5 Benefits of Word-of-Mouth Marketing

5 Benefits of Word-of-Mouth Marketing

What are the benefits of word-of-mouth marketing?

  1. Builds customer trust
  2. Increases conversions
  3. It is free
  4. Creates brand awareness
  5. Boosts customer loyalty

According to the best digital marketing podcast in the Philippines, word of mouth marketing is one of the most essential and effective yet overlooked forms of marketing. So what exactly are the five benefits of word-of-mouth marketing?

What Is Word Of Mouth Marketing?

Let’s say you buy a product you love. You love the product so much that you talk to your friends about it. As your friends trust your recommendation, they are more compelled to make the same purchase. This is what word-of-mouth marketing is.

At its core, word-of-mouth marketing is a form of marketing wherein customer conversations about a brand are strategically influenced. To put it simply, word-of-mouth marketers seek to spread positive brand conversations with customer’s peers organically.

If word of mouth marketing is done right, it proves to be one of the most effective marketing strategies you can deploy as an entrepreneur. Here’s why:

Builds Customer Trust

Builds Customer Trust

Customers face an overwhelming amount of advertisements daily. Everywhere you look — whether on social media platforms, billboards, websites, television commercials, applications, and even storefronts — there is some form of advertisement about a brand’s products or services. Nowadays, customers want products that carry more weight than paid advertisements.

Customers prefer products that are reliable to make them feel comfortable with purchasing. Word-of-mouth marketing is the most reliable form of marketing that is driven by authentic customer experiences. When other customers give positive feedback about a brand, it becomes more reliable. The unbiased feedback helps persuade other customers to seek a brand positively.

One can say that word-of-mouth marketing is a stealth marketing technique because you do not directly influence a customer’s purchasing decision. Instead, customers react to your brand according to trusted peers.

Increases Conversions

Trust sells. Given that eight out of ten customers (83%) trust the recommendations of friends and family and two-thirds of respondents (66%) trust online reviews, employing word-of-mouth marketing strategies increases conversions.

Word-of-mouth makes it more likely for customers to buy a product. When customers hear about a reliable brand through word-of-mouth marketing, they are more likely to make a quick purchasing decision instead of analyzing other unreliable brands.

It Is Free

It Is Free

Word-of-mouth marketing is absolutely free. With word-of-mouth marketing, you don’t typically pay customers to share their experience about your brand with other people. It is an organic and authentic experience. If a customer loves your product, they will likely share it to their peers without any cost.

Did you know that word-of-mouth marketing is more effective than paid ads as it generates five times more sales? The best part is, word-of-mouth marketing costs nothing while boosting sales activities. If a customer tells a family member that your brand has the best product, you absorb no cost, yet you benefit from the positive feedback in the long term.

Creates Brand Awareness

Word of mouth marketing does not stop after a single conversation between a customer and a peer. 23% of people talk about their favorite products to peers every day.

The idea behind word-of-mouth marketing is to give customers something positive to discuss to enhance brand awareness. Once a customer spreads brand information to a peer, then that peer will spread it to another peer, and so on. Even if these brand conversations do not necessarily lead to immediate purchases, they create brand awareness. Your brand becomes more incentivized through referral marketing.

In today’s era marked by digital advancement, social media has become a highly conducive platform for word-of-mouth marketing. Even one post from one peer can generate massive brand awareness.

Boosts Customer Loyalty

Boosts Customer Loyalty

While word-of-mouth can be a powerful tool, it can also be the downfall of businesses. If customers can share a positive brand experience, they also spread a negative one. This can adversely impact your target customers. So make sure you deliver only positive brand experiences!

You can use word-of-mouth marketing by encouraging satisfied customers to share their positive experiences with others. When you deliver great products and services, you will have a community of loyal customers. These customers are not only more likely to make repeat purchases, but they can also act as “brand advocates” on various marketing platforms.

Key Takeaway

The benefits of word-of-mouth marketing cannot be overlooked. It is a free-of-cost strategy that establishes your brand as trustworthy which generates more sales in the long run. But remember, if your products and services are not good, word-of-mouth marketing tactics will not be effective. Make sure to create meaningful customer connections. Give them the motivation to see your brand as reliable.

If you want to learn more about marketing tactics, tune in to the best digital marketing podcast in the Philippines — Leadership Stack. We invite guests from all over the world every week to share time-tested marketing tips for entrepreneurs. Click here to start listening!

Recommended Podcast

Related Episode

Word Of Mouth: The Best Marketing Strategy

Scroll to top