What is word of mouth marketing and why is it important?

Word of mouth marketing is based on trust and consumer loyalty, and through this cost-effective strategy, a significant reach can be achieved.

3 min to read
Written by: Kristina Rak

In today’s world, where we are bombarded with various advertisements from all sides, one strategy stands out as a valuable marketing method, and that is word of mouth marketing. As the name suggests, this type of marketing relies on positive reviews from satisfied customers who will recommend a product or service to their friends, colleagues, family, and even strangers.

 

Good word spreads fast

 

Word of mouth marketing has several important advantages. People are more likely to purchase a product if it is recommended by someone they trust, which increases their trust in that product and brand. Consequently, the conversion rate increases, leading to higher revenue.

Furthermore, since positive reactions and recommendations are not bought, this type of marketing is quite economical. Although companies need to invest in an excellent product or service, the advertising itself is driven by customers who voluntarily share their positive experiences.

By encouraging word of mouth marketing, companies connect with their customers, turning them into active brand advocates. Word of mouth marketing can also reach a much broader audience, especially with the help of social media. One positive review can spread like wildfire through social networks and reach far beyond the initial target audience.

 

How Coca-Cola’s campaign conquered the world

 

One of the best examples illustrating the effectiveness of word of mouth marketing is the “Share a Coke” campaign. For this campaign, Coca-Cola replaced the classic labels on their bottles with a label saying, “Share a Coke with…” followed by a name. The goal of the campaign was to connect with customers and encourage them to share a Coke with people they are close with.

The campaign, launched in Australia, achieved tremendous success, and soon expanded to other countries. In China, the labels featured nicknames instead of names, achieving an even more personalized approach. In Israel, they turned billboards into a digital version of the labels, allowing people to suggest names via a mobile app.

 

April Fools’ joke becomes reality

 

Croatia also has its example of successful word of mouth promotion. Kraš opted for a different approach instead of the usual PR response to negative comments after it had been acquired by Pivac Brothers Meat Industry. They introduced a new chocolate bar on their social media – Dorina with cracklings. What started as an April Fools’ joke quickly turned into reality. The announcement intrigued the public and became the most shared post in Kraš’s history.

The news about the chocolate bar with cracklings spread on social media, and people started demanding that it be released for sale. Kraš listened to its customers and produced a limited batch of 600 pieces, which sold out in 45 minutes. Thanks to this original move, Dorina increased its popularity in the brand pyramid and achieved both value and quantity growth.

 

 

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