Word of Mouth Marketing

Elisavet Maniou
by Elisavet Maniou Growth Marketer @ GrowthMentor

Table of Contents

What is Word of Mouth Marketing?

Word of Mouth Marketing (WOMM) is a form of marketing that relies on individuals sharing information about a product, service, or brand with others through personal recommendations or reviews.

Essentially, it is a marketing strategy where satisfied customers become brand ambassadors and spread the word about a company’s products or services to their families, friends, colleagues, and acquaintances.

Types of Word of Mouth Marketing

To encourage customers to tell others about their excellent experiences, businesses can utilize a variety of WOMM methods. Here are a few typical WOMM types:

  • Online Reviews: Online reviews are a sort of WOMM and can be found on sites like Yelp, Google, or Amazon. While bad reviews might have the opposite impact, positive evaluations can persuade others to try a product or service.
  • Social Media: Social networking sites such as Facebook, Twitter, and Instagram give users the chance to connect with others and share their experiences. Businesses can interact with customers on social media to foster relationships and generate complimentary comments.
  • Influencers: Influencers are people with sizable social media fan bases who can market goods and services to their audiences. Influencers can work with businesses to produce sponsored content that advertises their brand or merchandise.
  • Referral Programs: Referral programs provide incentives or prizes to customers who recommend a business’s goods or services to their friends and family. This may be a powerful strategy for getting clients to promote a business.
  • Testimonials: Testimonials are declarations made by pleased users endorsing a good or service. In order to establish credibility and trust, businesses might utilize testimonials on their website or in marketing materials.
  • Word of Mouth Events: Companies can create events or experiences that encourage customers to share their positive experiences with others. For example, a restaurant might host a “friends and family” night where customers can bring their friends to try the food and share their experiences.

Advantages of Word of Mouth Marketing

WOMM has several advantages over traditional marketing methods, including:

  • Increased Trust: Word of Mouth marketing is based on personal recommendations and experiences, which are considered more trustworthy and authentic than traditional advertising or marketing tactics. People are more likely to trust recommendations from friends, family, and acquaintances than advertising.
  • Greater Reach: Word of Mouth can reach a wider audience than traditional advertising. Positive word of mouth can lead to multiple people sharing their experiences with others, increasing the reach of the message.
  • Cost-Effective: WOMM is often less expensive than traditional advertising methods. Satisfied customers can spread the word without requiring a significant investment from the company.
  • Higher Conversion Rates: People who hear about a product or service through Word of Mouth are more likely to make a purchase than those who see an advertisement. This is because personal recommendations carry more weight and influence than ads.
  • Increased Customer Loyalty: By providing exceptional experiences and excellent customer service, companies can encourage customers to become brand ambassadors and share their positive experiences with others. This can lead to increased customer loyalty and retention.
  • Improved Brand Awareness: Word of Mouth can increase brand awareness and help companies build a positive reputation. Positive recommendations can lead to increased visibility and interest in a brand.

WOMM can be an effective strategy for building brand awareness, increasing customer loyalty, and generating new leads and customers. By creating exceptional experiences and encouraging customers to share their experiences with others, companies can harness the power of personal recommendations to grow their businesses.

How to create a Word of Mouth Marketing campaign?

Successful WOMM campaign creation necessitates a deliberate and strategic strategy. The following procedures should be followed while developing a WOMM campaign:

  • Provide Outstanding Customer Service: The cornerstone of any effective WOMM campaign is delivering outstanding customer service. If customers believe they have received great service, they are more inclined to recommend the business.
  • Build Unforgettable Experiences: Businesses can develop memorable experiences that motivate clients to tell others about their experiences. This can involve special encounters, unexpected presents, or unusual events.
  • Interact with Consumers on Social Media: Businesses can interact with customers and develop relationships on social media. Businesses may provide customers with useful content, reply to their questions and feedback, and start dialogues that inspire them to share their experiences.
  • Offer Incentives or Rewards: Offering incentives or rewards for referrals can encourage customers to share their positive experiences with others. This can include discounts, free products or services, or other exclusive offers.
  • Partner with Influencers: Influencers can promote products or services to their audiences, providing a valuable source of Word of Mouth promotion. Companies can partner with influencers to create sponsored content that promotes their brand or product.
  • Track and Measure Results: Measuring the success of a WOMM campaign is important for understanding what works and what doesn’t. Companies can track referrals, online reviews, social media engagement, and other metrics to determine the success of their campaign.

Examples of successful Word of Mouth Marketing campaigns

There have been many successful WOMM campaigns over the years. Here are some examples of companies that have used WOMM effectively:

  • DropboxDropboxDropbox: Dropbox is a cloud storage company that has grown primarily through WOMM. The company offered free storage to early adopters and encouraged them to invite their friends and family to join. This led to rapid growth and widespread adoption of the product.
  • Airbnb: Airbnb is a platform that allows individuals to rent out their homes or apartments to travelers. The company has used WOMM to build trust and credibility, using customer reviews and testimonials to encourage others to try the service.
  • Glossier: Glossier is a beauty and skincare business that has expanded thanks to WOMM and social media. Emily Weiss, the company’s founder, began the brand as a beauty blog and used social media to interact with clients and develop a devoted following. Customers are encouraged by the brand to post reviews on Glossier products on social media.
  • Tesla: Via WOMM, Tesla has developed a solid brand. Early adopters of the company’s electric vehicles have evolved into brand ambassadors who spread the word about their experiences. These vehicles are regarded as state-of-the-art technology. To spread awareness and advertise its products, Tesla has also used influencer marketing and referral schemes.
  • Dollar Shave Club: Dollar Shave Club is a subscription service that delivers razors and grooming products to customers.  The business developed a viral video campaign to raise awareness of and sell its goods, which resulted in quick expansion and wide acceptance.

Measuring the success of Word of Mouth Marketing

Understanding what works and what doesn’t in a WOMM campaign requires measuring its success. These are some ways to assess a WOMM campaign’s effectiveness:

  • Web Analytics: Monitoring online indicators like website traffic, social media activity, and online reviews can be used to assess the efficacy of a WOMM campaign. To track these metrics, businesses can utilize applications like Google Analytics or social media monitoring tools.
  • Feedback and Surveys: Feedback and surveys can offer insightful information about how consumers are reacting to a WOMM campaign. Customers might be questioned via surveys about their interactions with a brand or product as well as how they learned about it.
  • Tracking Referrals: Referral programs can be a useful tool for determining whether a WOMM campaign was successful. Businesses may keep track of how many recommendations they receive and how many of those recommendations become actual clients.
  • Social Listening: Social listening can help you learn more about how your consumers are describing your business by keeping an eye out for mentions of your name, brand, or product on social media. This can include remarks about the brand in other people’s conversations as well as positive or negative feedback.
  • Sales and Revenue: In the end, a WOMM campaign’s effectiveness is determined by how it affects sales and revenue. Via WOMM, businesses can monitor the total impact on revenue as well as the number of new customers attracted.

Frequently Asked Questions

Personal suggestions and experiences, which are more reliable and real than traditional advertising, are the foundation of Word of Mouth Marketing. It is affordable and has the potential to boost brand exposure, consumer loyalty, and conversion rates.

Exemplary customer service, memorable experiences, social media engagement, the provision of incentives or rewards, collaboration with influencers, and the tracking of outcomes.

Through internet analytics, polls, comments, tracking referrals, social listening, and data on sales and revenue.

Internet testimonials, social media, influencers, referral programs, Word of Mouth events, and online reviews.

As Word of Mouth Marketing relies on personal recommendations, which are more reliable than traditional advertising, it has the potential to be very powerful. By being cost-effective, it can raise customer involvement, loyalty, and brand exposure.

Suggested mentors to help you make sense of Word of Mouth Marketing

Vassilena Valchanova

Digital Strategist & Trainer - Passionate about Content Marketing and CRO

I’ve spent more than a decade in digital marketing, with a primary focus in e-commerce and SaaS. My last role at a B2C SaaS startup with more than 500,000 registered users. Then I decided to go solo and work as an independent consultant on other exciting projects – and I always like to see new ones!

Farrah Fan

Chief Marketing Officer

I’m an ex-scientist turned marketing executive who loves transforming data and customer insights into actionable strategies that help companies grow online. In the past 15 years, I’ve worked with companies ranging from early-stage startups to large multinational corporations.

David Hoos

B2B Performance Marketing Manager

I’ve led in-house B2B marketing for three agencies (conversion optimization, SMS & email, and now an influencer agency) helping to attract new clients.

Barbara Stewart

Customer Experience Design & Marketing Specialist

Passionate end to end CX consultant with a knack for distilling complexity into simplicity.

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