The Power of Word-of-Mouth
Marketing’s Unparalleled Tool
Since ancient times, history, music, and cultural rituals were passed along via word of mouth. Why is that? Research proves that narratives activate oxytocin, which helps the narrator grab the audience. Word of mouth also carries the credibility of the speaker. It establishes trust with the audience and makes them comfortable with the decision. When we hear facts, only two parts of the brain are active, as against five+ when we hear a story or experience by a person, which makes it more engaging. No wonder “Word of mouth” is the most engaging marketing tool.
In an age of rapid digital transformation and advancements in marketing techniques, it may surprise many that the oldest form of advertising, word-of-mouth, continues to be the most impactful. Despite the ubiquity of social media promotions, SEO, and programmatic advertising, word-of-mouth marketing remains undefeated in brand promotion.
Firstly, word-of-mouth marketing is built on the foundation of trust, which most other forms of advertising inherently lack. Customers are more likely to buy a product recommended by a friend, family member, or trusted influencer rather than rely solely on advertisements. In fact, according to Nielsen, 92% of people trust recommendations from people they know over any other type of advertising.
For example, the smartphone app Clubhouse, which skyrocketed to fame primarily due to word-of-mouth marketing. When industry leaders like Elon Musk began participating in and endorsing the app, the buzz rapidly spread, boosting user growth. Similarly, sales soared when the Duchess of Sussex, Meghan Markle, publicly professed her love for Rothy’s sustainable footwear. The allure of the product had not only been validated by a celebrity but by a royal, no less, thereby adding to the intrigue and exclusivity.
Word-of-mouth also has a powerful ripple effect. A single product endorsement can cause a chain reaction, amplifying the reach beyond initial projections. Kylie Jenner’s lip kit offers an excellent example. Her influential social media persona led to an unprecedented demand for the product, which consistently sold out within minutes of restocking. Word-of-mouth quickly spread, turning lip kits into a cosmetic phenomenon.
An endorsement, especially from a celebrity or influential figure, can be a powerful catalyst for a brand. However, the associated person’s reputation and credibility are tied to the product. Hence, it is vital to choose endorsers who genuinely align with the brand’s values, enhancing the authenticity of the endorsement. A mismatch could lead to the erosion of customer trust and damage the brand’s image.
Another great example that comes to mind, which connects both Word of Mouth tactics with digital, is: In India, where WhatsApp has over 400 million users. The platform has become a significant vehicle for word-of-mouth marketing.
Khadi and Village Industries Commission (KVIC) is a government organization in India that promotes the sale of handmade items. During the COVID-19 pandemic, when retail outlets were shut due to lockdowns, KVIC resorted to WhatsApp to promote and sell ‘Khadi’ face masks.
The effort proved highly successful, as the product quickly gained popularity due to its indigenous roots and eco-friendly nature. The word spread rapidly across numerous WhatsApp groups, leading to an overwhelming response from the public. Within a few months, KVIC could sell more than 10 million masks.
As an easy-to-use and widely-adopted platform in India, WhatsApp’s potential for facilitating effective word-of-mouth marketing is truly considerable.
While word-of-mouth is a potent tool, it should be part of a balanced marketing strategy. Marketers should strive for organic, authentic endorsements and structured promotional campaigns to achieve sustainable growth. A holistic approach that respects customer intelligence cherishes their trust, and delivers value will ultimately win the day.
However, marketers must remember that word-of-mouth can have positive and negative effects. Just as good news travels fast, so does bad news. This is particularly true in the age of social media, where a single negative comment can quickly escalate into a damaging trend.
Word-of-mouth marketing leverages the trust inherent in personal relationships and the influence of known figures to promote brands and products. While technological innovations continue to revolutionize marketing, the human connection and endorsement offered by word-of-mouth stand unparalleled, proving that sometimes, the most effective methods are the oldest.
