In business, word-of-mouth marketing often involves a happy customer who promotes your business, product, or service to other people, through referrals, recommendations, online reviews, or social posts. These mentions are most often unpaid (though some referral programs provide incentives), and can be incredibly effective at attracting new customers and providing social proof.
Some important statistics:
- Word-of-mouth marketing is still the most trusted form of marketing, trusted by 84% of consumers (source: Nielson)
- 91% of B2B buyers are influenced by word of mouth when making buying decisions (source: USM)
- 65% of new business comes from referrals (source: Womma.org)
- 27% of consumers would pay 15% or more to receive superior customer service (source: Womma.org)
- Customers acquired through word-of-mouth spend 200% more than the average customer, and make up to 2x as many referrals (source: Business Pulse)
As more businesses focus on organic marketing strategies such as utilizing social media and online reviews to boost business, it’s important to understand why word-of-mouth marketing is valuable and why it still matters.
Word-of-mouth marketing is about trust, and building trust with your customers, vendors, and partners. This is why word-of-mouth marketing is so powerful, and also so trusted. Within our daily conversations, we discuss brands, products, and businesses. It’s part of human nature to want to share good experiences (and bad!) with others, and everyone enjoys being able to recommend a business or product that might help out a friend, relative, or colleague.
Setting up a simple, yet effective, referral campaign
One of the most effective byproducts of good word-of-mouth marketing is a referral from a happy customer. Follow these steps to make it easy for your customers to recommend your business to their friends & family.
- Create a compelling offer
- Promote your referral program through an eblast and on social media
- Make sure the referral process is simple, quick, and easy
- Personalize the initial referral messaging and onboarding process
- Keep your referral program top-of-mind with social posts & reminder emails
- Monitor and optimize your referral program based on results
If you are looking to create your first (or next) referral campaign, Demandforce can help. You can send a pre-written referral campaign email and get help requesting online reviews from happy customers. Get more 5-star reviews and gain more customer advocates with word-of-mouth marketing and grow your business!