Consumers are bombarded by ads all day, every day — on websites, mobile apps, TV, billboards, and public transit. With so much advertising noise, many people have become skilled at tuning much of it out. Word-of-mouth marketing is the ideal path back into customers’ and prospects’ consciousness. It’s less expensive than traditional ad spending and significantly more effective. Here’s how word-of-marketing works, plus tips for building your own strategy.
What is word-of-mouth marketing?
Word-of-mouth marketing (aka WOM marketing) happens when customers share their positive experiences with others, creating a ripple effect that can significantly boost a brand’s visibility and reputation. Unlike traditional marketing, which relies on paid advertisements, WOM marketing is driven by organic and authentic interactions.
Why word-of-mouth marketing is so effective
Research has consistently shown that consumers trust recommendations from real people more than traditional promotion methods like advertising. When consumers believe they’re getting the whole, unbiased story from a friend or family member, they’re much more inclined to make a purchase. Compared to advertising, WOM marketing is organic, which means that when someone promotes a brand, product, service, or event, they do so because they’re genuinely passionate about whatever they’re endorsing. Savvy marketers understand this mindset and, rather than awkwardly force their message on skeptical consumers, take steps to encourage and amplify their customers’ positive sentiments.
Top benefits of word-of-mouth marketing
Because word-of-mouth marketing involves powerful psychological factors such as social proof and emotional connections, it offers a range of long-lasting benefits.
Cost-effectiveness
One of the most significant advantages of word-of-mouth marketing is its cost-effectiveness. Unlike expensive advertising campaigns, WOM marketing relies on the organic spread of information, making it a budget-friendly option for businesses of all sizes.
Enhanced reach and visibility
With social media’s ubiquity, a single positive experience can reach hundreds, thousands, or even millions of people within minutes. This amplification effect is one of the key reasons why WOM marketing is so effective in enhancing brand visibility.
Increased conversion rates
Recommendations from friends or family members often lead to higher conversion rates. The personal endorsement from word-of-mouth recommendations helps reduce the perceived risk associated with a purchase, increasing the likelihood that a potential customer will convert after visiting your website or app.
Brand loyalty and retention
Positive word-of-mouth doesn’t just attract new customers; it also helps retain existing ones. Satisfied customers who share their positive experiences contribute to building a loyal community around your brand. Plus, when people see that their friends also like the items they have purchased, they feel more secure and confident in their decisions and are more likely to buy from you again.
How to develop a winning word-of-mouth marketing strategy
Creating positive buzz starts with offering high-quality products and excellent customer experiences that naturally generate conversations. However, you can’t just sit back and hope people will promote your brand without any motivation. Here are some proactive steps you can take to encourage and amplify word-of-mouth marketing.
Develop the right message
The messaging across your website and marketing materials informs how customers speak about your brand. Figure out the most appealing attributes of your product or service and reinforce those messages through organic and paid mediums to give your potential advocates a list of talking points they can share with friends and family. What messages should you focus on? The most obvious ones may be that your product is faster, cheaper, higher quality, or in some other way better than the competition. But, while that may be true, it’s not compelling enough. Highlighting something unique or surprising about your business is more likely to garner interest and shares. 
Source: WarbyParker.com
Warby Parker is an example of a company that has leveraged its unique value proposition (the ability to try on glasses at home) into an extensive word-of-mouth campaign. Home try-on is a characteristic they often emphasize in promotional materials, and it’s the one that customers are most likely to tell their friends about. Highlight what makes you stand out from the competition and drive that point home every chance you get.
Go where your customers are
Social networks are where many of your customers share their thoughts, feelings, and ideas about their favorite brands. Social media is also where you can naturally contribute to the conversation. Figure out where your customers spend their time and establish or enhance your presence there. Don’t push your products too hard, or you’ll come across as sales-y and inauthentic. Instead, provide engaging content (e.g., behind-the-scenes videos), help for those who need it (e.g., rapid customer support), and experiences that your audience will value (e.g., giveaways or contests).
Turn your reviewers into advocates
Product reviews are a great way to add honesty and transparency to your sales process. They’re also great for identifying potential brand advocates. Customers who leave stellar reviews already love your product and are willing to create content about it. Reach out to reviewers who consistently have left glowing reviews. Build the relationship by offering discounts or special product releases or inviting them to join your referral program. Cultivating a relationship with these customers can take some time, but they may become your most loyal evangelists.
Implement a Referral Program
A well-designed referral program can significantly boost word-of-mouth marketing by rewarding existing customers for bringing in new ones. Offer enticing incentives for both the referrer and the new customer, such as discounts, free products, or exclusive event access. Make the referral process easy to navigate and promote the program through email campaigns and social media. 
Source: HelloFresh.com
One of the most famous examples of an effective referral program comes from HelloFresh. The meal kit delivery service makes it super easy to send a friend free food while also giving the referrer a sizeable discount — a true win-win for everyone involved!
Word-of-mouth marketing is made easy with Extole
Extole is the ideal way to supercharge your WOM marketing strategy. Our customer engagement platform makes it easy for buyers to share their experiences, lets you create powerful incentives, and seamlessly tracks program progress and ROI. Ultimately, our tools will help you lower customer acquisition costs while boosting lifetime value. Check out all the ways Extole can transform your customers into passionate advocates.
