The Ultimate Guide to Word-of-Mouth Marketing for New Businesses

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By Jacob Maslow

Word-of-mouth marketing has evolved into an entirely new concept in the digital world. However, it still has the same value as ever – sharing new or exciting experiences is still one of the most important forms of marketing.

And if you think you can have little control over your word-of-mouth marketing, then the good news is that you have more power than you thought.

How Does Word-Of-Mouth Marketing Work?

Word-of-mouth marketing relies on you getting others to share your business experiences with others. Of course, customers will talk about all their experiences, so you want to give them the over-and-above service that leads to positive thoughts.

People usually trust their friend’s and family’s recommendations, creating a valuable marketing asset for you. Statistics show that 75% of people won’t believe an advertisement, yet 92% trust recommendations from people close to them.

The great thing with word-of-mouth marketing is that your customers do business marketing for you, either in person or by sharing on social media.

Types of Word-Of-Mouth Marketing

There are two main types of word-of-mouth advertising – amplified and organic.

Amplified Word-of-Mouth Strategies

You use a marketing campaign to motivate others to talk about your business, sometimes by including rewards. You can also easily keep track of the performance of an amplified word-of-mouth strategy. Some examples of this strategy include referrals, influencers, affiliate programs, or employing a brand ambassador. You can also encourage sharing on social media.

Organic Word-of-Mouth

In this approach, you don’t run prompting campaigns to motivate customers to talk about your business. However, you rely on positive experiences or a gift with purchases to create a talking point, encourage positive reviews, or prompt spontaneous social media sharing. Of course, organic word-of-mouth campaigns are more difficult to track and have fewer motivating opportunities.

Strategies for Using a Word-of-Mouth Campaign

A good strategy can create a solid stream of referrals in your new business word-of-mouth campaign.

Get Customer Testimonials and Use Social Proof

You need to build credibility for your new business, and 79% of online shoppers trust online reviews. Therefore, customer testimonials are an effective way to build credibility and trust. To get social proof, you need to ask content customers to leave reviews on your website, social media, etc., and make the process as seamless as possible. Another valuable tool is to ask them to complete a survey and get their permission to use their positive feedback in your marketing efforts and on your website.

Reward Supporter Referrals

Encourage your customers to talk about your business through incentive-based referral programs. Besides sharing the word about your brand, referral programs also help create a sense of community and loyalty.

Some examples of referral programs include offering referral credits on a following, giving loyalty points that accumulate for future purchases, and discount codes.

Providing Outstanding Customer Service

Your best word-of-mouth marketing tactic is giving your customers excellent service. The happier your customers, the more likely they are to express it; some also talk about it on social media.

Ensure excellent service and communicate with customers punctually if something goes wrong. Offer them fair compensation if necessary. When customers feel you are taking their complaints seriously, they are less likely to give you a negative review.

Using the Power of Influencer Marketing

Reach thousands of customers with influencer marketing since it is a proven powerful tool for your new business. Influencers have a built-in audience that trusts their recommendations and influences their purchasing decisions.

Providing Shareable Content

When you create exciting content, people are keen to share, creating a productive word-of-mouth opportunity. Therefore, shared content generates leads and increases conversion rates.

The best type of shareable content includes blog posts, videos, and valuable information like infographics. Remember, you want to provide insights and entertainment.

Therefore, create something new based on their interests, give them visuals, be genuine, and make it emotional (make them laugh or pull at their heartstrings).

User-generated content can also get people to mention your brand as they share their experiences, so you can also encourage it by running a competition.

Ask Customers to Share Their Experiences

By giving your customers the podium to “tell their story,” you encourage them to help you with your word-of-mouth strategy.

However, you must provide more than just good products or services to get customers to tell an authentic story; you must ensure they have a memorable experience. That means you must understand their buyer personas (demographics, motivations, goals, behavior patterns, etc.) and give them an unforgettable experience to inspire them.

Using Event Hosting and Sponsoring

Word-of-mouth marketing also gets a boost when your business hosts or sponsors events because you can target your specific audience. When people enjoy an event involving your brand, whether it’s the first time they discover your business or are existing customers, they are more than willing to share their experiences.

Final Word

Now that you know how to approach your word-of-mouth marketing, you can build the perfect strategy for your new business.

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