How Jollyes runs the PetCLUB loyalty program for over 1.4 million members?
Read now
2022-10-19 5:00 pm

What is word-of-mouth marketing?

Word of Mouth Marketing (WOM) is a situation in which information about a product or service is spread between potential customers verbally in spontaneous conversations. This form of marketing is driven by satisfied customers who voluntarily share their thoughts, making it an authentic and trusted source of information. Word of mouth marketing can occur both offline, through face-to-face chit-chats, and online, through social media platforms, review websites, and online communities.

Why are word-of-mouth recommendations so important?

In today's world, ads on television or glossy magazine pages are slowly becoming a thing of the past. With a plethora of product and/or service reviews at their fingertips, customers seem to be more aware of their purchasing decisions, scrolling through reviews and ratings for a given product before they spend their money. According to statistics, 90% of people are much more likely to trust a brand recommended by friends and family over any other form of advertising. It comes as no surprise that word-of-mouth recommendations are highly influential and can significantly impact brand perception, customer acquisition, and product sales.

A diagram of most trusted sources of brand information

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.

Are you wasting time and money on digital promotions?

It’s time for a change.