Flashback warning: How many of you remember the Faberge Organics shampoo commercial that was all over the place in the late 70s? The one where a woman tells two friends about the shampoo, and they tell two friends, and so on, and so on…?
Decades later, this commercial still demonstrates cleanly and quickly the power of word-of-mouth marketing.
Flash forward: What if brands could figure out how to proactively harness the power of word-of-mouth marketing? What if—instead of badmouthing by consumers—we could harness the power of the consumer's word in brandmouthing?
Think about it. Brands such as Apple, Harley-Davidson, Starbucks, Krispy Kreme, and Prкt A Manger were built on the power of word-of-mouth referrals. No large advertising budgets there!
The brands relied on the consumers who experienced the brand to go forth and preach and convert the masses. And based on the track record of those companies, I would say they did so quite successfully.
Starbucks spent only $10 million on brand recognition, according to Chuck Donofrio of Carton-Donofrio. The UK Internet bank First Direct is said to have had more than 80% of its customers come from referrals.