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Word of Mouth Marketing

Word-of-Mouth Marketing: Harnessing the Power of Referrals for Small Businesses

December 26, 20231 min read

“People are social beings and want learning is the primary form of learning, just as word of mouth advertising is the highest form of advertising” - Stephen Covey


Welcome to week three of our series, "What Marketing Strategies are Most Effective for Small Businesses," by ActionCOACH SWHG. Following our discussions on digital marketing and targeted advertising, this week we focus on one of the oldest yet most powerful marketing tools: Word-of-Mouth (WOM) Marketing.

Word of Mouth Marketing

Understanding Word-of-Mouth Marketing

WOM marketing involves customers naturally promoting your product or service through their daily conversations. It's a powerful endorsement because people trust recommendations from friends and family more than any other form of advertising.

Why WOM is Vital for Small Businesses

  1. Trust and Credibility: Referrals come with built-in trust, making them more effective than traditional advertising.

  2. Cost-Effective: WOM is often free or low-cost, ideal for small businesses with limited marketing budgets.

  3. Builds Strong Customer Relationships: Encouraging referrals can deepen relationships with existing customers, turning them into brand advocates.

Strategies to Enhance WOM Marketing

  1. Deliver Exceptional Customer Service: Outstanding experiences naturally encourage customers to talk about your business.

  2. Create Shareable Content: Engaging, useful, or entertaining content is more likely to be shared, increasing your WOM reach.

  3. Leverage Social Proof: Showcase customer testimonials and reviews to build confidence among potential customers.

  4. Referral Programs: Incentivize your customers to refer others, creating a win-win situation for both.


Harnessing the power of WOM can significantly impact your small business's growth. It’s about creating memorable experiences and building genuine relationships that encourage customers to spread the word.

Join us next week as we explore "Content Marketing Strategies: Engaging and Converting Customers for Small Businesses" in our ongoing series.

Word-of-Mouth MarketingSmall Business ReferralsCustomer AdvocacyTrust Building StrategiesReferral Marketing
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