Definition: Word-of-mouth marketing (WOMM) is a strategy that encourages customers to share information and experiences about a product or service with others. This approach leverages the natural communication between individuals, often resulting in increased credibility and trust compared to traditional advertising methods.
Mechanism: WOMM relies on creating a strong customer experience, prompting satisfied customers to naturally discuss and recommend the brand to friends, family, and peers. It can occur organically or through incentivized programs where companies encourage sharing through referrals, testimonials, or social media engagement.
Impact: The effectiveness of word-of-mouth marketing lies in its ability to reach potential customers through trusted networks, often leading to higher conversion rates and customer retention. It is particularly powerful in the digital age, where social media and online reviews can amplify personal recommendations to a broader audience.
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