trends.

It takes just one right person to talk about your brand, to create a domino effect. You just want to make sure that the conversation surrounding your brand is positive. By maximizing your WOM strategy, your business will benefit from a greater brand awareness and increased trustworthiness, which, no surprises here, leads to more sales.

How to use word-of-mouth marketing?

Stand out and be memorable

Word-of-mouth marketing (WOMM) is a game changer. It is a fact that people trust their friends and family over random reviews on the internet.

A survey by Nielsen found that 83% of customers trust companies their family or friends have recommended. It also found that 92% of consumers believe recommendations from friends and family over all forms of advertising. This clearly demonstrates the importance of word-of-mouth marketing.

People are getting bored of traditional advertising. It wouldn’t surprise me if you are using an ad blocker right now, we wouldn’t blame you. Alternative advertising methods are needed now more than ever. And that’s where word-of-mouth marketing comes in. Word-of-mouth marketing has always been ‘a thing’, however, normally it’s unintentional rather than a carefully planned strategy. Over the last decade, social media has drastically shaped marketing methods and trends.

It takes just one right person to talk about your brand, to create a domino effect. You just want to make sure that the conversation surrounding your brand is positive. By maximizing your WOM strategy, your business will benefit from a greater brand awareness and increased trustworthiness, which, no surprises here, leads to more sales.

Word of mouth marketing concept

Work with influencers

A relatively new WOMM method, but nevertheless incredibly effective, influencer marketing describes working with a person with ‘influence’ (which typically involves a large social media following) and having them promote your product or service. While this won’t work for every business, it can prove to be highly successful and have a high ROI, so it’s something to consider.

And it also doesn’t necessarily involve a social media influencer. Non-traditional influencers include industry specialists, authors, scientists, analysts, bloggers, keynote speakers, etc. For example, if you’re a big business with an innovative idea, you present your pitch to Forbes, who then may mention your company in an article that might get read by millions.

Influencer marketing strategy often works in spreading brand/product awareness. However, it’s important to take into account that if you pay someone to promote your product or service, it is classified as an ad, and people are now less likely to believe ads than in previous years. This is simply for the fact that more people recognize that influencers may be misleading their followers for monetary gain.

Referral marketing

Who would you trust more – a paid banner ad on a website you’ve never visited before. or a recommendation from a friend? We all know who you’d choose. Social currency is very valuable indeed. Referral marketing involves a business promotion that happens spontaneously, utilising a pre-existing customer’s network. It’s a simple strategy that works. Incentives offered by referral marketing could include:

    • A gift card or coupon
    • Free gifts or cash rewards
    • Discount off their next purchase
    • Discount for successful referrals
    • A free month/box (if your brand is subscription based) for each new referral

Providing incentives not only gets your businesses talked about, it increases the likelihood of sales, since people are more likely to trust a product when it’s recommended by a friend.

Final Thoughts

Word-of-mouth marketing is a strategy all businesses need to utilize. It’s a tried and tested method of increasing brand visibility and building trust in your business – organically or amplified.

There are different ways to use word-of-mouth, and it all varies depending on your business and its audience. Some strategies may work well for the customers you’re targeting, while others may not. This is why knowing your target audience is crucial. Word-of-mouth marketing can be a game changer when done right, so make sure to put it at the top of your priority list.

Chloe Mumford

Chloe Mumford

Author

Chloe Mumford is a content writer and researcher for Newton Day. After completing her BSc in Sociology, Chloe transitioned over into the workforce management industry with an interest in driving value from contingent workforce programs. She can be reached via LinkedIn.