Need a dentist, an attorney, or maybe a good restaurant? Chances are you won’t start your search by going directly to the yellow pages. Instead, we all ask friends, family, and colleagues—the people we trust—for their recommendations.

Personal referrals are the number-one way consumers make decisions about the companies with which to do business. Nearly 80 percent of those polled in a Nielsen Global Survey ranked recommendations from other consumers as the most credible source for product information. 

Such word-of-mouth marketing is one of the most powerful communication tools an organization has, and the least costly way to advertise. It’s getting existing customers to recommend your company and its products, and building an even greater network of referral sources. It’s generating a positive buzz that leads to increased sales.

By some estimates, almost 2/3 of purchasing decisions are made based on word of mouth, again proving just how compelling this form of promotion can be.

What’s the good word?
There are dozens of marketing techniques that can encourage conversations about your products and services, and a wide variety of factors can trigger recommendations by consumers. People who share product information are often inspired to do so by various forms of marketing and media they encounter—by things they read in magazines and in newspapers, and by ads they see and hear.

Therefore, creating word-of-mouth marketing campaigns should not replace conventional advertising efforts. Instead, the objective is to integrate word-of-mouth strategies into your overall marketing plan as a complement to more traditional efforts.

There are two key elements to any good word-of-mouth marketing strategy. The first is having satisfied customers and making it easier for them to talk about your company. There’s no substitute for good products and service, and satisfied customers are your best advertisements. Create a meaningful conversation with your most loyal customers, and then support them in ways they can develop an even broader social network.

The second key element is authenticity. Word-of-mouth marketing must be based on the honest opinions of real people. Those on the receiving end of recommendations are only impressed by advice given by true brand customers.

At the same time, distrust and criticism can be shared just as quickly and easily as recommendations. Faking testimonials and using artificial word-of-mouth tactics are considered dishonest and will result in a speedy backlash.

Here are four positive word-of-mouth strategies that can form a marketing foundation to build upon.

Support and encourage communications. Develop tools that make it easy for customers to tell others about your products or services. These can include online forums and feedback tools. Encourage customers to tell true stories about their brand experiences and create ways those stories can be quickly passed along to others (newsletters, brochures, blogs, message boards, video messages, etc.).

Give people something to talk about. Create valuable or interesting information that can be easily shared or forwarded, including special offers in e-mails or on your Website. Unique advertising, noteworthy PR coverage, or viral videos can also generate widespread conversations, as can products that have word-of-mouth-worthy elements and features built right in. 

Create evangelist programs. Every company has super fans. Target those loyal customers who are already passionate advocates, and reward them with recognition, support, gifts, or discounts. Recruit new advocates and educate them further about the benefits of your products and services. Then encourage them to spread the word.

Listen and respond to feedback, especially complaints! Companies must regularly survey customer opinions, track satisfaction levels, and promptly address negative issues. Problems and complaints can be real buzz kills since 85% of unhappy customers don’t hesitate to share their bad experiences. A speedy response is vital to preventing negative word of mouth from spreading, and can even turn a negative situation into positive word-of-mouth buzz.