word of mouth marketing

Today we’re going to explore ‘Word-of-Mouth’ marketing in detail and give you tips on how to leverage it for your business.

Many small business owners make the mistake of thinking that the only way to grow a business is through paid marketing. While it’s true that you need to invest in marketing, there is another way to grow your business: by tapping into the power of word of mouth marketing.

What is the word of mouth marketing?

Word of mouth marketing refers to any communication and advertising method that relies on the enthusiasm and trust of people to share information about your product or service.

Word of mouth marketing also commonly referred to as “WOMM”  is one of the absolute best things you can do for your business with little or no upfront cost to you. It’s free and very powerful when utilized properly. Word of mouth marketing is a simple but incredibly useful and effective marketing strategy.

Did you know the word of mouth marketing drives $6 trillion of annual consumer spending and is estimated to account for 13% of consumer sales?

Word of Mouth marketing impression results in 5x more sales than a paid media impression and people are 90% more likely to trust and buy from a brand recommended by a friend.

Why is the word of mouth marketing so great?

The best marketing tools are all around us, yet most companies are completely unaware of their potential. The best marketing is not always the most expensive, and it’s often free entirely. Businesses spend thousands of dollars on advertising but fail to take advantage of the very marketing channels that are closest to them. word of mouth marketing is one such marketing tool.

1. It builds trust

Word of mouth marketing is important because it builds trust between a brand and its customers. When you, as a company, provide your customers with an excellent customer experience they are excited to share that with other people.

And once people hear some amazing reviews about you from their loved ones, they’ll instantly start liking you and will consider you for their next purchase!

2. It’s cost-effective

word of mouth - cost effective

There’s nothing better for a business than positive word of mouth marketing. Your customers become your marketing strategy and you don’t need a large advertising budget to achieve this. Word of mouth marketing is so great because of how cost-effective it is and because it brings you more profit than most other marketing strategies.

3. More customers mean more sales!

Back in the day word of mouth marketing was done by customers talking about their favorite brand’s products/services. They would meet each other at work, or social gatherings and manage to talk about their preferred product/service.

In 2020, with the rise of social media and online reviews, the reach of the average customer has quadrupled. Every share, review, tweet, or Facebook can bring more customers to your door. 

4. Helps compete with others

Competition among businesses these days is tough. Having good branding and a flashy online store is no longer enough to garner the loyalty of the average customer in 2020. Therefore it is now more important than ever to make the customer experience your business’s main focus, in an attempt to get more and more positive word of mouth referrals. Everything else shoots off from that.

How to leverage word of mouth marketing for your business?

Before deciding on any strategy to generate word of mouth marketing for your business, there is one important thing to keep in mind. Word of mouth marketing may be the best way to grow your business but it’s not something that can be controlled. It needs to be nurtured. Make sure your customer experience is airtight before looking into the word of mouth marketing strategies.

Let’s look at a few ways you can use word of mouth marketing to your advantage.

1. Create triggers

A trigger is a cue that reminds your customer about your brand. These triggers can be very powerful. Professor Jonah Berger talks about how powerful triggers are in his article. He reminds us how when someone says peanut butter, we automatically think of jelly. This is a trigger. In his article, he further explores how playing French music at a grocery store can trigger people to buy French wine.

Studies have shown that triggers can have a huge impact on human behaviour including how people vote based on where they cast their vote. Anyone can use this concept of triggers, to link your business to positive triggers and make it more memorable.

2. Be Unique

Have a product/ service that is unique. This doesn’t mean you have to invent a whole new product altogether, but that your product should be different enough from its competitors that it comes across as unique.

3. Tap into emotion

Building an emotional connection with your customer’s can be a major driving force for the word of mouth marketing. If you have a strong enough connection with your customer, they are less likely to abandon you for another brand. Even if they have better options, their emotions will hinder them from jumping brands.

4. Ask for reviews

6 Ways to Create a Successful Word of Mouth Marketing Campaign 1

Create an epic customer experience and then ask your customers for reviews. Historically, when customers have good experiences, they tend not to go out of their way to leave online feedback.

Lack of a bad review generally means they are content with your product/service. In this case, you need to push them to leave a positive review online.

Catered a party recently? Call and ask the host to leave a Google review. Sold a jacuzzi? Send them an online customer satisfaction survey and ask for a testimonial at the end that you can post on your website. Build social proof and it will solidify your position in the marketplace.

5. User generated content

Any kind of content that has been made by a user is the ultimate endorsement. Potential customers can hear directly from current customers and decide whether or not they want to associate with your brand. Encourage your customers to make content about your product/service that is shareable online. This can give your brand a huge push online.

Another great way to do this is to use influencer marketing to your advantage. Send products out for free, ask for honest reviews. Influencer marketing has the potential to make your brand go viral and that can bring in hundreds of new customers. 

6. Have a good referral program

Some customers just aren’t the type to talk about the products they love. They’re not online reviewers, they don’t care to bring up companies they like all that much. They have good experiences but just don’t have an online presence. In these cases, we need to push our happy but reluctant customers to leave us reviews and/or refer us to their social circle. 

A referral program gently nudges your hesitant customers and gives back to your customers that do refer and review. Referral programs can be simple things like giving discounts to people that leave online reviews or refer a new customer. Offering gifts with purchase when they refer a new customer etc.

Word of mouth marketing in a nutshell…

Word of mouth marketing is like a marketing campaign designed and executed by your customer. It’s the most authentic form of a referral and it’s free. There are many ways to get people to talk about your business for free, it just takes some creativity and persistence. And once you figure it out, you can leverage it to benefit your business and grow exponentially.

What is the word of mouth marketing?

Word of mouth marketing is when your raving fans tell the about the excellent buying experiences in their social circle. Basically, it when you influence your potential audience using the power of dialogue of your existing customers.

How can you increase word of mouth referrals?

Providing excellent customer experiences is the key to increase your chances of being talked about. The more your customers talk about their excellent shopping experiences with your brand, the more and more referrals you’ll be getting in the longer run.

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