The Importance of Word of Mouth in Retail Marketing

Word-of-mouth marketing or word-of-mouth advertising refers to your customers’ casual, organic conversations about your products, services or brand. WOM marketing is free — you only need to provide valuable products that satisfy consumer needs and the kind of service that makes them feel seen and heard by your brand. Then, they’ll naturally want to sing your company’s praises to their friends and family.

WOM marketing has a high chance of success because potential clients receive the message from people they already know and trust. Below, we discuss everything you need to know about this strategy in retail.

What Is Word-of-Mouth Marketing?

WOM marketing has outstanding, largely untapped potential. The following word-of-mouth marketing statistics demonstrate how much you have to gain.

• 92% of consumers trust recommendations from other customers over a company’s messaging.
• Consumers have casual conversations about brands at least 90 times every week.
• Globally, 88% of customers trust word-of-mouth recommendations from friends, family and acquaintances more than any other marketing channels.
• According to a 2021 report from R.R. Donnelley, 55% of consumers discovered a new product, service or brand through word-of-mouth marketing, and WOM marketing results in up to 40% of consumer purchases.
• Online reviews are the equivalent of traditional WOM marketing, considering 46% of consumers trust them as much as they rely on recommendations from family and friends.
• 80% of customers read through online reviews while shopping in stores.

Word-of-mouth marketing is increasingly powerful because potential consumers tend to believe their friends’ and family’s perspectives on specific products and brands. Negative client remarks can also deter people from engaging with your business. If you can rectify your clients’ complaints after negative WOM marketing, you can salvage your reputation with them, increasing the chances that they will tell people about their excellent experience.

While word-of-mouth marketing primarily generates organic traffic, you can also incentivize it. Amplified word-of-mouth marketing incentivizes people to talk about your products and brand. Referral marketing is among the most effective types of amplified WOM marketing that sparks conversations about your brand online and in person.

Advantages of Word of Mouth in Retail Marketing

WOM marketing has numerous benefits for businesses, reflected in improved bottom lines and brand image. 

1. Cost-Effectiveness

With word-of-mouth marketing, you don’t need to pay anyone — only wow your customers enough to have them singing praises about your business and products. However, you must invest in high-quality products and services to spark conversations about your brand among customers. The investment in providing your clients with value is significantly lower than what you’d need to launch paid ad campaigns.

2. Boosted Trust and Credibility 

Word-of-mouth marketing relies on informal chats between people who know each other or user-generated content consumers share. Real-life experiences drive these conversations, making many customers believe what they hear because it is authentic and relatable. Even better, the information comes from people they already trust, making it easier for them to consider your business credible and trustworthy.

Indeed, many customers will believe their friends and family over a company’s well-drafted marketing message any day. Word of mouth cuts through information overload about a brand to provide potential customers with reliable information that drives purchasing decisions.

3. Improved Brand Awareness and Loyalty

Happy customers are often loyal to your brand. They also want to encourage as many friends and family members as possible to enjoy the same value and benefits they’re getting from your products. The conversations don’t end at the first mention of your brand. They continue when the next person tries out your products and returns positive feedback to the first reviewer. 

It creates a ripple effect where each customer praises your company to someone else, significantly boosting brand awareness. The more people talk about your products and business, the more you elevate your reputation.

How to Increase Word-of-Mouth Marketing

The best way to increase word-of-mouth marketing is by giving customers reasons to talk about your business. Start by offering them a product that satisfies their needs and exceeds expectations. To further enhance your efforts, provide outstanding service that encourages them to advocate for your business. 

You can also improve your customers’ experience with custom displays that make it easy for them to interact with your products at retail stores. Interactive custom displays featuring bright colors and crisp images appeal to customers and spread brand awareness. 

Encourage people to share images and reviews of your products by printing hashtags on the custom displays, which they can use to tag your business on social media. Alternatively, include QR codes they can use to connect to your website for more information and interesting facts about your products.

Additionally, tailoring your products and packaging to your customers’ needs and interests makes them feel seen and understood by your company. For example, including personalized thank-you notes and providing exclusive product information helps create a positive impression and gain loyal fans. 

Other ways you can boost your word-of-mouth marketing efforts include:

• Be part of the conversations about your brand by engaging your customers and replying to social media comments and posts.
• Promptly respond to positive and negative customer feedback.
• Give them opportunities to tell you about their experiences with your company by sending surveys and soliciting feedback.

Future Trends in Word-of-Mouth Marketing

While in-person conversations have traditionally driven word-of-mouth marketing, the future is digital as these conversations move online. Digital word-of-mouth marketing provides a broader reach than traditional WOM advertising. It’s also easier to incentivize while maintaining the essence of delivering strong referrals and warm leads.

Digital word-of-mouth marketing leverages social media sites, blogs, influencers or industry experts to spread the message about your brand. Customers also share their experiences about products and businesses online, whether voluntarily or when incentivized. It’s no wonder that up to 70% of marketers want to spend more on online word-of-mouth marketing.

Amplified word-of-mouth marketing has become an increasingly successful way to drive conversations about a brand. The types of digital WOM tactics your brand should invest in include influencer, affiliate, buzz and viral marketing. 

Boost Your Word-of-Mouth Marketing With Creative Displays Now!

Word-of-mouth marketing can build your brand awareness and drive more sales. Make it even easier for your clients to promote your brand with Creative Displays Now. We specialize in designing and manufacturing attractive temporary custom retail displays and packaging for businesses across various industries. These can help your brand stand out and personalize the shopping experience for your customers.

For more information about our retail displays or to order our custom corrugated displays and packaging, contact us today.