What Is Word-of-Mouth Marketing?
Let me explain word-of-mouth marketing, or WOM marketing, directly to you: it's when a consumer's interest in a company's product or service shows up in their everyday conversations. Basically, it's free advertising that comes from customer experiences, often because something exceeded what they expected.
You can encourage this through various publicity activities that companies set up, or by creating chances for consumer-to-consumer and consumer-to-marketer talks. It's also known as word-of-mouth advertising and covers things like buzz, viral, blog, emotional, and social media marketing.
Key Takeaways
Here's what you need to know: WOM marketing happens when consumers talk about a company's product or service to friends, family, and close contacts. It's one of the most powerful advertising forms because 88% of consumers trust friends' recommendations more than traditional media.
Companies can push WOM by going beyond expectations on products, offering good customer service, and sharing exclusive info with consumers. The Word of Mouth Marketing Association says the best strategies are honest, credible, social, measurable, and respectful. WOM includes techniques like buzz, blogs, and social media marketing.
Understanding Word-of-Mouth Marketing
WOM marketing differs from natural word-of-mouth because it can result from company promotions, encouragement, or influences like seeding. For example, if a diner tweets about a great restaurant experience that exceeded expectations, or someone shares a new way to use a product with everyone they know, that's WOM in action.
It doesn't stop at the first share; it creates a chain of interactions. The best way for companies to encourage it is by giving people reasons to talk, like exceeding expectations or providing insider info. Other approaches include new ways to share product details and engaging with consumers through top-notch service, especially on social media for easy sharing.
Benefits of Word-of-Mouth Marketing
Consider this: a 2021 Nielsen study shows 88% of people worldwide trust recommendations from people they know more than any other advertising. That's why WOM is so effective. Consumers bond emotionally with companies that listen to them, which is why sales reps discuss products personally or use feedback lines.
Such interactions, along with promotional events, spark conversations. There's temptation to fake WOM, but the WOMMA's ethics code stresses credible, social, measurable, and respectful strategies, with no room for dishonesty. Expert Andy Sernovitz sums it up in three rules: disclose who you're representing, say only what you believe, and never lie about your identity.
What Are Some Examples of Word-of-Mouth Marketing?
WOM marketing includes tactics companies use to get consumers talking about their satisfaction with services or products. Think brand loyalty programs that reward repeat business and offer feedback platforms, plus giveaways, contests, and sponsored influencers.
What Is the Digital Version of Word-of-Mouth Marketing?
Digital WOM uses technology, especially the internet, to enable word-of-mouth exchanges. Platforms like review boards, social media sites, and blogs let consumers share good and bad experiences, and these testimonials heavily influence buying decisions.
Why Is Word-of-Mouth Marketing So Important?
WOM is crucial because it boosts sales, promotes products and services, increases brand recognition, and builds loyalty. Companies use strategies to encourage recommendations and positive shares, creating a spark for consumer chatter. Since people trust family and friends' advice, WOM can be more beneficial and cost-effective than other marketing.
The Bottom Line
In summary, WOM marketing is when consumers share positive experiences about goods or services. It's great for businesses as it generates leads without extra costs, though companies can contribute through efforts like buzz, viral media, blogs, and social media. You often see it in casual talks over dinner, texts, or encounters between friends and family.
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