Why Use Word of Mouth Marketing in 2021

by | May 5, 2021 | Blog

Word of mouth marketing (or WOMM) means making the most of free resources that are at your fingertips to boost your eCommerce sales.

  • Traditionally, word of mouth marketing meant your reputation spread from one person to another based on recommendation.
  • Modern word of mouth marketing describes both targeted efforts and organic discussions where users share their satisfaction with a brand.

How people talk about your brand is one of the most important factors that affect your sales. Developing a campaign strategy that harnesses this conversation online can determine the trajectory of your brand.

High effective marketing and advertising campaigns encourage word of mouth. If your brand can begin a conversation, motivate people to discuss a topic and hold your brand at the centre of that conversation, especially if it’s a positive conversation, it can make your brand a household name. Harnessing the power of social media to spread the word about your brand requires careful tactics. While there is an element of organic brand recognition, you need to be intentional about what that conversation will be.

According to one study, 92% of people trust recommendations from friends and family over any other type of advertising. When your brand can build trust through the use of testimonials, social media and referrals, you will see a significant increase in sales. When people can associate your brand with quality and dependability, they will make purchases without the same hesitation and consideration they might for an unknown brand.

By developing a Facebook Group, having YouTube influencers talk about your brand, and getting name-dropped on podcasts, your brand can be part of consumer conversation and trust is developed for there.

Organic Word of Mouth vs. Amplified Word of Mouth

Word of mouth marketing is expressed in two forms; organic and amplified.

  • Organic word of mouth is the natural brand recognition that occurs when people become advocates because they are happy with a product and have a natural desire to share their support and enthusiasm.
  • Amplified word of mouth is when marketers launch campaigns to encourage or accelerate talk in a new market or region.
  • A recent report found that 92% of consumers believe suggestions from friends and family more than advertising.
  • 88% of people trust online reviews and testimonials as much as they trust recommendations from personal contacts.
  • And 74% of consumers identify word of mouth as a key influencer in their purchasing decisions.
  • Only 33% of businesses actively seek out and publish reviews.
  • Researchers found that a 10% increase in word of mouth publishing translates into between 0.2 – 1.5% sales increase.

If you don’t use reviews, testimonials and social media conversation to help improve your brand recognition, you are missing out on sales. It is an important aspect of any effective social media strategy and overall marketing campaign.

However, a word of mouth campaign can take time to prove results. Your aim is to begin a conversation and to control the direction of that conversation. This means investing time in online, managing social media channels, responding online and redirecting criticisms to reflect positive feedback and changes that your brand will accept and changes it would make, or approvals that it will maintain and promises that your brand looks to keep.

The Advantages of Word of Mouth Marketing:

  • Sales growth at reduced marketing costs: Many brands rely on WOM rather than advertising to spread their name and reputation.
  • Tribal or communal identity: WOM marketing relies on its customers wanting to be part of a group, an exclusive club, that spreads the word about their brand. Highly engaged customers buy more often and make recommendations to their friends more often.
  • Greater investment: Brands with high customer lifetime loyalty attract more angel and venture funding. Customer Acquisition Cost to Lifetime Value is considered one of the most important aspects of a healthy business model in the early days of a company’s lifecycle.

The advantages of WOM marketing far outweigh the effort of controlling conversations. It is vital that you have a dedicated person or team, depending on the size of your business. To manage your brand and ensure that when people talk about your brand, it is in a way that inspires trust, loyalty and confidence.

Brand trust

  • Up to 75% of people don’t believe adverts, while 90% trust suggestions from family and friends and 70% trust consumer reviews.

Brand loyalty

  • It costs on average five times more to acquire a new customer than keep a current one.
  • On average, a 5% increase in customer retention can boost a company’s profitability by 75%.


  • To start the brand buzz, you need to have impartial people talking about your brand in the media and on social networks.
  • You need to make your brand known by delivering on your brand values and always focusing on your USP.