Digital Word-of-Mouth Marketing: What It Is and How It Works

Digital Word-of-Mouth Marketing: What It Is and How It Works

In today’s digital age, traditional word-of-mouth marketing has evolved into its digital counterpart. With the rise of social media and online communities, businesses can now leverage the power of digital word-of-mouth to reach a wider audience and boost their brand’s credibility.

But what exactly is the digital version of word-of-mouth marketing? How does it differ from traditional word-of-mouth? And most importantly, how can businesses harness their potential to drive growth and success?

In this article, we’ll explore the concept of digital word-of-mouth marketing, its benefits, and the strategies businesses can use to effectively leverage it for their own marketing efforts.

What is Digital Word-of-Mouth Marketing?

Word-of-mouth marketing is a strategy where satisfied customers promote a brand, product, or service to their network of friends, family, and colleagues. It’s a powerful way to generate buzz and build brand trust. With the rise of social media and online reviews, digital word-of-mouth marketing has become a crucial part of any successful marketing campaign.

So what exactly is digital word-of-mouth marketing?

It’s a modern practice of leveraging digital channels to encourage and amplify customer recommendations and reviews. These digital channels include social media, review sites, blogs, and forums.

Why is the Digital Version of Word-of-Mouth Marketing so Important?

The shift to digital word-of-mouth marketing has been driven by changes in consumer behavior. Today’s consumers are more likely to research products and services online before making a purchase. They also rely heavily on social media and online reviews to guide their purchasing decisions. As a result, brands have shifted their focus to digital channels to engage with customers and build brand loyalty.

Digital word-of-mouth marketing is not just a nice-to-have strategy; it’s essential for any business that wants to succeed in today’s competitive marketplace. According to a Nielsen survey, 92% of consumers trust recommendations from friends and family above all other forms of advertising. Digital word-of-mouth marketing allows brands to tap into this powerful influence and leverage it to drive business results.

Types of Digital Word-of-Mouth Marketing

Digital word-of-mouth marketing encompasses several strategies that businesses can use to tap into the power of online recommendations and reviews. In this section, we’ll explore three key types of digital word-of-mouth marketing: social media marketing, influencer marketing, referral marketing, and affiliate programs.

Social Media Marketing

It involves using social media platforms to connect with customers and build relationships with them. It’s a powerful way to amplify your brand message and encourage customers to share their experiences with your brand. However, social media marketing comes with its own set of advantages and challenges.


    • Reach a large audience: Social media platforms like Facebook, Instagram, Twitter, and LinkedIn have billions of users worldwide, making it easy to reach a large audience.
    • Build brand loyalty: By engaging with customers on social media, you can build stronger relationships with them and foster brand loyalty.
    • Cost-effective: Social media marketing is relatively inexpensive compared to other forms of advertising.


    • Time-consuming: Managing multiple social media accounts and creating engaging content can be time-consuming.
    • Algorithm changes: Social media algorithms are constantly changing, making it difficult to stay up-to-date with the latest best practices.
    • Negative feedback: Social media platforms also make it easy for customers to leave negative feedback, which can damage your brand’s reputation if not addressed promptly.

Strategies for Leveraging Social Media Word-of-mouth Marketing

    • Share customer reviews and testimonials on social media to show social proof and encourage others to do the same.
    • Create engaging and shareable content, such as videos, infographics, and memes.
    • Use social media listening tools to monitor conversations about your brand and engage with customers in real time.
    • Partner with social media influencers to reach a wider audience and amplify your brand message.

Influencer Marketing

It involves partnering with individuals who have a large following on social media or other online platforms to promote your brand. Influencer marketing can be a highly effective way to reach your target audience and build trust with them. However, it also comes with its own set of benefits and challenges.


    • Reach a targeted audience: By partnering with influencers in your industry, you can reach a highly targeted audience that is more likely to be interested in your products or services.
    • Build trust: Influencers have built a relationship of trust with their followers, making it more likely that their followers will trust their recommendations.
    • Boost sales: Influencer marketing can drive sales and revenue for your business.


    • Finding the right influencers: Finding influencers who are a good fit for your brand can be a challenge.
    • Cost: Influencer marketing can be expensive, especially if you are working with high-profile influencers.
    • Authenticity: Some consumers may view influencer marketing as inauthentic, especially if the influencer is not transparent about their relationship with your brand.

Tips for Successful Influencer Marketing Campaigns:

    • Choose influencers who align with your brand’s values and target audience.
    • Be transparent about your relationship with the influencer and any compensation they receive.
    • Collaborate with influencers to create authentic and engaging content that resonates with their audience.
    • Measure the success of your influencer marketing campaigns and adjust your strategy accordingly.

Referral Marketing and Affiliate Programs

Referral marketing and affiliate programs involve incentivizing customers to promote your brand to their network of friends and family. This can be done through referral codes, affiliate links, or other incentives. Referral marketing and affiliate programs are the best and most cost-effective ways to drive word-of-mouth recommendations and sales. Many businesses are adopting this ROI marketing strategy for brand awareness and enhancing sales. However, they also come with their own set of advantages and challenges.


    • Cost-effective: These marketing modules can be very cost-effective, as you only pay for the referrals or sales that are generated through the program.
    • Trustworthy recommendations: When a friend or family member recommends a product or service, it can carry more weight than an advertisement or influencer promotion.
    • Referral marketing and affiliate programs tap into this trust factor and can help build brand credibility.
    • Increased reach: By incentivizing your customers to promote your brand, you can reach a wider audience and potentially attract new customers.


    • Limited reach: Referral marketing and affiliate programs rely on your existing customer base to promote your brand. This means that the reach of these programs may be limited to those who are already familiar with your brand.
    • Incentivization: Providing incentives for referrals and affiliate promotions can be tricky. It’s important to strike a balance between offering enough incentives to motivate your customers to promote your brand while also ensuring that the incentives are not so high that they detract from the authenticity of the recommendation.

How do I implement Referral Marketing and Affiliate Programs?

    • Set clear goals and objectives: Before implementing a referral marketing or affiliate program, it’s important to clearly define your goals and objectives. Are you looking to drive sales, increase brand awareness, or do both?
    • Choose the right incentives: Consider what incentives will be most effective for your target audience. This could be a discount on their next purchase, a free product or service, or even cash rewards.
    • Make it easy to participate: Ensure that the referral marketing or affiliate program is easy to understand and participate in. Provide clear instructions on how to share referral codes or affiliate links, and make it simple for customers to track their progress.
    • Track and analyze results: Use analytics tools to track the success of your referral marketing or affiliate program. This will help you identify what is working well and what can be improved.
    • Continually optimize: Referral marketing and affiliate programs require ongoing optimization to ensure that they are effective. Continually test and refine your approach to maximize the impact of these programs.

Overall, referral marketing and affiliate programs are powerful tools for driving word-of-mouth recommendations and sales. By implementing these programs effectively, you can harness the power of your existing customer base to reach a wider audience and build brand credibility.

Creating and Sharing Content for Digital Word-of-Mouth Marketing

In addition to using social media and influencers, creating and sharing content can also be a powerful way to generate word-of-mouth marketing. This can include user-generated content, online reviews and ratings, and viral marketing.

User-Generated Content (UGC)

User-generated content (UGC) refers to any content created by customers or users of a product or service. This can include reviews, photos, videos, and social media posts. Especially the videos are the most trending content form now a days people prefer to watch and inspire. That’s why many digital marketers focus more on video marketing compaigns by using theseuser generated content. UGC can be a powerful tool for digital word-of-mouth marketing because it is authentic and trustworthy. People are more likely to trust the opinions and experiences of their peers over traditional marketing messages.

Examples of successful UGC campaigns include:

    • Coca-Cola’s “Share a Coke” campaign encouraged customers to share photos of themselves with personalized Coke bottles.
    • Airbnb’s “Night At” campaign allowed customers to stay in unique locations and share their experiences on social media.

Benefits of UGC

    • Builds trust and credibility
    • Provides social proof
    • Creates engagement and interaction
    • Can increase brand awareness and reach

Strategies for Encouraging UGC

    • Provide incentives such as discounts or exclusive access
      Create a unique hashtag to encourage sharing and make it easy to find and track UGC
    • Feature UGC on your website or social media channels to showcase your customers and their experiences
    • Make it easy for customers to share their experiences with your product or service

Online Reviews and Ratings

Another powerful digital version of word-of-mouth marketing is getting online reviews and ratings. They provide social proof and can influence purchasing decisions.

Companies must take note of this and prioritize obtaining reviews from customers as a part of their digital marketing strategy. From Amazon to Yelp, countless online platforms with extensive customer review sections can help potential buyers determine whether or not a product or service is worth purchasing.

According to a survey by BrightLocal, 91% of consumers read online reviews before making a purchase. Customers expect detailed and honest reviews so they can prevent themselves from wasting money. This information gives them an overview of what they can expect to get.


    • Builds trust and credibility
    • Provides social proof
    • Can improve search engine rankings

How to Generate and Manage Reviews and Ratings

    • Encourage customers to leave reviews and ratings by sending follow-up emails or providing incentives
    • Respond to reviews, both positive and negative, to show that you value customer feedback and are committed to improving
    • Use third-party review platforms such as Yelp or Google My Business to collect and display reviews

Viral marketing and Social Sharing

Viral marketing involves creating content that is highly shareable and can quickly spread through social media and other online channels. The idea is to create content that is so interesting, funny, or useful that people can’t help but share it with their friends and followers. When your content goes viral, it can reach millions of people in a matter of hours or days.

Social sharing is the key to viral marketing success because it amplifies your message and gets it in front of people who might not have seen it otherwise. That’s why it’s important to make it easy for people to share your content by including social sharing buttons on your website and blog posts.

Examples of successful viral marketing campaigns include Old Spice’s “The Man Your Man Could Smell Like” campaign and Dollar Shave Club’s launch video.

Strategies for Creating Viral Content

To create viral content, you need to understand your audience and what they like to share. This means you’ll need to do some research and testing to see what types of content get the most shares and engagement.

Some tactics to increase your chances of going viral include creating videos, infographics, and memes that are funny, informative, or emotional. You can also use social media influencers to help spread your message and reach new audiences.

Viral marketing and social sharing are powerful digital tools for getting your message out to the masses. By creating content that people love to share, you can build brand awareness, drive traffic to your website, and generate leads and sales for your business.


    • Increased reach and exposure
    • authentic recommendations from peers


    • Lack of control over the messaging
    • potential for negative comments or reviews

Measuring and Analyzing Digital Word-of-Mouth Marketing

Measuring and analyzing the effectiveness of your digital word-of-mouth marketing efforts is crucial for any business looking to grow online. It helps you understand whether your strategies are working or not.

By analyzing online conversations about your brand, you can gain valuable insights into how customers perceive your products or services, identify areas for improvement, and measure the impact of your marketing campaigns.

So let’s explore the various metrics, tools, and tips you can use to measure and optimize your digital word-of-mouth marketing strategy.

Metrics for Measuring Digital Word-of-Mouth Marketing Success

Some of the most common metrics used to measure the success of digital marketing include:

    • Engagement rate: This metric measures the level of interaction your content receives from your audience. This can include likes, shares, comments, and other forms of engagement.
    • Reach: This metric measures the number of people who have seen your content. The higher your reach, the more people are exposed to your brand.
    • Referral traffic: This metric measures the amount of traffic your website receives from referral sources such as social media or other websites.
    • Conversion rate: This metric measures the percentage of visitors to your website who take a desired action, such as making a purchase or filling out a form.

Tools for Tracking and Analyzing Digital Word-of-Mouth Marketing

There are several tools available that can help you track and analyze your marketing efforts. Some of the popular tools include:

    • Google Analytics: This tool provides valuable insights into website traffic and user behavior, allowing you to track the success of your digital marketing campaigns.
    • Social media analytics: Each social media platform has its own analytics tools that can help you measure engagement, reach, and other metrics.
    • Brand monitoring tools: These tools allow you to track mentions of your brand or products on social media and other online platforms, helping you understand what people are saying about your brand.

Tips for Optimizing your Digital Word-of-Mouth Marketing Strategy

    • Continuously track and analyze your metrics. This will allow you to understand what’s working and what’s not, helping you make informed decisions about your marketing strategy.
    • Encourage customer feedback through surveys or other methods that can help you understand the needs and preferences of your target audience.
    • Identifying and engaging with your key influencers can help you amplify your brand’s reach and build stronger relationships with your audience.
    • Focus on creating high-quality, shareable content. Creating content that resonates with your target audience and is shareable can help increase your brand’s visibility and reach.
    • Experiment with new strategies: Continuously experimenting with new strategies can help you stay ahead of the competition and keep your audience engaged.


In conclusion, digital word-of-mouth marketing has become a powerful tool for businesses to reach their target audience and drive sales. As consumers increasingly rely on recommendations from friends, family, and online communities, businesses need to adapt and embrace new digital strategies.

Some key takeaways from this article include the importance of building strong relationships with customers, leveraging social media and influencer marketing, encouraging user-generated content, managing online reviews and ratings, creating viral content, and tracking and analyzing metrics to optimize your digital version of marketing strategy.

As technology and consumer behavior continue to evolve, the future of digital word-of-mouth marketing is promising. By staying up-to-date on the latest trends and techniques, businesses can continue to harness the power of word-of-mouth recommendations to drive growth and success.


Hire Expert Designers & Developers

Share a brief about your project and get a guaranteed response within 24 hours.

Related Articles

SSGs: Guide to Best Practices for Building Sites

Guide to Static Site Generators

Static Site Generators (SSGs) have become a pivotal technology in web development, known for their simplicity, security, and performance. By pre-building pages, SSGs like Next.js,

Read More