Word of Mouth Marketing and a New Obsession

Word-of-mouth marketing (WOMM) is one of the most credible and effective methods of promoting a brand and its products. The good news is that WOMM has transitioned into the digital era and thousands of companies are reaping the benefits.

What is Word of Mouth Marketing?

First, let’s define what word-of-mouth is. WOM, or word of mouth, is the age-old, natural approach to spreading product and service information from person to person. 

When consumers have positive experiences with a product or service, they are more likely to suggest it to their friends and family, which is the root of word of mouth marketing. Essentially, it’s a type of unpaid promotion that’s set off by customers’ involuntary reactions and reflections.

The grassroots nature of WOM is not easy to replicate. The fact is, the very premise of word-of-mouth is that it occurs between individuals. WOM is a peer-to-peer communication system.

While some companies have had notable success in getting customers to talk about them, the overall results have been mediocre. However, the digital revolution opened the way for word-of-mouth marketing, or WOMM. Finally, marketers have access to the tools and infrastructure they need to carry out WOMM initiatives effectively.

It’s a highly effective fusion of traditional advertising and personal interactions, making it a perfect fit for the social media age.

Roster defines and describes WOMM in the following way:

Word-of-mouth marketing is the practice of using informal social networks and interactions to promote a product or service.  

Word of Mouth Marketing Examples

Understanding an idea is usually made easier with the use of a narrative. Well, this might be a personal perspective. Regardless, you are going to get a story. So here we go.

Several of our team members at Roster live in Texas. A few months ago, they shared some mouth-watering pics of pizza and some great news on Slack. The pizza restaurant just posted on Instagram that they were expanding to Utah, my home state.

Our co-workers raved about the pizza and said we absolutely had to go as soon as it opened. Actually, our company started an informal countdown until we could experience the same gastronomical joy. 

One lucky Roster team member has had the privilege of eating the pizza. And she concurs, saying it’s the best pizza she’s ever eaten. 

So a few weeks ago, I was attending a college football game 25 miles from home, which luckily just so happened to be very near this new restaurant. Anticipating it would be crowded, we left an hour early. Shockingly, the wait for a take-out pizza was one hour and 40 minutes. Yes, 100 minutes for take-out! 

How many people are talking about this? 

Unfortunately, we couldn’t wait that long, and our anticipation was crushed. So the following week, we made reservations before the college game to try yet again to experience this elusive pizza. 

I wish the story ended with success, but sadly, the restaurant does not take reservations, even though we had one. And the wait was again more than an hour. 

Word-of-mouth is powerful! I was hooked from the first mention of this fantastic eatery opening in my area.

The ironic thing is, I really don’t like pizza. But the reviews and descriptions of friends replaced my personal preferences. Hearing co-workers rave and seeing their selfies eating the pizza reinforces my passion for getting some of that food. This is a quest I will not abandon. And expect to have a successful ending soon. 

Chances are, just sharing this story about how word-of-mouth keeps me driving 50 miles to experience the deliciousness also makes you crave pizza. 

Organic conversations and genuine opinions have a more significant impact than advertising, long travel distances, and, to be honest, even personal tastes.

This is word of mouth, and it works!

When a community of individuals shares their own experiences and recommendations, it has a significant influence. Occasionally, the effect is so profound that it becomes an obsession.

Word-of-mouth marketing, or WOMM, is a work associate extolling a restaurant’s virtues and encouraging others to dine there. We know and trust the source, so we believe what they say about the food, the service, and the product.

Word of Mouth Marketing Strategy

One of the primary purposes of WOMM is to influence and direct the conversations people are having about your brand and products. In fact, referrals from family and friends account for 74% of all consumer purchasing decisions.

For a long time, word-of-mouth marketing relied on recommendations to pass from one person to another. Today, when it comes to modern word-of-mouth marketing, it includes both targeted campaigns and unplanned situations where customers talk.

Millennials ranked word-of-mouth as the number one influencer in their purchasing decisions. (Source: Radius Global) 

In terms of facts and outcomes, word-of-mouth marketing is compelling and profitable. To more fully understand the power, get The Best Word of Mouth Statistics for 2022.

Benefits of  Word of Mouth Marketing

#1 – People trust WOMM

Building and leveraging trust are at the heart of word-of-mouth marketing. Comparatively, though, trust is essentially nonexistent in conventional advertising.

According to HubSpot, 75% of consumers say they don’t believe advertisements. In comparison, 90% say they trust recommendations from friends and family, and 70% say they believe customer reviews. When compared with ads, word-of-mouth wins in every area.

People’s increasing trust in the virtual world makes it just as normal to communicate with one another on social media as in person.

One of the most challenging aspects of a relationship marketing approach is earning the customer’s trust. A peer’s suggestion, a known face, or an internet review is more trustworthy because of this, rather than a brand just yelling into the vacuum about how amazing they are. Word of mouth referrals are naturally reliable.

The ability to get people talking about a product and break down consumers’ natural skepticism makes word-of-mouth marketing a potent tool. Ad campaigns, on the other hand, meet such a warm reception.

Notably, 84% of customers said they totally or partly trusted recommendations about items from family, colleagues, and friends. – Nielsen

This places recommendations as the most trustworthy information source in the market.

#2 – WOMM is cost effective

Additionally, WOMM is a budget-friendly strategy to reach both online and offline groups. 

Increasingly, word-of-mouth is becoming a necessary part of every brand’s marketing approach. Companies are turning to other marketing strategies as it becomes more challenging to maintain healthy ROAS (return on ad spend) and CAC (customer acquisition costs). Ones with better economics and lower financial commitment — precisely what WOMM offers. 

#3 – Most reliable way to build brand recognition 

Many word of mouth marketing strategies focus on getting people to share, post, and communication. User-generated content, recommendations, and praises are all ways they honestly communicate about businesses.

A company’s goal in word-of-mouth marketing is to develop strategies to encourage customers to spread positive words about their company, goods, and services.

Recap 

Digital communities now dominate commerce, and businesses are seeing the growing importance of investing in word-of-mouth marketing. 

WOMM builds trust through cost-effective strategies. Ultimately, WOMM broadens a brand’s reach, creates high-quality content, and increases conversions.

If you want to drive sales with word-of-mouth marketing, Roster has a free how to guide.

And here’s some very relevant word of mouth advice… 

‍Please go get yourself some pizza! It pairs perfectly with the WOMM guide!!