Let’s talk about Word of Mouth marketing (WOM)—it’s the OG of marketing strategies and still one of the most effective ways to help businesses grow and shine. At its core, WOM is about real people sharing real experiences, and, when they love it, that love will be shouted from the rooftops. It’s beautiful how a tiny little conversation can lead on to a whole series of ones, making your brand all the more visible without the need to tell their families and friends.
Understanding Word of Mouth
Consider this scenario:
Friend 1: “Did you watch that new serial killer movie everyone’s talking about?”
You: “No, where did you see it?”
Friend 1: “On Netflix.”
This simple exchange demonstrates how Netflix leverages Word of Mouth marketing by creating high-quality, binge-worthy content. Their strategy encourages viewers to recommend shows and movies to their network, creating excitement and driving subscriptions. Netflix’s reliance on WOM is a prime example of how impactful this form of marketing can be when paired with great products.
Why Word of Mouth Matters
Unlike ads or influencer campaigns with predictable outcomes (e.g., spend X to get Y), Word of Mouth has this magical, unpredictable vibe. When your customers are doing the talking for you, you save big on advertising and build a reputation that money can’t buy.
Boosting Word of Mouth Referrals
Successful WOM marketing often hinges on making your product or service visible and engaging. Here are some tactics brands use to amplify WOM:
- Encourage Sharing: Apps like Strava allow users to post their running stats on social media, sparking conversations.
- Design for Visibility: Lululemon’s free, stylish checkout bags double as gym accessories, while Apple’s distinctive product designs ensure customers proudly display them.
- Create Unique Experiences: From personalized thank-you notes to surprise freebies, small gestures can leave lasting impressions.
Categories of WOM Marketing Ideas
- Making Customers Feel Special: Personalized gestures like birthday surprises or tailored recommendations show customers they are valued.
- Injecting Humor and Absurdity: Quirky campaigns, such as creating yearbooks for customers’ pets, capture attention and spark conversations.
- Exceeding Expectations: Surprise thank-you calls, unexpected donations to nonprofits, or personalized website audits leave customers delighted.
How a $2.55 Burger Became a New York Sensation Through Word of Mouth
In the crowded food scene of New York City, where premium dining often commands attention, a $2.55 burger from 20G Cafe in Greenpoint, Brooklyn, turned heads—and more importantly, it drove foot traffic. This isn’t just a quirky culinary story; it’s a case study in leveraging word-of-mouth marketing to generate business results.
Creating the Perfect Hook
From a business perspective, pricing the burger at $2.55 was strategic, creating curiosity and making it an irresistible value proposition. It wasn’t just a cheap burger; it was a high-quality product that invited comparison with industry giants like Shake Shack, which is why everyone was talking about it.
Key elements included:
- Product Quality: The burger used grass-fed beef, garlic confit, and Martin’s potato buns, blending affordability with premium ingredients.
- Nostalgia Appeal: Drawing on the concept of old-school diners, the burger tapped into emotional triggers that resonated with customers.
The pricing wasn’t just about breaking even—it was about establishing the brand as a community-centric business. With only a five-cent profit per burger, the real value lay in what came next.
Turning Foot Traffic into Revenue
The genius of the $2.55 burger lies in its ability to bring people into the larger ecosystem of Jubilee Marketplace. While waiting for their burgers, customers explore the grocery store, buying drinks, snacks, or other essentials. This cross-promotion between the cafe and grocery space maximized customer spend per visit.
Key business strategies at play:
- Loss Leader Pricing: The burger acted as a loss leader, drawing people in with a minimal margin while encouraging additional purchases in the store.
- Upselling Opportunities: While the burger itself generated minimal profit, pairing it with drinks, sides, or grocery items boosted revenue.
- Retention Through Quality: Consistent product quality created repeat customers, turning one-time visits into long-term loyalty.
Amplifying Through Social Media
The explosion of interest came when Righteous Eats highlighted the burger, generating over 4 million views on YouTube. This was a textbook example of organic marketing, where content creators amplify a product’s visibility.
How this benefited the business:
- Credibility Boost: Coverage by a respected foodie channel added authority to the product.
- Viral Effect: Word of mouth cascaded through TikTok, Instagram, and other platforms, creating a constant flow of new customers.
- Targeted Reach: The buzz attracted both local and out-of-town visitors, broadening the customer base without additional marketing costs.
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Sustainable Growth Tactics
The burger’s success underscores several key business principles:
- Product-Driven Marketing: Instead of spending heavily on advertising, the business focused on creating a standout product that naturally attracted attention.
- Community Engagement: Pricing the burger affordably made it accessible to a diverse customer base, fostering goodwill and loyalty.
- Operational Scalability: Despite the initial overwhelm from viral demand, the team managed to scale production to meet customer expectations without compromising quality.
Business Insights
The $2.55 burger wasn’t just about feeding customers—it was about positioning Jubilee Marketplace as a versatile business that caters to a broad audience. By using the cafe as a front-end hook and the grocery store as a back-end revenue generator, the business created a mutually reinforcing ecosystem.
Key takeaways for other businesses:
- Leverage Entry Points: Offer an irresistible product to drive traffic and upsell additional services or goods.
- Focus on Margin Mix: Even low-margin products can be profitable when paired with higher-margin offerings.
- Use Social Proof Strategically: Partner with influencers or content creators to amplify reach and credibility.
Word of Mouth remains the most powerful and cost-effective form of marketing. Its ability to create a viral chain reaction makes it invaluable for businesses looking to stand out in today’s competitive market.
Word-of-mouth marketing involves customers sharing their positive experiences about a product or service, encouraging others to try it. It builds trust and creates organic brand awareness.
It builds credibility and trust. When customers recommend a product, it acts as a personal endorsement, leading to higher conversion rates and customer loyalty without extra marketing costs.
Word-of-mouth marketing boosts brand credibility, enhances customer trust, attracts new customers, and improves retention. It’s cost-effective and works better than traditional advertising in building long-term relationships.
