Key Takeaways
- Word-of-mouth Marketing (WOMM) is free and strong. Happy customers promote your business. People trust friends more than ads.
- WOMM builds loyalty. Happy customers share their stories, becoming brand fans.
- Social media helps WOMM. Positive posts on Facebook and Instagram reach more people, drawing in customers.
- Use influencers & customer posts. Customers share online. It builds trust and spreads fast.
- Big brands like Coca-Cola use WOMM. They create great experiences and let customers share. Growing without big ads.
Introduction
Imagine you’ve discovered a restaurant in your neighborhood. It has excellent taste, full of flavors that get you back to your childhood.
The staff is friendly, and the atmosphere is cozy and welcoming. When you finish eating, what do you do first?
You take a photo and post it on social media, right?
You also tend to recommend it to your friends. This act of sharing your experience is what we call Word-of-Mouth Marketing (WOMM).
It’s more real and trustworthy than any advertisement.
We hear suggestions from people, such as friends, family, or reviews. These are more convincing and increase our chances of trying something new.
Why Does Word of Mouth Marketing Matter in Nepal?
Word-of-mouth advertising works well in Nepal. It benefits businesses in many ways.
It increases brand recognition. It also builds trust with customers. WOMM builds a brand’s reputation.
Trust and reliability are important for business success. These factors help businesses grow and attract new customers.
1. Cost-Effective Marketing Strategy
WOMM is a smart strategy in Nepal. It costs nothing and uses happy customers to promote businesses. It brings new customers and keeps old ones loyal. People trust recommendations, which build strong relationships.
It works for small shops and big brands. Social media reviews help big brands grow. It is affordable and fits Nepal’s culture of trust and community. It helps businesses improve and grow.
For example, let’s take a family bakery located at Sinamangal, Kathmandu. This bakery encourages happy customers to refer their friends. As a result, the bakery gains new customers without spending on ads. Each referral helps build a loyal customer base. The bakery builds long-term success This is the power of organic promotion.
2. Trust and Community Ties
Trust spreads easily in Nepal. People rely on it when making decisions. When someone shares a positive experience, it means more than a brand’s ads.
This genuine recommendation builds trust with new customers. It also helps build stronger bonds with current customers. This makes them more loyal to the business.
These people may share it with even more people. This creates a chain reaction. As the message spreads, more people believe it. This is why trust plays such a big role in Nepal.
People feel safer when they follow advice from someone they know. It makes them feel more secure.
Trust makes advertising more powerful. People feel connected through these relationships.
For example: Bajeko Sekuwa is a popular Nepali restaurant chain. When it first opened, people loved its mouthwatering meals. They shared their positive reviews with others.
This helped the restaurant grow quickly. Even today, many people choose Bajeko Sekuwa. They choose it because of suggestions from their friends or relatives.
3. Builds Strong Community Support
When people trust a business, they share their good experiences. Word of mouth spreads quickly. It helps the business gain more customers. The more people share, the more the business grows.
Great service builds loyal customers. Loyal customers spread the word. Word of mouth is free advertising. It helps businesses grow without paying for ads.
Trust through word of mouth is strong. People try things recommended by friends. Listening to customers helps businesses improve.
Happy customers promote businesses. They also share on social media. More people will visit because of these posts. It builds long relationships.
It creates a sense of community. It helps businesses stand out. A strong reputation comes from word of mouth.
For example: a tailoring shop in Patan can get more customers when locals recommend it to their friends. These small recommendations help the shop become well-known in the area.
By focusing on good service, businesses can build trust in their community. This trust helps them succeed without spending on ads.
4. Boosts Online Engagement
WOMM works well on social media. In Nepal, people use Facebook and Instagram. They share reviews, photos, and posts about their experiences. These posts reach many people and create interest. People trust what their friends share. It feels honest and real.
Social media makes sharing simple. One post can reach hundreds. Positive posts attract new customers. Good service makes people share more. Sharing creates curiosity and brings visitors.
Visitors can become loyal customers. Loyal customers help businesses succeed. Social media works like a chain. One share leads to another. It keeps businesses connected to people.
For example: a trekking company in Pokhara can grow when happy tourists share their trips online. Their photos and reviews inspire others to book with the same company.
Online posts spread quickly and help businesses reach more people. This makes WOMM a powerful tool for growth.
Word of Mouth Statistics
- Besides friends and family, 88% of people trust online reviews. This highlights the power of online reviews.
They play a role in influencing consumer decisions. Positive feedback can lead to higher trust in a product or service. Negative reviews can have the opposite effect. (Local Consumer Review Survey 2014).
- HubSpot shared some interesting data about consumer trust. 75% of people don’t trust ads. 90% have faith in suggestions from friends. and 70% trust consumer reviews.
Here are some stats on Dropbox company. It led the company to huge growth.
- Offered 500 MB of free storage to referrers and referees, boosting sign-ups by 60%.
- Grew from 100,000 to 4 million users in 15 months.
- Saved costs by replacing $300-per-user ad spend with a cost-effective referral strategy.
- By 2017, hit 11 million paying users and $1 billion annual revenue.
Types of WOMM
1. Positive Word of mouth (PWOM)
Positive sentiment for a brand or product is known as PWOM. It happens when a customer is happy with a product and tells others about it. It helps people trust the brand. More customers get interested in the product. It helps the business grow.
2. Negative Word of mouth (PWOM)
However, negative word-of-mouth (NWOM) refers to a bad opinion about a brand or product. It happens when an unhappy consumer attacks or criticizes the brand. For instance, someone might share a bad experience about poor service. Negative opinions can harm a brand’s image and reduce customer trust.
In a study conducted by East, Hammond, and Wright (2007). The experts found that positive word-of-mouth (PWOM) is generated more than negative. One explanation for this could be that PWOM creates more value. Customers benefit less from reading and engaging in NWOM. It doesn’t help them make decisions. It only helps rule out one option. However, it doesn’t guide them in choosing from other brands or products.
3. Traditional Word of mouth (TWOM)
It involves people talking to each other in person. This form of communication has been around for a long time. It relies on face-to-face interactions. TWOM spreads through personal connections. It grows naturally when people talk. It is very good at building trust and loyalty.
4. Electronic Word of mouth (TWOM)
It is spread through electronic or online platforms. It occurs in digital spaces, such as social media, review sites, and forums. It influences decisions and behavior.
This communication is faster than TWOM. It spreads widely, reaching a larger audience.
5. Organic Word of mouth (OWOM)
OWOM is the natural sharing of information. This often happens because customers are genuinely satisfied. It is unpaid and unsponsored. It builds trust and credibility. It spreads through social interactions. Also, influences purchasing decisions.
Four motives to engage in WOM
1. Purchase frequency and weight
Consumers who purchase more of a product often become more vocal about it. This can lead to increased word-of-mouth promotion.
2. Personality
WOM distribution is shaped by certain personality traits. Traits like agreeableness and extraversion are key. People with these traits are more likely to share opinions. They tend to be more open and social. This leads to a higher likelihood of WOM. Their sociable and cooperative nature drives WOM.
3. Brand opinions
Customers with a positive opinion of a product or brand are more likely to recommend it. However, opinions on brands are not always favorable. NWOM is also common. Some customers who dislike a brand are also likely to share their negative views.
4. Brand Recruitment
Consumers who hear about a brand or product from others are more likely to share it. This is known as PWOM. When people talk about a brand, they become more inclined to spread the word. PWOM can create a cycle of brand recruitment. The more consumers share, the more others are introduced to the brand. This boosts the brand’s visibility and reach.
The Challenges of word of mouth marketing
As a startup, you always look for ways to grow your audience and build your brand.
You might not have a big budget and may face challenges when trying to create buzz.
Here are some points you may relate to:
1. Time-consuming Process
Word-of-mouth marketing takes time to grow. People need to talk about your product, and it can take weeks or months before you see results.
Example: A person tries a new restaurant and shares his good experience with friends. But it may take weeks before others start hearing about it.
2. Limited Audience Reach
It only reaches the people your customers know. If they have a small circle, fewer people will hear about your brand.
Example: A customer tells his 5 friends about a product, but those 5 friends have to tell others for it to grow.
3. Tracking Issues
It’s hard to know exactly who is talking about your brand and how often. You can’t track word of mouth as easily as online ads.
Example: A customer tells 3 people about a movie, but you don’t know who saw it because of that conversation.
4. Negative Feedback Effect
If someone has a bad experience, it can spread quickly. Negative word of mouth can hurt a brand more than positive feedback helps it.
Example: A customer has a bad experience at a store and tells 10 people. Those 10 may never shop there again.
5. Lack of Control
Once people start talking, you can’t control what they say. They may not share the exact message you want them to.
Example: One customer might mention the wrong price or incorrect details, leading to confusion.
Overcoming Challenges
1. Make sure you have a topic worth discussing.
If you want people to talk about your brand, give them something to talk about.
Focus on your unique selling point.
Share a story that is interesting and engaging. Your story should capture people’s attention. It should make them want to share it with others.
2. Participate in the community.
Being part of the community is a great way to get people talking about your business. You can organize a meetup or support a charity.
Attend local events and connect with people. When you participate in the community, people will naturally start talking about your brand.
3. Make sharing your story simple.
Make sure your website is easy to access. Also, make sure your social media profiles are easy to find.
Your story should be simple to read and understand. This will help others share it with their friends. It will also make it easy for them to share it with their followers.
4. Make use of influential people.
To make your brand popular, you can work with people who are already famous. These people are called influencers. Make sure they work in your relatable field. They can help you reach more people. When they like your brand, it makes people trust you more. Since they already have many friends who follow them. They can easily tell everyone about you.
5. Have patience.
WOM advertising takes time. Don’t expect quick results. Focus on building strong relationships.
Give your followers and customers something valuable. This will help your brand grow over time.
Advantages and Disadvantages of WOMM
| Advantage | Examples |
| Free Advertising | A friend tells you about a good pizza place. You believe them and try once. |
|
Creates Loyalty
| The restaurant is famous for its friendly staff and delicious food. It gains loyal customers who share their positive experiences. |
| Boosts Brand Image | If people say good things about a store. It makes the store look more reliable. |
|
Encourages Organic Growth
| A local artisan gains recommendations for their unique handmade crafts. |
|
Targets the Right Audience
| An athlete will recommend the sports store to other athletes. |
| Faster Spread of Information. | A new movie becomes popular because people keep telling their friends how great it is. |
| Disadvantage | Examples |
|
Lack of Control | A customer’s bad experience can spread faster than a good one. |
|
Time-Consuming | New businesses may struggle to get noticed without ads. Results may show quick or slow. |
|
Dependency | If no one talks about your product, it may not reach a large audience. |
|
Difficult to Measure | You may not know how many customers came from recommendations. |
| Potential for Misinformation | False rumors like: A product’s safety or a company’s unethical practices. It can quickly circulate and cause significant harm. |
Top 5 Word-of-Mouth Marketing Strategies
1. Experience marketing
Experience marketing is about creating special moments for customers. Instead of just selling a product, it focuses on making people feel something unique and exciting.
When customers have a great experience, they love to share it with others. They may tell friends and family or post about it on social media.
The more people talk about the experience, the more others want to try it too. Experience marketing works because it connects with feelings.
Even social media influencers can spread the word. When people hear about an experience from someone they trust, they are more likely to try it.
Example: “The Last Resort” in Nepal
The Experience:
The Last Resort is a famous adventure tourism company in Nepal. It is located near the Tibetan border. They offer exciting activities like bungee jumping, canyon swinging, and white-water rafting. The most famous activity is bungee jumping from a 160-meter bridge over the Bhote Koshi River.
Why It Works:
Visitors to The Last Resort love to share their experiences on social media. They post videos and pictures of themselves. Some jump off the bridge, while others raft down the rapids. These posts create excitement. They also show how adventurous the experience is. The thrill of bungee jumping is very exciting. It makes people want to talk about it. The memories from this extreme adventure make people feel proud to share their experiences.
Impact on Word-of-Mouth Marketing:
As people share their adventures, it encourages others to visit. Friends, family, and followers see these posts and get excited to try it for themselves. This sharing creates a chain reaction. The more people talk about the experience, the more others want to try it too.
The Last Resort cleverly uses experience marketing. They create unforgettable adventures. As they share their experiences, they become brand ambassadors for The Last Resort. This kind of marketing helps The Last Resort grow. They don’t have to rely only on ads. The excitement from their visitors helps bring in more people.
2. Social Media
Social media is a powerful way to encourage people to talk about your brand. Everyone uses social media these days. It can help you spread your message quickly without spending a lot of money.
You don’t need expensive ads or fancy campaigns. Being creative and engaging is enough. For example, sharing funny or interesting posts can grab attention.
Using hashtags is another great idea. You can create a hashtag for your product, event, or campaign. This makes it easy for people to talk about it online.
Example: #VisitNepal2020
In Nepal, the #VisitNepal2020 campaign is a great example of word-of-mouth marketing. It promoted Nepal as a travel destination through social media.
The campaign encouraged Nepalis and tourists to share their travel stories. They used the hashtag to post pictures, videos, and experiences.
People shared about Nepal’s beauty, culture, and famous places like the Himalayas, Lumbini, and Pokhara. These posts reached many people worldwide.
The hashtag became popular and made more people curious about Nepal. It helped the tourism industry grow and showcased Nepal’s nature, culture, and hospitality.
This campaign showed how a simple hashtag can spread a message and inspire people to visit Nepal.
3. Customer Reviews
Customer reviews are very important. People trust reviews from other customers, just like personal recommendations.
In simple words, reviews are a form of word-of-mouth marketing. Your customers share their thoughts about your product with others. If the reviews are good, more people will trust your brand. If they are bad, it might hurt your business.
Example: Daraz Nepal
One example of this is Daraz, Nepal. They encourage customers to leave reviews for the products they purchase. Many customers share their experiences on the website. And these reviews help other shoppers decide what to buy.
For example, if someone buys a PU Leather Bag, they can leave a review about it. This helps other customers in Nepal make better choices.
Encourage your happy customers to leave reviews for your business. They can do this on websites like Facebook, Google, or your own business website.
When customers leave positive reviews, it helps others trust your business. You can ask them politely or offer a small reward, like a discount, to encourage them.
By using reviews, you can create more trust with your customers.
4. Influencer Marketing
Influencer marketing is different from celebrity promotion. Celebrities are very famous. But they often feel distant. People know them, but they don’t always trust their opinions. The influencer marketing industry is expected to reach $17.4 billion this year.
This is a 14.47% growth from last year. In 2022, the market size was $15.2 billion. By 2025, the market is predicted to reach $22.2 billion. (collabstr)
Influencers are more like everyday people. They have large groups of followers. Influencers are relatable and easy to connect with. When an influencer talks about a product, their followers trust their opinion more.
Example: Bishwo Ghising in Nepal
Bishwo Ghising is a well-known fitness influencer and personal trainer in Nepal. He has a strong social media presence. He shares workout tips, fitness advice, and product reviews.
His honest opinions earn the trust of his followers. Bishwo has built his own brand, including a fitness clothing line. He is a key figure in Nepal’s fitness community. He often works with brands to promote their products.
His success shows how influencer marketing works. By using trust and expertise, he helps brands grow and sell more.
5. User-generated content
User-generated content (UGC) is a great way to get people talking about your brand. Here’s how it works:
- You ask your customers to share their experiences with your product or service on social media.
- You offer something in return, like a discount or a chance to be featured on your official pages.
- Customers post pictures or videos of using your product or talking about their experience.
- You ask the customer for permission to share their post on your social media or website.
When customers see that you shared their posts, they feel happy and proud. They will often share your post again with their friends and family, and they may even tell everyone they know. This helps your brand gain more attention and trust.
Example: Shree Harsha Masala
Shree Harsha Masala is a well-known spice brand in Nepal. They asked customers to share pictures of meals using their spices. Tagging them on social media using #ShreeHarshaSpices.
Later Brands share pictures on their social media and thank the customer. A customer feels happy to be featured.
Again they share the post being featured. They talk about the spices with friends and family. This gets more attention to a brand. It increases sales of the product.
Shree Harsha Masala uses customer posts to grow its brand. It doesn’t cost a lot for them.
Word-of-Mouth Marketing Examples
Learning from others is one of the best ways to create a successful strategy.
Study their methods and ideas. This can help you come up with a winning plan of your own.
Coca-cola “Mann Kholau Coke Sanga”: Omnichannel WOM
On September 6, 2017, Coca-Cola announced a new campaign called “Mann Kholau Coke Sanga.” This campaign was launched for Dashain and Tihar celebrations that year.
Under this scheme, Coca-Cola launched new label packs with eight different customized messages. Each message represents a special relationship in its customers’ lives.
These packs allow people to gift their loved ones a thoughtful message. It encourages them to share a Coke during special moments.
As the campaign name suggests, Coca-Cola wants families to express their feelings to each other. This festive season, Coca-Cola hopes to bring families closer together.
Patanjali: A Success Story Through Word-of-Mouth Marketing
Patanjali Ayurved is a company from India. It was started by Baba Ramdev, a yoga guru. The company sells natural and ayurvedic products. These are made from plants and herbs. Patanjali became very famous, but it didn’t happen because of big advertisements.
In the beginning, Patanjali spent very little money on ads. Instead, they relied on word-of-mouth marketing. Baba Ramdev talked about the products in his yoga classes and public events. People trusted him and decided to try the products. When they liked the products, they told their friends and family about them.
Some popular items were Patanjali Dant Kanti toothpaste and Amla Juice. Many people liked these because they were natural, healthy, and affordable. Customers were happy to share their good experiences with others.
Patanjali’s products were different from other brands. They were made with natural ingredients and focused on health. This attracted people who wanted to avoid chemical-based products. As more people shared their experiences, Patanjali became even more popular.
The company didn’t need to spend much money on advertising. People talking about their products was enough to help them grow. Today, Patanjali is one of the biggest companies in India. This shows how powerful word-of-mouth marketing can be!
FAQ
Is WOMM organic?
Yes, WOMM is an organic form of advertising. It happens when happy customers share their experiences with others. There’s no need for paid ads. It’s natural and based on trust.
Is social media marketing better than WOMM?
Both are useful, but they work differently. Social media marketing uses paid ads and posts to reach people. WOMM is more personal and trusted because it comes from real experiences. Together, they can be very effective.
What are the companies that are really on WOMM?
In Nepal, companies like Daraz, Himalaya Airlines, and CG Foods rely on WOMM. Daraz gets people talking during big sales, like 11.11. Himalaya Airlines is shared by travelers for good service. Wai Wai from CG Foods is famous because people recommend it to friends.
How costly is WOMM?
WOMM is not expensive. It grows naturally from satisfied customers. While it may need effort to provide great products. But it doesn’t require big advertising budgets.
Between WOMM and Facebook Ads, which one is better?
WOMM is better for trust and long-term growth. Facebook Ads are better for quick results and reaching a larger audience. The best option depends on your goals and budget.
