Think of tried and tested marketing tactics, and word-of-mouth will probably be one of the first tactics to cross your mind. After all, there is nothing like someone advocating for your products or service in person to another or spreading the word about it via their social media.

In fact, it is something that we experience on most days. Go back to the time your friend tried something new and couldn’t wait to tell you about it. That’s essentially word-of-mouth marketing for you. But what makes it so effective? The simple fact is that the feedback of the product or service usually comes from someone you trust or believe in. There’s more.

Today, we aim to break down this marketing tactic to the T so that you can start leveraging it.

PS: We will also tell you some must-have strategies!

Understanding Word-of-Mouth Marketing Under 30 Seconds

Word-of-mouth marketing is the key to brand advocacy. It relies on personal recommendations and referrals, usually from individuals your audience is familiar with—friends, family, and even influencers! This makes it inherently trustworthy and reliable.

We mean, didn’t you go to that dessert place your friend told you about or check out a skincare friend just because your best friend told you, “Oh! You must try it!”

We have a better example. Take a look at these comments on an influencer’s Myntra haul. You will see hundreds of individuals asking for links to these garment pieces. The mechanism is simple. The influencer sends the links to these people, and the audience is converted into customers.

What Do the Numbers Have to Say?

The numbers are in, and they are surely in favor of this marketing tactic. Take a look:

• Word-of-mouth marketing is the 1st out of the 5 popular ways to recommend a business.
• When recommended by a friend or family, 88% of people reported having the highest level of trust in a brand
• It is more effective than paid ads and gives you 5x the sales
• Word-of-mouth marketing is directly responsible for 90% of all purchases

Don’t believe us? Hear it from Alisha Mashruwala, Co-Founder of OnCourse Vantage. She says, “90% of our client base, I would say, has come from word of mouth. It’s good and bad.”

Like every coin has two sides, this one has another side, too. Word-of-mouth marketing works best when you are consistently offering a positive experience to your audience. The moment there’s a bad experience, the tables turn.

The following stat will give you an idea: when an average customer has a bad experience, they share it with 8 to 16 people. If they have a second bad experience, they will tell more than 20 people. Mind you, bad word spreads like wildfire.

Watch the full episode here: (2) #06: Power of Word of Mouth ft. Alisha Mashruwala | Consulting at 21 with @OnCourseVantage. – YouTube

Word-of-mouth marketing Is Actually a Flywheel

You will not reap the benefits of word-of-mouth instantly. But when you do, it will be a lot more than you expect. This marketing tactic takes time and a lot of it. You need to build it just perfectly fine by focusing on the right elements. As you go along, it becomes easier to get results out of it. Plus, the impact keeps compounding. For instance, here’s a flywheel example:

Delight your customers → Encourage sharing of experience → Build a community to engage → Take feedback → Create social proof → Reward loyal customers.

Learning it From The Best in The Business

Have you heard of Dropbox? It is one of the prime examples of word-of-mouth marketing. Here’s why!

One of the most notable aspects of Dropbox’s word-of-mouth strategy was its referral program. Dropbox offered users additional free storage space for referring friends. This incentivized existing users to spread the word about the service, effectively turning them into brand ambassadors. Here’s how it worked:

• For the Referrer: Users received extra storage space for each friend they referred who signed up and installed Dropbox.
• For the Referred: New users also received additional storage space as a reward for signing up through a referral.

This program created a win-win situation, encouraging both current and new users to participate actively. That’s not all. They also did the following:

• Dropbox made it easy for users to share files and folders with others, naturally encouraging word-of-mouth sharing.
• They highlighted user testimonials and success stories in marketing materials. Yes! They laid out exactly how Dropbox solved real problems for its users, building credibility and encouraging potential users to try the service based on positive social proof.

Result? Thanks to its focus on user satisfaction and strategic referral program, Dropbox experienced rapid and organic growth. Within a short period, the company grew from 100,000 to over 4 million users, primarily through word-of-mouth referrals.

Must-Have Tactics

#1: Show Us How You…[UGC Content]

If you are a D2C product brand, there’s nothing quite like your customers telling others how they are using your products or the results they have seen. Even a simple snapshot of their OOTD or desk showing your product can give you visibility. So the next time you see a brand asking their audience to mention them (so that they can repost), they are using word-of-mouth marketing.

#2: Social Proof

Request your customers to write a quick feedback for you. When your audience reads them, it makes it easier for them to buy your product/service.

#3: Add Those Feedback Stars

Your audience may not always have time to read the entire testimonial. This is where stars come into the picture. A quick look and they will know if you are worth it or not.

#4 Influence via Influencer

Using influencer marketing for word-of-mouth gives you an important edge: control over what’s been shared. You have a say in what they post, how, and when. Although it is costly in the long run, it works very well in the short term. However, you need to know how to convert this short-term gain into a long-term advantage.

#5: Hashtag It

Create a custom hashtag for your brand and business and use it everywhere. Eventually, your audience will start using it too. As a result, you are more likely to be found, increasing your chances of sales.

#6: Add Free Gifts

Everyone talks about receiving a free gift online because it makes them feel like they are the chosen one. So be smart like Sephora, and add free gifts to your marketing tactics.

Wrapping Up

Word-of-mouth marketing isn’t just any tool; it is THE TOOL if you play it smart. You need to give your customers and audience a thing to talk about—whether it is your product/service or customer service, or culture. Basically, you need to push them a little to talk about you and support it with a positive experience to get the ball rolling.