Word-of-mouth marketing has become a crucial strategy for businesses attempting to build their reach and reputation.
September 26, 2023
Word-of-mouth marketing is an invaluable tool to unlock new opportunities and expand the business’s reach.
This article provides an overview of the concept and examines how it can be leveraged for businesses to benefit.
Word-of-mouth marketing, also known as WOM, is a type of marketing strategy that leverages customers to spread information about a product or service to others.
It is an invaluable form of marketing because it relies on satisfied customers voluntarily sharing their positive experiences with a product, service, or brand among their social circles, both online and offline.
Unlike traditional advertising, which is often a one-way communication, word of mouth marketing uses the natural human tendency to share opinions, recommendations, and experiences with others.
When a customer has an exceptional encounter with a brand, they become advocates, eagerly spreading the word to friends, family, colleagues, and even strangers who might benefit from the same positive experience.
This organic, peer-to-peer promotion can have a profound impact on a brand's reputation and visibility.
Positive word of mouth can create a snowball effect, leading to an exponential increase in brand awareness and customer trust.
Imagine this : you're on the hunt for a new gadget, and your best friend can't stop raving about this sleek, futuristic device they recently purchased.
You trust your friend's judgment and are more likely to consider the product based on their review.
86% of consumers trust word-of-mouth recommendations more than any other form of advertisement (according to a Nielsen's study).
Elles sont intrinsèquement fiables parce qu'elles émanent de personnes réelles ayant vécu des expériences authentiques, ce qui permet de contourner le scepticisme souvent associé à la publicité traditionnelle.
Having satisfied customers telling others about your products or services enables you to reach wider audiences.
Each positive recommendation reaches new ears, that potentially come from untapped markets and demographics.
Your satisfied customers act as enthusiastic promoters, extending your reach far beyond your typical marketing efforts.
We saw that when potential customers hear positive recommendations from friends or family, they're more inclined to make a purchase.
This heightened trust translates into higher conversion rates, as WOM influences buying decisions in a way that traditional advertising struggles to match.
According to McKinsey, Word of mouth marketing generates 2x more sales than paid advertising and 41% higher purchase intent.
Say goodbye to hefty advertising budgets. Word of mouth marketing is a budget-friendly powerhouse.
While it requires dedication to customer satisfaction and relationship-building, the actual promotion is primarily driven by your delighted customers, voluntarily sharing their experiences.
This cost-effectiveness allows small and medium-sized e-commerce brands to compete with larger players without breaking the bank.
Word of mouth isn't just about the praise; it's also a valuable feedback loop.
As customers share their experiences, they provide insights into what you're doing right and where improvements can be made.
This feedback is pure gold for businesses seeking continuous growth and enhancement.
In order to leverage the power of word-of-mouth marketing, businesses need to implement a strategic and well–thought– out approach.
Let's dive into some actionable tips that will set your e-commerce brand on the path to becoming the talk of the town!
The foundation of word of mouth marketing lies in wowing your customers with exceptional experiences.
Go above and beyond to exceed their expectations, surprise them with personalized touches, and ensure every interaction leaves a positive impression.
Happy customers are more likely to become enthusiastic brand advocates.
Prioritize human contact in your interactions with customers.
Get to know them on a personal level, listen to their feedback, and show genuine appreciation for their support.
A personal touch builds an emotional connection that encourages customers to share their experiences with others.
Encourage word of mouth marketing by offering incentives for referrals.
Create a win-win situation where both the referrer and the referred friend receive rewards.
Discounts, loyalty points, or exclusive access to products can entice customers to spread the word.
Find out 10 examples of successful referral programs
Use social media platforms to amplify your word of mouth.
Engage with your audience, share user-generated content (UGC) and respond to both praise and concerns promptly.
Social media provides a stage for customers to voice their experiences and for you to join their conversation.
Positive online reviews and testimonials are an absolute prerequisite for word of mouth marketing.
Encourage customers to leave feedback on dedicated review platforms or on your website.
Display these testimonials prominently to instill trust and confidence in potential buyers.
Organize events, either in-person or virtually, that create unforgettable experiences for your customers.
Whether it's an exclusive product launch, a workshop, or a fun contest, events can spark word of mouth and foster a sense of community around your brand.
Invite potential customers as well as existing clients.
Share compelling stories about your brand, products or customers that stir emotions and resonate with your audience.
Stories have a unique ability to stick in people's minds and become the foundation of their word of mouth recommendations.
Outstanding customer support can turn dissatisfied customers into brand advocates.
Be responsive, attentive, and proactive in addressing issues and concerns.
A positive support experience can lead to positive word-of-mouth.
Partnering with influencers who align with your values and target audience can easily amplify your word of mouth marketing.
They have a large online (or offline) reach and can help spread information about your business.
This might introduce your brand to new audiences and lend tremendous credibility to your products.
Find out how to choose the right influencer for your brand
Craft shareable content that captivates your audience and encourages them to spread the word.
Engaging videos, infographics, in-depth ebook and relatable memes are just a few examples of content that can go viral and fuel word of mouth conversations.
Simply quantifying the success of word-of-mouth and understanding its reach is essential to refining your approach and maximizing its potential.
Let's explore some key metrics and methods to gauge the effectiveness of your WOM initiatives.
Keep a close eye on the sources of your referrals.
Whether they come from social media, customer reviews, or direct recommendations, understanding where word of mouth is generating traction will help you identify the most influential channels.
Utilize web analytics tools to track spikes in website traffic, particularly after specific word-of-mouth campaigns or promotions.
An increase in website visits indicates that your message is resonating and driving interest in your offerings.
Measure the conversion rates of customers who were referred through word of mouth compared to other marketing channels.
Higher conversion rates from WOM referrals lead to more engaged customers and more likely to convert into loyal customers.
Dive into social media analytics to assess the engagement levels of your word-of-mouth content.
Likes, shares, comments, and retweets are valuable indicators of how well your content is being received and shared among your audience.
Conduct surveys to gather direct feedback from customers.
Ask them how they heard about your brand and what motivated them to make a purchase.
Customer insights provide valuable qualitative data to round off your quantitative metrics.
Instead of just counting brand mentions, analyze your share of voice (SOV) in conversations related to your industry or niche.
This metric compares the volume of mentions your brand receives compared to your competitors.
This gives you a better understanding of your brand's visibility and influence.
Read this article to find out more about SOV.
If you have a referral program in place, analyze its performance.
Track the number of referrals generated, conversion rates of referred customers, and the overall impact on your bottom line.
Here we explain the 7 KPIs you need to monitor for your referral program.
Determine the lifetime value of customers acquired through word of mouth.
Repeat purchases and long-term loyalty are indicators of the quality of word-of-mouth referrals.
Benchmark the results of your word-of-mouth efforts against other marketing channels.
Analyze cost per acquisition and customer retention rates to see how word of mouth stacks up against traditional marketing methods.
Develop attribution models that consider the influence of word of mouth on various touchpoints along the customer journey.
Multi-touch attribution will give you a more holistic view of word of mouth's impact on conversions.
Community
If you want your company to come out on top, it's all about forming a deep emotional bond with your customers through active community involvement. So, let's dig into the basics of creating a strong, genuine brand community from scratch. Get ready to build a kickass community!
Loyoly is a new generation referral and loyalty program which helps brands turn their community into a growth engine through gamification.
