Let's Talk About Word-of-Mouth Marketing

Picture this: Everyone's buzzing about your product. And you didn't have to give up an arm and a leg to get their attention.

They're telling their friends, "You have to make the switch."

They're writing great reviews.

And your P&L is looking good.

Word-of-mouth marketing = social proof, a.k.a. the Holy Grail of brand validation. And as a business, that's exactly what you're after.

What is word-of-mouth marketing, exactly?

In simple terms, word-of-mouth marketing is the passing of information about a company's products or services from one person to another. Any time someone mentions your product to someone else (in-person or over the web), that's word-of-mouth marketing.

Here are a few examples:

• Reviews on third-party sites like G2 Crowd and Capterra
• Written and video testimonials
• Social media posts about your product or service
• Referrals from satisfied customers to their contacts 
• Discussions and recommendations in online communities
• Reference-prospect interactions (e.g., a customer reference call)

If you've ever tried a product or service, then left a review or told a friend about it, you've participated in precisely what we're talking about.

Word-of-mouth makes your brand authentic and credible.

When you hear about a product from a friend, you're more likely to trust it.

That's because word-of-mouth comes with the validation of someone else's experience. And people trust experiences over marketing campaigns and sales pitches.

86% of B2B buyers say word-of-mouth is the most influential factor when they make buying decisions. The vast majority don't trust ads anymore. And, according to data from Drip, less than one-third consider sales reps to be "trustworthy."

By engaging your customers on social media, integrating UGC into your sales cycle, and garnering social proof with intention, you're setting yourself up nicely for winning over potential customers.

It also lowers your CAC (by a lot).

When customers find it easier to trust you, four things happen:

• Fewer sales conversations start with, "So, who are you?"
• Customers find it easier to trust your sales reps. (Read: shorter sales cycles).
• Your win rate increases.
• You’re less reliant on paid traffic sources like PPC.

In the last 5 years, the average CAC across all industries has increased 60%. When it's easier for you to attract customers and close deals, it costs considerably fewer resources to land them. So, by focusing heavily on word-of-mouth, you're looking at a healthier P&L.

Making the most out of word-of-mouth marketing in 2024.

It isn't just about making sure your brand is talked about in the right way. It's about putting strategies in place to help those conversations naturally occur. At scale.

Here's a look at 3 ways word-of-mouth is changing in 2024 (and how you can adapt):

1. User-generated content is more important than ever.

User-generated content (UGC) is content your own customers (or users) create. Think reviews, testimonials, and user stories. 

It's one of the best forms of word-of-mouth marketing because you can use it in your own sales and marketing efforts (with customers' permission, of course).

To adapt, make it easy for customers to create and share user-generated content. Encourage them to do so by offering incentives and creating a community for them to share their experiences.

2. Not all social proof is created equal.

In the modern B2B sales landscape, you're dealing with several decision-makers. And each prospect in your pipeline will have different pain points and challenges.

So, you can't have just any testimonial or review. You need a diverse range of social proof that caters to different roles and pain points.

When you're asking your customers for reviews and testimonials, encourage them to mention specific products, features, and benefits. That way, you can use them on corresponding landing pages, and your sales team can share them with the prospects they'll actually have an impact on.

3. Customers have different preferences when it comes to how they contribute.

Putting intention behind word-of-mouth marketing means building a customer advocacy program. And when you do that, you'll realize your customers are all comfortable with different forms of contributing.

Some prefer to write reviews and testimonials. Others will be happy to jump on a reference call with a prospect.

To get the most out of every customer's experience, you have to play to their communication preferences. 

The essence here is personalization. If you feel like doing it 100% manually, you can. But a customer advocacy portal (where customers can choose how they'd like to contribute, set their availability, see the results their contributions lead to, and get rewarded when they do) definitely simplifies it.