If you’ve ever recommended a restaurant or praised your favorite clothing brand after receiving a compliment on your outfit, you already understand the essence of word-of-mouth marketing and its incredible impact. Now, you’re here to learn how to leverage word-of-mouth referrals in your digital marketing strategy.
Now before we go into showing you how to leverage word of mouth referrals in your digital marketing strategy, let me ask: did your friends and family follow your recommendation when you told them about a new product or service? Chances are, they did, and after experiencing it for themselves, they became loyal customers who then spread the word to their own circles.
Word-of-mouth marketing is one of the most untapped and cost-effective marketing channels available. It happens when a brand impresses a customer so much that they feel compelled to tell others.
While these organic conversations might seem beyond a business’s control—and they can backfire if the customer experience is poor—there are several strategies you can use to encourage positive discussions about your brand and I am going to tell you how in the coming chapters.
What Is Word-Of-Mouth Marketing And How Does It Impact Digital Marketing Strategies?
Word-of-mouth marketing is when customers talk about a brand or product to their friends, family, or social networks because they had a great experience. Imagine you went to an amazing new restaurant and loved everything about it—the food, the service, the ambiance. Naturally, you’d want to tell your friends about it. This is word-of-mouth marketing at work, and it can be incredibly powerful.
In the context of digital marketing strategies, word-of-mouth marketing plays an important role. It’s one of the most authentic and trusted forms of marketing because it comes directly from satisfied customers rather than the brand itself. People trust recommendations from people they know much more than they trust ads or other forms of promotion.
To leverage word-of-mouth referrals in your digital marketing strategy, you need to focus on creating exceptional customer experiences that people will want to talk about. Here are some ways word-of-mouth marketing impacts and enhances digital marketing strategies:
#1. Builds Trust and Credibility: When happy customers share their positive experiences, it builds trust with new potential customers. Online reviews, testimonials, and social media mentions act as endorsements for your brand.
#2. Increases Reach: Word-of-mouth can help your brand reach a wider audience without the high costs associated with traditional advertising. When customers share their experiences online, their network sees it, extending your reach organically.
#3. Drives Engagement: Encouraging customers to share their experiences can lead to higher engagement on your social media platforms. User-generated content, like photos or reviews, can spark conversations and create a sense of community around your brand.
#4. Enhances SEO: Positive reviews and mentions can improve your search engine rankings. Search engines value fresh, relevant content, and user-generated content can boost your visibility.
#5. Amplifies Campaigns: By integrating word-of-mouth tactics into your campaigns, such as through referral programs or influencer partnerships, you can amplify your marketing efforts. These strategies motivate customers to share their positive experiences, further enhancing your campaign’s reach and impact.
To effectively leverage word-of-mouth referrals in your digital marketing strategy, focus on these key areas:
#1. Customer Experience: Ensure every customer interaction is positive and memorable. Happy customers are more likely to recommend your brand.
#2. Engagement: Actively engage with your audience on social media. Respond to comments, share user-generated content, and create a community around your brand.
#3. Incentives: Implement referral programs that reward customers for bringing in new business. Discounts, freebies, or exclusive offers can motivate customers to spread the word.
#4. Content Creation: Develop shareable content that highlights your brand’s strengths. Blog posts, videos, and infographics that provide value can encourage customers to share with their networks.
How Can You Leverage Word-Of-Mouth Referrals In Your Digital Marketing Strategy?
#1. Craft an unforgettable initial experience
Creating a customer experience that goes above and beyond what people expect is the best way to get them talking about your brand. Sure, offering a great product that addresses a key problem is essential—everyone expects that these days. But to really stand out, consider adding a personal touch like a handwritten ‘Thank you’ note or a small freebie with their online purchase. These little extras show customers that you value them and appreciate their business.
The goal is to impress them so much that they can’t help but share their positive experience with others. On the flip side, if their experience is just average or even negative, they’re not going to be motivated to recommend your business. In fact, they might do the opposite.
To leverage word-of-mouth referrals in your digital marketing strategy, you need to consistently deliver exceptional service that delights your customers. Here’s how:
#1. Exceed Expectations: Aim to surprise your customers with exceptional service. Going the extra mile makes a lasting impression and encourages them to share their experience.
#2. Personal Touches: Personalize the customer experience. A simple, heartfelt ‘Thank you’ note or a small gift can make a big difference in how customers perceive your brand.
#3. Solve Problems: Ensure your product or service effectively addresses a significant pain point. This is the foundation of a great customer experience and the starting point for word-of-mouth marketing.
#4. Create Delightful Moments: Think about ways to create memorable moments for your customers. This could be through outstanding customer support, fast shipping, or exclusive perks.
#2. Offer high-quality products
Providing a top-notch customer experience hinges on offering quality products and stellar service. To create a buzz that’s worthy of word-of-mouth marketing, your approach needs to be spot-on. This means delivering not just a product that works well but also offering attentive customer service and a smooth, hassle-free purchasing journey.
Let’s break it down:
#1. Top-Quality Products: Ensure that what you’re selling is genuinely high quality and lives up to what you’ve advertised. Customers expect products that perform as promised, and this forms the foundation of a positive experience.
#2. Exceptional Customer Service: Be responsive and helpful. Customers appreciate when their needs are met promptly and with a personal touch. This kind of service can turn a one-time buyer into a loyal advocate.
#3. Seamless Buying Experience: Make the process of purchasing from you as easy as possible. Whether it’s a user-friendly website, clear product descriptions, or smooth checkout, the buying experience should be effortless.
#4. Consistency with Branding: Ensure that the experience you deliver aligns with your brand promise. For instance, if your restaurant promotes itself as a family-friendly spot with healthy options, make sure the environment reflects that. If you claim to be accommodating to families, ensure there’s ample space for baby strollers.
When you align your product quality and service with your brand promise, you set the stage for customers to rave about you. This is important when you aim to leverage word-of-mouth referrals in your digital marketing strategy. It’s about creating a seamless and satisfying experience that encourages customers to spread the word about your brand.
#3. Smooth order process and user-friendly site experience
On average, only 1.53 percent of visits to e-commerce websites result in a purchase, which indicates that many brands are missing the mark when it comes to site functionality. Don’t let a poor user experience drive potential customers away, leaving their shopping carts abandoned out of sheer frustration.
Two of the most common reasons for cart abandonment are a confusing shopping process and insufficient information. To combat this, make your website intuitive and easy to navigate, allowing customers to find what they need quickly and effortlessly.
Here’s how you can enhance your site:
#1. Streamlined Navigation: Implement features like chatbots or intake forms that can guide new visitors. For example, ask what product category they’re interested in and filter items based on their preferences, such as price range. This personalized approach makes the shopping process smoother.
#2. Comprehensive Product Information: Ensure each product listing includes thorough descriptions, along with videos or photographs showing the product in action. The more information you provide, the more confident customers will feel about their purchase decisions.
When you address these key areas, you not only improve the user experience but also increase the chances of converting visitors into customers.
This enhanced customer journey is essential when you aim to leverage word-of-mouth referrals in your digital marketing strategy. When customers have a positive, hassle-free experience, they’re more likely to share their satisfaction with others, helping to boost your brand through organic, word-of-mouth marketing.
#4. Maintain a well-organized operation
Incorrect orders, late deliveries, or missed appointments can quickly lead to negative word-of-mouth. When customers experience these issues, they’re likely to share their dissatisfaction, damaging your reputation. In fact, 58% of consumers stop doing business with a company after just one poor experience.
To prevent these problems and create a positive impression, consider implementing just-in-time inventory management. This system uses historical data to predict demand and reorder supplies accordingly, ensuring you’re neither overstocked nor understocked. Additionally, partnering with a reliable supplier who can handle large orders quickly is crucial to maintaining efficiency and meeting customer expectations.
Moreover, make it easy for customers to reach a human representative for complaint resolution. Providing accessible and responsive customer service can turn a potentially negative situation into a positive one, demonstrating your commitment to customer satisfaction.
When you address these operational aspects, you can significantly improve the overall customer experience. This approach is key when you aim to leverage word-of-mouth referrals in your digital marketing strategy. Happy customers are more likely to share their positive experiences, helping to organically boost your brand’s reputation.
#5. Exceed customer expectations
Exceeding customer expectations varies for every business, but it often involves simple gestures that show you genuinely care. For instance, collaborating with a customer to create a custom item, sending a heartfelt thank you note, or performing an unexpected act of kindness can leave a lasting impression.
Take Trader Joe’s in Wayne, PA, for example. During a snowstorm, they went above and beyond by delivering a week’s worth of groceries free of charge to an elderly gentleman who was stranded at home. This is especially remarkable since Trader Joe’s doesn’t typically offer delivery services, but they made an exception to help someone in need.
Another important aspect of customer experience is complaint resolution. Addressing and resolving issues effectively can turn a negative situation into a positive one, often impressing the customer even more.
When you focus on these personal touches and effective problem-solving, you can significantly leverage word-of-mouth referrals in your digital marketing strategy. When customers see that you go the extra mile, they’re more likely to share their positive experiences, helping to organically promote your brand.
#6. Spark Word of Mouth Through Influencers
Boosting word-of-mouth (WOM) through influencers can be a game-changer for your brand. When credible influencers review your products, they can significantly raise your brand’s visibility because their followers often trust their opinions as much as they do those of their friends.
According to a study by Sideqik, 70% of consumers place as much trust in influencers’ recommendations as they do in real-world friends’ opinions. This shows the immense power influencers have in shaping purchasing decisions.
If your budget allows, consider going beyond one-off social media posts and invest in hiring a brand ambassador. This person becomes the “face” of your brand, consistently promoting your products and services over time. This long-term relationship can create a deeper connection with their audience, making it easier to leverage word-of-mouth referrals in your digital marketing strategy.
When collaborate with influencers or brand ambassadors, you not only gain access to their established audience but also enhance your credibility and spark meaningful conversations about your brand.
#7. Offer complimentary products
To make the most of word-of-mouth (WOM) in your digital marketing strategy, start by identifying relevant influencers who align with your brand. Send them your product and hope they’ll review it. Keep in mind, though, that some influencers receive countless free products and might only review items they genuinely like, so don’t expect a review from everyone you reach out to.
Instead of only targeting the big names with massive followings, consider collaborating with micro-influencers. These are often bloggers, videographers, or DIY enthusiasts with smaller, but highly engaged audiences. They focus on sharing their expertise through tutorials, shout-outs, how-to guides, or day-in-the-life vlogs.
Working with micro-influencers can be a strategic move to leverage word-of-mouth referrals in your digital marketing strategy. Their specialized content and more personal connections with their audience can help spread positive buzz about your products in a more authentic and impactful way.
#8. Support a meaningful cause
According to IBM research, 40% of consumers actively seek out companies that reflect their values, like sustainability or racial equality. Influencers also tend to champion causes they care about, so linking your brand to a meaningful purpose can provide them with compelling reasons to collaborate with you.
Take, for example, Starbucks’ #WhatsYourName campaign from 2020. The campaign beautifully showcased the journey of a young transgender individual navigating the challenge of embracing his new name. When he walks into a Starbucks and confidently states his name as “James,” the barista writes it on his cup, affirming his identity. This heartfelt ad was inspired by real experiences of people in transition, illustrating how Starbucks has been a supportive space for accepting new identities.
When you align your brand with impactful causes, you can effectively leverage word-of-mouth referrals in your digital marketing strategy. This approach not only resonates with influencers who are passionate about similar issues but also helps generate genuine, positive buzz around your brand.
#9. Address a genuine problem (even influencers have them!)
The best products aren’t just about functionality; they address real customer pain points and make a memorable impression. Take LARQ, for instance. It’s a self-cleaning water bottle that uses UVC light to sterilize itself, which has users raving about how it simplifies staying hydrated on the go.
Social media is flooded with posts praising LARQ for its innovation and convenience, particularly for travelers who struggle with traditional bottles. By offering a product that genuinely solves a problem and enhances the user experience, you can effectively leverage word-of-mouth referrals in your digital marketing strategy. When customers are excited about a product that meets their needs in a remarkable way, they’re more likely to share their positive experiences, boosting your brand’s visibility and credibility.
#10. Understand your Customer Lifetime Value (LTV)
Customer Lifetime Value (LTV) is all about understanding the total revenue you can expect from a customer throughout your relationship with them. Essentially, it helps you gauge how much you should invest in acquiring new customers.
For instance, if you know that each customer usually spends around $200, you should tailor your word-of-mouth marketing strategies accordingly. In other words, the amount you spend on initiatives to leverage word-of-mouth referrals in your digital marketing strategy shouldn’t surpass that $200 mark. Spend too much, and you risk losing money instead of gaining. By keeping your WOM efforts within this limit, you ensure that you’re effectively investing in customer acquisition without eating into your profits.
#11. Develop a formal referral program
Referral marketing is a powerful strategy that motivates satisfied customers to promote your brand by offering them enticing rewards. Often called refer-a-friend programs, this approach has become a favorite among ecommerce stores aiming to boost sales while keeping the cost per action low.
By incentivizing customers to spread the word about your brand, you significantly enhance the chances of generating positive word-of-mouth (WOM). This can be a key tactic to leverage word-of-mouth referrals in your digital marketing strategy.
The rewards you offer can vary and include options such as:
#1. Discounts on their next purchase.
#2. Gift cards or coupons.
#3. Cash payments or cashback.
#4. Free gifts.
These incentives not only encourage customers to talk about your brand but also make them feel valued and appreciated, further solidifying their loyalty and driving more referrals.
#12. Strongly encourage ratings and reviews
Customer reviews have become the modern equivalent of word-of-mouth marketing. To effectively leverage word-of-mouth referrals in your digital marketing strategy, it’s essential to set up channels for gathering feedback, such as Yelp reviews, emails, feedback surveys, and website analytics.
Collect and prominently display genuine reviews of your business across multiple platforms, including review websites, social media posts, online marketplaces, and your own website. Research shows that consumers read an average of seven reviews before trusting a business, and 85% of them trust online reviews as much as personal recommendations.
By showcasing honest customer testimonials, you build credibility and trust, encouraging potential customers to choose your brand based on the positive experiences of others. This strategy not only amplifies your reputation but also drives more organic referrals and enhances your overall digital marketing efforts.
#13. Promote user-generated content (UGC)
According to UGC marketing platform Offerpop, 85% of social media users trust user-generated content (UGC) more than they trust branded content. However, brands often hesitate to appear pushy, so only 16% provide specific directions on creating and sharing UGC. UGC builds trust by establishing social proof—the idea that something is desirable because others like it.
To leverage word-of-mouth referrals in your digital marketing strategy, encourage satisfied customers to share UGC by hosting social media giveaways for those who post pictures of your products using your branded hashtag.
Additionally, if you have a loyalty program, tie rewards to UGC. This incentivizes your most loyal customers to share photos or videos of your products, amplifying your brand’s reach and credibility through authentic customer experiences. This approach not only enhances trust but also boosts engagement and organic promotion of your brand.
#14. Evoke emotions
Tapping into emotions can be a powerful strategy to boost shares and engagement.
Take Dove’s 2019 #ShowUs campaign, for example. Dove collaborated with women and non-binary individuals to create over 10,000 stock images that represent a broader, more inclusive vision of beauty. This initiative wasn’t just about selling a product; it was about making people feel acknowledged and included, regardless of their race, body type, or gender.
By connecting with people on an emotional level and making them feel part of something larger, Dove masterfully leveraged word-of-mouth referrals in their digital marketing strategy. This approach not only encouraged people to share and support the campaign but also deepened their connection with the brand, fostering a sense of community and advocacy that went beyond traditional advertising.
#15. Develop or produce something distinctive
Standing out from the competition can be a game-changer when it comes to leveraging word-of-mouth referrals in your digital marketing strategy. If you’re offering a product that’s genuinely unique, adopting an innovative business model, or breaking industry norms, you’re more likely to spark conversations and generate buzz.
For instance, selling a one-of-a-kind product or using a shipping method that surprises and delights customers can set you apart. When your business does something out of the ordinary, it not only grabs attention but also gets people talking. This kind of differentiation can make your brand memorable and encourage customers to share their experiences, thereby amplifying your word-of-mouth referrals.
#16. Utilize visual cues
Creating visually captivating experiences can make your brand irresistible to share. Think of those trendy ‘Instagrammable’ restaurants that attract visitors with their stunning decor and unique ambiance. These places are designed to be photogenic, encouraging patrons to snap pictures and post them on social media.
Now, how do you achieve this in the digital realm? While it’s more challenging, it’s definitely possible. Take the example of Always and its #LikeAGirl campaign. The brand transformed the conversation around feminine products by advocating for more diverse gender emojis. Instead of the traditional, outdated symbols, they pushed for emojis representing strong, empowered women — from doctors to athletes. This initiative not only sparked important conversations but also led to a surge in word-of-mouth referrals.
By creating standout visual moments, whether online or offline, you can leverage word-of-mouth referrals in your digital marketing strategy to make your brand more shareable and memorable.
Creating visually captivating experiences can make your brand irresistible to share. Think of those trendy ‘Instagrammable’ restaurants that attract visitors with their stunning decor and unique ambiance. These places are designed to be photogenic, encouraging patrons to snap pictures and post them on social media.
Now, how do you achieve this in the digital realm? While it’s more challenging, it’s definitely possible. Take the example of Always and its #LikeAGirl campaign. The brand transformed the conversation around feminine products by advocating for more diverse gender emojis. Instead of the traditional, outdated symbols, they pushed for emojis representing strong, empowered women — from doctors to athletes. This initiative not only sparked important conversations but also led to a surge in word-of-mouth referrals.
When you create standout visual moments, whether online or offline, you are correctly leverage word-of-mouth referrals in your digital marketing strategy to make your brand more shareable and memorable.
#17. Establish word-of-mouth triggers
Triggers are those memorable touches that make people excited to share their experience with others — they’re your brand’s unique ‘X factor.’
Take the Ritz-Carlton, for example. This luxury hotel chain is renowned for its exceptional service, and a standout story from their Florida location perfectly illustrates how powerful word-of-mouth triggers can be.
When a young guest lost his beloved stuffed giraffe, Joshie, the hotel staff didn’t just return it; they went above and beyond. They sent photos of Joshie having fun by the pool, enjoying a spa day, and even cruising in a golf cart. They even gave Joshie a Ritz-Carlton ID badge and made him an honorary member of the Loss Prevention team.
This kind of thoughtful, creative gesture doesn’t have to cost a fortune. It’s all about demonstrating empathy and originality. By incorporating such impactful triggers, you can effectively leverage word-of-mouth referrals in your digital marketing strategy, encouraging people to rave about your business and share their experiences far and wide.
What Are Some Common Pitfalls Of Word-Of-Mouth Marketing And How Can They Be Avoided?
Word-of-mouth marketing can be incredibly effective, but it’s not without its pitfalls. Here’s a look at some common issues and how to avoid them, ensuring you can successfully leverage word-of-mouth referrals in your digital marketing strategy.
#1. Overlooking Customer Experience: If your product or service falls short of expectations, no amount of marketing will save you. An average experience won’t spark positive chatter. To avoid this, ensure every customer touchpoint is exceptional, from the initial interaction to post-purchase follow-up.
#2. Ignoring Feedback: Sometimes, businesses fail to listen to or act on customer feedback. This can lead to negative word-of-mouth. Make sure you actively collect, analyze, and address customer feedback to continuously improve and prevent dissatisfaction.
#3. Failing to Build Genuine Relationships: Word-of-mouth thrives on trust and genuine relationships. If your interactions feel robotic or impersonal, customers are less likely to advocate for your brand. Focus on creating authentic connections with your customers to foster real, enthusiastic referrals.
#4. Neglecting to Encourage Referrals: Simply hoping for referrals isn’t enough. You need to proactively encourage and incentivize them. Implement referral programs or offer rewards to motivate customers to share their positive experiences.
#5. Not Monitoring Online Reputation: Negative reviews and comments can spread just as quickly as positive ones. Regularly monitor and manage your online reputation to address issues before they escalate and negatively impact your word-of-mouth marketing efforts.
#6. Being Inconsistent: Inconsistency between your brand message and customer experience can erode trust. Ensure that your brand promises align with the actual experience customers receive to maintain credibility and encourage positive referrals.
When you are aware of these pitfalls and address them effectively, you can enhance your efforts to leverage word-of-mouth referrals in your digital marketing strategy and turn satisfied customers into powerful brand advocates.
Conclusion
Word-of-mouth marketing is a powerful and cost-effective way to boost your online business. Before you go into elaborate campaigns, focus on the basics.
Start by delivering a stellar customer experience and maintaining efficient operations. If you nail these fundamentals, you’re already well on your way to success. By laying this strong foundation, you’re setting yourself up to effectively leverage word-of-mouth referrals in your digital marketing strategy.
This approach not only builds trust but also encourages satisfied customers to share their positive experiences, helping your business grow organically.
