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How to Use Word of Mouth Marketing to Grow Your Business

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Fife
How to Use Word of Mouth Marketing to Grow Your Business

Word-of-mouth marketing (WOMM) is a form of marketing strategy that is under-utilized by businesses and brands. Word-of-mouth marketing offers strong personal appeals to potential customers via established clients.

WOMM requires a business to leverage on customer experiences in a product or service as expressed in their daily conversations. This form of marketing is essentially free and at no cost to the business. Most times, customers whose expectations were surpassed are always ready to provide recommendations and buzz for such businesses.

An example of a major brand that utilizes WOMM is Tesla. Have you ever watched a Tesla ad on TV? No. This ensures they spend no money on paid ads or endorsement deals. Elon Musk, the CEO of Tesla is the biggest face of the brand and helps increases the brand’s visibility in the same manner in which Tesla owners are always proud to show off their product.

Coca-Cola is another brand that has leveraged on the effectiveness of WOMM to mitigate several market shifts and stay at the top of the soft drink market. The company uses different strategies of encouraging its customers to help spread it messages. An example is its “Happiness Machines” where customers get a free coke in exchange for hugging, dancing or performing other antics for the machine.

How to utilize Word-of-mouth marketing for Your Business

Word-of-mouth marketing may sound simple and straight forward, but the truth is it takes time and consistent effort to apply it effectively to your business. 

• The golden rule is to always deliver high-quality service to every customer. Since WOMM depends on the word of your customers, having the best service delivery system helps increase their disposition to recommending your brand. The more effective your customer service gets, the more effective your chances of benefiting from word-of-mouth marketing. 

• Putting in considerable amount of effort and time to understand your customers might keep them coming back. Information like: audience location, demography, behaviour and the likes can help you tailor your business more effectively. 

• The above process will help you attain a level of trust with your customers. This is essential for WOMM. A trusted business is easier to recommend to others. Remain true, consistent and transparent to your brand’s core values in all your promotions.

• Offering an incentive is one way to increase customers’ zeal in performing WOMM. Incentives serve as a means of encouraging your customers to take time out of their schedule to help promote your business. An incentive could be a discount, a free product, extension of service or even social badges.


Pros of Word-of-mouth marketing

• Word-of-mouth marketing serves as a free means of marketing to business. While WOMM is free, it requires developing a strong customer relationship with your clients. Once this is achieved, you can leverage on their word of mouth promotions to help expand your business. 

• Of course, every business aim is to increase its profit margin, and one way to attain that is to increase sales. Word-of-mouth marketing helps you generate extra sales via free referrals from your customers.

• WOMM has the potential to become a viral promotion for your business. Having an influential client to perform WOMM for your business can help generate buzz around your brand. This, in turn, creates awareness for your business and drives more potential clients to you.

Certainly, Word-of-mouth marketing is a cost-effective manner of creating awareness and growth for your business. Unfortunately, not everyone utilizes this method of impressive marketing strategy. If it’s good for companies like Tesla, Coca-Cola, and Apple Inc., it’s definitely good for your business. All it requires is for you to provide products with amazing usefulness and value that your customers can’t resist sharing with their friends, family and colleagues.



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Why Stanbuzz?

Last year, about $380 Billion was spent on online advertising by brands all over the world. Up to $150 Billion of that money did not generate the desired result for the brands that paid for them. That’s a lot of money spent without returns.

To put it into perspective, Nigeria’s 2020 budget was $35 Billion. So people wasted up to 4 years' worth of Nigeria’s budget on ineffective advertising in 2020 alone.

If nothing changes, by 2024, $240 Billion will be wasted on advertising, without getting results. Money gone like that, pooooof!

That’s why we have come in to save the day.

We asked ourselves, “what can we do to reduce this money being wasted on adverts without results?”

A lot of things came to our minds, at least 20 solutions. But can we really offer all those 20 solutions from day 1?  No.

So we said, “even though we will work on all the solutions to reduce this money being wasted on advertising, we can start with 3 things and then extend to other things.”


1. If people learn how to market better, they will waste less money - a lot of people waste their advert budget because they have no knowledge about how best to allocate it to get results. So we thought, “let’s start from here; let people be able to enrol into our world-class trainings that can teach them practical ways to be more effective with their adverts”.

2. If people can find trusted experts to market for them, they will waste less money - Some people don’t really want to learn to market by themselves, they just need a good, reliable, trustworthy person that won’t rip them  off and knows their onions. We said, “if we can help clients find those people by screening them and being sure of their proven abilities, then we can make advertising more efficient.”

3. If people can find experts to advise them, they will waste less money - Some people just need a one-hour call with an expert to get super clarity on their marketing strategy. Some may just want an expert to spend some time with their marketing team, and we know this will help reduce advert spend waste.


But that’s not all. There are many more things we are working on; because to be able to achieve our goal of reducing advert spend inefficiency, we need to consider several factors as it is not a one-size-fits-all operation. We are aware of this and are working on it at Stanbuzz.

Our goal again...

To greatly reduce advert spend inefficiency and to make the internet’s advert experience so much better.