Ever wondered how some brands create a buzz without paying a penny?
A survey shows that 92% of consumers trust recommendations from friends and family over all other forms of advertising.
Join us in exploring the word of mouth marketing strategies, where genuine buzz takes center stage!
Word of mouth marketing for ecommerce is the art of harnessing the power of recommendations and referrals from satisfied customers.
It relies on the idea that people trust the opinions of their peers more than traditional advertising.
In this article, we will explore:
- Benefits of word of mouth marketing.
- 12+ strategies of word of mouth marketing.
- 36+ real word of mouth marketing examples from the most loved brands.
- 5 ways to measure word of mouth marketing.
- Tools to implement word of mouth marketing.
A game-changer for ecommerce businesses.
If you’re aspiring to generate 30% - 60% of revenue from email every single month in less than 45 days then book your free retention email plan here.
Why Word Of Mouth Marketing Works For E-commerce?
Why does it totally rock for e-commerce?
Well, it’s all about trust, everyone’s a content creator, and TV?
Who watches that anymore?
So, picture this – You’re scrolling through your Instagram feed, and your buddy posts a pic of the amazing sneakers they just bought online.
With social media in their pocket, everyone’s a creator now.
They’re raving about how comfy they are and tagging the store. No fancy ads, just genuine excitement.
That’s Word of mouth in action. People love sharing their finds and opinions and do it all the time.
Now, think about TV ads. Remember the last time you sat through one without grabbing your phone?
Yeah, that’s the thing – our attention is all over the place.
We’re online, checking reviews and chatting with friends about what’s cool.
TV just isn’t the boss anymore.
But here’s the magic sauce “trust”.
When your bestie tells you those sneakers are the bomb, you’re way more likely to believe them than some slick ad.
Word of mouth is built on real experiences and real opinions from people you trust.
Sounds Interesting?
Now let us first take a look at the benefits of having word of mouth marketing.
Benefits Of Word Of Mouth Marketing For E-commerce
Ever wondered how a positive word of mouth can supercharge your e-commerce game? Get set for a friendly tour of the game-changing perks it brings!
Let’s explore the delightful benefits of this powerful strategy.
Boosting Buzz
Increasing Brand Awareness through Network
Imagine you’re at a party, and you overhear someone raving about this fantastic new gadget they just got.
You’re intrigued, right?
That’s the beauty of Word of mouth marketing in e-commerce.
When customers love your product and start sharing, it creates a snowball effect.
Your brand becomes the talk of the digital town, and more people want in on the excitement.
It’s like a virtual megaphone for your brand!
Keep reading to find the exact strategies to turn your followers into your megaphone.
Trust the Talk
Increasing Brand Credibility Through Trust.
Who would you trust more?
A slick ad or your best friend’s recommendation?
That’s the power of trust in Word of mouth marketing. When real people share their experiences and give your brand the thumbs up, it’s like a trust-building superpower.
Your credibility soars and potential customers feel more confident in choosing your products.
Community Connection
Establishing an Online Community for Feedback and Points.
Imagine, running a club where members get exclusive perks and can share their thoughts.
That’s what Word of mouth marketing can create in the digital realm.
By nurturing an online community, you give your customers a sense of belonging and a place to share their valuable feedback.
Plus, they get rewarded with points for their active participation, making it a win-win for everyone involved.
Loyalty that Lasts
Building Strong Brand Loyalty for Higher Customer Lifetime Value
Loyalty is the secret sauce for long-term success in e-commerce.
When customers become enthusiastic advocates for your brand, they’re more likely to keep coming back, boosting your Customer Lifetime Value.
It’s like having a squad of dedicated brand ambassadors who not only repeat purchases but also bring in new customers through their Word of mouth recommendations.
Wallet-Friendly Wins
Low Implementation Cost.
Traditional advertising can cost a small fortune.
But Word of mouth marketing? It’s like getting a promotional boost without breaking the bank.
Your customers do the heavy lifting by sharing their love for your brand.
It’s cost-effective and highly efficient, making every dollar count.
12 Word Of Mouth Marketing Effective Strategies In E-commerce
Join us on a journey through the exciting world of e-commerce, where word of mouth marketing takes center stage.
With 12 actionable strategies illustrated by real examples, we’ll show you why this friendly and influential approach is a must for thriving in the digital marketplace.
Strategy #1: User-generated content (UGC)
Encourage your customers to share photos, reviews, and videos of them enjoying your products with your brand’s hashtag.
User-generated content adds authenticity and trustworthiness to your brand, like when a makeup brand reposts customer selfies showcasing their products’ real-life results.
Like Away.com is running its hashtag & encouraging its followers to tag them wherever they travel around the world….
…. same way Osprey Europeran its personal hashtag to show how much its followers adore them.
…like Lululemon flaunting their happy customers with an hashtag #thesweatlife
Or Warby Parker running hashtag for their tryonhome…
Use marketing automation emails to effectively generated your user generated content along the complete customer journey.
Strategy #2: Incentivized Word of mouth marketing
Reward customers for spreading the word on social media.
Offer discounts, exclusive access, or freebies in exchange for sharing their positive experiences.
Think of it like a digital high-five for your brand’s biggest fans.
Like Shein ran its campus ambassador program #sheinsquad giving rewards & exclusive perks for joining their community.
Lululemonencouraged their customers to affiliate with them & spread the love together.
Red Bull student ambassadors are armed with free tools and resources and are supported by a community dedicated to their success as ambassadors.
Strategy #3: Referral programs
Have you ever wanted to turn your satisfied customers into your brand’s biggest advocates?
Referral programs are the secret sauce of word of mouth marketing strategies. Let’s dive in and discover how they can supercharge your business!
Create referral programs that incentivize your existing customers to refer their friends.
Timberland encouraged the users to recommend their friends & receive perks.
ASOS ran a 20% off referral program proving to be a win-win strategy
Le Peach encouraged their audience to spread the word & experience & receive commission.
Strategy #4: Influencer marketing
Collaborate with influencers who resonate with your brand.
Their genuine endorsement can spark Word of mouth buzz among their followers.
Think of how lifestyle influencers introduce their audiences to new fashion or beauty products, creating a ripple effect of interest.
2 things which should be decided before jumping into influencer marketing –
Focus On The Right Platform
There are many different platforms to choose from for your influencer marketing program, but which one is the right fit for your business?
Give custom coupon codes to your influencers to judge their real impact.
For example, How a review from an Influencer scaled up the revenue of contact lens brand
GoPro collaborating with a famous YouTuber (The Slow Mo Guys) to review the camera
Try On Haul videos for honest & genuine reviews,
TikTok Try Hauls
The Queen of Maximalist Fashion
Even big corporate brands like HSBC collaborate with Influencers.
Strategy #5: Send products for free
Send customers freebies or discounts on special occasions like birthdays.
Making them feel valued and appreciated.
Receiving an unexpected birthday gift will WOW them to share their experience with friends.
Sephora sends complementary gifts on birthdays.
Free Slurpee drinks by 7-Eleven!
Starbucks Birthday Rewards – Free Coffee!
Strategy #6: Connect With A Worthy Cause
Support a meaningful cause, and your customers will feel proud to be associated with your brand.
In this exploration, we’ll uncover how aligning with a meaningful cause can be a game-changer for your business and society as a whole.
Toms’ “One for One” initiative provides shoes to children in need for every pair sold, creating a sense of purpose around their products. TOMS’ one for one
The popular #ShareACoke Campaign
Reebok CrossFit Shoes promoting a social cause.
Strategy #7: Host Giveaways
Organize giveaways on social media to engage your audience.
Encourage participants to tag friends, expanding your reach while making your brand part of a fun, shareable experience.
Marques Brownlee ran a contest for $1000 smartphone giveaway
Travis Scott ran a sneaker giveaway contest.
Microsoft Store’s fun & exciting #Sweepstakes
Cluse ran a contest and gave 3 watches to its followers
Strategy #8: Create Unique Experience
Craft an exceptional shopping experience that customers can’t help but rave about.
It could be an amazing & satisfying unboxing review, extraordinary packaging, or just simply a beautiful & thoughtful ad campaign.
Apple’s in-store experiences deliver a curated surprise each month.
Lay’s making people smile with its ‘Smiles for Miles of Aisles’ campaign
Grenade Fitness – Word of mouth through compelling packaging
Strategy #9: Build Rapport with Your Community
Engage with your audience authentically on social media, responding to comments, and creating a sense of community.
While keeping the audience engaged don’t forget to make it more fun & interesting.
Lego’s community is an excellent example of community-based marketing.
Frugi made three levels of fun for their audience to explore more
Lululemon running their ambassadors program.
Strategy #10: Customer reviews and testimonials
Encourage customers to leave reviews and testimonials.
They serve as social proof and can make potential buyers more confident in their purchase decisions.
Frank Body Coffee Scrub review by an influencer.
Sephora insider beauty board reviews.
Look Book views with perfect aesthetics.
Use customer reviews, testimonials and images effectively as a social proof into your marketing.
Strategy #11: Interact over social media
Create remarkable, shareable content and engage with customers on platforms like Twitter.
Memorable tweets can go viral and generate immense word of mouth buzz.
Wendy’s viral social media
Wendy’s viral tweet
Netflix film tweet – a unique approach to connect & recommend.
Strategy #12: Limited Release
Create a sense of exclusivity and scarcity by launching limited-edition products.
Customers will feel lucky and important to be part of a select group with access to these items, as seen with sneaker drops from brands like Nike and many more.
One Plus introduced itself with exclusivity by giving an invite code.
Supreme – Status through scarcity i.e coming with limited editions.
Coca-Cola draft punk bottles
How To Measure Word Of Mouth Marketing?
At least 20% of your store revenue should come from Word Of Mouth.
Measuring the impact of Word of Mouth Marketing is like uncovering hidden treasure in the digital age.
Track online mentions, social shares, and customer reviews to gauge the buzz around your brand.
Dive into referral data, monitor website traffic, and analyze sales trends to see the real impact on your bottom line.
By keeping an eye on these indicators, you’ll uncover the valuable insights needed to refine and maximize your word-of-mouth marketing strategy. Learn more about customer retention and metrics over here.
It’s like having a roadmap to your brand’s success!
Let’s take a look at different ways to track your brand’s Word Of Mouth:
Word-of-mouth equity
Word of mouth equity empowers ecommerce by allowing them to understand word of mouth’s relative impact on brand and product performance.
When Apple’s iPhone was launched in Germany, for example, its share of word of mouth volume in the mobile-phone category—or how many consumers were talking about it—was about 10 percent or a third less than that of the market leader.
Yet the iPhone had launched in other countries, and the buzz accompanying those messages in Germany was about five times more powerful than average.
This meant the iPhone’s word-of-mouth equity score was 30 percent higher than that of the market leader, with three times more influential recommending the iPhone over leading handsets.
As a result, sales directly attributable to the positive word of mouth surrounding the iPhone outstripped those attributable to Apple’s paid marketing sixfold.
Within 24 months of launch, the iPhone was selling almost one million units a year in Germany.
Read more in detail about word of mouth equity over here.
Word of mouth coefficient
The word of mouth coefficient is a quantitative model predicated on the assumption that active users are predictive of new organic users (generated by word of mouth traction).
The WOM Coefficient tracks the rate that active users generate new users via word of mouth
The Word of Mouth Coefficient has two components:
- New Organic Users: First time product users that we consider to be driven by word of mouth (i.e. they can’t be traced to any trackable source such as a paid digital ad). This is the numerator and what we are trying to predict.
- Active Users: The denominator of the ratio is everyone else: Returning Users + Non-Organic New Users. The time period depends on your retention metric. For most products, it is typically Daily, Weekly, or Monthly Active user.
The K-Factor
Most commonly applied in SaaS companies, The K-factor is used to describe the growth rate of websites, apps, or customer bases (not exclusively) as a result of referrals.
K-factor is a metric used to indicate an app’s virality. K-factor measures how many additional users each existing user brings to the app.
Aside from measuring WoM referrals, the additional value of this model is helping you understand who your most valuable customers are.
Net Promoter Score NPS
Net Promoter Score (NPS) is a key metric for an eCommerce business that shows how many of your customers are willing to recommend your products or services to other people.
Ecommerce uses NPS to measure customer satisfaction and loyalty.
Though having an NPS score above 0 is good. But anything above 20 is great and above 50 it’s amazing & anywhere above 80 is the top percentile.
For example, if 50% of respondents are Promoters, 10% are Detractors, and 40% are Passives, your NPS would be 50-10=40
CSAT
Typically, a good CSAT score is between 75-85%.
A score of 75% represents four out of five customers rating your ecommerce with a positive score as opposed to neutral or negative.
This is also used to Check out your competition in the same industry to see what their CSAT score is, as this could be the most relevant benchmark to your business.
Examples of some of the best times to send CSAT to customers include:
- A couple of days after purchase or signup for initial customer feedback.
- An unobtrusive in-app CSAT survey while customers are using your product.
- After each customer service session evaluate the success of that support channel.
- Following a significant product update, seasonal trends, or new product lines.
Tools To Execute Your Word Of Mouth Marketing
Some fantastic tools to help you execute word of mouth marketing smoothly like a pro. Let’s dive into these digital helpers:
1. Social Media Platforms:
Think of platforms like Facebook, Instagram, and Twitter as your virtual megaphones. They’re where people share their experiences, and your brand needs to be there too. You can use tools like Hootsuite or Buffer to schedule posts, monitor conversations, and join in on discussions, just like you would chat with friends at a party.
2. Referral Marketing Software:
Remember those referral programs we talked about? Tools like ReferralCandy and Ambassador can help you set up and manage these programs seamlessly. They track referrals, automate rewards, and make it super easy for your customers to become brand advocates.
3. Influencer Marketing Platforms:
When you want to harness the power of influencers, platforms like AspireIQ and Upfluence can help you find the right influencers for your brand. These tools allow you to collaborate, track campaign performance, and ensure that your products get in front of a larger, engaged audience.
4. Review and Reputation Management Tools:
Tools like Trustpilot and Yotpo help you manage and showcase customer reviews. Positive reviews are gold in WOMM, and these tools make it easy to gather and promote them.
5. Email Marketing Software:
Your email list is a precious asset for word-of-mouth marketing. Tools like Mailchimp and SendinBlue help you craft engaging emails and automate campaigns, keeping your audience informed and engaged.
6. Analytics Tools:
Don’t forget to measure your WOMM efforts! Tools like Google Analytics and social media insights provide valuable data on how your campaigns are performing. They’re like your marketing report cards, helping you adjust and improve your strategies.
7. Customer Relationship Management (CRM) Software:
A good CRM system, such as HubSpot or Salesforce, helps you manage and nurture your customer relationships. By understanding your customers’ needs and preferences, you can tailor your WOMM efforts more effectively.
In the world of e-commerce, these tools are like your trusty sidekicks, helping you leverage the power of word-of-mouth marketing to its full potential.
With the right tools, you’ll not only engage your customers but also turn them into passionate brand advocates who can’t wait to spread the word about your brand.
Conclusion
Remember, authenticity, engagement, and the right tools are your best friends in this journey.
Ready to rock ‘n’ roll with successful word of mouth marketing strategies?
Are you going to start using influencer marketing? Or maybe you’re going to launch referral program for your brand?
Or maybe you have a question about something you read.
Either way, let us know by leaving a comment below right now.
So, go ahead, implement these techniques, and watch your brand thrive in the age of digital recommendations!