Understanding Word-of-Mouth Marketing

One of the most important and challenging aspects of starting your own business is spreading the word. It can be quite expensive to market your company to the intended target audience.

As your business gets off the ground, you’ll find that the marketing world is expansive, and some of the best tools in a company’s marketing arsenal are its customers and clients.

Understanding word-of-mouth marketing can inspire entrepreneurs to adjust their business approach.

What Word-of-Mouth Marketing Is

Word-of-mouth marketing is essentially free advertising sparked by a customer’s experience. When a consumer’s satisfaction with a company’s product or service is reflected in their conversations with others, it can do wonders for long-term business revenue.

You can encourage this type of marketing by offering consistently satisfactory service. WOM marketing may look like social media buzz, viral content, or simply a product recommendation to a friend.

How It Works

Establishing sound client relationships is critical to WOM marketing. Just as quality service can encourage prospective customers to seek your business, negative responses to an interaction with your company can deter future business.

The Word-of-Mouth Marketing Association has established a code of ethics for the marketing industry. WOMMA claims that the most successful form of WOM marketing stems from “credible, social, repeatable, measurable, and respectful” services. Three ways your company can promote beneficial word-of-mouth advertising are listed below:

• Have an honest, intriguing founding story. Let customers know what makes your company stand out and why your business is worth the investment. Your founding story should be engaging and aim for a personal connection with your target audience.
• Recognize loyal customers. Your business can offer special discounts and deals to individuals you notice making regular purchases. Not only is this approach likely to retain the individual’s service, but it increases the chances that they recommend your company to a friend.
• Show your clients and customers that you care. With special initiatives, enthusiastic social media, and honest marketing, you can express your genuine appreciation for your consumers.

The Advantages of WOMM

In understanding word-of-mouth marketing, you may be wondering why going above and beyond is worth it. WOM marketing is one of the most powerful forms of marketing.

It comes at no cost to your company and has proven highly effective—more people tend to trust family and friend recommendations over any other kind of advertising. Prioritizing customer satisfaction can result in even more consistent consumers.