Word of Mouth Marketing (WOM)

Word-of-mouth (WOM) marketing is essentially getting people to tell other people about your product /service - it is sometimes called "creating buzz". The power of WOM can be astounding. For smaller businesses it may be the primary method of marketing. Guerrilla marketing campaigns make extensive use of WOM, as creating a WOM campaign involves giving people an incentive to talk about what you are selling. For example, a funny ad campaign with a catchy phrase can become a conversation piece, and even part of pop culture. A contest/giveaway creates buzz when people tell their friends to sign up, or what it is about.

WOM can be negative as well as positive. The adage that "a satisfied customer will tell one person about it, but an unsatisfied customer will tell 10" has truth to it; a negative experience travels very quickly among consumers. Ensuring the quality of your product/service and the satisfaction of your customers is an integral part of positive WOM marketing.

The Ripple Effects Ltd. example is typical of a People marketing technique called "referral" marketing that is common among professional service firms. Referral marketing, which is similar to WOM marketing, is slower than methods such as advertising, and publicity, but is far more powerful. A business can do everything it can to create the impression of quality but if others don't refer their friends or colleagues to the business, much of its efforts can be ineffective. A referral means that someone has vouched for you, already assessed your worth, which is probably the best way to break away from the mass and be noticed in a customer's mind.

Hand in hand with this word-of-mouth spreading of competency, are credentials. Although credentials, such as university credits, or other proof of training, are losing the power they once had, many people still place great store in them, especially if they’re thinking of buying a service instead of a product. Therefore, the credentials of the people working for or in a business can be a prime People technique.

Case Study - Referrals: Ripple Effects Ltd.