How Important Is Word-of-Mouth Advertising, and How Can a Loyalty Program Help to Promote It?

How Important Is Word-of-Mouth Advertising, and How Can a Loyalty Program Help to Promote It?

How Important Is Word-of-Mouth Advertising, and How Can a Loyalty Program Help to Promote It?
How Important Is Word-of-Mouth Advertising, and How Can a Loyalty Program Help to Promote It?

When was the last time you interacted favourably with a business and felt compelled to tell your friends about it? It can have been a brand-new eatery that debuted or a gadget you bought. Word-of-mouth marketing is motivated by the desire to share something with friends.

Because of the way they make their clients feel, businesses gain their loyalty. The most effective instrument for marketing your organisation is a satisfied, engaged customer base. Customers today are influenced by a wide range of sources: they read online reviews, look at their friends’ social media updates, and eventually purchase from businesses they are familiar with or have heard of, but most crucially, from businesses they can trust.

Using loyalty programmes can help you take advantage of word-of-mouth advertising. Additionally, clients will be even more motivated to spread the word about your good or service if they receive anything in return.

Word-of-Mouth Marketing: What Is It?


The organic dissemination of information about your company, its goods or services is known as word-of-mouth marketing. It occurs when a customer expresses interest in your goods or services in casual talks. Word-of-mouth marketing is a free kind of promotion that is brought about by the experiences of the customer, usually by something unexpected.

You can encourage consumer discussion by exceeding their expectations or giving them access to insider information about your product. Excellent customer service gives clients the impression that the business is paying attention to them, which fosters a stronger emotional connection. A single word-of-mouth impression can be worth anywhere between 5 and 100 times more than a bought media impression.

What Benefits Does Word-of-Mouth Marketing Provide?


Because word-of-mouth marketing allows you to reach a huge audience with positive testimonials about your product or service, many businesses perceive it as the most effective kind of advertising. Word-of-mouth marketing is a cost-effective way to reach clients and helps you establish trust. It’s also one of the best ways to advertise in terms of increasing sales, brand loyalty, and recognition.

71% of individuals are more likely to make a purchase based on recommendations from friends and family and on social media. For millennials in particular, who are influenced by word-of-mouth marketing 115% more than by conventional advertising, this is particularly true. This means that people are significantly more likely to buy when they hear their friends or family members gushing about a particular brand. This implies that your current customer base is your most valuable marketing asset.

Word-of-mouth marketing has the potential for exponential development with each sharing, repost, or retweet. Sales can increase without spending money on advertising. A loyalty programme can help because individuals are 5X more likely to suggest your goods to their friends and family when they had a positive shopping experience.

How to Make Advocacy Valuable


How then can you persuade clients to assist you? Promote word-of-mouth advertising by rewarding client behaviour with a loyalty programme:

Offer customers points for posting reviews, but make sure they can only do so once they have made a purchase.

Promote client participation in social media competitions by awarding prizes to the winners.

Add some spice to your friend referral programme by offering appealing incentives like free gifts or deeper discounts.

Establish VIP tiers with exclusive benefits for brand ambassadors and influencers.

Promote social media activity by rewarding followers and content sharers who support your business.

Activate the Word-of-Mouth Marketing Power


Marketing through word-of-mouth is less about creating clever viral content. It’s more about providing incredible value that people can’t help but spread to others. Being considerate and attentive to your consumers will pay off. When you provide outstanding service and demonstrate appreciation, word spreads. Customers that are consistently satisfied become ardent supporters of your business.

There are relatively few other marketing tactics that can compete with word-of-mouth marketing’s viral potential and cost effectiveness. The next time you organise a product launch or email campaign, think about including word-of-mouth marketing. To ignite the flame in your subsequent campaign, employ the aforementioned tactics.

Our professionals will be pleased to go over your options with you if you need help choosing the ideal loyalty programme for your business. Simply schedule a demo or mention us in your RFP.

For more information on how to create and implement successful loyalty programmes till then, read our comprehensive guide.


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