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The Critical Role of Word-of-Mouth Marketing

The Critical Role of Word-of-Mouth Marketing
The Critical Role of Word-of-Mouth Marketing

When did you last have a story to share with your friends? It could be a new restaurant, business, or device.

This sharing excitement promotes word-of-mouth marketing (also called WOM marketing, WOMM, or word-of-mouth advertising).

64% of marketing executives say word-of-mouth marketing is the most effective. Even though we've all heard of and experience word-of-mouth marketing, there are several strategies to improve it.

What is word-of-mouth marketing?

Word-of-mouth marketing (WOM marketing) refers to any method by which people discuss your brand, products, or services with others. It also covers your company's efforts to encourage customers to share their experiences with your brand and suggest it to others. Typically, word of mouth is sparked by a positive, above-and-beyond experience with your brand.

With word-of-mouth marketing, your customers and other fans conduct your marketing for you at little or no cost to your company! They promote directly to their network in person or via social media, making word of mouth cost-effective and extremely valuable.

What is the significance of word of mouth in marketing?

Because of its high level of trust, word-of-mouth marketing stands apart.

Why do individuals believe what they hear?

Friends, family members, and others in a person's immediate circle make word-of-mouth recommendations. When a friend or family member raves about a specific brand, they are considerably more inclined to purchase. This is because peer endorsements are highly valued.

According to a Nielsen survey, 92% of individuals prefer word-of-mouth recommendations from people they know over all other forms of promotion.

Furthermore, thanks to social media, what someone posts can reach millions in seconds. And word of mouth doesn't stop with one interaction; one person will tell another, and so on.

Word-of-mouth marketing has the potential for exponential development with each sharing, repost, or retweet. All of this occurs at a meagre cost to your company, and in many cases, for free.

How effective is word-of-mouth advertising?

These word-of-mouth marketing statistics demonstrate just how effective word-of-mouth marketing can be:

  • Word-of-mouth referrals from people they know make 83% of Americans more likely to buy a product or service.

  • According to Nielsen, consumers are four times more likely to buy when referred by a friend.

  • When it comes to things they've purchased, 74% of consumers said word of mouth was a significant impact on their selection.

  • Marketers rate the quality of word-of-mouth leads as 4.28 out of 5.

Don't dismiss word-of-mouth marketing because suggestions and referrals are pretty practical. People believe what their family and friends say. When their peers suggest your products, they are likelier to buy from you.

Helia Mohammadi

Social Media Specialist

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