Marketers and business owners are always looking for new ways to reach their target audience and get them ahead of their competitors. And so, you've probably heard of word-of-mouth marketing—digital word-of-mouth marketing?
Basically, it's when people use the internet to talk about your brand or product. This can include things like online reviews, social media posts, and even private messages between friends.
Digital word-of-mouth is a powerful tool to help you reach new customers and grow your business. In this post, we'll take a closer look at digital word-of-mouth and how you can use it to your advantage.
What is Digital Word-of-Mouth Marketing?
Digital word-of-mouth is very similar but brings one additional, potent component:
- Strong Referral
- Social Proof
- Warm Lead
- Human
- Digital = Reach
Digital word-of-mouth contains the same essential components as traditional word-of-mouth. The main difference is reach.
With the growth of technology and platforms designed to share information, digital word-of-mouth can have a much greater reach than one-to-one, traditional word-of-mouth. For example, if I have my house painted and tell my neighbor what a great job the painter did, that is a one-to-one word-of-mouth referral. However, if I post on my neighborhood Facebook page, that recommendation will go much broader and become a one-to-many word-of-mouth recommendation. The reach has now extended beyond my neighbor and to my entire neighborhood.
Benefits of Word of Mouth Marketing
Word-of-mouth marketing is a powerful way to build trust and grow your business without a massive advertising budget. It thrives on authenticity and customer satisfaction. Here are the key benefits:
People Trust Recommendations
Most of us turn to friends, family, or even online reviews when making a decision. That's because we trust real experiences more than traditional ads. When someone shares a positive story about your business, it builds credibility and trust in a way that advertising often can’t.
It Doesn’t Cost Much
Unlike paid ads, word of mouth doesn’t require a big budget. When customers are happy, they naturally tell others. That kind of genuine, unpaid promotion can go a long way without adding to your marketing spend. This shows how marketing is a powerful tool even without a large investment.
It Brings in Ready-to-Buy Customers
Think about it—if someone recommends a service to you, you’re more likely to check it out. These referrals usually come from people who understand your needs, which makes you more likely to take action. It’s one reason why word-of-mouth leads often convert better than others.
It Builds Loyalty
When customers feel valued and have great experiences, they often come back—and they don’t come alone. They bring friends, family, and even online followers. That loyalty can turn into a network of people who keep spreading the good word about your brand.
Social Media Spreads the Word Fast
These days, a great customer experience can be shared with hundreds of people in seconds. A post, tweet, or review can quickly reach far beyond the original person, giving your business more exposure without any extra effort.
It Boosts Your Online Visibility
Every time someone leaves a review, shares a post, or talks about your brand online, it helps more people find you. Search engines pick up on these signals, which support your SEO and content marketing efforts over time. It’s one reason why marketing is important in shaping how you're discovered online.
It Shapes How People See Your Brand
What people say about your business becomes part of your brand’s story. When that story is positive and consistent, it reinforces your identity and helps you stand out from competitors.
Examples of Word-of-Mouth Marketing
Here are some standout examples across different approaches:
1. Dropbox – Referral Program
Dropbox grew rapidly by encouraging users to refer friends in exchange for more storage space. This simple referral model turned users into promoters and helped the company grow from 100,000 to 4 million users in just 15 months.
2. Tesla – Owner Ambassadors
Tesla doesn't rely heavily on traditional advertising. Instead, it encourages enthusiastic customers to share their experiences. Owners often give test drives to friends or post about their vehicles on social media, creating natural, high-trust word of mouth.
3. Apple – Product Launch Hype
Apple consistently generates buzz through sleek product launches and strong brand loyalty. Customers often share their experiences online or line up for new releases, creating excitement that amplifies through digital word of mouth.
4. Airbnb – Community Stories
Airbnb shares real user stories and experiences across its platforms, creating relatable, authentic content. These stories encourage others to try the service and are often shared on social media and review sites, expanding reach organically.
5. Glossier – Customer Advocacy
Glossier built its brand largely through customer reviews and social media mentions. They actively repost customer content and encourage sharing, turning users into brand ambassadors and driving massive growth without large ad spend.
6. Starbucks – Personalized Cups and Social Sharing
By writing customer names on cups and creating an Instagrammable experience, Starbucks encouraged customers to post photos of their drinks. This user-generated content helped spread brand awareness through personal networks.
7. Trader Joe’s – In-Store Experience
Trader Joe’s is known for its quirky culture and friendly staff. Shoppers often share their positive in-store experiences and product finds online, helping the brand grow largely through word-of-mouth and community buzz.
Who Needs Word of Mouth Referrals?
All businesses can benefit from word-of-mouth referrals. For those industries where trust is a critical component of the customer relationship, it must be a big part of their marketing strategy. Businesses that provide technical, legal, financial, and medical services need a strong word-of-mouth strategy to reach prospects and potential future customers.
Why is Word of Mouth Advertising Important?
We humans have psychological biases that tell us that a great way to make a decision is to look at the decisions of others. Think back to any time you were shopping for a new TV or car; if you've done this in the last ten years, then for sure you looked at Google and YouTube for what others were saying about the items you were shopping for.
As social creatures, we humans trust others and follow their recommendations. According to Semrush, 90% of people are more likely to trust a recommended brand, even when that recommendation comes from a stranger! In addition, Word-of-mouth is even more effective than paid ads, resulting in 5X more sales, and word-of-mouth comes first before Facebook, Google, or Twitter.
Traditional vs Digital Word of Mouth Marketing
Traditional Word-of-Mouth Marketing
How It Works:
In traditional WOMM, recommendations are shared directly between individuals, whether in person, over the phone, or through personal letters. This is how customers often spread the word about a positive experience with a product or service.
Key Features:
- One-to-One Communication: WOM happens in a small circle, often between family members, friends, or colleagues.
- Private and Personal: The conversations are typically private and not visible to a wide audience.
- Slow Reach: Traditional WOM spreads gradually, depending on the trust between the individuals involved. It often takes time to reach a broader audience.
- Limited Impact: While personal, the reach of traditional WOM is confined to immediate social circles and is often restricted to those who are directly involved in the conversation.
Example:
You tell a friend about a new restaurant you tried, and they decide to go based on your recommendation. This is the essence of traditional WOM.
Digital Word-of-Mouth Marketing
How It Works:
With digital WOMM, recommendations are shared on a much larger scale through platforms like social media, online reviews, blogs, forums, and video content. Here, individuals can reach hundreds, thousands, or even millions of people with a single post or message.
Key Features:
- One-to-Many Communication: A single post, review, or comment can reach a global audience. Social media platforms, review websites, and blogs amplify word-of-mouth messages far beyond personal circles.
- Public and Shareable: Unlike traditional WOM, digital WOM is visible to anyone with access to the internet. People can share content, reviews, and experiences, making the message more impactful.
- Instant Reach: Digital WOM spreads quickly and broadly, with the potential to go viral, especially when content resonates emotionally or aligns with trending topics.
- Scalable Impact: Through likes, shares, retweets, and comments, digital WOM can generate a ripple effect that far exceeds the limited reach of personal recommendations.
Example:
A customer shares a glowing review of a product on Instagram, tagging the brand. Their followers see the post, and some decide to purchase the product based on the recommendation. The brand’s reach expands beyond the customer’s circle to a global audience, impacting more potential buyers.
What is the Digital Version of Word of Mouth Marketing?
Key Forms of Digital Word-of-Mouth Marketing:
Online Reviews and Ratings
Platforms like Google, Yelp, TripAdvisor, and Trustpilot let customers publicly rate and review businesses. These reviews influence potential buyers and are a strong trust signal in search engines.
Social Media Mentions
When customers tag your business in posts, share photos of your products, or comment about your services on platforms like Instagram, Facebook, X (formerly Twitter), or TikTok, they amplify your brand to their networks.
Influencer Marketing
Influencers—people with large or niche online followings—share products they love, providing high-reach, high-trust digital referrals. While often paid, this still counts as a form of word-of-mouth due to the personal endorsement style.
User-Generated Content (UGC)
Customers sharing content (photos, videos, stories, testimonials) related to your brand helps create authentic, relatable marketing. Brands often reshare this content to boost credibility.
Referral Programs
Digital referral systems (like Dropbox’s model) incentivize customers to refer others online, tracking referrals and often rewarding both the referrer and the new customer.
Forums and Communities
Platforms like Reddit, Quora, and specialized online forums are hot spots for unsolicited brand mentions. When people ask for recommendations, others often chime in with personal experiences.
Word of Mouth vs Digital Marketing
In the age of digital marketing, businesses often find themselves at a crossroads: should they rely on traditional word-of-mouth marketing or embrace the opportunities presented by digital word-of-mouth marketing channels? Let's explore the key differences between these two approaches.
Word of mouth, rooted in personal recommendations and interpersonal communication, has long been a trusted method for businesses to build reputation and trust. On the other hand, digital marketing leverages online platforms and technology to reach a wider audience and engage potential customers.
While the power of word-of-mouth marketing creates genuine connections, digital marketing offers scalability and the ability to measure and analyze your marketing campaign performance. Striking the right balance between these two strategies is crucial for a comprehensive marketing approach in today's digital landscape.
What Counts as Word of Mouth Marketing?
From a business perspective, digital word-of-mouth referrals bring you:
- Strong Referral
- Social Proof
- Warm Lead
- Human
This will be a strong referral for you, your business, and your products/services to a prospect on your behalf in the world of mouth digital playground. It provides social proof for your business to that prospect from someone they trust. Word-of-mouth generates a warm lead for your business since the prospect is already predisposed to hear what you have to say.
Most of all, word-of-mouth is human—we are communicators. People love to share information and help each other. Traditional word-of-mouth operates on a one-to-one basis.
How to Do Word of Mouth Marketing
1. Deliver Remarkable Customer Experiences
People talk about what stands out. Go beyond expectations in service, quality, or convenience.
- Surprise-and-delight moments (e.g., handwritten thank-you notes, unexpected upgrades)
- Fast and responsive customer service
- Consistent product/service excellence
2. Ask for Reviews and Testimonials
Encourage happy customers to share their experience publicly.
- Request Google reviews, especially after a successful purchase or service
- Make it easy to leave feedback (links in emails, thank-you pages)
- Showcase testimonials on your website and social media
3. Create a Referral Program
Turn satisfied customers into brand ambassadors with rewards or recognition.
- Offer discounts, freebies, or loyalty points for referrals
- Use easy-to-share referral links
- Track referrals to measure success
4. Leverage Social Media
Make your brand share-worthy and engage with your community.
- Post relatable, valuable, or emotional content that encourages shares
- Engage with comments and mentions—make customers feel seen
- Encourage user-generated content with hashtags or campaigns
5. Partner with Influencers or Advocates
Influencers and niche thought leaders can expand your reach authentically.
- Collaborate with influencers aligned with your brand values
- Encourage employees or loyal customers to become micro-influencers
6. Encourage User-Generated Content (UGC)
Ask customers to share photos, videos, or stories about your product.
- Run UGC contests or social challenges
- Feature customer content in your feed, newsletters, or website
7. Build a Community Around Your Brand
Foster a space where customers feel they belong and want to contribute.
- Create forums, Facebook Groups, or membership clubs
- Offer sneak peeks, insider info, or early access to products
8. Be Consistently Share-Worthy
Make everything from your packaging to your messaging memorable.
- Use creative branding and storytelling
- Add visual and emotional elements that make people want to share their experience
9. Monitor and Respond
Use social listening tools to track brand mentions and respond in real time.
- Thank positive mentions
- Address negative feedback to show responsiveness and care
How to Measure Word of Mouth Marketing
Net Promoter Score (NPS)
What it is: A simple survey that asks customers how likely they are to recommend your business to others on a scale of 0–10.
Why it matters: It’s a direct indicator of customer satisfaction and referral potential.
Online Reviews and Ratings
What to track:
- Volume of new reviews on platforms like Google, Yelp, or Trustpilot
- Average star rating over time
- Sentiment analysis (positive vs. negative feedback)
Tools: Google My Business, ReviewTrackers, Yext, Birdeye
Online Reviews and Ratings
What to track:
- Volume of new reviews on platforms like Google, Yelp, or Trustpilot
- Average star rating over time
- Sentiment analysis (positive vs. negative feedback)
Tools: Google My Business, ReviewTrackers, Yext, Birdeye
Performance of Referral Programs
What to track:
- Number of referrals made
- Conversion rate of referred leads
- Lifetime value of referred customers
Tools: ReferralCandy, Friendbuy, Postscript, custom CRM tracking
User-Generated Content (UGC) Metrics
What to track:
- Number of user-created posts and shares
- Engagement on shared UGC (likes, shares, comments)
Tip: Repost high-performing UGC to extend its reach.
Branded Search Volume
If more people are searching for your business by name, it’s often due to positive word of mouth.
Tools: Google Search Console, Google Trends, SEMrush
Customer Acquisition Source
What to track:
- Ask “How did you hear about us?” in lead forms or post-purchase surveys
- Attribute conversions to WOM when cited directly
What Can You Do to Get More Word-of-Mouth for Your Business?
1. Ask (and Ask Again!)
Studies have found that 87% of consumers are willing to refer a business. As a business owner, make it a habit to ask your customers for referrals and reviews of your business once they complete a purchase decision with you. Building customer trust is crucial. If you don't receive a response, ask again.
Your customers are busy and may forget your request—don't be afraid to remind them. Remember that your customers invested in you and want you to succeed. They are statistically likely to give you referrals to help your business grow.
2. Be Easy to Refer
Make it easy for your customers to refer you to others. The number one way to do this is to do a great job, make a great product, or provide excellent service. If something goes wrong or a mistake is made—own it and do your best to fix it. Perhaps help a busy customer by providing a couple of sentences or paragraphs that capture what your customer would say. Ask them if they would use that to post a review or if you could use it on your website.
Taking notes of what your customers say about you when you talk with them allows you to help them use their own words to help you grow your business.
3. Circle Back - Send Thanks and Follow Up
This is hugely important in the world of word-of-mouth digital marketing. Always thank your customers for their reviews, referrals, and testimonials. Your customers are spending the time and effort to do something for you, so make sure they know you appreciate it. If a referral turns into business for you, follow up with the person who referred them to you. Let them know that they gave you a good referral. People want to help you, and they will be pleased to know they were able to connect two people who were a good fit.
The fact that someone they referred will also do business with you validates their good decision to work with you.
So, to recap, the ABCs of word-of-mouth referrals are:
- Ask (and ask again!)
- Be easy to refer
- Circle Back – send thanks and follow up
This approach not only applies to traditional word-of-mouth but is equally relevant in the context of digital marketing word of mouth.
AI-Driven Predictive Analytics for Word-of-Mouth Trends
AI-powered predictive analytics can analyze vast amounts of data and identify patterns in how word-of-mouth marketing is evolving. By tracking sentiment shifts, customer interactions, and emerging trends, AI can predict which products or services are likely to gain traction and generate buzz in the near future. This can help businesses stay ahead of the curve and focus their efforts on the most promising opportunities before the competition catches on.
- Example: Coca-Cola could use AI-powered predictive analytics to identify which flavors or products are generating positive chatter across social media and online communities, allowing them to accelerate marketing campaigns for those products before they go viral.
Request your preliminary AI assessment to see how AI can help you stay ahead of trends and optimize your word-of-mouth marketing efforts.
Wrapping Up
Word-of-mouth hasn't changed all that much with the evolution of the digital realm. As humans, we are still communicating with each other, only now it involves more tech and social media. Nevertheless, businesses still depend on word-of-mouth, and in the digital age, positive word-of-mouth can be a powerful way to grow.
And, of course, if you want help putting together an effective digital word of mouth referral marketing program (or anything else digital marketing related), we at WSI are here to assist. So sign up for expert advice, and let's get started with digital word of mouth marketing!
