Every marketer out there has heard of word of mouth marketing, right? And let’s face it, you’ve probably recommended a fantastic restaurant to a friend or suggested some tools to a colleague in the office that have revolutionised your workflow.
In fact, a company’s sales can be greatly influenced by these casual conversations between customers and their social friends. That’s why companies should never leave word of mouth out of their marketing mix. 🚀
What does Word of Mouth Marketing mean?
In the fascinating world of marketing, there is one form of advertising that has always been considered one of the most effective: Word of Mouth Marketing.
Word of Mouth Marketing
Word of Mouth Marketing (WOMM) refers to the sharing of a service or product experience from person to person. It is an organic form of recommendation where people are driven by intrinsic motivation to share their positive experiences with those around them and help their loved ones with a good tip.
Authenticity and Credibility as key factors
Many people are actually active purchasers of a service or product because it is highly recommended by someone in their inner circle:
“A staggering 85% of consumers act upon recommendations from people they know personally.“
Nielsen
Why is WOMM so amazingly effective? Well, it’s based on authentic experiences and driven by personal relationships. Word of mouth can work just as well in random conversations as it does on social media or review platforms. Positive referrals build the trust and confidence of a potential customer and create a long term relationship with the brand. This is marketing with heart and soul!
“A full 92% of consumers rate recommendations from friends and family as significantly more credible than any other form of advertising.“
Nielsen
No fancy advert can compete with that!
The essence of WOMM is therefore authenticity and credibility. Unlike traditional advertising, where the message is often created by the company itself, word of mouth campaigns work through satisfied customers and their inner motivation to share this positive experience. People tend to trust recommendations from friends, family or colleagues more than they trust expensive advertisements or other costly advertising. This trust makes WOMM a highly effective form of customer acquisition and retention. It’s not just about marketing, it’s about real relationships.
Viral Effect - Viral Loop
Speaking of effectiveness: The viral effect (or viral loop) is another exciting chapter in word of mouth. This is a mechanism that can be used in a targeted way to make a service or product known to a large number of people at lightning speed. By encouraging customers to share information and experiences directly with those around them, the advertising message really takes off and the information spreads like wildfire – or just like a virus.
Trend
The internet, as well as our analogue daily lives, is literally flooded with advertising, and it is becoming increasingly difficult for companies to stand out from the crowd while marketing their service or products authentically. This is why WOMM has moved into the fast lane. The enthusiasm and trust of existing customers is the advertising medium that influences the purchasing decisions of those close to them. Targeted and personalised. Without exaggerated brand messages and emotional advertising campaigns designed to generate brand trust and a desire to buy.
More and more companies and marketing experts are realising that this organic approach not only sounds cool, but is also worth money. With customer excitement as a central element, the customer journey is perfected and the product or service experience is tailored for maximum satisfaction – ideally driving positive word of mouth. When your customers speak highly of their experience, there is little need to sell or advertise. People will buy.
Long story short
The best brand ambassadors are satisfied customers. In today’s world, where real exposure is the holy grail, every company should be considering how to incorporate WOMM into its marketing strategy. The good news? This up-and-coming advertising medium is not only cost-effective, but also a sustainable way to build strong brand loyalty. Nowadays, it’s not just about shouting louder, it’s about getting the right people to whisper…
