Definition: Word-of-mouth (WOM) marketing describes both targeted efforts and naturally occurring instances where users share their satisfaction with a brand. Many best practices and marketing tactics encourage natural word of mouth, but campaigns — particularly on social media — can have the explicit aim of promoting an online business' social exposure.
According to Nielsen, 92 percents of people trust recommendations from friends and family over any other type of advertising. For enterprises that earn it, WOM marketing is one of the smartest techniques for improving brand loyalty, user satisfaction, and acquiring new customers.
Word-of-mouth accomplishes something that few marketing mediums can provide with such effectiveness: credibility. Consumers look for social proofs and other forms of validation to ensure that an online business is trustworthy. Unlike brick-and-mortar businesses, where someone can decide for themselves if a merchant is worth buying from, users require more from a website who receives their payment information.
Social proofs have a significant impact on ecommerce and web content overall, and WOM marketing builds up measurable proof that can translate directly to increases sales.
Word-of-mouth marketing is both cost-effective and better perceived by customers than other marketing efforts, makign it a crucial component of online business growth. Boosted social media campaigns can reward users for liking or sharing a page, and the visibility generated from such campaigns can be much more effective than other expensive mediums.
This interaction is part of the Three E's: ecommerce sites must engage, equip and empower their consumers to truly reap the benefit of WOM marketing. This means listening to what customers have to say, giving clients reasons to share their experiences — great products and customer service, for example — and helping people find ways to distribute their opinions and start a conversation.
By using the Three E's as a guideline, companies can target their WOM marketing toward customers who would make strong brand ambassadors.
Businesses are always looking for ways to attract new customers. WOM marketing is a smart tool that is not only cost-effective, but credible in the eyes of consumers. To create a successful advertising strategy, enterprises must: