Marketers spend heavily on ads, influencers, and campaigns, but customers still put the most trust in each other. That is the power of wom, or word of mouth marketing. It is one of the oldest forms of promotion, yet it continues to drive business growth across industries.
Word of mouth marketing is not limited to casual recommendations anymore. It shows up in online reviews, community discussions, and even private chats that influence decisions at scale. For startups, agencies, and B2B brands, wom creates credibility that money cannot buy.
With the right wom strategy, platforms like Trackier’s Partner Marketing Software make it possible to measure and amplify these organic conversations, helping brands turn customer trust into consistent growth.
What is WOM marketing and why does it matter today?
Wom marketing, or word of mouth marketing, refers to people sharing their opinions and experiences about a product or service in ways that influence others. It works because people tend to trust recommendations from peers more than claims made in ads.
A conversation between colleagues, a customer review, or even a LinkedIn post can often be more convincing than a well-designed campaign.
At its core, wom is a natural exchange of information. In marketing, it becomes a deliberate strategy where businesses encourage satisfied customers to share their experiences. This can lead to stronger credibility, higher brand trust, and improved customer acquisition without relying only on paid media.
The importance of wom has increased as buyers face constant exposure to ads and sales messages.
Word of mouth drives between 20 and 50% of purchasing decisions across industries. For marketers at startups, SaaS firms, or agencies, this makes wom one of the most efficient levers for growth.
Wom also supports multiple stages of the customer journey. It can introduce new audiences to a brand, provide reassurance during evaluation, and influence final purchase decisions. The same dynamic applies in B2B as much as in B2C. A referral from a current client, for example, can carry more weight than any piece of sales collateral.
A significant change in recent years is that wom can now be measured. Digital tools allow businesses to track referral traffic, analyze review platforms, and connect conversions back to peer recommendations. With solutions like Trackier’s partner marketing software, marketers can see which conversations result in actual business impact. This shifts wom from being seen as an informal driver of growth to a measurable performance channel.
How has word of mouth evolved from offline to digital?
Historically, wom meant small-scale exchanges such as a person recommending a store to a friend or sharing a positive service experience with family. These conversations influenced local communities but rarely traveled beyond them.
The internet and social platforms expanded that reach dramatically. Reviews, rating sites, and discussion forums made personal experiences accessible to larger audiences. Social media added another layer, where a single recommendation or opinion could reach thousands of people in a short time.
Another development has been the rise of private channels such as WhatsApp, Telegram, or Slack. These discussions, often called dark social, are harder for marketers to track but shape decisions in meaningful ways.
While invisible in analytics dashboards, they often represent authentic, trusted interactions that carry more weight than public promotions.
Today, wom exists in both visible and invisible spaces. Online reviews, public testimonials, and social content create one layer, while private recommendations through messaging apps create another.
For businesses, this means creating customer experiences that encourage sharing across both public and private environments.
Why is word of mouth so effective at driving growth and trust?
People trust recommendations from friends or peers more than ads. According to Nielsen Global Trust Survey 2025, about 92% of consumers say they trust referrals from people they know more than any other form of advertising.
Businesses with organized referral programs tend to show stronger growth. Reports show that companies with referral programs grow revenue about 86% faster per year than those that do not
Referred customers are more loyal. One study found that customers acquired through referrals have retention rates about 37% higher than those acquired through non-referral channels.
These effects matter especially for B2B SaaS, agencies, and enterprises, where trust and long-term value matter. WOM marketing helps reduce acquisition cost, improve customer satisfaction, and increase customer lifetime value.
What do the 5 T’s of word of mouth marketing look like in action?
Here are the 5 elements of WOM (called the 5 T’s) plus real examples or data:
1. Talk Triggers
Create small moments or incentives that make customers want to speak. For example, a memorable packaging or unexpected bonus. Companies that offer strong referral rewards see 4× higher return on investment than typical campaigns.
2. Topics
Make sure the content people talk about is easy to share and interesting. For instance user reviews, customer stories or even transparent fault reporting. Social media platforms and UGC often amplify topics many times over when users share genuine experiences.
3. Tools
Provide simple tools: shareable links, one-click reviews, referral codes. Digital WOM is measurable because of these tools. Internal tools or platforms like Trackier can help track which referrals lead to conversions and downstream value.
4. Taking Part
Give people a reason to share. It could be a reward, status, recognition, or access. Data shows that referral programs cost 60-80% less than acquiring customers through traditional ads.
5. Tracking
Measure what happens. Some metrics: conversion rate of referred leads, retention metrics, lifetime value, purchase frequency. In many cases, referred customers spend more and stay longer. For example, studies show that referred customers spend 31% more on their first purchase.
What is the power of word of mouth slogan?
Simple slogans or brand lines can help WOM by making stories easier to remember and repeat. A well-crafted slogan supports WOM marketing by giving people something concise and clear to share.
Examples:
- When a slogan ties into values or identity, people share it more.
- A product whose slogan shows how it helps (versus what it does) often helps WOM because it speaks to people’s needs.
In many trust surveys, slogans or taglines that highlight a shared benefit improve recall by ~25-30% compared to generic brand statements. (Exact data depends on sector.)
Brands that stand out often use a slogan that reflects product promise or customer identity. That helps WOM because people tell others what they believe in, not what they bought.
What are some strong real-world examples of word of mouth marketing examples and how did they succeed?
Companies that invest in word of mouth marketing often show better growth, customer loyalty, and reduced acquisition costs. Below are case studies of brands that used WOM in different ways with clear outcomes.
Dropbox
Dropbox used a referral system in its early days. Users who referred others earned extra storage. That simple incentive doubled the growth rate at one point. After launching referrals, Dropbox saw sign-ups grow by 60%.
What made it work: The reward was meaningful, the process was frictionless, and the ask was simple. Users just needed to share a link.
The result: By encouraging existing users to refer new ones, Dropbox reduced its cost per acquisition significantly.
Lesson: Design incentives that align with what your customers value. Make sharing easy. Track which referrals convert.
Glossier
Glossier built its brand by nurturing community. Early on, it invited user feedback, highlighted customer stories, and encouraged product reviews. Many customers became advocates, creating photos, reviews, or posts that others saw.
According to sources, Glossier grew to over $100 million in revenue annually during its early years, in part because of strong WOM and user-generated content. The company reports that a high percentage of its sales came from repeat customers and referred friends.
What worked: Transparency, democratized product design decisions, and authentic customer experiences.
Lesson: Involve your customers. Give them chances to share and feel heard. An authentic experience fosters conversation organically.
How startups with limited budget triggered WOM
Smaller companies often lack large ad budgets. Some have used modest investments in referral rewards, social media engagement, or customer delight to generate WOM early.
For example, one SaaS startup introduced a referral bonus of one free month of service. The company tracked that every 100 referrals led to 15 new paying customers. That gives a conversion rate of 15% on active referrals. Another example: a boutique retailer began sending handwritten thank you cards with first orders. Clients shared photos of the cards on social media, which led to new customers.
These tactics cost little but reinforced trust and created share-worthy moments.
For more real world word of mouth marketing examples, check out real wom strategies and case studies.
7 Strategy Points for WOM Marketing with Data
1. Implement a High-Impact Referral Program
Referral programs are a cornerstone of WOM marketing. By incentivizing existing customers to refer new ones, businesses can tap into their network’s trust and credibility. According to a report, referred customers often exhibit 37% higher retention rates and 25% larger deal sizes compared to non-referred customers.
To maximize the effectiveness of referral programs, it’s essential to design them with simplicity and value in mind. Offering clear incentives, such as discounts or exclusive access, can motivate customers to participate. Additionally, ensuring the referral process is straightforward and user-friendly increases the likelihood of successful referrals.
Tracking the performance of referral programs is equally important. Monitoring metrics like referral success rate, conversion rates, and the cost per referred customer allows businesses to assess the program’s effectiveness and make necessary adjustments.
2. Encourage and Showcase Customer Reviews and Ratings
Customer reviews serve as a powerful form of social proof, influencing potential buyers’ decisions. According to a 2025 research, 93% of consumers read online reviews before making a purchase, and 70% trust customer reviews more than traditional advertising.
Encouraging customers to leave reviews can be achieved through follow-up emails, post-purchase surveys, or providing incentives. However, it’s crucial to ensure that the process is seamless and that customers feel their feedback is valued.
Showcasing these reviews on your website and social media platforms not only builds trust but also demonstrates transparency and a commitment to customer satisfaction. Highlighting positive reviews can enhance your brand’s reputation and attract new customers.
3. Leverage Micro-Influencers for Authentic Promotion
Micro-influencers, individuals with smaller but highly engaged audiences, can be instrumental in WOM marketing. A 2025 survey indicates that micro-influencers often achieve engagement rates of 7–10%, significantly higher than the average on platforms like Instagram.
Collaborating with micro-influencers allows brands to reach niche audiences in an authentic manner. These influencers’ recommendations are perceived as more genuine, fostering trust and encouraging their followers to take action.
When selecting micro-influencers, it’s essential to consider their relevance to your brand and the alignment of their audience with your target market. Building long-term relationships with these influencers can lead to sustained WOM and brand advocacy.
4. Track the Right Metrics to Optimize WOM Efforts
Measuring the success of WOM marketing initiatives is vital for continuous improvement.
By analyzing key metrics like referral success rate, referred customer value, and referral cost savings, businesses can identify which aspects of their WOM strategy are working and which need refinement. For instance, a high referral success rate indicates that the referral program is appealing to customers, while a low cost per referred customer suggests efficient marketing spend.
Utilizing analytics tools and platforms can aid in tracking these metrics, providing insights that inform data-driven decisions and strategy adjustments.
5. Create Shareable, Authentic Content with Customer Success Stories
Authentic content resonates more with audiences and encourages sharing. Bain & Company’s research underscores the importance of customer engagement in improving retention.
Developing content that highlights real customer experiences, such as success stories or testimonials, can showcase the value of your product or service. This type of content is not only relatable but also serves as a testament to your brand’s credibility.
Sharing these stories across various platforms, including social media, blogs, and newsletters, can amplify their reach and inspire others to engage with your brand.
6. Reduce Friction in Sharing and Make Advocacy Easy
The ease with which customers can share their positive experiences directly impacts the effectiveness of WOM marketing. Reports note that simplifying the referral process can lead to higher participation rates.
Implementing features like one-click sharing buttons, personalized referral links, and pre-written messages can make it effortless for customers to advocate for your brand. The less effort required, the more likely customers are to share their experiences.
Additionally, ensuring that the referral process is mobile-friendly and integrated into your website or app enhances accessibility and convenience for users.
7. Ensure Authenticity and Manage Consumer Trust
Trust is the foundation of WOM marketing. 77% of consumers find online reviews to be “mostly” trustworthy, highlighting the importance of authenticity in building consumer confidence.
To maintain and build trust, it’s essential to engage with customers transparently and address any concerns promptly. Responding to reviews, both positive and negative, demonstrates that you value customer feedback and are committed to continuous improvement.
Implementing measures to prevent fake reviews and ensuring the authenticity of customer testimonials further solidifies your brand’s reputation and fosters long-term customer loyalty.
Digital WOM: How It Works in 2025
What is the digital version of word of mouth marketing?
Digital WOM refers to customer-driven conversations happening online that influence others’ purchasing decisions. Unlike traditional offline recommendations, these conversations leave measurable traces such as reviews, social posts, ratings, comments, or referral links.
In 2025, HubSpot reports that over 85% of consumers check online reviews or social media before buying a product. This shows that digital WOM is actually central to modern marketing strategies.
For marketers, digital WOM transforms word of mouth into a trackable channel. Using tools like Trackier, businesses can see which digital interactions drive engagement, conversions, and revenue. This allows WOM to become a repeatable, measurable growth engine.
The role of social media in amplifying WOM
Social media is the most visible stage for digital WOM. Customers share experiences, tag friends, post photos, or write reviews that reach large audiences quickly. When a recommendation comes from a trusted connection, it often carries more weight than traditional ads.
Another 2025 research found that 60% of consumers have purchased a product after seeing a friend’s social media recommendation.
To leverage this, brands can:
- Encourage user-generated content (UGC) to showcase authentic experiences.
- Feature customer testimonials on social profiles to enhance credibility.
- Create visually engaging, easily shareable content that motivates followers to repost or tag friends.
By facilitating sharing and highlighting authentic voices, brands amplify WOM far beyond their immediate network.
Dark social and private recommendations
Not all digital WOM is visible to marketers. Dark social encompasses private messaging apps like WhatsApp, Telegram, or even email, where recommendations happen but are not easily trackable.
Brands can tap into dark social by:
- Offering easy-to-share referral links or codes that users can send privately.
- Encouraging private sharing campaigns with small incentives to increase participation.
- Monitoring downstream conversion metrics to infer impact from dark social, even if direct tracking isn’t possible.
Understanding dark social helps brands capture a hidden but highly influential portion of WOM.
Measuring digital WOM impact
One of the biggest advantages of digital WOM over offline WOM is measurability. Marketers can track referral clicks, conversion rates, and the retention or lifetime value (LTV) of referred customers.
McKinsey’s 2025 study confirms that companies tracking digital WOM metrics can increase marketing ROI by 15–20% compared to those that do not measure it.
Key metrics to track include:
- Referral click-through rate (CTR): How many users clicked shared links.
- Conversion rate of referred leads: Percentage of referrals that become paying customers.
- Retention and LTV of referred customers: Helps understand the long-term value of WOM-driven acquisition.
Tools like Trackier allow marketers to capture, measure, and optimize these interactions. With actionable insights, businesses can scale digital WOM, continuously improving performance.
Common Challenges in WOM Marketing and How to Overcome Them
H2: What are the key challenges marketers face with WOM campaigns?
While WOM marketing is powerful, it comes with unique challenges. Understanding and addressing them ensures campaigns remain effective, measurable, and trustworthy.
Challenge 1 – Measuring impact accurately
Unlike paid campaigns, traditional WOM can be difficult to track. Without proper tracking, businesses may undervalue its contribution.
Companies leveraging tracking platforms for WOM achieve up to 20% higher marketing ROI compared to those that rely on anecdotal evidence.
Solution: Use referral links, UTM parameters, and attribution platforms like Trackier to measure click-throughs, conversions, and LTV. Digital WOM can thus become as measurable as paid marketing.
Challenge 2 – Ensuring authenticity
Consumers quickly detect fake or forced promotions. Overly promotional content can backfire, undermining trust.
A 2025 survey shows 77% of consumers trust online reviews, but authenticity is the primary factor influencing trust.
Solution: Promote real customer experiences, monitor reviews, and respond transparently. Incentives should encourage sharing but not dictate what to say.
Challenge 3 – Navigating dark social
Much of digital WOM happens in private messaging or group chats. This “dark social” is hard to track but highly influential.
Digital Marketing Institute reports that over 70% of online shares occur via dark social channels.
Solution: Offer easily shareable referral links, track downstream conversions, and incentivize sharing via private channels. Even indirect metrics help gauge dark social impact.
Challenge 4 – Over-reliance on incentives
While referral rewards are effective, over-relying on them can attract low-quality referrals or disengaged users.
Solution: Balance incentives with value. Focus on meaningful rewards and combine them with recognition or social proof to drive high-quality referrals.
Challenge 5 – Compliance and legal constraints
Regulations in the US, EU, and other regions require transparency in referrals and endorsements. FTC and EU Digital Services Act rules must be followed to avoid penalties.
Solution: Clearly disclose incentives in referrals and reviews. Ensure your program aligns with local regulations, protecting both your brand and your advocates.
Challenge 6 – Sustaining long-term engagement
WOM impact can fade if not continuously nurtured. One-off campaigns may spike referrals temporarily but fail to build lasting advocacy.
Solution: Regularly engage advocates with updates, recognition, or new incentives. Maintain community spaces for ongoing conversations to keep WOM active and vibrant.
Challenge 7 – Integrating WOM across channels
WOM can occur in multiple touchpoints: social media, email, product reviews, and offline interactions. Fragmented management reduces effectiveness.
Solution: Use centralized platforms like Trackier to integrate referral tracking, social listening, and campaign analytics. Cohesive management ensures consistent messaging and maximized reach.
End Note
Word-of-mouth marketing continues to be one of the most trusted and cost-effective growth drivers for businesses in 2025.
Whether through referral programs, customer reviews, or community engagement, WOM influences every stage of the buyer journey. What has changed is that digital tools now make it possible to measure, optimize, and scale them.
For marketers at startups, agencies, and B2B brands, the next step is to treat WOM with the same discipline applied to other performance channels. That means building trust through authentic customer experiences, making advocacy effortless, and using the right platforms to connect conversations to measurable outcomes.
The brands that will stand out are the ones that integrate WOM into their broader marketing strategy, track its real impact, and keep giving customers reasons to talk and share. As ad fatigue grows, authentic voices will remain the most persuasive channel.
Hungry for more? Download our free case studies that cover real stories.
Or sign up for the Trackier’s newsletter to get weekly best practices on referral programs and partner marketing.
FAQs
1. What is an example of word-of-mouth marketing?
An example of word-of-mouth marketing is Dropbox’s referral program. Early users were rewarded with extra storage for referring friends, creating a system where satisfied customers became brand advocates. This approach doubled sign-ups at one point and significantly reduced customer acquisition costs. Similarly, brands like Glossier leverage user-generated content and customer reviews to encourage sharing. These strategies show that WOM works when customers are motivated to share authentic experiences with their networks.
2. Why is word-of-mouth so effective?
Word-of-mouth is effective because people trust recommendations from peers more than advertisements. Nielsen reports that 84% of consumers trust referrals from friends and family over traditional marketing. Recommendations from known sources carry credibility, reducing skepticism and accelerating purchase decisions. Additionally, referred customers tend to have higher retention rates and spend more, making WOM both a cost-effective and powerful growth lever. Authenticity and trust are the core reasons WOM outperforms many paid marketing tactics.
3. How can small businesses leverage WOM without a big budget?
Small businesses can leverage WOM by creating simple referral programs, encouraging customer reviews, and fostering community engagement on social media. Even low-cost tactics like personalized thank-you notes, social media shoutouts, or limited-time referral incentives can generate meaningful word-of-mouth. According to Prefinery (2025), structured referral programs for small businesses can increase referral conversion rates by up to 30–40%, showing that thoughtful design and customer delight matter more than budget size.
4. How do digital reviews and social media amplify WOM?
Digital reviews and social media amplify WOM by providing visible, shareable proof of customer experiences. Platforms like Instagram, TikTok, and product review sites allow recommendations to reach wider audiences quickly. HubSpot (2025) notes that 85% of consumers check reviews online before buying, making them a critical part of digital WOM. Sharing authentic customer stories, encouraging user-generated content, and responding to reviews help amplify credibility and extend the influence of word-of-mouth online.
5. How can brands measure the ROI of word-of-mouth marketing?
Measuring WOM ROI is easier in the digital era. Brands can track referral links, conversions, click-through rates, and customer lifetime value (LTV) from referred users. McKinsey (2025) reports that companies monitoring WOM metrics see up to 20% higher marketing ROI compared to those that do not. Combining analytics platforms, social listening tools, and attribution software like Trackier allows marketers to quantify the impact of advocacy, optimize campaigns, and scale high-performing WOM initiatives.
