What is word-of-mouth marketing?
Word-of-mouth (WOM) marketing refers to customers organically promoting a brand, product, or service to those in their social circle. Since people place a high degree of trust in their friends and family, word-of-mouth marketing is considered by many to be one of the most powerful types.
WOM marketing can occur in person, such as when someone recommends a specific desk to a friend, or online, like when someone tweets about a positive experience with a SaaS product. Although WOM marketing is free and organic, companies can encourage positive talk among customers by providing seamless experiences and stellar customer service.
Social media monitoring software helps a company track mentions by customers online. With the right tools, businesses improve their understanding of customer sentiment and nurture relationships by responding to feedback and shoutouts.
Types of word-of-mouth marketing
After customers have a good experience with a product, they share their excitement with others. Some of the ways they might share spread the word include:
- Buzz marketing. With this approach, a company stages an unexpected event or makes a remarkable statement that gets people talking about the brand in person and online. Buzz marketing typically sees results right away.
- Viral marketing. Mostly used online, viral marketing generates interest in a brand at a pace that quickly gains steam. Companies create a video, image, or post that resonates at a particular moment, inspiring people to share the campaign with others.
- Social media marketing. Social media platforms have become the digital version of the office water cooler, where communities or social circles share their thoughts about events, brands, and products in real time through social media marketing. People are not only influenced by paid influencers, but also by average users in their trusted social circle.
- Content marketing. Customers often share product reviews and experiences through blogs. Companies can utilize content marketing to generate discussions about their products as well.
- Referral marketing. While this technique can include paid affiliate marketing, referral marketing can also mean organic referrals. Companies often rely on reviews, testimonials, or old-fashioned in-person referrals to spread the word.
Benefits of word-of-mouth marketing
Word-of-mouth marketing is highly effective since people tend to trust recommendations from friends, family, and acquaintances. Some specific benefits of WOM marketing include:
- Providing social proof. Buyers often seek affirmation that their choice is the right one. Seeing reviews, testimonials, and recommendations for a product or brand can nudge them to buy.
- Saving money. Companies sometimes pay for certain forms of WOM, like influencer marketing and affiliate referrals, but most types are free. Instead of spending money on a new campaign, a company can try to reach the same goals through WOM marketing.
- Allowing for flexibility. Companies can insert opportunities for word-of-mouth at a moment’s notice, even amid an existing campaign. For example, they can create and share a social media post to get a specific segment talking.
- Increasing sales and revenue. One of the ultimate goals of word-of-mouth marketing is to generate more leads, sales, and revenue. If a person hears that their friend enjoys a subscription service, they may subscribe, too.
- Creating credibility. A company’s reputation is vital. Generating positive buzz online and in-person increases their “know, like, trust” factor.
Word-of-mouth marketing best practices
While customers sometimes talk about products organically without any special strategy on the part of brands, marketing teams can help move the process along more quickly. Some best practices to consider include:
- Developing knowledge of customers. It’s hard for a brand to create viral or buzz marketing campaigns if they don’t know what resonates with customers. A brand also needs a solid understanding of customers in the first place to create a product or experience worthy of promotion. Companies should conduct market research and provide opportunities for user insight via surveys.
- Building community. By nurturing relationships on social media, companies increase brand loyalty. Customers who feel loyal to a company are more likely to recommend them. Brands should stay active on platforms where their customers gather, responding to negative and positive comments in a personalized way.
- Encourage user-generated content (UGC). Seeing photos or videos of real customers demonstrating or enjoying a product influences others to purchase. Companies can encourage customers to share their experiences by starting a fun hashtag on social media or offering discounts for UGC creators.
- Creating a unique experience. Offering an exceptional, one-of-a-kind product or customer experience increases customer satisfaction and boosts the odds of positive reviews, recommendations, and referrals. Similarly, a brand can attract buzz if it sets up a unique event, position, or post.
Harness the full power of online reviews about your company with online reputation management software.
Kelly Fiorini
Kelly Fiorini is a freelance writer for G2. After ten years as a teacher, Kelly now creates content for mostly B2B SaaS clients. In her free time, she’s usually reading, spilling coffee, walking her dogs, and trying to keep her plants alive. Kelly received her Bachelor of Arts in English from the University of Notre Dame and her Master of Arts in Teaching from the University of Louisville.
