‍What is word-of-mouth marketing?

Word of Mouth Marketing (WOM) occurs when a brand’s products or services are discussed organically in spontaneous conversations between customers. Unlike traditional advertising, WOM is driven by satisfied users who voluntarily share their experiences, making it one of the most authentic and trusted sources of information in the customer journey.

While WOM has traditionally happened offline through face-to-face "chit-chat," it has evolved into a digital powerhouse through social media, review platforms, and online communities (often called Electronic Word of Mouth or eWOM).

Why are word-of-mouth recommendations so important?

In an era of "ad blindness," traditional commercials are becoming a thing of the past. Modern consumers are skeptical of branded content but highly receptive to peer recommendations.

• The trust factor: statistics show that 90% of people are more likely to trust a brand recommended by friends or family over any other form of advertising.
• The research habit: most customers now scroll through ratings and reviews before spending a single dollar, making organic advocacy a significant driver of brand perception and sales.

What are the benefits of word of mouth marketing?

Word of mouth marketing offers you a whole array of benefits, including:

• ‍Cost-effective marketing – word of mouth marketing relies on the spread of positive messages which happens naturally, reducing the need for expensive advertising campaigns.
• ‍Expanded audience reach – satisfied customers share their experiences with others, extending the scope of your brand’s audience beyond traditional marketing channels.
• ‍Increased customer engagement – word of mouth marketing encourages conversations and discussions about your brand, fostering active engagement among customers.‍
• Higher conversion rates – recommendations from trusted sources have a higher likelihood of converting potential customers into paying customers. ‍
• Long-term customer relationships – positive word of mouth helps build strong, lasting relationships with customers, leading to repeat purchases and customer loyalty.‍
• Amplified online presence – when customers share positive experiences online, it increases your brand's visibility and presence across various digital platforms.‍
• Competitive advantage – effective word of mouth marketing can differentiate your brand from competitors and give you an edge in the market.‍
• Increased brand credibility – recommendations from friends, family, or influencers create trust and enhance your brand's credibility in the eyes of potential customers.

Types of word of mouth marketing

Word-of-mouth marketing is the umbrella term for a number of methods and tactics aiming to leverage the influence of referrals and discussions in order to sell a company or a product. Below, you can find the list of the main types of word-of-mouth advertising:

1. Buzz marketing

Buzz marketing is a form of advertising strategy that aims to create a product, brand, or event by generating excitement and conversation among consumers. For example, when a new lipstick collection is released, the company may send out sample products to influential beauty bloggers or to foster  anticipation and buzz among potential customers.

2. Referral programs

Well-crafted referral programs prompt customers to refer new customers to a brand in exchange for incentives, rewards, or discounts, leveraging the power of personal recommendations.

3. Influencer marketing

Influencer marketing leverages collaborations with influential individuals on social media or other platforms to promote a brand or product and leverage their credibility and large follower base for word-of-mouth marketing.

4. Customer testimonials and reviews

Customers sharing positive experiences and feedback can help your brand in building trust and credibility. Customer testimonials and reviews are often displayed on websites, social media platforms, or review sites.

5. Offline word-of-mouth (face-to-face conversations)

Traditional word-of-mouth marketing happens in face-to-face conversations where individuals share their opinions, experiences, and recommendations about a brand or product with their  friends, family, or acquaintances.

6. User-generated content (UGC)

This tactic engages customers to create and share their own content, such as reviews, photos, videos, or social media posts, featuring a brand or product, which can then be shared and spread by others, giving your brand a wonderful opportunity to reach new audiences. ‍

How to increase word of mouth marketing with Voucherify?

1. Leverage online reviews

With Voucherify, you can use customer segmentation features and, based on custom events, you can offer well-crafted incentives such as, for example, personalized coupon codes, encouraging satisfied customers to leave positive reviews online and making them easily accessible  to potential customers with a little help of our UX options, amplifying positive word of mouth.

2. Engage with your social media audience

Using Voucherify you can actively interact with your social media followers, launching, for instance, a social media giveaway, asking participants to share a picture of your product with a positive review alongside your branded hashtag. This strategy will boost your audience reach by fostering your brand’s positive image.

3. Launch a referral program

Referral programs are a staple of word of mouth marketing, for happy customers are your best advocates. With Voucherify you can implement a referral program that offers enticing incentives for customers to refer their friends and family, leveraging their personal networks to refine your brand’s image.

4. Unlock the power of influencer/affiliate marketing

Voucherify allows you to collaborate with relevant influencers or affiliates who align with your brand values and target audience. You can, for instance, build a personalized discount coupon campaign, getting exposure to potential customers you would not reach otherwise.