Word-of-Mouth advertising is an unpaid form of promotion in which a satisfied customer tells other people how much they like a business, product or service.
Word-of-Mouth Advertising is important for every business, some studies claim that it is the most trustworthy for of marketing. Each customer that recommends a product or service has the potential to steer dozens of new ones to said business.
Word-of-Mouth Advertising is known to be the most credible form of advertising due to a concept called social proof: because a person puts their reputation on the line every time they make a recommendation and that person has nothing to gain but the appreciation of those who are listening, people tend to trust personal recommendations up to 3 times more than ads.
Research suggests that Word-of-Mouth is triggered when a customer experiences something far beyond what was expected. Marketers often try to take charge of Word-of-Mouth by offering incentives and rewards in return for referrals. This is often also referred to as Customer Influence Marketing.