Intro

Information can be spread through word of mouth more quickly than you can imagine. Customers are likely to believe recommendations from other users rather than advertisements. Therefore, many businesses benefit from the word-out-mouth marketing approach. But how does the word-of-mouth strategy work exactly? Let us shed more light on this topic!

What Is Word-of-Mouth Marketing?

Word-of-mouth marketing is when you attract potential buyers through other customers’ recommendations in their daily conversations. In other words, your business doesn’t have to spend a single penny on advertising. 

If your products or services are excellent, previous users can give stellar feedback, convincing others to buy. Even without upfront expenses, this strategy can sometimes yield positive results that surpass our expectations. According to Hubspot, 92% of customers are persuaded by recommendations from friends or family members rather than any other traditional commercials. 

A survey conducted by RRD further advocates this marketing method. In particular, among 1000 responders, 28% choose to trust word of mouth, 55% discover products or services through personal recommendations, and 40% base their purchasing decisions on those referrals.

Word-of-mouth marketing is more effective than some other methods. Source: Flickr

Types

Word-of-mouth advertising comes in various forms, including:

Publicity: This marketing type aims to increase your public awareness and visibility. In particular, it develops the brand’s reputation and manages crises, creating media attention to attract new buyers.

Buzz marketing: This method involves running campaigns to spark a buzz about the product among audiences. They will talk about your product both online and in-person. 

Viral marketing: This form of advertising focuses on a target audience segment to spread awareness about your brand or product to a wider customer base. Viral marketing takes longer to yield outcomes than buzz marketing.

Blogging: Blogging can be anything from videos, written content, or other media that companies publish online, like websites or social media platforms. This content marketing type forms a deeper connection with audiences, building customer loyalty.

Emotional marketing: With this method, businesses create images or content related to recent events to evoke emotions among audiences. This way, their messages can touch customers more easily and deeply.

Referral marketing: Companies encourage customers to promote their products and receive incentives in return. They will give positive feedback on other marketing channels that can reach more potential customers.

Social media marketing: This form of marketing leverages the power of social media to interact with customers, boosting their engagement level.

Case Studies

Coca Cola is one of the pioneers in employing word-of-mouth marketing. In the 2011 “Share a Coke with Friends” campaign, they encourage consumers to share pictures of a personalised Coca-Cola bottle with their buddies on social media. This has transformed their ordinary bottles into a more personalised customer experience, spreading their messages and increasing brand awareness.

Another example is the shoe brand TOMS. They ran the “One for One” campaign, in which each pair of shoes would be donated to a child in need for each pair sold. This has helped the company rise to fame and boost its valuation to $600 million in 2014. 

Many brands are successful with this marketing strategy. Source: Keegan Edwards

How Does The Word-of-Mouth Strategy Work?

Understanding the Science

The heart of this marketing method is trust and personal relationships. When humans hear something from someone they trust, the reward centre in our brains is activated, triggering them to release dopamine and other happy hormones. Our brains tend to perceive and remember such information. This will form trust among customers, making them likely to buy the recommended products.

However, the word-of-mouth strategy doesn’t solely revolve around customers and their recommendations. Companies must intentionally get involved, known as “seeding,” to guarantee the result of encouragement, a promotion, or other influences. In other words, businesses are the drivers behind the marketing campaign to ensure everything is on the right track with positive outcomes.

Companies can implement the content seeding strategy in various ways. One popular method is to exceed their expectations or provide insider skills, urging them to talk about your products. Otherwise, you can focus on enhancing customer service by engaging with customers more. Once they feel valued, they are more likely to share information about your product or service with others.

If your business’ customer service still falls short, StringeeX can help with an omnichannel contact center!

Benefits

If businesses can leverage word-of-mouth marketing effectively, they can increase sales and revenue significantly. The sales are not only from B2C but also from B2B purchases. According to Demand Gen Report, over 95% of B2B buyers agree that online reviews from user forums, personal testimonials, or social proof are more trustworthy.

B2B buyers are more cautious and will spend more time researching your products or services before making a purchase. So, word-of-mouth marketing is an effective way to boost your company’s credibility. Stellar customer reviews from real users can give them peace of mind, encouraging them to initiate their buyer’s journey.

This marketing method is also cost-effective with minimal expenses. Your business only has to spend on seeding, if any. Other than that, this strategy is completely free. According to SEMrush, almost 50% of companies rely on this strategy thanks to its low cost and efficiency.

Tips To Boost WOM Marketing

Buyers tend to trust user-generated content. Source: Seobility

Here are some expert tips for effective word-of-mouth marketing:

Build relationships: As mentioned, the key to this strategy is trust and relationships. So, your business should build a close bond with customers, stakeholders, and other partners in the field. Focus on delivering quality products and services and responding promptly to their concerns.

Increase customer service: Exceptional customer service sets your brand apart from competitors. This will leave a lasting positive impression in customers’ minds, making them more likely to recommend your product. Collect customer feedback to identify areas for improvement. Also, provide personalised support and be willing to go the extra mile when needed.

Encourage advocacy: Turning your existing customers into your advocates is essential. Testimonials, referral programs, or other user-generated content are valuable in spreading word of mouth.

Take advantage of social media: Social media is a goldmine for marketing because it can reach a massive customer base. Enhance your online presence by engaging with your audience and encouraging them to leave positive comments. Their authentic experiences can turn many prospects into real buyers.

Collaborate with relevant influencers: KOCs and KOLs have a great impact on a wide range of consumers. So, their recommendations definitely weigh more than typical advertisements.

Track the process and monitor: When running a word-of-mouth marketing campaign, it’s important to measure metrics such as social media engagement, customer satisfaction, and referral rates. You can then utilise the data to adjust your strategies accordingly to encourage more recommendations. 

Conclusion

How does the word-of-mouth marketing strategy work? This method focuses on building trust among customers through others’ recommendations. This is a cheap and effective marketing approach that many brands employ. The key to encouraging customers to share their opinions is to boost your customer service and engagement level. If you still struggle to improve customer support, StringeeX will help you with this!