What is Word of Mouth Marketing?

Dec 1, 2021
7 minute read
Confident young woman uses a white board practice word of mouth marketing

Sometimes referred to as inbound marketing, word of mouth marketing is an advertising technique that helps improve customer retention, drive traffic to your business, and reduce the cost of customer acquisition. The average person tends to trust a positive review from a satisfied customer more than they trust traditional marketing through paid advertisement. But how do you make use of this type of marketing for your business? We’re going over everything you need to know about word of mouth advertising, including our top eight tips to build your own word of mouth marketing campaign for your small business.

Understanding word of mouth marketing

The term “word of mouth” refers to when a current customer of a brand gives a personal recommendation based on their positive experience. This could include a friend telling you about an amazing product they just bought, or it could be a social media post from someone you follow on Instagram. Either way, their unbiased word of mouth recommendation comes across as more genuine and trustworthy than a company’s paid advertisements, because they have no motive for giving a positive review.

The difference between regular word of mouth and a targeted word of mouth marketing strategy is that the former is an unplanned interaction with a previous customer, whereas the latter is an intentional form of promotion that actively encourages and incentivizes customers to spread the word about a brand.