How to Develop an Effective Word-Of-Mouth Marketing Strategy

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When it comes to making purchasing decisions, people tend to trust the recommendations of friends, family, and even strangers. That’s the power of word-of-mouth marketing. 

Word-of-mouth marketing works because people trust recommendations from others who have already experienced your product or service. When you get it right, it can lead to more customers, more sales, and even stronger loyalty. But how do you turn this natural form of marketing into a plan that works for your business? 

Whether it’s a review shared over coffee or a social media post praising an exceptional customer experience. WOMM has the potential to amplify your brand’s visibility and credibility.  

In this guide, we’ll show you how to create a word-of-mouth marketing strategy that encourages your customers to share their positive experiences and help spread the word. From offering great products to creating moments that people want to talk about, we’ll walk you through the steps to make word-of-mouth work for you. 

Get a memorable domain name so others can easily remember it and share it with their friends.

What is word of mouth marketing?

Word-of-mouth marketing (WOMM) is an unpaid form of promotion in which satisfied customers tell other people how much they like a business, product, or service. The main goal is to craft memorable customer experiences that inspire people to share their opinions and encourage others to try your offerings.  

Jay Baer of Convince & Convert takes it further and breaks word of mouth into two buckets: proactive and reactive. How does he define the two?   

  • Reactive word of mouth. You can think of reactive word of mouth as similar to referrals. When someone is looking for a solution to their needs, they may ask their friends and family for a recommendation. Their family and friends react to their questions by recommending a solution or business they’ve used before and enjoyed.   
  • Proactive word of mouth. Proactive word of mouth is generally unasked for. An example of proactive word of mouth is when someone is so happy with an experience or service that they tell all their friends about it (even if their friends aren’t asking for those details and recommendations) they’re proactively sharing that experience or recommendation.  

Both are valuable, but proactive word of mouth has the edge. It’s unprompted and happens when people share your product or praise your service simply because they love it. That kind of genuine enthusiasm is a clear sign you’re doing something right.  

The psychology behind word-of-mouth marketing  

WOMM works because it taps into trust and social proof.  

  • Trust. People trust recommendations from others they know. A friend’s suggestion feels more reliable than an ad.  
  • Social proof. Seeing others praise or use a product creates a sense of trust and confidence. Positive feedback influences decisions, making people more likely to follow suit.  

Why word-of-mouth marketing matters  

Word-of-mouth marketing (WOMM) offers advantages to businesses. Here’s why it’s important:  

It’s more trusted and effective  

People trust people. According to Chatter Matters, 83% of Americans say they trust recommendations from friends and family over any other form of advertising. That kind of trust makes WOMM one of the most effective ways to reach new customers. When someone vouches for your brand, it carries way more weight than a flashy ad ever could.  

It’s free no need for big budgets    

Why spend a fortune on traditional ads when WOMM can deliver a better return on investment (ROI)? When customers share their love for your brand, it spreads like wildfire without you having to break the bank. It’s organic, authentic, and budget-friendly.  

It builds customer loyalty  

WOMM is like you’re keeping the ones you already have. When people recommend your brand, it’s because they feel connected to it. This builds trust, fosters emotional connections, and turns customers into loyal advocates who’ll stick with you for the long haul.  

At its core, WOMM is creating experiences so good that people can’t help but share. It’s personal, powerful, and one of the best ways to grow your brand.  

Step-by-step guide to building an effective word-of-mouth strategy 

Creating an effective word-of-mouth marketing (WOMM) strategy requires understanding your audience, exceeding their expectations, and empowering them to share their experiences. Here’s how to get started:  

1. Know your audience  

Start by understanding your audience. To do this, build detailed buyer personas that highlight their preferences, behaviors, and challenges. Knowing what drives their decisions and where they spend time online will help you develop ideas they will enjoy and want to share with others.  

Research the platforms they engage with most, including social media, review sites, and forums. Analyze the types of content they share and the discussions they participate in to identify opportunities for meaningful interaction.  

When you understand your audience, you can create strategies that connect with them on their preferred platforms. This ensures your efforts resonate, making inspiring trust, encouraging sharing, and fostering loyalty easier.  

2. Exceed customer expectations  

Creating experiences that go beyond what customers expect can inspire word-of-mouth marketing. When you surprise and delight your audience, they’re more likely to share their positive experiences with others.  

Personalized touches like handwritten thank-you notes, unexpected upgrades, or exclusive perks can leave a lasting impression. These small gestures show that you value your customers as individuals. This also encourages them to spread the word.  

Consider the example of Trader Joe’s, which went above and beyond by delivering groceries to a stranded customer during a snowstorm. This act of exceptional service solves a problem and creates a story that resonates with others. It also shows its brand’s commitment to customer care.  

It’s optional, but delivering moments of surprise, combined with consistent quality, can make your brand memorable and worth recommending to friends and family.  

3. Leverage user-generated content  

User-generated content (UGC) is content created by your customers, such as photos, videos, and reviews that highlight their experiences with your brand. It adds authenticity to your marketing efforts because it comes directly from real users.  

To encourage UGC, provide opportunities for customers to share their stories. For instance, create branded hashtags that are easy to remember and promote them on your social media platforms. Offering incentives, such as discounts, free products, or the chance to be featured on your website or social media, can motivate customers to participate.  

One example could be a fashion brand asking customers to share photos of outfits styled with its products. Using a branded hashtag, the brand can collect these entries, showcase them on its social platforms, and inspire others to join the conversation.  

4. Partner with influencers  

Influencers and micro-influencers can amplify your brand’s message and connect you with new audiences. Unlike traditional ads, influencer recommendations feel more authentic.  

Their followers view them as relatable and trustworthy, which increases the likelihood of your product or service being embraced. That’s why they serve as an effective and affordable option to partner with.  

To create successful partnerships, offer free products, exclusive experiences, or early access in exchange for honest feedback. This strategy fosters genuine endorsements that resonate with their audience. Sending samples to influencers aligned with your niche can result in authentic testimonials that spark interest and engagement.  

5. Set up referral and loyalty programs  

Referral and loyalty programs are great ways to get more people to talk about your brand and keep your customers coming back. Referral programs work by giving rewards like discounts, credits, or perks when customers invite their friends or family to try your products.  

For example, companies like Airbnb and Dropbox make it easy by giving each user a referral link to share and track their rewards. This is another way if you want to do it without spending a lot on advertising.  

Loyalty programs, on the other hand, reward customers who shop with you often. These programs can give points, special discounts, or other perks to make customers feel appreciated.  

Over time, these rewards encourage customers to keep coming back and even tell others about your brand. Together, if you try to incorporate referral and loyalty programs, it could help build connections with your customers and grow your business.  

6. Optimize your digital presence  

Your digital presence includes everything customers see about your brand online, like your website, social media, and business listings. A strong digital presence helps people find you, trust you, and share your brand with others. 

Start with your website. Make sure it loads quickly, works on all devices, and is easy to use. Choose a good hosting server to keep your site running smoothly. Get a domain name that matches your brand and add an SSL certificate to protect customer information and build trust. 

Next, focus on your social media. Keep your profiles updated, post interesting content, and respond to questions and comments. Accurate business listings on platforms like Google My Business and Yelp are also important so customers can easily find your hours and location. 

Encourage sharing by adding social media buttons to your website and asking customers to tag your brand in their posts. A complete and strong digital presence helps customers connect with your brand and makes it easier for them to share it with others. 

Effective ways to boost word-of-mouth marketing in eCommerce  

To maximize the impact of word-of-mouth marketing in eCommerce, businesses need to focus on creating memorable customer experiences, leveraging emotional connections, and encouraging customers to share their feedback. These tactics help amplify organic advocacy and drive customer engagement.  

Create word-of-mouth triggers  

Word-of-mouth marketing often begins with a small, memorable gesture that resonates deeply with customers. For example, the Ritz-Carlton famously returned a child’s forgotten stuffed giraffe, complete with a photo album showing the giraffe’s “adventures” at the hotel. These thoughtful and unexpected actions create stories that customers are eager to share.  

Focus on emotional marketing  

Campaigns that tap into emotions often generate the most buzz. For example, Dove’s #ShowUs campaign, which celebrated diversity and body positivity, encouraged customers to share their personal stories and experiences. Emotional connections foster loyalty and inspire customers to advocate for your brand.  

Push customer reviews and ratings  

Positive reviews and ratings are powerful tools for building trust. Actively encourage customers to leave feedback through post-purchase emails, review reminders, or incentives. Highlight these reviews prominently on your website and social media to reinforce your brand’s credibility and encourage new customers to engage.  

Offer visual experiences  

In the age of social media, visually appealing products or experiences can inspire customers to share their purchases online. Create “Instagrammable” moments by focusing on beautiful packaging, eye-catching product displays, or memorable unboxing experiences. These visuals often drive organic shares and attract new customers.  

Ethical practices in word-of-mouth marketing  

Ethical practices are the foundation of trust in word-of-mouth marketing. Building authentic relationships with your audience requires transparency, honesty, and adherence to ethical guidelines.  

Follow WOMMA guidelines  

The Word-of-mouth Marketing Association (WOMMA) emphasizes honesty, credibility, and transparency as essential principles. Always ensure that your marketing practices align with these standards to maintain trust with your audience.  

Be honest and transparent   

Whether you are working with influencers, collecting reviews, or encouraging user-generated content, transparency is crucial. For example, if influencers are compensated for promoting your brand, they should disclose their relationship with your business. Authenticity resonates more with audiences than deceptive practices.  

Avoid unethical practices  

Unethical behaviors, such as fake reviews or misleading promotions, can damage your reputation and erode trust. Encourage genuine feedback from your customers and focus on improving products or services based on their input rather than fabricating positive reviews.  

Real-world examples of successful WOMM  

Spotify’s personalized recaps  

Spotify’s “Wrapped” campaign showcases how personalized experiences can encourage word-of-mouth sharing. The campaign provides users with unique listening insights, such as favorite artists and most-played songs, which they can share on social media. This word-of-mouth marketing strategy works because it creates a personal connection while giving users content that they are excited to show others. The result is increased brand awareness and engagement driven by authentic user participation.  

Slack’s freemium model  

Slack’s freemium model shows how a product can drive growth through word-of-mouth marketing. The free version allows small teams to use the platform at no cost, and as these teams grow, they naturally invite more members to collaborate. This Word-of-Mouth Marketing sharing process expands Slack’s user base without extra effort.  

In 2019, Slack had over 12 million active users, a number that likely grew with the shift to remote work during the COVID-19 pandemic. Its user-friendly features, like real-time messaging and app integrations, make it valuable from the start, encouraging users to recommend it to others.  

This strategy works because it provides value upfront, making users more likely to share their positive experiences. Slack’s success, including its $27 billion acquisition by Salesforce in 2021, highlights how offering a free version can turn customers into advocates and fuel long-term growth.  

Trader Joe’s Fearless Flyer  

Trader Joe’s “Fearless Flyer” uses storytelling and humor to create a unique customer experience. The flyer highlights products with engaging descriptions encouraging customers to discuss their finds with friends and family. This Word-of-Mouth Marketing approach works because it connects with customers personally and positions the brand as fun and approachable, fostering loyalty and increasing word-of-mouth buzz.  

How to measure the success of your WOMM strategy  

To understand how well your word-of-mouth marketing efforts work, track key performance indicators (KPIs) that reflect customer engagement and advocacy.  

  • Referral traffic. Use tools like Google Analytics to measure how much traffic is driven by customer referrals.  
  • Social engagement. Monitor likes, comments, and shares to see how often your content is being talked about and shared online.  
  • Customer reviews and ratings. Track the number and sentiment of reviews on platforms like Google Reviews or Trustpilot. Positive reviews indicate that customers are recommending your brand.  
  • Net Promoter Score (NPS). Conduct surveys to find out how likely customers are to recommend your brand. A higher score reflects strong customer advocacy.  
  • Customer sentiment analysis. Analyze the tone of feedback and online mentions to understand how people feel about your brand. Tools like Sprout Social can help identify trends in customer sentiment.  

Tracking these metrics allows you to identify strengths in your strategy and areas for improvement, ensuring your efforts drive meaningful results over time.  

Let word-of-mouth work for you  

Word-of-mouth marketing is one of the most powerful tools you can use to grow your business. When your customers love what you offer, they’ll naturally tell others about it, which leads to more customers and greater loyalty. 

Now that you understand how word-of-mouth works, it’s time to put it into action. Start by getting to know your audience and giving them experiences that exceed their expectations. Make it easy for customers to share their positive experiences, and consider using strategies like referral programs, user-generated content, and influencer partnerships to get the word out even further. 

Ready to harness the power of word-of-mouth marketing? Start building your strategy today with our expert tips and tools, and watch your business thrive. Explore our solutions now

FAQs  

What are the advantages of WOMM? 

WOMM builds trust, attracts customers, and saves money on advertising. It also strengthens relationships and boosts loyalty. 

How do you handle negative word-of-mouth? 

Respond quickly, show empathy, and offer a solution. Turning a bad experience into a good one can rebuild trust. 

What is the difference between organic and amplified WOMM? 

Organic WOMM happens naturally when happy customers share. Amplified WOMM uses strategies like referrals or influencers to spread the message further. 

How does word-of-mouth marketing compare to other marketing strategies? 

WOMM is more trusted than ads because it comes from real people. It’s cost-effective and spreads naturally, especially online. 

What role does influencer marketing play in WOMM? 

Influencers help spread the word by sharing your brand with their followers. Their recommendations build trust and reach new audiences. 

How do online reviews and customer feedback impact WOMM? 

Positive reviews boost trust and influence buying decisions. Encouraging reviews and responding to feedback helps build a strong brand reputation. 

What are the 4Ps of word-of-mouth marketing? 

The 4Ps are Product, People, Platform, and Participation. A great product gets people talking, the right audience shares it, platforms amplify the message, and engagement keeps the conversation going. 

Why is word-of-mouth effective? 

People trust recommendations from friends and family more than ads. It’s free, spreads fast, and influences buying decisions. 


Serge John Mahinay
Serge John Mahinay

Serge is a Content Writer at Domain.com. With his background in SEO Content Writing, he incorporates his technical knowledge and deconstructs complex ideas and concepts into easy to digest texts. Outside work, he enjoys watching anime, playing video games, and learning about the newest AI trends.

Serge John Mahinay
Serge John Mahinay

Serge is a Content Writer at Domain.com. With his background in SEO Content Writing, he incorporates his technical knowledge and deconstructs complex ideas and concepts into easy to digest texts. Outside work, he enjoys watching anime, playing video games, and learning about the newest AI trends.