What is word of mouth marketing

ROI insights

Word of mouth marketing is, quite simply, when people recommend your business to others. It’s one of the oldest, and still most powerful, forms of marketing available to Australian SMEs. Forget flashy ads for a moment – a genuine recommendation from a friend, family member, or even a colleague carries far more weight. We see it consistently outperform paid advertising when it comes to conversion rates and customer lifetime value.

It’s not about *making* people talk about you (though we can certainly influence that!). It’s about creating an experience so good that people naturally want to share it. Think about the last time you had exceptional service at a local café, or a product that genuinely solved a problem. Did you tell someone about it? That’s word of mouth in action.

Here are a few key insights to help you leverage word of mouth:

  • Focus on exceptional customer service: This is the foundation. Every interaction a customer has with your business is an opportunity to create a positive impression. Happy customers are your best advocates.
  • Encourage reviews and testimonials: Actively ask satisfied customers to leave reviews on platforms like Google Business Profile, Facebook, or industry-specific review sites. Testimonials on your website add social proof.
  • Create shareable experiences: Think about what makes your business unique and memorable. Can you offer something that people will want to talk about and share with their networks? This could be a unique product, a fun event, or a particularly helpful service.
  • Leverage referral programs: Incentivise existing customers to refer new business. A simple discount or reward can be incredibly effective.

In today’s connected world, word of mouth isn’t limited to face-to-face conversations. Social media amplifies these recommendations, reaching a much wider audience. Monitoring social channels for mentions of your brand – both positive and negative – is crucial. Responding to feedback, and addressing concerns promptly, demonstrates that you value your customers and are committed to providing a great experience.

Ultimately, successful word of mouth marketing isn’t about a single campaign; it’s about building a business that people genuinely love. By prioritising customer satisfaction and actively encouraging positive feedback, you can unlock a powerful and cost-effective growth engine for your business. Your next step should be to audit your current customer journey and identify areas where you can improve the experience and encourage advocacy.

The bottom line

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