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What Is Word Of Mouth Marketing: How To Build Buzz That Drive More Sales

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In our line of work, word-of-mouth marketing (WOM) is a powerful and effective asset. It not only piques interest but also, as the name suggests, it stimulates conversation.

💁‍♀️ Before making a purchase, approximately 62% of consumers look up product reviews and other information online, and an astounding 90% of consumers trust brand recommendations from friends and family.

With numbers that can change the game, it’s critical to remember the value of reviews, ratings, and recommendations when developing your company’s marketing strategy.

You can generate a constant flow of customer conversations that frequently result in new business with a clearly defined word-of-mouth marketing strategy.

🎯 In this guide, we’ll explain what is word-of-mouth marketing and how it differs from electronic word-of-mouth (eWOM), how it functions, and how to build a word-of-mouth marketing strategy.

🚀 Without further ado, Let’s jump right into it……….

👉   What Is Word-of-Mouth Marketing?

When a consumer’s interest in a brand’s product or service is reflected in their regular conversations, this is referred to as word-of-mouth marketing (or WOM marketing).

In essence, it is free advertising brought on by customer experiences—typically, something that exceeds their expectations.

Through various publicity initiatives set up by businesses or by providing opportunities to promote consumer-to-consumer and consumer-to-marketer communications, word-of-mouth marketing can be promoted.

The term “word-of-mouth advertising” is also used. Buzz, viral, blogging, emotional, and social media marketing are all examples of WOM marketing.

✅  KEY TAKEAWAYS 💡

  • Word-of-mouth marketing (WOM marketing) occurs when customers recommend a business’s goods or services to their friends, relatives, and other people they value highly.
  • WOM marketing is among the most effective forms of advertising because 88% of consumers prefer recommendations from their friends to those in traditional media.
  • Companies can promote word-of-mouth advertising (WOM) by exceeding customer expectations, offering superior customer service, and providing consumers with insider knowledge.
  • The best word-of-mouth marketing strategies, according to the Word of Mouth Marketing Association (WOMMA), are sincere, credible, social, repeatable, measurable, and respectful.
  • Buzz, blogs, and social media marketing are just a few examples of the different marketing strategies used in WOM marketing.

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👉   The Top Word of Mouth Marketing Statistics That Will Astound You 

Having positive word-of-mouth about your brand is crucial for business. When making a purchase, especially one online, people frequently rely on the opinions of others.

By looking at these statistics, you can get a sense of the effect that word-of-mouth marketing has on people.

  1. More than 70% of consumers claim that recommendations from others affect their purchasing decisions (Ogilvy Cannes Study).
  2. According to Nielsen, 92% of consumers are more likely to trust recommendations from friends and family than advertisements.
  3. In addition to friends and family, 88% of people place as much trust in online reviews written by other customers as they do in personal recommendations.
  4. According to HubSpot, 75% of people don’t believe in advertisements, but 90% believe in recommendations from friends and family, and 70% believe in customer reviews.
  5. A greater sense of delivery security would encourage 49% of consumers to shop online more, and a late delivery would make 57% of consumers reluctant to use a retailer again.
  6. Word-of-mouth recommendations are a significant factor in 74% of consumers’ purchasing decisions.
  7. Researchers discovered that a 10% increase in word-of-mouth (offline and online) translated into a sales lift of between 0.2 and 1.5% when specific case studies were analysed.
  8. Five times as many sales are generated by word-of-mouth marketing impressions as by paid media impressions.
  9. According to 64% of marketing executives, word-of-mouth advertising is the most successful method of marketing.
  10. 70% of respondents said they would increase their spending on online word-of-mouth advertising, while 29% would increase their spending on offline word-of-mouth advertising.
  11. People are 90% more likely to trust and purchase from a company that a friend has recommended.
  12. Consumers overwhelmingly trusted recommendations from people they know, according to 88% of respondents.
  13. People don’t trust paid advertisements in 75% of cases.
  14. Consumer trust in brand-sponsored content is only 4% in the US.
  15. Word of mouth marketing (WOMM) is used by 82% of marketers to raise brand awareness, but only 43% anticipate that WOMM will boost direct sales.
  16. Word-of-mouth generates 13% of all sales and $6 trillion in annual global spending.
  17. Word-of-mouth marketing generates five times as many sales as paid advertising.
  18. Word-of-mouth marketing, according to 64% of marketers, is the most successful strategy.
  19. Word-of-mouth marketing is used by the majority of marketers (83%) because it raises brand awareness.
  20. Word-of-mouth advertising is used by 43% of marketers to boost sales.
  21. WOMM generates five times as many sales as paid media.
  22. The ROI for influencer marketing is 11 times higher than that for banner ads.

Social shopping is significantly influenced by word of mouth, particularly on social media. Brands use it as a productive social commerce strategy to increase sales through user-generated content. If you are still uncertain about word-of-mouth advertising, wait and read the following.

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👉   What is eWOM in marketing?

People look up eWOM as well (Electronic Word of Mouth). Consumers frequently consult online consumer-written content before making purchases.

To put it another way, they use online word of mouth (eWOM). Marketers can take action to create, promote, and amplify eWOM and thereby affect consumers’ purchasing decisions.

What is eWOM in marketing

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👉   Where Does Word Of Mouth Hold The Most Sway?

People look up eWOM as well (Electronic Word of Mouth). Consumers frequently consult online consumer-written content before making purchases.

To put it another way, they use online word of mouth (eWOM). Marketers can take action to create, promote, and amplify eWOM and thereby affect consumers’ purchasing decisions.

The value of peer-to-peer reviews and recommendations, which reflect the social and cultural context, goes beyond the consumer market.

WOM is another marketing strategy that American business leaders find to be effective. Conversations with company representatives on social networks are cited by American business decision-makers as the second most influential source for B2B purchases, and WOM is cited as the most effective form of marketing by 62% of marketing executives.

Only 23% (Index 0.73) of digital consumers in the Middle East and Africa use WOM to learn about new goods and services, and they are also less likely to use formal review sites, making this region the lowest-indexing region overall.

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👉   Why is Word-of-Mouth Marketing Crucial for a Winning Brand Strategy

Word-of-mouth advertising is crucial because it works to boost sales, advertise goods and services, raise brand awareness, and cultivate a loyal customer base.

Many businesses use tactics to encourage customers to share positive experiences and recommend their services and/or products.

Companies essentially act as the spark that ignites a flurry of consumer conversation, and since studies show that the majority of people trust the opinions of their friends and family, focusing on word-of-mouth marketing can be more advantageous and cost-effective than other forms of advertising.

We have outlined a few advantages of word-of-mouth (WOM) marketing to help you concentrate to it.

1-  Free-of-Cost Advertising

The benefit of WOM marketing is that there are no advertising expenses to be incurred. All of the marketing for your brand is unpaid and is generated naturally by its users.

2-  Develop Brand Loyalty

Only the customers who are pleased and satisfied with the services offered by your brand will participate in word-of-mouth advertising. Customers who are content and satisfied with your brands will develop long-term loyalty to them as well. 

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3-  Online Community 

WOM marketing can help you create a strong online brand community. These consumers from your brand community can promote your company online.

The drawback of word-of-mouth advertising in this situation may be that bad reviews of the brand may have a negative effect on the neighbourhood and the outcomes.

4-  Build Brand’s Social Proof

Customers who support your brand will work with you to establish your company’s credibility, trustworthiness, and reliability.

Social proof is essential for increasing conversions and growing your brand.

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5-  Increase Your Conversions & Sales

Most importantly, positive (WOM) word-of-mouth marketing can boost eCommerce conversions and sales. The statistics thus show that 90% of people seek recommendations from friends and peers when making online purchases.

We’ve now discussed what word-of-mouth marketing is, why it’s important, and how it can help your brand. It’s time to create a word-of-mouth marketing plan that will enable you to reap all of these advantages and many more.

👉   Other Terms That Fall into Word of Mouth Marketing

  1.  Buzz Marketing 

Buzz marketing is another name for astroturfing. This focuses on encouraging customers to start and spread product conversations. This increases brand awareness by utilising online traffic.

Influencers are the ones who publicise a particular good or service, creating the “buzz.” Typically, this is accomplished using eye-catching tools like humour and videos.

  1.  Blog Marketing 

Promoting a product or service with the help of a blog. The brand ambassador, or influencer, in this case, is the blogger. Bloggers develop into word-of-mouth marketers, spreading information to their subscribers.

The blogger offers their preferred brands and affiliates’ reviews and ad space. Because they already have a relationship with the blogger’s followers, they are then more likely to spread the word to them.

  1.  Social Media Marketing 

Social media content has a way of getting to people who weren’t initially following it. As mentioned, when shared by a person you know and trust, the content has more value. The core of marketing, particularly referral marketing, is this kind of advertising.

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👉   What Is the Digital Version of Word-of-Mouth Marketing?

Digital word-of-mouth marketing makes use of technology, particularly the Internet, in order to facilitate word-of-mouth interactions.

Review sites, social media platforms, and blogs are well-liked digital platforms for users to share their experiences, both positive and negative, and these shared experiences have a big impact on how much consumers spend.

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👉   11 Ways To Implement Word-Of-Mouth Marketing In Your Strategy

1-  Create an Epic First Experience

The best way to get customers to gush about you is to provide a unique customer experience that exceeds their expectations.

Consider including a personalised “Thank you” note and a free gift with their online purchase, in addition to giving them a top-notch product that addresses a significant pain point—in today’s world, that’s standard operating procedure.

Always strive to make an impression. Giving customers a mediocre or bad experience won’t encourage them to recommend your company.

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2-  Encourage user-generated content (UGC)  

UGC refers to content that customers create and distribute about companies or goods. It’s sincere, fosters confidence, and provides marketers with additional marketing materials.

  • According to 86% of millennials, UGC is a good indicator of the calibre of a product or service.
  • UGC videos have a 20% increase in sales effectiveness.
  • 5.4 hours a day are spent by millennials viewing content made by their peers.

📌  How do you encourage users to produce content?

  1. Use a distinctive hashtag to distinguish content produced by customers.
  2. Encourage people to upload and share photos, videos, and animated gifs on social media. Offer a freebie, a deal, or a benefit.
  3. Establish a sense of community. Make sure to prominently display your user-generated content on your website or main profile.

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3-  Share customer testimonials/reviews

Compared to personal recommendations, 79% of people place more trust in testimonials and online reviews.

They help in assuring consumers of the effectiveness, quality, and/or value of your claims and increase their comfort level when transacting with you. After all, there’s a reason why it’s called “social proof.”

Written or video testimonials can be posted on your website or taken from others. Depending on your sector, some well-known review websites are:

  • Yelp
  • Angie’s List
  • Houzz
  • G2 Crowd
  • Clutch.co

Repurpose your testimonials or reviews into your marketing once you have them:

  • Dedicated site page
  • Homepage & landing pages
  • Relevant product/service pages
  • Lead generation content

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4-  Sell quality products

To deliver an exceptional customer experience, quality product sourcing and sales are essential.

The essential components of a WOM-worthy experience are attentive customer service, a simple purchasing process, and goods that live up to expectations.

Make sure the experience you offer is consistent with your branding. For instance, if your restaurant advertises itself as a family-friendly spot serving nutritious food, don’t sour the experience by leaving insufficient room in the dining area for baby strollers.

5-  Get product ratings on your site

You might want to allow users to rate or review particular goods, services, etc. right on your website, depending on your business model.

This is especially helpful if you run an eCommerce site or run a tech business that sells a variety of goods.

  • When a website has reviews or ratings, 63% of visitors are more likely to make a purchase.
  • Sales can rise by 18% as a result of reviews.
  • Customer testimonials are 12 times more reliable than brand descriptions.

📌  Brands that do it well:

  • Amazon
  • Apple: iTunes/App Store
  • NewEgg

📌  Popular rating tools:

  • BazaarVoice
  • GIGYA

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6-  Run a tight operation

Customers will promote your company in the wrong ways if you have incorrect orders, late deliveries, or no-shows for appointments.

According to data, 58% of customers stop doing business with a brand after just one bad customer experience.

Use just-in-time inventory management to avoid ever being over-or under-stocked. Work with a dependable supplier who can quickly fill large orders.

Finally, make it simple for customers to contact a live person to resolve their complaints.

7-  Offer an incentive

Giving your customers a good reason to tell others about you can greatly increase your word-of-mouth advertising.

People are always more likely and willing to do something, no matter how small, if they receive something of value in return. So, think about offering your customers a discount or a freebie in exchange for recommendations.

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8-  Create a referral program

By establishing a formal referral programme, you can go even further. An effective referral scheme:

  • spreads information quickly and easily
  • enables both parties to benefit (with an incentive or other benefit)
  • evaluates the success of your marketing efforts

📌  Top Referral Tools:

  • ReferralCandy
  • Friendbuy
  • LoyaltyLion
  • Influitive
  • Woobox

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9-  Connect with a worthy cause

According to IBM research, 40% of consumers said they look for businesses that share their values, such as sustainability or racial equality.

Associating your brand with a cause will give influencers more motivation to work with you because influencers also want to support causes they believe in.

Starbucks launched the #WhatsYourName campaign in 2020 to depict the journey of a young transgender person who was struggling to accept their name change until he walked into a Starbucks one day.

James replies with confidence when the barista asks for his name, “James,” which is then inscribed on his cup, confirming James’s transformation into a man.

The advertisement was influenced by actual accounts of people who were transitioning and discovered Starbucks to be a welcoming environment where their new name was accepted.

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10-  Connect with industry influencers and thought leaders

Influencers are exactly what their name implies—people with a sizable fan base who have the ability to shape the opinions and actions of those who follow them. The most valuable word-of-mouth advertising comes from influencers because of their already established reputation.

  • 40% of consumers claim to have made an online purchase after seeing a particular product used by an influencer on Instagram, Twitter, Vine, or YouTube.
  • 49% of consumers claim to base their decisions on recommendations from influencers.
  • Marketers have reportedly set aside 73% of their budgets for influencer marketing.

📌  How to Win Influencers Over

  • Mention them in your writing.
  • Put them or their goods or services front and centre.
  • Give them a free trial of your goods or services.

11-  Offer a unique, shareworthy experience

Offering a distinctive, shareable experience is ultimately the simplest way to generate word-of-mouth marketing in this digital age.

Customers will want to share memorable experiences they can only get from you with their friends and family, whether or not you ask them to.

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👉   Quick Word-Of-Mouth Wins For You

  • Identify & nurture your best customers.
  • When things are going well, ask for reviews or ratings; don’t wait!
  • Utilize social media as a source of referrals.
  • Go above & beyond with unexpected customer service gestures
  • Automate the process by using tools.
  • Make sure you have astonishing service, staff, and support
  • Make staff and support improvements using crowdsourced feedback
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👉  The Key Takeaway: How Can You Take Your Word of Mouth Marketing Strategy To The Next Level?

Hope you found this complete guide to what is Word of Mouth Marketing helpful. Prior to implementing any of these, you must first set marketing objectives that are in line with the objectives of your company. 

You should also think about how word-of-mouth can support channels like your content marketing and more extensive inbound marketing initiatives.

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