Research has found word-of-mouth marketing to be 8.5 and 30 times more effective than other types of promotions.
It works for two main reasons. First, it’s better targeted. We are highly unlikely to tell our friends about something in which they are not interested. Second, it’s more persuasive because the motivation of our friends is not to sell us something.
There are seven keys to making word-of-mouth marketing succeed, as identified by Wharton Assistant Professor of Marketing Jonah Berger.
- It advertises itself.
- It acts as social currency.
- It has practical value.
- It elicits emotions.
- It appeals to a common ground.
- It triggers action.
- It tells stories.