Do you remember the last time you went to a great restaurant and wanted to recommend it to your friends and family members? Can you think of the last time you saw something and just had to tell everyone you know about it? If yes, then you have experienced word-of-mouth marketing first-hand.
In this article, we talk about word-of-mouth marketing, one of the most effective marketing strategies. First, we go through the word-of-mouth marketing (WoMM) definition and discuss why it is important. Then, we talk go through the benefits of WoMM and its different types.
What is word-of-mouth marketing?
Simply put, word-of-mouth marketing is an organic way of spreading information. WoMM utilizes components of viral marketing, however, unlike viral marketing, the information spreads through more organic and organic channels.
One important point about word-of-mouth marketing is that it is (almost) a free form of advertisement. In WoMM, the information is shared by customers, and the action is triggered by customers’ experiences (bad or good). However, you can plan to help and encourage your customers to spread the word about your brand.
Marketers use word-of-mouth marketing to generate organic discussions and recommendations for a company, a specific product or a service. This marketing tactic aims to get people to talk about a brand, product or business.
As a marketer, you definitely want people to talk about your brand’s products. This is because conversations about your brand are what drive businesses. According to the Word of Mouth Marketing Association (WoMMA), the best word-of-mouth marketing strategies are those that are honest, credible, social, repeatable, measurable and respectful.
Why is word-of-mouth marketing important?
One of the reasons why word-of-mouth marketing has gained a lot of attention in the marketing world is that it is one of the most effective and powerful forms of advertisement.
According to studies and statistics, 92% of consumers all around the world say that they trust recommendations and information they receive from family and friends above any other form of advertising. And the percentage has only risen in recent years, as more and more consumers are being bombarded with advertisements. This suggests that word-of-mouth marketing has the potential to drive more sales than any other advertising media.
The amazing thing about word-of-mouth is that it doesn’t stop after one interaction. One person will tell another, and that person will tell someone else, and they tell others, and the chain continues, and the word will be spread further and further. Word-of-mouth marketing can become a great vehicle for exposure and promotion if used well.
Benefits of word-of-mouth marketing
WoMM offers many benefits for your brand, including building trust and boosting sales. This marketing tactic is a great way for brands to gain more exposure and keep their customers engaged. In this section, we go through the benefits of WoMM and discuss how it can help your brand.
- Boosting sales and increasing revenue
- Building trust
- Creating authenticity
- Building a community around your brand and engaging the customers
- A lot more affordable than other marketing strategies
Boosting sales and increasing revenue
The first and probably most important benefit of WoMM for brands is that it increases sales and boosts profits. People talking about your brand and recommending it to their inner circle will result in more exposure. More exposure results in more customers, larger sales and higher profits.
WoMM builds trust and helps your brand to get noticed by different people.
It is difficult to trust a business you don’t know. And it should be, after all, you know little to nothing about who is behind it or how good they are at what they do.
But it’s another story when someone recommends a business to you and speaks highly of it. This is because people tend to trust a brand more when someone they know recommends it to them, and it totally makes sense!
People are drowned in advertisements from different brands every day. This is why they crave authenticity. Word-of-mouth marketing helps your brand to create authenticity. In WoMM, real people talk about their experiences with brands, making brands seem more authentic to potential customers.
Building a community and engaging the customers
When your customers are happy with your brand’s products or services, they tend to recommend it to poeple they know. WoMM allows you to build a community of satisfied customers around your brand. Your most avid customers are in that community, actively advocating for your brand.
Moreover, word-of-mouth marketing helps you keep your customers engaged with your brand longer. Your customers will share their experience with your brand with others and make the conversation going about your products and services for longer.
A lot more affordable than other marketing tactics
Compared to other types of advertisement and marketing tactics, WoMM can be incredibly cost-effective, especially for small brands.
In word-of-mouth marketing, you don’t have to pay large amounts of money to influencers to spread the word. With a little bit of smart planning and a fraction of your marketing budget, you can get real people to talk about your brand’s products and services.
Different types of word-of-mouth marketing
Brands can focus on different ways to run a WoMM campaign based on their needs and goals, including buzz marketing, content marketing, referral marketing and social media marketing.
When you have a new product or service that you are going to launch in a few months, you definitely want to create a buzz around it. This is why buzz marketing (or astroturfing) is your go-to WoMM tactic.
In buzz marketing, you focus on getting consumers to create and spread the conversation about a product. Buzz marketing grows brand awareness through the use of online traffic. Short videos and with an element of humour usually work best in grabbing the most attention in buzz marketing.
Content marketing is the perfect WoMM tactic to fill in the void between your brand and its audience. Creating valuable and consumable content builds strong connections between your brand and your consumers.
In content marketing, the idea is to present valuable information in an entertaining way for your audience. You can use different formats to create content, including blogs, social media posts, videos and etc.
To make your content consumed and shared, tell real stories; you’d be amazed how much people love them! Moreover, being bold and asking provocative questions can help you get the conversation started.
Referral marketing is one of the most effective WoMM tactics to increase sales. In referral marketing, current customers promote products or services to new customers through referrals. In this strategy, you encourage your passionate customers and brand fans to directly refer their friends and family to your business.
A referral network is an amazing resource for your business. It is like hiring a dedicated team to promote your brand and drive business to your company at a very affordable price. However, you should remember that for referral marketing to work, you must meticulously plan and have a strategic approach.
Social media marketing
Nowadays, almost all brands are active on at least one social media platform. Social media is the perfect place to build an audience for your brand. It is estimated that by 2025, more than 56% of the world population will be active on social networks.
To use social media for word-of-mouth marketing, you need to keep your audience engaged. One way to do so is by creating a community and running user-generated content (UGC) campaigns. In a UGC campaign, you ask your customers to create content with your brand’s product and services and reward them.
Pukket is a community-building AI assistant that helps brands create a community of advocates, run advocacy marketing campaigns (including UGC campaigns) and allows brands to reward their community based on the quality of their content and their engagement in the community.
Using Pukket, you can create affordable word-of-mouth at scale and increase brand awareness.
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