Definition of Word-of-Mouth Marketing Strategy

Word-of-mouth marketing strategy refers to the process of promoting a product or service through organic conversations and recommendations among individuals, often driven by satisfied customers. This form of marketing harnesses the trust factor of personal relationships and encourages the spread of awareness through social networks, online reviews, and personal testimonials. As a powerful and cost-effective approach, it heavily relies on creating positive customer experiences that ignite the desire to share and recommend.


In the International Phonetic Alphabet (IPA), it would be represented as:/ ˈwɝːd-əv-‘maʊθ ‘mɑrkɪtɪŋ ‘strætədʒi/

Key Takeaways

  1. Word-of-mouth marketing relies on creating exceptional customer experiences and products that naturally prompt customers to share their positive opinions with their social circles.
  2. Incentivizing and empowering customers to become brand advocates is a crucial strategy in word-of-mouth marketing, leveraging the trust and credibility that personal recommendations carry.
  3. Monitoring and amplifying positive feedback through social listening, user-generated content, and testimonials are all effective methods to further improve the reach of word-of-mouth marketing.

Importance of Word-of-Mouth Marketing Strategy

The Word-of-Mouth Marketing Strategy is important in digital marketing because it harnesses the power of personal recommendations and organic discussions among consumers, resulting in increased brand awareness, credibility, and consumer trust.

As people are more likely to take action based on suggestions from friends, family, or online reviews, this cost-effective strategy can lead to higher conversion rates and customer retention.

With the expanding influence of social media, engaging with key influencers or satisfied customers further amplifies the reach and impact of the word-of-mouth marketing efforts, ultimately fostering customer loyalty and driving business growth.


The purpose of Word-of-Mouth Marketing Strategy is to harness the power of personal recommendations and spontaneous conversations to promote a brand or its offerings effectively. This strategy aims to create an organic buzz around a product, service, or organization and tap into the credibility and influence that consumers have on their peers.

By encouraging satisfied customers to share their positive experiences, brands can generate trust, increase brand exposure, and foster brand loyalty. In essence, Word-of-Mouth Marketing Strategy employs the human tendency to share personal opinions and experiences to augment a brand’s marketing efforts and foster growth.

Word-of-Mouth Marketing Strategy is utilized by companies to strengthen their relationship with customers and establish themselves as credible sources in their industry. Through various tactics such as referral programs, influencer partnerships, and user-generated content, brands actively engage with their target audience and create opportunities for them to share their experiences.

Social media platforms also play a crucial role in amplifying the impact of word-of-mouth, enabling brands to reach an even wider audience and track the results of their strategy. In today’s digital age, where consumers are bombarded by advertisements and marketing messages, an effective Word-of-Mouth Marketing Strategy helps brands stand out from the competition by leveraging the power of authentic and relatable consumer-to-consumer interactions.

Examples of Word-of-Mouth Marketing Strategy

Tesla Motors: Tesla is an excellent example of word-of-mouth marketing success. With minimal traditional advertising, the electric car manufacturer relies heavily on satisfied customers sharing their experiences with friends, family, and on social media. Tesla’s high-quality, innovative vehicles, and their outstanding customer service have contributed to a loyal customer base who enthusiastically recommend the brand.

Dropbox: Dropbox, a popular cloud storage and file synchronization service, used word-of-mouth marketing to grow its user base significantly. They implemented a referral program that rewarded both the referrer and the referred by offering them additional free storage space. This encouraged users to share and recommend the service to their friends and colleagues, resulting in rapid growth in their user base and establishing Dropbox as a leading player in cloud storage solutions.

Airbnb: Airbnb, which offers an online marketplace for people to rent and book lodgings, has greatly benefited from word-of-mouth marketing. Satisfied customers who have had positive experiences with Airbnb hosts often share their stories with friends, family, and through social media. In addition, Airbnb’s unique referral program incentivizes users to invite their friends to join the platform by offering travel credits for each new user they bring in. This strategy has helped Airbnb attract millions of users and become a dominant force in the travel industry.

FAQ: Word-of-Mouth Marketing Strategy

1. What is Word-of-Mouth Marketing Strategy?

A Word-of-Mouth Marketing Strategy is a planned approach to generate organic recommendations and positive impressions about your products or services amongst consumers. It relies on creating a strong connection with customers by providing excellent experiences, thereby encouraging them to share their experiences and promote your brand to others.

2. How does Word-of-Mouth Marketing differ from traditional advertising?

Traditional advertising often uses paid media to promote a brand or product. Word-of-Mouth Marketing, on the other hand, relies on the positive experiences of satisfied customers who become brand advocates, driving promotion through their personal networks, resulting in a more genuine and trustworthy source of promotion.

3. Why is Word-of-Mouth Marketing important?

Word-of-Mouth Marketing is important because people trust recommendations from friends, family, and colleagues more than traditional advertising. It helps in building brand reputation, increasing brand recognition and, ultimately, driving sales. Additionally, satisfied customers also have a higher rate of retention and loyalty towards the brand.

4. How can I encourage customers to share their positive experiences?

Some ways to encourage customers to share their positive experiences include offering exemplary products or services, providing exceptional customer service, engaging with customers on social media, creating incentive programs such as referral discounts or bonuses, and leveraging user-generated content for marketing campaigns.

5. How can I track the success of my Word-of-Mouth Marketing Strategy?

Success of Word-of-Mouth Marketing Strategy can be tracked through various metrics, such as monitoring social media mentions, online reviews, referral program sign-ups, website traffic from customer referral links, and customer satisfaction survey responses. Additionally, increased sales and customer retention rates can also be an indicator of a successful Word-of-Mouth Marketing strategy.

Related Digital Marketing Terms

  • Influencer Marketing
  • Referral Programs
  • Online Reviews
  • Social Media Engagement
  • User-Generated Content

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