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Word of mouth marketing (WOMM) is a powerful and cost-effective way to promote your business, driven by positive customer experiences and interactions. In this article, we explore what WOMM is, why it is important, and provide strategies to help you create and enhance your business’s WOMM.
What is word of mouth marketing?
Often described as ‘free advertising’, WOMM occurs when customers speak enthusiastically about a business to others. WOMM (also known as WOM marketing or WOM advertising) is generally prompted by people being extremely satisfied with a product or service provided, or exceptional service that exceeded the standard they expected.
As a result, people are often eager to share their positive experiences and recommend these businesses to others, whether in person or online. WOMM may occur in an organic, unprompted way, for example, during conversation with friends or when a family member seeks a firsthand referral. It can also be encouraged by the business or brand through WOMM campaigns, such as an email asking a customer to share feedback after a purchase, or by offering a referral reward, like a discount or freebie, for recommending your business.
Why word of mouth marketing matters
Whether it’s a personal recommendation, social buzz, or an online review, WOMM is an integral part of promoting your business or brand. Essentially, you can’t buy a good reputation; it has to be earned.
People look to those they know and trust, as well as those they feel aligned with, for an insight into how a business or brand operates beyond how it promotes itself. According to 2025 research by McKinsey & Company, family and friends are the most trusted source (50%) for product and brand recommendations.
And it makes sense – the human element of WOMM makes it more relatable and accessible, resonating differently from traditional advertising. It’s a personal recommendation, rather than a sales pitch or advertising, based on the firsthand experiences and opinions of others. Plus, the flow-on effects of positive WOMM are numerous, including attracting new customers, increasing sales, enhancing brand recognition, and fostering customer loyalty.
Word of mouth in the digital age
Traditional WOMM occurs in face-to-face conversations, but online it happens through a variety of mediums, including on social media, review sites, blogs, forums and more. According to 2025 research from search marketing software company BrightLocal, around 96% of people read reviews before making a purchase, and 74% check at least two review sites before they buy.
In the age of the influencer, recommendations from digital content creators have also changed the way people shop – from what they buy to who they buy it from. A survey by creator management platform GRIN found that three out of four consumers have purchased a product or service because an influencer recommended it. Additionally, 38% of consumers stated that the primary reason they turn to influencers for recommendations is to see products or services in action before purchasing them. Digital WOMM is a powerful medium that can amplify the voice of one to reach hundreds or thousands of people online.
How to encourage word of mouth marketing
While WOMM that happens organically is a wonderful thing, businesses can do more than hope for it to happen. Some proactive strategies to actively cultivate WOMM and inspire customers to spread the word about them include:
1. Deliver exceptional customer experience
The old saying that ‘good service is good business’ still holds true today. If customers feel valued and their experience of a business exceeds their expectations, they’re likely not only to return but also share their thoughts with others.
Small touches and little extras can make a big impact when it comes to elevating your service. For example, remembering customer names and their orders or preferences adds a personal touch. Adding a handwritten note or card to an online purchase, thanking customers for their support, can make them feel appreciated. While treating customers to an upgrade or a small gift, such as new product testers, can make them feel special.
Pro tip:
Keep track of your customer preferences with Square’s free customer directory. Track purchase history, loyalty status, and easily analyse how customers interact with your business.Knowing and catering to your customer base can also make your business stand out. For example, if your hospitality business is popular with families and dogs, consider providing child-friendly activities, such as a play area or colouring-in activities, or offer a water bowl and have dog treats on hand for visiting pooches.
Customer complaints, when handled well, can be turned into positives; if you listen attentively and respond with kindness and sincerity. Being transparent, providing clear and consistent communication, and aiming to rectify any issues can earn you some unexpected WOM.
Delighting your customers and providing top-notch service and experiences can make them eager ambassadors for your brand.
2. Encourage customer reviews and testimonials
Positive online reviews and testimonials can serve as effective word-of-mouth recommendations online, helping to build trust in your brand. Research by BrightLocal found that 42% of consumers trust customer reviews as much as personal recommendations.
You can help generate positive reviews for your business by:
- Making it easy. Have a QR code near your point-of-sale (POS) in-store to encourage feedback and include direct links to your Google, Facebook, or industry-specific review pages on your website and digital communications.
- Choosing the right time. Send a brief and friendly follow-up email or text after a customer has used your services or completed a purchase, asking for feedback. Sending this request while the experience is fresh in mind can help.
- Promote positive feedback. Positive reviews are a great way to let others speak on behalf of your brand. These testimonials can be added to your website and marketing materials to showcase offerings and help build trust with customers.
- Responding to reviews. People appreciate when businesses respond to online reviews, whether positive or negative, in a professional manner. It demonstrates that the business values feedback and is interested in learning from its customers. In fact, a 2023 survey by Yelp found that 70% of people who read reviews are more inclined to write one themselves if they see the business owner responding to other reviews. Additionally, 80% of respondents stated that they’re more likely to overlook critical reviews of a business if it responds and adequately addresses the concerns raised.
- Offering an incentive. A modest reward, for instance, a small discount on a future purchase, can encourage some customers to leave a review. However, transparency is essential. Ensure that incentivised reviews are directed to the proper channels and adhere to the platform’s policies. For instance, Google does not permit them on Business Profiles, nor does review site Yelp. It is advisable to disclose that some reviews are incentivised. For example, an online store could include a statement beneath product reviews on their website that notes, ‘Some customers received an incentive in exchange for their review’.
3. Leverage social media and user-generated content
Social media can serve as a powerful platform for amplifying your customers’ WOMM and growing brand awareness. Central to this is user-generated content (UGC) – photos, stories, and videos created by a business’s customers and online audience about their products, services, or business, and shared on social media channels.
UGC requires a few key aspects to maximise its success. First, ask your customers to create and share content about your business and its offerings and tag you in it. You can promote this through posts on social media, in-store displays, on packaging, or in marketing materials. Secondly, create a custom brand hashtag. Choose something catchy, original and connected to your business to increase your business’s reach and visibility on social media.
Thirdly, incentivise the creation of UGC by running fun contests and competitions where customers share photos or stories of themselves to participate and access rewards, such as prizes, discounts, or exclusive access to sales or new products. Lastly, share your customers’ UGC and engage positively with those who create it, and support your business online.
Australian swimwear brand Bydee Australia do a great job of maximising UGC on their Instagram. They actively encourage customers to share content of themselves wearing their products, and to tag in the brand. Bydee also promote their unique brand hashtag (#bydeebabesclub), which generates a substantial bank of UGC when searched on Instagram.
Bydee also host a ‘Muse of the Month’ competition, giving a customer who created UGC a $50 voucher, which not only incentivises customers to create UGC but also fosters valuable organic online WOMM. Through their use of UGC, Bydee are growing their social buzz, showcasing their products, the diversity of people wearing their brand, and providing styling inspiration.
4. Implement referral and loyalty programs
Referral and loyalty programs are two effective, low-cost ways to encourage happy customers to share their love of your business with others, in turn, helping grow your customer base. Referral programs can motivate customers to recommend your products or services to friends and family by rewarding both existing and new customers. Your business, for instance, may offer a ‘give $25, get $25’ deal, where the referrer sends a friend the voucher and (if used) receives a voucher too. Common referral incentive benefits include discounts, vouchers, promo codes, or offering something free, such as a small gift, as part of the new customer’s first purchase.
Loyalty programs reward customers for repeated custom through various incentives, such as points, perks, first access, special discounts, promotions, or VIP treatment. These programs also offer an opportunity to harness existing satisfied customers to attract new business. For example, a gelato shop may offer their existing customer a free gelato for every person they refer, or an online food subscription business could email a personal referral link to customers with a ‘give your friend 15% off their first order, and we’ll thank you with 15% off too’.
5. Partner with influencers and brand advocates
From bloggers to Instagram and TikTok personalities to YouTubers, partnering with social media influencers can introduce your business to a broader audience through a trusted voice.
Research by Matters Communications found that 81% of people had either researched, purchased, or considered purchasing a product or service after seeing friends, family, or influencers post about it on social media. Around 69% of respondents also said they trust a friend, family member, or influencer’s recommendation over information directly from a brand.
When it comes to partnering with influencers, finding a content creator whose values and interests align with yours and those of your business is essential. For instance, a restaurant may approach a well-known local food blogger to feature them, while a startup software company may partner with a YouTube reviewer for a new product launch.
The influencer should be a natural complement to your products and services, with an online audience of potential target customers. Remember, it’s not the size of an influencer’s follower base that counts, but how engaged they are. Passionate customers who love your business and create sincere social WOMM can also make the best brand advocates. Research by Matters Communications found that influencers who were relatable (61%) or experts (43%) were the most appealing to consumers when deciding who to follow on social media.
A well-matched partnership ensures content feels authentic, engaging, and impactful. It’s best to undertake research before approaching influencers. Check if they have a preferred form of communication: whether email, a message on their main social media channel, or through an agency representing them. Personalise your approach and tell them what you’d like to offer them. By law, paid partnerships where freebies or payment are involved must be disclosed in the caption or by tagging posts with a clear hashtag, such as #paid, #ad, or #sponseredcontent.
6. Create shareable stories and experiences
Beyond providing an exceptional customer experience every day, consider ways your business can engage and delight customers with shareable, fun content that will make your business stand out.
Your customers – and those who follow your business online – may know your business, but very little about its origin story and the people behind its products and services. Telling your story helps celebrate the humans and personalities behind the business and what inspires them to do what they do. For example, the owner and chef of a popular eatery may share how their grandparents inspired their love of food and cooking. Or a slow fashion label might create content about why they have made reducing textile waste their mission.
Another approach is to host special in-store customer events that will create buzz and WOMM. For example, a wine store might host a monthly series of winemaker talks and tasting events, a bookstore might have regular author readings or a book club, and a cafe might invite DJs to play sets on Sunday mornings. Alternatively, you could offer something novel in-store. For instance, a homewares store may become known for their themed merchandised windows, a donut store may offer DIY decorating donut days, or an ethical grocer may host quarterly sustainability workshops for customers.
Australian success stories of word of mouth marketing
Here are three Australian businesses who have harnessed the power of WOMM and used it to grow and transform their businesses.
- Who Gives a Crap (WGAC): Melbourne-born Who Gives a Crap (WGAC) is an eco-friendly toilet paper brand known for its cheeky brand voice, brightly-coloured packaging, and feel-good social enterprise model. A B Corp-certified business, they make FSG-certified bamboo and recycled fibre toilet paper, donating half of their profits to improve access to clean water and toilets for those who need it most. WGAC combines a compelling brand story with cheeky humour (like the time CEO Simon Griffiths sat on a toilet livestreaming for 50 hours to crowdfund their first production run), and cool products (which have grown to include bathroom, kitchen and household products, and fun limited-edition collections). A winning formula that has sparked enormous WOMM and turned this ethical Australian brand into a global one.
- Canva: A Sydney-based startup established in 2013, Canva is an online design and publishing tool that has made design accessible to all. With customers ranging from individuals through to corporations, Canva is a superb, accessible product that is much-loved for its ease of use and ability to help people design almost anything, anywhere. By cultivating a loyal base of customers and sharing stories of its product in action online, Canva’s users have become its most passionate marketers, helping transform the brand into a global name and a thriving business.
- Frank Body: From a small Australian startup in 2013 to the global skincare brand it is today, Frank Body is an excellent case study in how UGC can create viral buzz and grow a brand’s following. Often described in their early days as a ‘social media brand’, Frank Body gained massive traction on Instagram through customers posting selfies of themselves using the brand’s best-selling coffee scrub, accompanied by the hashtag #thefrankeffect. With its down-to-earth tone of voice, body-positive approach to marketing, and a commitment to cruelty-free, Australian-made products, Frank Body’s online community remains a key part of their success and a continual platform for WOMM.
