Word-of-Mouth-Marketing
Word-of-mouth marketing (WOM marketing) refers to a form of word-of-mouth or referral marketing in which information, opinions and experiences about products, services or brands are passed on verbally from one person to another. This is usually done in an informal and personal way, often in face-to-face conversations between consumers. However, in today's digital age, word-of-mouth marketing can also extend across social media, review platforms, and online discussion forums.
How it works:
Word-of-mouth marketing is based on the assumption that recommendations from acquaintances, friends or family members have a greater influence on purchasing decisions than traditional advertising. The personal connection between the sender and recipient of the recommendation creates trust and credibility. Satisfied customers share their positive experiences with others, helping to create a positive image for a brand or product. However, negative opinions can spread just as quickly and have a damaging effect on reputation.
The 2 types of word-of-mouth marketing:
Organic WOM: This occurs when consumers talk about their experiences on their own accord, without being prompted by the brand. It can be positive or negative word-of-mouth.
Promoted WOM: Companies can take targeted measures to promote word-of-mouth marketing. These include influencer marketing, customer reviews, testimonials, product reviews, social media campaigns and referral programs.
Advantages:
- Credibility: recommendations from friends or family are perceived as more trustworthy than advertisements.
- Cost savings: Compared to traditional advertising, the cost of WOM marketing is often lower.
- Extended reach: Positive recommendations can spread virally and reach a larger audience.
Challenges:
- Lack of control: companies have limited control over the messages spread and cannot always control negative opinions.
- Time investment: Building strong word of mouth takes time and patience.
- Negative impact: Bad experiences can spread quickly and affect a brand's reputation.
Word-of-mouth marketing remains an important marketing strategy based on the power of personal recommendation and communication. In the digital age, it can extend to social media and online communication platforms, while still building on trust and authenticity to drive brand and product success.