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Articles
Ecommerce
Word-of-Mouth Marketing


WORD-OF-MOUTH MARKETING: HOW TO GET HAPPY CUSTOMERS TO ADVOCATE FOR YOUR
BUSINESS



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TABLE OF CONTENTS

Create an Epic First Experience
Spark WOM Among Influencers
Building Your Word-of-Mouth Marketing Strategy
The Final Word
FAQs Word-of-Mouth Marketing

If you’ve ever recommended a restaurant or sung the praises of your favorite
clothing brand after receiving a compliment on your outfit, then you intuitively
understand what word-of-mouth marketing is — and how powerful it can be. 

Did your friends and family take you up on your recommendation? Perhaps after
doing so, they became loyal customers themselves and spread the word to their
loved ones in turn.  

One of the most untapped (and inexpensive) marketing channels in existence,
word-of-mouth marketing occurs when a brand wows a customer to such an extent
that they tell their friends. And while these conversations may seem entirely
out of a business’s control and may even backfire — customers won’t hesitate to
disparage brands that provide a poor experience — you have several strategies at
your disposal to get people talking about your business in a positive light. 

Amplified word-of-mouth (WOM) is when marketers launch campaigns designed to
encourage or accelerate these naturally occurring conversations within their
existing customer base. 

Here’s how to use word-of-mouth strategy to your advantage.


CREATE AN EPIC FIRST EXPERIENCE



Offering a standout customer experience that overshoots people’s expectations is
the surest way to get them to rave about you. In addition to providing a stellar
product that solves a major pain point — these days, that’s table stakes —
consider throwing in a personalized ‘Thank you’ note and free gift along with
their online purchase.Whatever you do, aim to impress. Providing an average or
negative experience will not motivate customers to advocate for your business. 


SELL QUALITY PRODUCTS.

Sourcing and selling quality products are crucial to providing an outstanding
customer experience. Attentive customer service, an effortless buying experience
and products that perform as advertised are the key ingredients for a WOM-worthy
experience. 

Make sure the experience you provide measures up to the branding. For example,
if your restaurant bills itself as a family-friendly establishment serving
healthy food, don’t ruin the experience by not providing enough space for baby
strollers in the dining area. 


SEAMLESS ORDER PROCESS AND SITE UX.

On average, only 1.53 percent of ecommerce website visits convert into a
purchase, which suggests that most brands aren’t getting site functionality
right. 

Don’t let a poor user experience cause would-be customers to abandon their
shopping carts out of frustration. 

One of the most common reasons for cart abandonment are an un-intuitive shopping
process and lack of information. Make your site easy to navigate by enabling
customers to self-identify their needs. 

For example, you can provide a chatbot or intake form that asks new website
visitors what product category they’re searching for and filter items by price
range. Provide thorough product descriptions, videos or photographs of the
product in action. 


RUN A TIGHT OPERATION.

Incorrect orders, late deliveries or appointment no-shows will motivate
customers to spread the word about your business — but for all the wrong
reasons. Data shows that 58% of consumers stop doing business with a company
because of a single poor customer experience. 

Use just-in-time inventory management (using historical data to reorder supplies
ahead of anticipated demand) so you’re never over- or under-stocked, and partner
with a reliable supplier who can fulfill large orders with a short turnaround. 

Finally, make it easy for customers to get in touch with a human for complaint
resolution. 


GO ABOVE AND BEYOND FOR THE CUSTOMER.

Exceeding customer expectations looks different for every business, but it can
be as simple as working with a customer to create a custom item, sending a
personalized thank you note or performing an act of kindness. 

Case in point: a Trader Joe’s in Wayne, PA, delivered a week’s worth of
groceries free of charge to an elderly gentleman who was stranded at home during
a snowstorm. 


Note: Trader Joe’s doesn’t usually provide delivery, but they made an exception.
Complaint resolution is another key factor in the customer experience. Sometimes
you can turn a bad situation around and blow the customer away in the process.


SPARK WOM AMONG INFLUENCERS



Having your products reviewed by credible influencers is a surefire tactic to
increase brand awareness because influencers have the power to sway their
followers’ purchasing decisions. 

A recent study by Sideqik found that 7 out of 10 consumers trust influencers’
recommendations just as much as the opinion of real-world friends. 

If you have the budget for influencer marketing, you can even hire a brand
ambassador — someone who acts as the “face” of your company by regularly talking
about your products and services rather than just doing a one-off social media
post.


SEND PRODUCTS FOR FREE.

Identify relevant influencers, send them your product, and see if they review
it. However, note that some influencers are regularly deluged with freebies and
may not wish to review your product unless they truly like it, so don’t expect
reviews from every influencer. 

Instead of focusing exclusively on big names with a massive amount of followers,
try working with micro-influencers — bloggers, videographers or DIYers with a
smaller following whose goal is to share subject matter expertise by producing
tutorials, shout-outs, how-to-guides, day-in-the-life vlogs and so on. 


CONNECT WITH A WORTHY CAUSE.

According to IBM research, 40% of consumers said they seek out companies that
align with their values, such as sustainability or racial equality. Influencers
also want to show support for causes they believe in, so associating your brand
with a purpose will give influencers additional reasons to partner with you. 

In 2020, Starbucks launched the #WhatsYourName campaign to illustrate the
journey of a young transgender person who was struggling to embrace their name
change — until he walks into a Starbucks one day. 

The barista asks for his name — “James,” he intones confidently — and writes it
on his cup, sealing James’s new identity as a male. The ad was inspired by
real-life experiences of people who were transitioning and found Starbucks to be
a safe space where their new name was accepted. 


SOLVE A REAL CHALLENGE (YES, EVEN INFLUENCERS HAVE THEM!).

The best products solve customer pain points and leave a lasting impact. For
example, social media users routinely post about LARQ, a self-cleaning water
bottle that uses UVC-light to sterilize the bottle, and how it makes it so much
easier to stay hydrated while traveling.


BUILDING YOUR WORD-OF-MOUTH MARKETING STRATEGY



Rather than leaving WOM marketing up to chance, create triggers that will make
people want to talk about your brand.

Here are some ways to launch your own word-of-mouth marketing campaign:


SET UP WORD-OF-MOUTH TRIGGERS.

Triggers are memorable experiences or feelings that make people want to talk
about your business — think of it as your ‘X factor.’ 

Take it from luxury hotel chain Ritz-Carlton, which often makes headlines for
its reputation for going the extra mile for its guests. 

When a young guest at a Ritz-Carlton in Florida lost his beloved stuffed
giraffe, Joshie, hotel employees not only mailed the giraffe back but they sent
pictures of Joshie lounging by the pool, getting a massage at the spa and
driving a golf cart to reassure the little boy that his beloved stuffed animal
had been well cared for in his absence. 

The giraffe even received a Ritz-Carlton ID badge and was made an honorary
member of the Loss Prevention team. 

The Ritz-Carlton viral marketing example shows that WOM triggers needn’t be
expensive or extravagant. Simply demonstrating empathy and creativity can go a
long way. 


USE VISUAL TRIGGERS.

Create remarkable visual experiences so customers will want to take photos and
share them. 

For example, ‘Instagrammable’ restaurants have one thing in common — they
provide an aesthetically pleasing environment that makes people want to share
their dining experience on social media. Providing visual triggers in a digital
experience is trickier but doable. 

One of the best word-of-mouth marketing examples comes from feminine product
brand, Always. 

As part of its #LikeAGirl campaign, the brand pushed for more gender-diverse
emojis on mobile and social media platforms. Before, the female emojis on
instant messaging apps showed girls dancing in bunny ears or walking down the
aisle. The Always campaign introduced new girl-power symbols, like female
doctors, athletes, chefs, wrestlers, soccer players and so on. 


DO OR CREATE SOMETHING UNIQUE.

Selling a unique product, using a different business model or bucking industry
norms are other ways to harness the power of word of mouth. Standing out in a
crowd, whether it’s with your product or shipping method, could prove to be
beneficial.


EMOTIONAL PROVOCATION.

Tapping into people’s emotions can be an immensely powerful way to generate
shares.

In 2019, Dove launched the #ShowUs campaign partnering with women and non-binary
individuals to create a collection of 10,000+ stock images that offer a more
inclusive vision of beauty for all media and advertisers to use. 

By enabling people to feel seen, regardless of race, body type or gender, Dove
expertly tapped into people’s emotions by making them feel like they were a part
of something bigger than themselves. 


ENCOURAGE USER-GENERATED CONTENT (UGC).

According to UGC marketing platform Offerpop, 85% of social media users say they
trust UGC more than they trust branded content. 

However, brands don’t want to appear pushy, so only 16% provide specific
directions on how consumers can create and share content. UGC builds trust by
establishing social proof — the notion that something is desirable because other
people like it.

Encourage satisfied customers to share UGC by hosting giveaways on social media
for people who post pictures of your products alongside your branded hashtag.
Similarly, if you offer a loyalty program, you can tie rewards to UGC, thereby
encouraging your most loyal customers to post photos or videos of your
products. 


PUSH RATINGS AND REVIEWS HARD.

Customer reviews are the modern WOM marketing. Set up feedback channels to
collect testimonials — Yelp reviews, emails, feedback surveys  and website
analytics. Collect and prominently display honest reviews of your business in as
many places as possible — review websites, social media posts, online
marketplaces and your own website. 

Consumers read an average of seven reviews before trusting a business and 85% of
consumers trust online reviews as much as personal recommendations.


CREATE AN OFFICIAL REFERRAL PROGRAM.

Referral marketing is a form of marketing that encourages happy customers to
advocate on behalf of your brand in exchange for incentives. Sometimes called
refer-a-friend programs, referral marketing has become a go-to method for
ecommerce stores looking to grow their sales while minimizing the cost per
action. 

By providing customers with incentives to talk about your brand, you increase
the likelihood of WOM. 

Rewards can be anything from:

 * Discount off first-time purchase.
 * A gift card or coupon.
 * Cash payments or cashback.
 * Free gifts.


KNOW YOUR CUSTOMER LIFETIME VALUE (LTV).

Average customer lifetime value refers to the amount of revenue a single
customer brings in over the course of your business relationship. The LTV
metrics tells you how much money to spend on customer acquisition. 

For example, if a customer typically spends $200, then your WOM initiatives
should not exceed this amount, otherwise, you will end up losing money.

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THE FINAL WORD



Word of mouth advertising can be an impactful yet relatively inexpensive
strategy for growing your online business. But before busting out the bells and
whistles, start with the fundamentals. 

If you provide a positive experience and run a tight operation, you’re already
halfway there.


FAQS WORD-OF-MOUTH MARKETING

WHAT ARE THE ADVANTAGES OF WORD OF MOUTH MARKETING?

Layer 1

Word of mouth is a type of marketing that helps brands build trust, credibility
and loyalty. 

BRAND LOYALTY

Customers who like your brand enough to tell their friends and family about it
are more likely to remain loyal and have a higher lifetime value. 

BRAND TRUST

Word-of-mouth recommendations help brands build trust with new customers more
effectively than traditional advertising because the recommendations come from a
trusted friend. 

CREATING A BUZZ

The most effective word-of-mouth triggers generate hype about your brand, be it
on social networks or offline. WOM triggers that go viral on social media can
have a lasting impact beyond the marketing campaign itself.

HOW TO DEAL WITH NEGATIVE WORD OF MOUTH?

Layer 1

Investigate the root cause of the problem. If customers are dissatisfied with
late shipments or faulty products, switch suppliers or work with a different
fulfillment company. 

Next, contact the aggrieved customer directly. If the complaint was made on a
public platform — a social media site or review website — issue a public
response so that existing and potential customers will see that you take
customer feedback seriously and are resolving the issue.

ORGANIC WORD OF MOUTH VS. AMPLIFIED WORD OF MOUTH

Layer 1

Organic word of mouth occurs when customers naturally mention your brand in
conversation without any specific effort from you. Amplified word of mouth
consists of a series of strategies designed to encourage customers to spread the
word about your business, such as providing a stellar customer experience or
starting a referral program.

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