Word-of-mouth marketing, also known as WOM marketing or word-of-mouth advertising, differs from naturally occurring word-of-mouth in that it is actively influenced or encouraged by organizations (e.g., by “seeding” a message in networks and rewarding regular consumers for participating in WOM or by using WOM “agents”) Although it is challenging to fully regulate WOM, research has revealed three general ways to “manage” WOM for WOMM:
develop a solid WOM foundation, indirect WOMM management that suggests managers only have limited control, and sufficient levels of satisfaction, trust, and commitment (e.g., controversial advertising, teaser campaigns, customer membership clubs), greater degrees of control, such as paid WOM “agents” and “friend get friend” programs, are examples of direct WOMM management.
The type of rewards utilized has a significant impact on the effectiveness of word-of-mouth marketing. The employment of incorrect incentives to encourage customers or representatives to spread good word of mouth about goods or brands can have negative effects on a business, according to research. WOM that is supportive of consumers has been proposed as a balance to WOM that is driven by business interests.
What Is Word-of-Mouth Marketing?
When a consumer’s interest in a company’s product or service is reflected in their regular conversations, this is referred to as word-of-mouth marketing (or WOM marketing). Essentially, it is free promotion brought on by consumer experiences, which are typically above and beyond their expectations.
Through various publicity initiatives put up by businesses or by providing possibilities to promote consumer-to-consumer and consumer-to-marketer communications, word-of-mouth marketing can be promoted. Buzz, viral, blog, emotive, and social media marketing are all examples of WOM marketing, which is also known as “word-of-mouth advertising.”
Importance of Word of Mouth Marketing
For a brand, Having positive Word-of-mouth about the brand is of prime importance. People tend to trust the words of other people when they are willing to make a purchase, especially online purchases. These facts will give you an idea about the impact that word-of-mouth marketing has on people. Over 70% of the consumers mention that word of mouth influences their buying decisions 92% of consumers trust recommendations from their friends & Family overpaid marketing
Word-of-mouth generates two times more sales than Paid ads Especially on social media, word of mouth plays a key role in driving social shopping. It is a successful social commerce strategy that brands leverage to drive sales through UGC. If you are still unsure about word-of-mouth marketing then wait & read below.
Advantages Of Word Of Mouth Marketing
We have listed some benefits of word of mouth (WOM) marketing that can bring your focus to it.
1 . Free-of-Cost Advertising
The significant part about WOM marketing is that you don’t have to make any investments in advertising. It is all free-of-cost marketing that is organically generated by the users of your brand.
2 . Develop Brand Loyalty
If the customers are happy and satisfied with the services provided by your brand, then only they will contribute to word-of-mouth marketing. Happy and satisfied customers will become loyal to your brands as well and will stay with the brand for the long term.
3 . Online Community
You can build an excellent online brand community through WOM marketing. These members of your brand community can act as your brand advocates on digital mediums.
The disadvantage of word-of-mouth marketing here can be that negative word-of-mouth about the brand can hurt the community & results.
4 . Build Brand’s Social Proof
When customers become your brand advocates, they will help you build trustworthiness, reliability, proof of authenticity, and credibility for your brand. It is crucial to have social proof to grow your brand and conversions.
5 . Increase Your Conversions & Sales
Most important of all, you can increase eCommerce conversions and sales through positive WOM marketing. So, the facts prove that 9 out of 10 people turn to their friends & peers for a recommendation that influences their online purchase behavior.
Now that we have explored what is WOM Marketing and why it is essential and how word-of-mouth marketing benefits your brand. It is time to formulate a Word-of-mouth marketing strategy that can help you achieve all those and many more benefits.