Word of Mouth Marketing Strategy

Word-of-Mouth Marketing in the Digital Age

Word-of-Mouth is alive as it ever was in the past. It is an important marketing channel deserving of much thought, an exact strategy, and proactive tactics.

When I interview my branding and marketing clients as to what is their best source of ideal clients, they will say with zero hesitation, “word of mouth” or “referrals.” Yet, when I then ask them, “So, if this is your most successful marketing action, then what do you do to proactively generate more referrals any time you need more clients?”, they draw a blank stare 95% of the time.

Word-of-Mouth Marketing Statistics

·         84% of consumers say they either completely or somewhat trust recommendations from family and friends about products – ranked highest for trustworthiness. [Nielson]

·         74% of consumers identify WOMM as a key influencer in their purchasing decision. [Ogilvy/Google/TNS]

·         88% of people have their reasons for trusting online reviews written by other consumers as much as they trust recommendations from personal contacts. [BrightLocal]

·         72% say reading a positive customer review increase their trust in the business; it takes reading between 2-6 reviews to get 56% of them to this point. [BrightLocal]

·         On social media, 58% of consumers actively share their positive experiences with a company, and ask family and friends for their opinions on brands. [SDL]

The Value of Word of Mouth Marketing

·         WOMM has been shown to improve marketing effectiveness by up to 54%. [MarketShare]

·         84% of consumers reported always or sometimes taking action based on personal recommendations. 70% said they did the same of online consumer opinions. [Nielson]

·         The average value of a Facebook fan is certain consumer categories is $174. [Syncapse]

·         43% of social media users report buying a product after sharing or favoriting it on Facebook, Twitter, or Pinterest. Over half of purchases inspired by social media sharing occur within 1 week of sharing or favoriting, and 80% of purchases resulting from social media shares occur within 3 weeks of sharing. [VisionCritical]

What People are Sharing and Why

·         81% of people said they're influenced by what their friends share on social media. [Market Force]

·         77% of brand conversations on social media are people looking for advice, information, or help. [Mention]

·         Brands that inspire a higher emotional intensity receive 3X as much WOMM as less emotionally-connected brands. [Keller Fay Group]

·         66% of respondents under the age of 34 are more likely to give a referral after receiving social recognition. [Software Advice]

·         More than 50% of respondents are more likely to give a referral if offered a direct incentive, social recognition or access to an exclusive loyalty program. [Software Advice]

·         39% of respondents say monetary or material incentives such as discounts, free swag or gift cards greatly increase their chances of referring a brand. [Software Advice]

·         91% of B2B buyers are influenced by WOMM when making their decision to buy. [USM]

·         61% of IT buyers report that colleague recommendations are the most important factor when making a buying decision. [B to B Magazine]

5 WOMM Actions to Initiate in the Digital Age

STEP NO. 1 – Brand Yourself as a Premier Expert. It is a proven fact that consumers seek out and buy from brands that they trust and regard as experts. It is vital that you determine what makes you and/or your business unique and highly valuable. This is part of the first step of branding.  

Your brand’s positioning and promise must be clearly communicated on your website, but also across your entire digital footprint. The immediate thought may be only on social media, but there are also many other opportunities, such as through speaking at a conference, email marketing, starting a blog, or writing a book. Figure out the medium that best supports your ideas and develop a strategy to showcase your expertise there.

Additionally, you need to prove and publish that you’re an expert through a number of ways:

·         Authorship of some material (book, eBook, etc.)

·         You host some type of radio show, YouTube show, podcast, etc.

·         Positive reviews from customers on Yelp, Facebook, Google My Business, etc.

·         Case studies of those you have significantly helped

·         Badges of trusted publications that you have been featured on

·         Photographs of you with notable people or speaking to groups

Step No. 2 – Embrace Transparency. The success of WOMM depends upon the trust people have with the brand. When you are not transparent or even dishonest, the word-of-mouth will turn ugly - real fast! You must first always strive to deliver an exceptional product or service. When you don’t, you must rectify the matter rapidly and with humility. Brands will make mistakes – even the great ones. But it is how they deal with their mistakes that retains the people’s trust and continued business.

STEP No. 3 – Create Content that is worthy of being shared. They most rapid way that you can assist your existing customers and fans to share your brand, to refer you more people your way, is to give or send something to share. In other words, make it easy to share your brand with some type of printed content or digital property.

Publishing engaging, insightful, and even entertaining content, is the most effective method to accomplish this strategy. It has been found that referrals can jump by 50% by simply giving your audience something to share with others. This could be:

·         Discount or gift card

·         Free offer to try out your brand, such as a consultation

·         Complimentary seminar, workshop or webinar

·         Printed materials, such as a brochure or one-sheet

·         YouTube video that they can shared on social media

·         Free eBook

·         A 30-minute Skype interview

STEP N0. 4 – Empower Your Brand Ambassadors & Online Influencers. Make sure you empowering and engaging with your best customers. As had pointed out before, 80% of your referrals will come from 20% of the people you do business with. Be sure to let them know how important they and ensure that they are given VIP treatment when they refer people your way, or share your content.

Additionally reach out to leaders and influencers in your industry or niche. These can be local journalists, key opinion leaders, mommy bloggers, or even popular YouTubers. The age of Social Media has given everyone the power to broadcast their offers. Many bloggers and YouTube sensations have amassed avid followers. It would be wise to co-brand with them to help forward your message. 

It is a good idea to make a target list of influencers that appeal to your key demographics. Learn about them and why they are influential. By engaging in dialogue with their posts or tweets, you can find ways to work them that is relevant to both of your brands.

STEP No. 5 - Convert Social Media into Social Sharing. I have one branding client, a coffee house in Orange County, CA, who I consulted offer a 10% discount for anyone who checked in on Yelp or Facebook when they ordered their coffee or meal. As well, I told him to grab all the business cards  that we could for a weekly raffle of a free coffee of their choice. Within weeks, 35% of his customers were checking in on a routine basis. Within the first month, we had almost 1,000 email addresses, of which we leveraged to mail out announcements and new menu items.

Within 6 months, that business had an increase of 20% in revenue. Sharing content with friends online is just as valuable as verbal word-of-mouth.