What is Word-of-Mouth Marketing?
According to Anderson’s (1988) formal definition, word-of-mouth marketing is a form of communication between two parties regarding the evaluation of a product or service, without the influence of advertising.
Think about the last time you visited a fashion store or ate at a restaurant because a friend recommended it, saying something like, “The shop has a big sale, let’s go together,” or “The food here is delicious, clean, and reasonably priced.” These casual, non-promotional “tips” are often more reliable and valuable than any advertisement on television or social media.
The Importance of Word-of-Mouth Marketing Strategies
This marketing method is not only cost-effective but also has the potential to spread exponentially, from one person to ten, and ten to a hundred. In the past, word-of-mouth marketing was limited by physical distance and time, but now, thanks to social media, what you share can reach millions of users in just seconds. Each share or repost can exponentially increase the reach of word-of-mouth marketing.
According to a Nielsen report, 92% of consumers trust word-of-mouth recommendations from people they know. This means that when a friend or family member is enthusiastic about a particular brand, others are more likely to make a purchase.
Moreover, 90% of consumers will read reviews before deciding whether to buy from a brand, and 72% will continue purchasing after reading positive reviews. Brands can build a word-of-mouth marketing strategy by collecting positive reviews from customers.
64% of marketing executives believe that word-of-mouth is the most effective form of marketing. However, the downside of word-of-mouth marketing is that it is difficult to control in terms of timing and how it occurs. Customers are free to choose whether they want to share their experiences with friends and family. And not all word-of-mouth leads to positive outcomes; customers with negative experiences can spread negative sentiments about a brand. Below are the seven most common forms of word-of-mouth marketing.
Buzz Marketing
This form involves using entertainment programs or “whispered” news to get consumers talking about your product, service, or brand. You might be familiar with the “accidental” (but actually intentional) information leaks by movie studios, singers, and tech companies that create buzz and curiosity among the public.
Viral Marketing
This form promotes products and services through internet portals, pop-up windows in web browsers, or advertisements attached to emails sent to multiple recipients.
Community Marketing
This involves forming or supporting groups and communities where members freely share information and interest in your product, service, or brand. Community marketing is often present in fan clubs, forums, or interest-based groups.
Grassroots Marketing
Grassroots marketing involves creating and encouraging passionate volunteers to become enthusiastic cheerleaders for your product, service, or brand. You’ll have a trustworthy and energetic volunteer sales team that can deliver your marketing message more quickly and flexibly than any marketing department.
Evangelist Marketing
Building an evangelist marketing strategy is not difficult—simply identify a group of volunteers who are willing to take the lead in promoting your brand’s name and image. The cost of support will be much lower than other advertising forms, but the trustworthiness will always be top-notch.
Product Seeding/Celebrity Product Placement
Marketers have long understood the role and power of “key figures” and celebrities in consumer purchasing decisions. Not only through endorsements or encouragement in consumer magazine ads, but when celebrities personally use a product and include it in their list of “essential items” or “favorite products,” it significantly boosts consumer trust.
Brand Blogging
A typical example of this marketing form is Microsoft encouraging its employees to blog about their daily work, the technology products they’ve created, or their personal lives. According to Microsoft managers, employee blogs provide an “authentic” voice about the company, rather than imposing information on users. This is not a sales channel to boost product sales but simply offers a more “life-like” perspective on Microsoft and the people behind these amazing products.
(Source: Advertising Vietnam)