Did you know word-of-mouth (WOM) marketing could boost your credit union’s membership by up to 54%? If member growth is a key part of your strategy, focusing on activities and experiences that generate word-of-mouth is essential. For smaller credit unions with limited resources and budgets, word-of-mouth is like gold.
What is word-of-mouth marketing?
Word-of-mouth (WOM) marketing is the informal exchange of information about a product, service, or brand between people who know each other, such as family, friends, colleagues, and acquaintances. With the rise of social media and other digital communication channels, WOM has become even more important. It’s free advertising and promotion triggered by positive experiences.
Word-of-mouth marketing can be encouraged through different publicity activities or by delivering opportunities that encourage people to share their excitement with others. Also referred to as “word-of-mouth advertising”, WOM marketing can include social media posts, press releases, and blogs.
How is word-of mouth marketing different from traditional referrals?
Word-of-mouth marketing differs from traditional word-of-mouth referrals because it is the result of intentional efforts by an organization, such as promotion, encouragement, or other influences, often referred to as “seeding.”
For instance, when someone has an exceptional experience at a restaurant or with a product and shares it with everyone they know, it is an example of word-of-mouth marketing. Often, word-of-mouth marketing does not end with the first interaction; it tends to snowball into further discussions.
What are the benefits?
- Recommendations and referrals. According to research company Nielsen, 92% percent of people say they trust recommendations from friends and family over all forms of marketing.
- It doesn’t cost much. WOM marketing can be five times more effective than paid advertising. By creating excitement, your members market and advertise for you.
- It is easy to execute. All it takes is a conscious effort and focus to create exceptional experiences and excitement.
- Younger demographics rely on it for decision making. If you are trying to add younger members, this is the best way to do it.
- Your brand becomes stronger and more focused. By involving your staff in creating and delivering word-of-mouth marketing, everyone understands their roles and the importance of these activities.
How can you implement word-of-mouth marketing at your credit union?
There are a few activities that can be crucial in creating effective WOM marketing:
- Build relationships. The key to effective word-of-mouth marketing is to build strong relationships with your members. Invest the time and resources to build trust, provide value, and be responsive to their needs. Your members want to know you hear and value them—show it.
- Encourage advocacy. Once you have established a strong relationship with your members, encourage them to become advocates for your credit union. This can be done through referral and/or incentive programs, testimonials, and other forms of user-generated content.
- Leverage social media. Social media is a powerful tool for amplifying word-of-mouth marketing. Encourage members to share their experiences on social media and engage with them to build a sense of community around your credit union.
- Deliver exceptional member service. Providing exceptional member service is a crucial aspect of word-of-mouth marketing. Members are more likely to recommend your credit union if they have had a positive experience with your member service team. This means providing timely and personalized support, being responsive to member feedback, and going above and beyond to meet their needs.
- Partner with influencers. Partnering with relatable influencers who have a strong following in your community or among a particular demographic group can help to amplify your word-of-mouth marketing efforts. These influencers can help reach a wider audience and provide valuable endorsements for your credit union.
Ready to strike gold? ⛏️
At Aux, we’re experts in crafting effective marketing strategies for smaller credit unions. Our Marketing Services team can help you develop a word-of-mouth marketing plan that fits your budget and delivers results. Schedule a time to chat with our team and we’ll explore how we can support your goals!
