“Have you heard of the new place in town? Everyone is talking about it!”
Surely, you have been approached by someone saying this at some point in your life. Every day, we encounter millions of advertisements, but unknowingly, some of these ads could be run by our peers or friends around us.
Whenever you hear a recommendation about a brand or an organisation from a consumer, this is a form of “word of mouth” marketing or WOMM. Word of mouth marketing is a form of free advertising which could either be organic or spontaneously encouraged by companies.
Consumers have a tendency to recommend a brand when their experience exceeds their expectations. These types of consumers who are willing to advocate for a brand could be identified through various means. Such means could include the simple “Net Promoter Score Method” where advocates are likely to be the ones who vote 9-10 on the scale.
WOM happens to be a very powerful marketing tool which affects the consumers’ purchasing decisions and brand perceptions. Based on a Nielsen Study, friends and family recommendations are trusted more than other forms of advertising by 92% of people.
It is perceived by consumers as a form of trusted advertising since it comes from people they already know or can easily identify with.
Companies might also refer to influencers or opinion leaders on a local level to promote their brand and advocate for it. This type of advertising could be achieved through the brand’s offering and value proposition.
Encouraging it could also entail offering the consumers an exceptional customer service or exclusive offers and personalised items depending on the brand’s identity.
Some companies tend to encourage WOMM through investing in various initiatives. They set up brand ambassadors schemes and tryvertising which involve groups of people who actually try the products and spread the word which later affects the consumers’ behavioural intentions.
In the digital era, WOMM has gone online. Brands have been creating triggers and shareable content to encourage their audience to interact and initiate conversations online. This allows increasing the brands’ associations and memorability. In addition, marketers tend to create campaigns which boost the word of mouth within online communities.
Some brands create blogs or forums to encourage discussions related to their products.
Some companies and brands combine this type of marketing with referral marketing. They do so by seeking social media influencers to extend their conversation or advertising online. They even have programs tailored specifically for them. The latter include special coupon codes or landing pages which benefits both of the company and the influencer simultaneously.
Companies like Amazon have special referral programs where regular consumers act as affiliates and are rewarded with commission based on their performance. In addition, some brands like Nike utilise their values as part of their cause marketing which increases controversies and place the brand itself as an advocate.
Word of mouth marketing is very beneficial especially when establishing a brand. It helps generate awareness and build deeper interactions with the audience for it provides them with shareable resources.
When used effectively, it could also save up a lot of costs since this type of marketing has the potential for viral or exponential growth. It occurs in the form of “earned” media which results in more people trusting it and acting upon it.
In addition, WOM marketing allows the consumers to feel closer to the brand which might result in the change of their beliefs, evaluation, and their attitude about the brand later on.
It could generate positive feelings towards the involved brand. Also, this form of marketing helps boosts the consumers’ loyalty and advocacy which later translates into high customer’s lifetime value.
Although it helps in enhancing the brand’s awareness, WOMM’s effects aren’t guaranteed to be positive. The key problem lies in the fact that the word that gets out is not yours.
This creates a problem for it prevents brands to control the conversation. If negative words outnumber the positive ones then, this could be troublesome for the brand image.
It might even lead to brand boycotts and to the creation of anti-brand communities where people express their negative opinions and experiences with the brand. This adds to the importance of listening to each and every consumer including to the detractors and neutrals.
Despite the fact that it is one of the most effective marketing tools, word of mouth marketing is yet to be mastered by many.
Most brands are reluctant to invest in it for they fear things they can’t control. However, one cannot expect any return without taking a few risks every now and then.
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