Word of Mouth Marketing and a New Obsession

Word of mouth marketing (WOMM) isn’t just about idle chatter at the water cooler or on social media. In our tech-savvy world, it’s become the golden ticket for brands aiming to amplify their presence, cultivate authentic relationships, and spur natural growth. And guess what? It stands as one of the most trustworthy and potent ways to champion a brand and its offerings. The cherry on top? This age-old, genuine style of promotion has beautifully evolved with the digital times, and a multitude of businesses are diving in and reaping the rewards.

What is word of mouth marketing?

Let’s kick things off by covering the word of mouth marketing definition. At its core, WOM, or word of mouth, is that age-old, organic ritual of sharing information about products and services from one individual to another.

Ever had such a fantastic experience with a product that you couldn’t help but rave about it? Well, that’s where the magic begins. When consumers have positive experiences with a product or service, they feel compelled to share it with friends and family. It’s an authentic, unpaid form of promotion, ignited purely by the genuine reactions and feedback of customers.

The grassroots nature is not easy to replicate. The beauty of is its inherently genuine nature. What makes it so unique is its person-to-person character; it’s a form of pure, unfiltered peer-to-peer communication.

It’s a highly effective fusion of traditional advertising and personal interactions, making it a perfect fit for the social media age.

How does Roster defines WOMM? They sum it up quite neatly:

💬 Word of mouth marketing is all about harnessing the power of informal social circles and genuine interactions to spotlight a product or service.

Word of mouth for the win!

Ever wonder why word of mouth gets all the applause? Let’s unpack the top advantages of this marketing approach.

1. Trust

In today’s marketing world, trust is the real MVP. But let’s be real, traditional advertising? Not so much. Here’s a surprising tidbit: only 1 in 4 people actually believe in ads! (HubSpot) Yep, you read that right.

Meanwhile, HubSpot lets us in on another secret: a heartwarming 90% of us trust recommendations from friends and family. And those customer reviews? About 70% of consumers nod in agreement with them.

Navigating the trust waters in relationship marketing can feel like a balancing act on a wobbly rope bridge. But the key isn’t in brands boasting at maximum volume. Oh no! It’s that casual chat with a colleague about a new gadget, or that detailed online review from someone who sounds a lot like… well, us! Because when it boils down to genuine trustworthiness reigns supreme. Think of it as your brand’s personal knight in shining armor, fearlessly countering consumer skepticism with every genuine conversation.

While traditional ads might get the cold shoulder, WOM always finds itself in a warm embrace. And if you need numbers to back this up, Nielsen has our back with this:

💬 A whopping 84% of customers are either fully on board or partly swayed by recommendations they get from their tribe.

So, the next time Aunt Natalie gushes about her latest kitchen gadget, we all listen!

2. Budget-friendly

Why splurge on ads when happy customers can do the talking? As ad expenses climb and it gets trickier to see a solid return, brands are playing it smart. They’re scouting for strategies with fantastic value and minimum spend. And guess who’s waiting in the wings with open arms? Yep, organic and free WOMM.

3. Builds bonds

It’s not a one-time deal. Customers who come via referrals have a 37% higher retention rate, meaning they stick around. (Deloitte)

4. Brand recognition

A single rave review can cascade and reach far more folks than traditional advertising ever could. Just take it from HubSpot: 75% doubt ads, but 90% trust family and friend recommendations, and 70% value consumer reviews. Now, that’s telling!

Word-of-mouth marketing strategies are not about idle chatter; it’s a game plan. It nudges folks to share their awesome experiences, to tweet, post, and rave. User-generated content, recommendations, and praises are all ways they honestly communicate about businesses.

5. Feedback loop

Positive or not-so-glowing, it offers priceless insights. Brands, listen up!

To sum it up, word-of-mouth is like that friend who always knows the best spots in town. Authentic, influential, and downright impressive!

Word of mouth marketing examples

True, some brands have managed to strike gold, sparking buzz-worthy conversations about their offerings. Yet, for many, achieving that organic chatter has been a bit of a hit or miss. Enter the digital era, and suddenly, the landscape undergoes a revolutionary shift. With the dawn of social media and digital platforms, marketers now have a treasure trove of tools to supercharge their marketing.

A delicious example

Understanding an idea is usually made easier with the use of a narrative. Well, this might be a personal perspective. Regardless, you are going to get a story. So here we go.

Several of our team members at Roster live in Texas. A few months ago, they shared some mouth-watering pics of pizza and some great news on Slack. The pizza restaurant just posted on Instagram that they were expanding to Utah, my home state.

Our co-workers raved about the pizza and said we absolutely had to go as soon as it opened. Actually, our company started an informal countdown until we could experience the same gastronomical joy. 

One lucky Roster team member has had the privilege of eating the pizza. And she concurs, saying it’s the best pizza she’s ever eaten. 

So a few weeks ago, I was attending a college football game 25 miles from home, which luckily just so happened to be very near this new restaurant. Anticipating it would be crowded, we left an hour early. Shockingly, the wait for a take-out pizza was one hour and 40 minutes. Yes, 100 minutes for take-out! 

How many people are talking about this? 

Unfortunately, we couldn’t wait that long, and our anticipation was crushed. So the following week, we made reservations before the college game to try yet again to experience this elusive pizza. I wish the story ended with success, but sadly, the restaurant does not take reservations, even though we had one. And the wait was again more than an hour. 

This is powerful! I was hooked from the first mention of this fantastic eatery opening in my area.

The ironic thing is, I really don’t like pizza. But the reviews and descriptions of friends replaced my personal preferences. Hearing co-workers rave and seeing their selfies eating the pizza reinforces my passion for getting some of that food. This is a quest I will not abandon. And expect to have a successful ending soon. 

Chances are, just sharing this story about how recommendations keep me driving 50 miles to experience the deliciousness also makes you crave pizza. 

Organic conversations and genuine opinions have a more significant impact than advertising, long travel distances, and, to be honest, even personal tastes.

This is word of mouth, and it works!

When a community of individuals shares their own experiences and recommendations, it has a significant influence. Occasionally, the effect is so profound that it becomes an obsession.

WOMM, is a work associate extolling a restaurant’s virtues and encouraging others to dine there. We know and trust the source, so we believe what they say about the food, the service, and the product.

WOMM strategy

One of the primary purposes of word of mouth marketing is to influence and direct the conversations people are having about your brand and products. Furthermore, it isn’t just about casual recommendations. It involves both strategic campaigns and organic customer conversations. In fact, referrals from family and friends account for 74% of all consumer purchasing decisions. (Source)

For a long time, word of mouth marketing relied on recommendations to pass from one person to another. Today, when it comes to modern word-of-mouth marketing, it includes both targeted campaigns and unplanned situations where customers talk.

Millennials ranked word of mouth as the number one influencer in their purchasing decisions. (Source: Radius Global) 

In terms of facts and outcomes, word of mouth marketing is compelling and profitable. To more fully understand the power, get The Best Word of Mouth Statistics for 2023.

Recap 

Digital communities now dominate commerce, and businesses are seeing the growing importance of investing in word of mouth marketing. It builds trust through cost-effective strategies. Ultimately, WOMM broadens a brand’s reach, creates high-quality content, and increases conversions.

Now… 

‍Please go get yourself some pizza! It pairs perfectly with the WOMM guide!!