There is only one thing in the world worse than being talked about, and that is not being talked about.
This quote, attributed to Oscar Wilde, perfectly captures the importance of having a presence and being known to others.
In the world of marketing, this is especially true when it comes to the power of "word-of-mouth" – the informal exchange of information or opinions about a person, product, or service through personal communication.
Word-of-mouth marketing is a powerful tool that can help to build brand awareness, and brand voice. It also helps in generating leads and drive sales in your business.
It relies on the trust and influence of personal recommendations from friends, family, and other trusted sources. It can be an effective way to reach and engage with potential customers.
Attention all business enthusiasts! In this blog, we'll take a closer look at the played down yet incredibly effective tool of word-of-mouth marketing.
From the basics to the advanced techniques, we've got everything you need to make your business the talk of the town.
What is word-of-mouth marketing?
Word-of-mouth marketing, also known as referral marketing, is a type of marketing that relies on personal recommendations from satisfied customers to promote a product or service.
Word-of-mouth marketing or WOM marketing can be an effective way to reach and engage with potential customers, as people are often more likely to trust and purchase from companies that they are familiar with and that have a good reputation.
This type of marketing can take many forms, including face-to-face conversations, social media interactions, influencer marketing, online reviews and ratings, and customer referrals.
Word-of-mouth marketing Vs. Traditional advertisement marketing
One of the key advantages of word-of-mouth marketing over traditional advertising channels is that it is generally seen as a more authentic and credible marketing strategy. This is because it comes from the perspective of someone who has first-hand experience with the product or service.
Word-of-mouth marketing or WOM marketing is less expensive than other forms of marketing. Because it relies on personal communication rather than paid advertising.
However, it can be difficult to measure and track the effectiveness of word-of-mouth marketing compared to other forms of marketing, as it relies on informal channels and can be harder to quantify.
A word of caution: Word-of-mouth marketing can work both ways. Positive recommendations can help to build a company's reputation, while negative recommendations can damage it.
What are the benefits of word-of-mouth marketing?
Word-of-mouth marketing is a powerful tool for promoting a product or service. It offers a range of benefits for businesses:
Increased credibility and authenticity: Word-of-mouth marketing is the Oprah Winfrey of advertising, it carries the stamp of authenticity.
After all, you know you're getting the real deal when it comes from someone who's 'been there, done that'.
This can give your business the golden seal of trust and credibility, making it more attractive to potential and existing customers.
Higher conversion rates: Your customers are your very own “walking billboards” promoting your brand.
They are more likely to convert their friends and family into customers because who better to trust than someone who's already a fan of your product or service?
It's like a never-ending cycle of referrals, and it’s the gift that keeps on giving.
Greater reach: Word-of-mouth marketing can help to expand a company's reach and bring in new customers, as people are more likely to share information about a product or service with their network of friends and followers.
Cost-effective: The budget traveler of the advertising world, WOMM packs a punch without breaking the bank.
Instead of spending big bucks on paid advertising, you're relying on the power of personal communication, making it a cheaper and more cost-effective way to reach potential customers.
Positive brand associations: Positive word-of-mouth recommendations help to build a company's reputation and create positive associations with the brand. This can lead to increased customer loyalty and repeat business.
Build customer loyalty: Customers who have had a positive experience are more likely to maintain brand loyalty. This can help to build a strong customer base and increase long-term profits through the loyalty program.
How does word-of-mouth marketing work?
Word-of-mouth marketing relies on the power of personal recommendations and the influence they have on people's decisions and behaviors. It works in a number of ways:
Face-to-face conversations: A good old-fashioned gossip session, but instead of the latest rumors, it's all about your business.
It could be as simple as a satisfied customer spilling the beans to a friend about a product they love, or a more formal referral program where customers are rewarded for spreading the word.
Either way, it's all about keeping the conversation going and growing your customer base.
Social media interactions: Word-of-mouth marketing can also happen online, through social media interactions and conversations.
This could include people sharing information about a product or service with their followers on platforms like Facebook, Twitter, or Instagram, or it could involve people leaving reviews or ratings on a company's social media page or website.
Online reviews and ratings: Online reviews and ratings can also be a form of word-of-mouth marketing, as they allow people to share their experiences and opinions about a product or service with a wider audience.
These reviews can be posted on a company's website, or on third-party review websites like Yelp or Google Reviews.
Customer referrals: Some companies also offer referral programs, where they reward customers for referring friends or family to the company.
These programs can be a powerful form of word-of-mouth marketing, as they incentivize satisfied customers to share their experiences with others and encourage them to try the product or service.
Influencer marketing: When an influencer shares content about a product, their followers are more likely to trust their recommendation. In this way, influencer marketing can help to create buzz and generate word-of-mouth marketing for a brand or product.
Spotify is a good example of word-of-mouth marketing:
Spotify has effectively used social media to encourage word-of-mouth marketing, by making it easy for users to share their favorite music and playlists with their friends and followers on platforms like Facebook, Twitter, and Instagram. This has helped to build a sense of community around the brand and encourage more people to try the service.
In addition, Spotify has also focused on providing excellent customer service. It also has a high-quality user experience to encourage positive word-of-mouth recommendations. This includes offering a wide selection of music, personalized recommendations, and coming up with Spotify-wrapped and easy-to-use features like offline listening and integration with other music apps.
Effect of Spotify wrapped word-of-mouth campaign on users:
An ultimate social media brag fest, Spotify wrapped has been the year-end report card for your music taste, and who doesn’t love a little friendly competition?
With personalized playlists and the ability to share your Wrapped results with friends and followers, it's a great way to discover new music and build a sense of community around the brand.
Effect of Spotify Wrapped word-of-mouth campaign on artists:
Spotify Wrapped has been the chance for artists to get their music in front of the ears of their biggest fans.
For the superstars, it has been a chance to solidify their fame and rake in even more streams and sales. For the up-and-comers, it has been a chance to finally break through and make a name for themselves.
But no matter where the artist stood on the fame scale, Spotify Wrapped has been a powerful tool for getting people talking about their music and spreading the word about their talent.
How does Netflix use word-of-mouth marketing?
Netflix knows that word-of-mouth marketing is like the Holy Grail of advertising. It's the most powerful and effective way to get people talking about your brand. And they've cracked the code by using social media to create buzz and demand for their services.
Whether it's through clever memes or by investing in original programming that has people talking, Netflix has mastered the art of getting people to recommend them to their friends and family.
But they don't stop there - they also make sure to provide an excellent user experience, because they know that happy customers are the best marketing tool of all.
How can your brand get started with WOMM?
Word-of-mouth marketing is like a wildfire - it starts with just a spark, but with the right kindling (a memorable customer experience) and a little bit of wind (timing), it can spread like crazy and grow your business in ways you never could have imagined.
So don't be afraid to fan the flames and leverage the power of your social connections. Create a buzz and get people talking about your business!
What are the strategies to maximize the effectiveness of word-of-mouth marketing?
Here are a few strategies that you can use to maximize the effectiveness of word-of-mouth marketing in your business:
Provide excellent customer service: Generate positive word-of-mouth recommendations by providing excellent customer service.
This means going above and beyond to meet the needs and expectations of your customers.
Making sure that they have a positive experience with your company and its products or services.
Encourage customer feedback and reviews: Encourage customers to leave reviews or ratings about your product or service.
This can be done through email or social media campaigns, or by making it easy for customers to leave reviews on your website or on third-party review websites.
Offer incentives for referrals: Offering incentives for customer referrals, such as discounts or rewards, can encourage satisfied customers to share their experiences with others and encourage them to try your product or service.
Foster a sense of community: Building a sense of community around your brand can help to generate word-of-mouth recommendations, as people are more likely to share information with others when they feel connected to a community.
This can be done through social media groups, in-person events, or other interactive experiences.
Make it easy for customers to share: Make it easy for customers to share information about your product or service with others by providing them with the necessary tools and resources.
This could include social media share buttons, referral programs, or other forms of online or offline sharing.
Concluding thoughts
In conclusion, word-of-mouth marketing is a highly effective strategy for businesses looking to establish trust, credibility, and reach among potential customers. Based on the power of personal recommendations, it is often perceived as more authentic and credible than traditional advertising methods.
Through word-of-mouth marketing, businesses can generate leads, increase sales, and expand their reach without breaking the bank. By tapping into the power of personal recommendations, businesses can unlock the full potential of this powerful marketing tool.
For those looking to harness the power of word-of-mouth marketing, Altorise is here to help. Our team of experts can work closely with you to create a tailored strategy that leverages the full potential of word-of-mouth marketing to help you reach your business goals. Don't wait, contact us today and start seeing the benefits of a successful word-of-mouth marketing campaign.
