Think about the last time you bought something online. Did you check out the reviews first? Were you scrolling through social media and saw someone raving about a new product? That’s electronic word-of-mouth (eWOM) in action. It’s the digital version of the classic word-of-mouth recommendation, and it’s an incredibly influential eCommerce marketing strategy.
In today’s world, online opinions and experiences carry serious weight, where 88% of consumers trust those online reviews just as much as a tip from a friend. People trust recommendations from friends, family, and even complete strangers when they’re posted in online spaces.
eWOM can make or break a product or company. This blog post will dive into what eWOM is, the different types you’ll encounter, and why you should care as a consumer or a business. We’ll cover real-life examples and the theory behind this powerful marketing force. Ready to explore?
What exactly is electronic word-of-mouth marketing?
eWOM (electronic word-of-mouth) is the digital version of your friend excitedly telling you about a must-try product or warning you of a terrible service experience. It’s an opinion about a product, company, or brand shared online. In today’s highly digitised world, eWOM has largely replaced the traditional word-of-mouth process, taking it to an entirely different level.
eWOM is incredibly influential. A positive review can boost a business’s visibility and sales. On the flip side, negative eWOM can be seriously damaging. The wide reach and enduring nature of online comments make eWOM a force to be reckoned with. Unlike a face-to-face chat, it can be seen by countless people long after it’s initially posted.
Case Study – When eWOM Disrupted the Smartphone Game
When OnePlus launched its first phone in 2014, it was a relative unknown, going head-to-head with giants like Samsung and Apple. They didn’t have a massive advertising budget, but instead, they focused on building a passionate online community.
OnePlus created an air of exclusivity with an invite-only system that built anticipation. They partnered with tech reviewers and influencers, getting their phones into the hands of people who generated excitement online. Plus, they focused on delivering high-end specs at more affordable prices, giving consumers a compelling reason to talk.
The result? Forums buzzed with people discussing OnePlus, unboxing videos went viral on YouTube, and reviewers praised the phones’ performance. Positive eWOM became their biggest marketing asset, fueled by discovery and a desire to be part of something new.
OnePlus quickly disrupted the market. They built a loyal fanbase, and their phones often sold out within minutes of release. Their success showed that eWOM could level the playing field, allowing even smaller brands to compete if they harness its power.
Different Types of Electronic Word-of-Mouth Marketing
1. Many-to-One
A great example of this is Amazon’s marketing strategy, where brands let large numbers of customers write reviews for their products. Think of those star ratings on Amazon, a post getting hundreds of thumbs-up on Facebook, or a website poll. Each opinion contributes to an overall feeling. It’s a quick snapshot of the general sentiment towards a product, service, or idea.
2. One-to-Many
This is where someone takes center stage to share their perspective with a wider audience. It is those in-depth reviews on Yelp, a Twitter thread about a customer service experience (good or bad!), or an influencer endorsing a product. This type of eWOM has the potential to reach many people and goes beyond just a simple “like.”
3. Many-to-Many
This is a word-of-mouth discussion. For example, a forum for photography buffs arguing about the best camera brands, a Facebook group buzzing with parents comparing baby products, or even a live chat on a company website where customers help each other with problems. It’s dynamic, with opinions flowing back and forth.
4. One-to-One
This type of word-of-mouth marketing is like texting a friend, “Should I buy this dress?” or DM-ing someone on Instagram whose style you admire, asking where they got their cool jacket. While less visible, these one-on-one exchanges still influence our decisions, tapping into that age-old trust in personal recommendations.
Why eWOM is a Game-Changer for Businesses
1. Power to the People
eWOM puts consumers in the driver’s seat. No longer do we have to rely solely on what companies tell us. We can compare dozens of reviews, spot those overly positive ones that sound fake, and uncover any hidden downsides. This makes us savvier shoppers, able to find options that truly fit what we want, not just what looks flashy in a commercial.
2. Make or Break for Businesses
eWOM creates a very public reputation game for businesses. Positive reviews are like gold for building trust and attracting customers. On the flip side, a slew of bad reviews can seriously tank a company’s image. Unlike surveys or focus groups, eWOM is out there for everyone to see, and people take it seriously. This forces businesses to step up their game. They can’t hide behind fancy marketing anymore. What’s smart, however, is to use this as an advantage.
3. Sales Rollercoaster
Seeing tons of people loving a product naturally makes other people curious. This can lead to runaway hits, with products flying off online shelves simply due to positive buzz. The scary part for businesses is the opposite is also true; really bad reviews can spread like wildfire, sinking sales fast.
4. It’s About Relationships
eWOM creates a two-way conversation. Companies aren’t just talking to us anymore. Engaged customers leave feedback, and smart businesses listen and respond. Addressing a negative review with care can turn a disappointed customer into a loyal brand advocate. Over time, eWOM helps create passionate communities around brands, where people share tips, excitement, and build connections with each other and the company.
5. Influencers: The New Tastemakers
eWOM paved the way for influencer marketing. Bloggers we love, vloggers we follow, even that Instagram account dedicated to finding the best pizza – their recommendations hold weight! The key is authenticity; audiences can sense if the praise is genuine. This shifts marketing away from pushy sales tactics and towards building relationships with influential voices who resonate with a brand’s target customer.
6. Buyer Beware, But Also…Business Beware
It’s important to acknowledge that eWOM isn’t a perfect system. Fake reviews, sadly, exist and can manipulate perceptions. This forces consumers to be smarter, looking for reviews that sound genuine and offer specific details. The challenge for businesses is that they can’t just dismiss every negative review as fake. eWOM means ignoring problems is no longer an option; companies need to adapt and use even harsh feedback to improve what they offer.
The Psychology Behind eWOM
The urge to leave a review after a fantastic experience or passionately steer others away from a terrible product isn’t just about the product itself. It reveals fundamental aspects of human psychology that drive our desire to share opinions online.
Firstly, we’re influenced by social proof. Seeing others praise a product or service makes us more likely to consider it ourselves and vice versa. This is our brains seeking shortcuts within a complex marketplace of choices.
Secondly, eWOM often stems from a genuine desire to help others. We might offer a detailed review to save someone hassle or frustration or to share a positive experience. Conversely, a scathing review might serve as a way to vent or seek justice after a negative experience.
Finally, eWOM fulfills a need for self-expression. Reviews allow us to share opinions, demonstrate our expertise, or even express our sense of humour – we become online critics with a potential audience.
Understanding these motivations is key to grasping why eWOM wields so much influence. It reminds us that our choices are shaped by social factors, emotional drives, and the simple desire to be heard. As consumers, awareness of these forces helps us make informed decisions rather than blindly following the crowd.
Conclusion
eWOM has forever altered how we make choices, seek out experiences, and build reputations. Whether you’re a shopper carefully weighing reviews or an entrepreneur aiming to earn reviews, understanding eWOM is essential for both. It’s a source of power for both consumers and businesses.
For businesses, eWOM is a direct feedback loop and an opportunity to shine. Embrace it, respond thoughtfully, and use it to fuel your growth.
Speaking of growth, if you run an eCommerce business, the impact of eWOM goes far beyond the initial sale. Every shipping delay, every confusing tracking update, and every frustrating return impacts how likely a customer is to leave a review or warn their friends away. That’s why having a powerful shipping and logistics platform like NimbusPost is a game-changer. Its streamlined processes, pan India carrier network, and focus on customer experience translate directly into a reputation boost powered by positive eWOM.
FAQs
Is electronic word-of-mouth a theory?
No, electronic word-of-mouth (eWOM) itself is not a theory. It’s the digital evolution of traditional word-of-mouth—the act of sharing opinions and experiences about products, services, or brands. However, various theories from the fields of psychology, sociology, and marketing help us understand the motivations behind eWOM and the impact it has on consumer behaviour.
What is the difference between WOM and eWOM?
Traditional word-of-mouth (WOM) is limited to spoken recommendations between friends, family, and acquaintances. Electronic word-of-mouth (eWOM) is the same concept amplified – it includes online reviews, social media discussions, blogs, and any other form of opinion or recommendation shared digitally.
What are the three stages of eWOM?
The three stages of eWOM are:
- Creation: An individual generates and shares an opinion or experience online.
- Exposure: The eWOM reaches a wider audience through social media, review sites, etc.
- Evaluation: Consumers encounter the eWOM and consider it when making their decisions.
