Word-of-mouth marketing is a strategy that relies on experiences and recommendations customers share about a certain brand with their friends and family. It’s a free form of advertising triggered by the experiences, feelings, and thoughts of buyers.

In this video, Neil Patel reveals how to leverage word-of-mouth marketing.

Now when the Internet is overwhelmed with various marketing techniques, it can be hard to find brands promoted organically. However, the easiest way to achieve it is to treat customers well and they will do all your promotion work.

In this article, we’ll discuss the importance and pros of word-of-mouth marketing, find out how to use it, and explore several examples.

Why is Word-of-Mouth Marketing Important?

Today, every brand strives to be visible on social media and rank higher on Google. Yet, organic promotion is more important. If a brand cares about its customers and creates a great product, it can be promoted by its consumers. They can easily share their experience and bring in new buyers. Such companies won’t need too many marketing techniques, the results of which no one can guarantee.

Nielsen informs that 83% of customers who participated in its survey trust companies recommended by their family and friends. Experiences of other people with a specific brand often become sources of information for many consumers since they are more relatable and trustworthy.

A customer who buys in a store can become a part of word-of-mouth promotion in a variety of ways. It can be an Instagram story of unpacking, a review on a website, a hashtag, or a tag. As a result, people can see this content and think about interacting with the company too. This way, brands can reach new consumers and drive conversions. A good product plus a positive experience with a brand can help attract more loyal customers. This, in turn, helps companies obtain good profit.

To learn more about the strategy, let’s uncover its advantages.

Benefits of Word-of-Mouth Marketing

To attract new customers, a brand doesn’t necessarily need pre-roll ads, site optimization, paid advertising, and other marketing tools. Consumers satisfied with a product can easily popularize a company and bring benefits. First of all, the strategy doesn’t require any additional costs and helps reach out to new clients who will be loyal to your company. Secondly, recommendations from friends and family always drive interest and trust in a certain brand. This is the chance to build an image of a credible, reliable, and trustworthy brand.

Companies that apply word-of-mouth promotion obtain increased conversions, higher sales, and wider reach. All these factors together create a great incentive for high profits. The more people learn about your brand, whether from the posts of friends or their direct recommendations, the higher will be brand awareness. As a result, the higher the possibility of brand engagement.

Now that you know the advantages, let’s proceed to the next section to find out how to leverage word-of-mouth marketing.

How to Use Word-of-Mouth Marketing?

  • Consider Influencer Marketing
  • Create Hashtags
  • Obtain Reviews
  • Offer Freebies
  • Conduct Giveaways and Contests
  • Prepare Referral Programs

To make customers discuss your brand and bring in their friends, be ready to provide your clients with an excellent experience. Read on for our list of the best ways to use word-of-mouth promotion.

Consider Influencer Marketing

With influencer marketing, brands can show the best in their products on social media channels of influencers. Opinion leaders can help you promote your product, reach a bigger audience, and encourage their followers to purchase.

This type of marketing is a perfect choice because statistics say that 49% of customers trust influencer recommendations. Nowadays, this type of marketing is one of the most effective because of the level of trust that opinion leaders have built up with their following.

Below, you can see an example of the successful partnership between an actress and influencer Reese Witherspoon and Biossance, a skincare brand.

Influencer marketing

Create Hashtags

Social network updates encourage brands to rely not only on popular hashtags but also explore emerging trends of this modern marketing tool. They enable your company to make your product visible, improve brand recognition and customer engagement. Some brands even make changes to their hashtag strategy to increase their reach. You can use community, branded, campaign, and event hashtags to reach a wider audience and see customers tagging your brand and organically promoting it.

You can see a branded hashtag of Sephora, a French retailer of beauty products. The company’s customers often use the brand's hashtag to share their experience and recommend Sephora.

Hashtags

Obtain Reviews

Now, when all customers have access to the internet, it’s not a difficult task to find necessary information about the brand or product when considering a purchase. One of the most important things consumers pay attention to is reviews. They are social proof of a brand's quality. Good reviews are useful since they increase conversions and make your brand look trustworthy.

As of 2020, nine out of ten customers read reviews before buying something. Thus, a brand should have a good reputation and customers satisfied with products or services. So, let your customers be influenced by good reviews, not bad ones. Consider adding reviews on landing pages of the features or under the product cards to ensure that visitors will see them.

Below you can see reviews on the DirectEats’ site.

Reviews

Offer Freebies

People like to get something for free and brands often give them such an opportunity. Very often you can encounter various freebies on social media platforms from different businesses. This way companies try to attract and engage new customers who probably already use the products or services of other brands. The successful freebies can bring repeat sales and customer loyalty to your company.

For example, Sephora offers customers to choose a gift for their birthdays.

Freebies

Conduct Giveaways and Contests

The size of your brand is not important when it comes to giveaways which can bring some exposure to your company. Opening a giveaway will not only enable you to reach your target audience but increase your customer base as well. Your clients will share the news about your giveaway with their friends and family and encourage them to participate. This, in turn, will enable followers to show their activity and disseminate information about your brand.

Let’s take Kopari, for example. The company that offers coconut beauty products decided to conduct a giveaway for its followers.

Giveaway

Prepare Referral Programs

To achieve success in your word-of-mouth promotion, consider a referral program. Offer some perks to your customers to drive interest and effectively promote your company. You can provide your regular customers with a financial reward or a free product as an appreciation for referring a friend.

For example, some Spotify users got prizes for referring their friends. The company gave existing users one month of using the service for free and new users — one month of premium.

Referral program

Source: ReferralCandy

We hope that you’ll make use of the strategies above and now we’ll walk you through several examples.

Examples of Word-of-Mouth Marketing

Many business owners are ready to implement strategies of word-of-mouth marketing to drive sales and generate buzz around their brands. Several examples from big companies will demonstrate how the approach works in real life.

Coca-Cola and “Share a Coke” campaign

Coca-Cola, probably best known for its soft drinks, decided to create a special “Share a Coke” campaign. This step allowed the brand to attract people and encourage them to buy the famous drink. Coca-Cola aimed to make people share a drink with their friends in order to have a wider reach.

Coke

Source: Medium

Dropbox and free space

Dropbox, when it was launched, used a referral program to spread its message and make more and more people use its services. Everyone can be enticed by products for free. The file-hosting service leveraged this fact by offering 500 MB of bonus space for referred customers.

Dropbox

Source: Referral Marketing School

Netflix and an army of opinion leaders

Netflix succeeded in obtaining a huge number of subscribers by using influencer marketing. The popular streaming service noticed the fact that many consumers trust influencer recommendations. The power of opinion leaders made Netflix stand out and grow exponentially.

Your audience is the best way to promote your brand organically without a huge number of modern tools and approaches. However, you can’t turn your consumers into raving fans at once. To win their love and attention, you’ll need to do your best at creating a good product, providing consumers with excellent customer service, and experience.

Resources:

  1. This article defines the term, provides readers with statistics, advantages, and ideas for building a word-of-mouth marketing strategy.
  2. In this article, you can find 10 great word-of-mouth strategies.
  3. This article defines the term and uncovers the importance and benefits of word-of-mouth marketing.
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