Word-of-Mouth Marketing in Retail: Strategies & Examples (2026)

Imagine a brand you love sends you a free birthday gift in the mail. 

You share it on social media, your friends see it, and they sign up for the same campaign. When they receive their birthday gift, they share it on social media, tell their friends, and recommend others sign up because the service was so great. 

This is word-of-mouth marketing in practice—a retail strategy that convinces existing customers to tell their family and friends about products they’re happy with. 

Word-of-mouth marketing is the most common source of online brand, product, or service discovery. It beats search engines, retail websites, and social media ads. 

But knowing how to incentivize word-of-mouth recommendations and give an experience worthy of sharing can be an elusive strategy for retailers. 

Ready to take advantage of word-of-mouth recommendations? In this guide, we’ll demystify how your retail business can drive revenue using word-of-mouth marketing. 

What is a word-of-mouth marketing strategy?

Word-of-mouth (WOM) marketing happens when a customer’s experience is so positive that they feel compelled to share it, whether that’s in-person or online through social media posts or reviews. It’s a free advertisement from a customer that comes from having a positive experience with your brand.

Unlike traditional advertising, which is a brand talking to a consumer, WOM is one of the most credible and persuasive forms of marketing. Messages that praise a product don’t come from the brand that created them—instead, they come from a customer who’s tried and tested it first-hand. 

Word-of-mouth vs. referral marketing

Word-of-mouth marketing is about creating buzz around your brand or service. It’s organic and not a true promotional strategy because it’s not forced. People naturally talk about your brand because they genuinely want to. 

Referral marketing, on the other hand, is a promotion strategy that encourages current customers to refer your brand or product to new ones. Think of it like word-of-mouth advertising: There is usually an incentive attached to referral programs, such as points in a program, discounts on future purchases, affiliate commission, or cash bonuses. 

How word of mouth spreads online 

Word-of-mouth marketing has evolved as customers spend more time online. They’re discovering new brands through:

• Reviews. Reviews have long been one of the most valuable currencies for any business. The majority (85%) of customers are more likely to use a business after reading positive reviews, with most only being interested in brands with 4.5+ star ratings. 
• Social sharing loops. These happen when a customer has a shareable moment—for example, unboxing a product or sharing a funny experience that happened in-store. They head to social media, where followers see their posts. It’s paved the way for hashtags like #TikTokMadeMeBuyIt; videos with this tag have accumulated more than 30 million views.
• User-generated content (UGC). User-generated content is any image, video, or text posted online by your customers. Not only will it make existing customers feel valued if you share their social media posts on your brand profile, but it’s a powerful motivator in purchasing. More than half of customers say they’re unlikely to buy a product without UGC social proof.

Benefits of word-of-mouth marketing for retailers

Here are several ways word-of-mouth marketing can benefit your business. 

Brand affinity and trust

Most shoppers have developed a filter for glossy billboards and targeted digital ads. Per Forrester, 90% of customers see ads on social media, but just 37% pay attention. It reports similar figures for branded organic content: Only 33% of young adults and 18% of older users trust what they see.

Recommendations from friends and family have the opposite effect. When a neighbor praises a local boutique or a friend shares a link to a pair of boots they just bought, the endorsement carries the weight of a personal relationship. This lowers the barrier to entry for new customers—the vetting process has already been handled by someone they trust.

Because of this, word of mouth is a reliable channel for retailers of any size and age. Pymnts found over 63% of small businesses think WOM is key to their success, and almost three-quarters of older brands cite the strategy as influential in growing their customer base.

Customer loyalty

Word-of-mouth marketing creates a loyal customer base. Shoppers don’t just purchase and forget—they engage with the brand and share their experience with others. 

Gorgias’s data shows that 44% of total revenue and 46% of all orders come from existing customers, despite accounting for only 21% of the average brand’s customer base. 

These people can assist your marketing efforts and bring new customers to your business. They provide the value of sharing a referral, and you save time and money on acquiring new customers.

Social engagement and buzz

An organic word-of-mouth marketing strategy is viral in nature. If you create enough hype around your brand or create a memorable customer experience, it can help your brand go viral. 

At first, word of mouth may lead to only a few sales. But as your brand grows, you’ll see more people start tagging friends in your posts, mentioning you in their Stories or Reels, or talking about your brand on TikTok. Over time, this social engagement and buzz can help your business continue to grow. 

Reaching offline and less-digital shoppers

It’s easy to forget that not everybody shops online. The internet penetration rate is just 73.2% globally, meaning billions of potential shoppers don’t use the web to research, browse, or buy products. Word of mouth helps connect your brand to these consumers. 

How to drive word-of-mouth marketing

Here are seven strategies to drive word-of-mouth for your retail business:

1. Create something buzzworthy
2. Provide quality service and experiences
3. Amplify brand advocates
4. Empower fans and experts
5. Build an active social media following
6. Collect online reviews
7. Become a local thought leader

Word of mouth is undoubtedly a powerful marketing tactic for retailers. Here’s how to develop your own word-of-mouth strategy to trigger positive conversations about your brand, expand your potential customer base, and make more revenue. 

1. Create something buzzworthy

The first thing that comes to mind when you hear “buzzworthy” is a product launch or a big sale. However, there’s a strategy behind viral content that gains popularity through social sharing.

According to a research study by Jonah Berger, the author of Contagious, there are six key factors that drive what people talk about and share:

1. Social currency. People share what makes them look good. Offer experiences worth bragging about—free products, “try before you buy” programs, or live workshops.
2. Triggers. Remind people to share your products by displaying branded hashtags in-store. You could also add QR codes onto paper receipts that take customers to a review page.
3. Emotion. People share things they care about. Go above and beyond to offer a world-class retail experience that competing stores in your local area don’t offer. 
4. Public. The easier something is to see, the more likely people will imitate it. Host public events and share news. Avoid sensitive topics or polarizing opinion pieces or any other content that will turn off readers from sharing. 
5. Practical value. People share useful information to help others. For example, if your audience is made up of wine enthusiasts, create a tasting guide or answer an FAQ about how wine is made.
6. Stories. Share your brand story or stories about your customers using your products. It helps readers envision using your products and can encourage them to share the story in their network. 

2. Provide quality service and experiences

The secret to word-of-mouth marketing is to create something worth talking about—be it products, services, or experiences. If your customers don’t love your products, it’s unlikely they’ll take the time to tell their friends, their family, or people on the internet about it.

Research shows customers are more likely to write about positive experiences than negative ones. But that spans many different sectors in a retail store, from your product to exceptional customer service and visual merchandising.

Do your best to make customers feel happy and satisfied, whether in-store or online:

• Design “Instagrammable” moments like statement walls, photo backdrops, or interactive fitting rooms that naturally encourage UGC. 
• Train sales associates on what a positive experience looks like, how to ask discovery questions, and use techniques like suggestive selling. 
• Create unique and functional in-store experiences for customers. You can create beautiful window displays, leverage visual merchandising, or create helpful and cool retail signage.

💡Tip: Luxury fashion retailer Diane von Furstenberg creates a bespoke experience using unified data inside Shopify POS. Every customer gets a unique profile which store associates, known as personal stylists, consult to personalize the in-store experience.

“One of our favorite Shopify POS features is adding notes to a customer’s profile to store information like their favorite colors, ideal size, or a product they’re excited about from our new collection,” says DVF assistant store manager Joanna Puccio. “Those qualitative insights really help us really make them feel like we’re their personal stylist the next time they shop with us.”

3. Amplify brand advocates

Happy customers are the perfect people to refer products to their family and friends. Encourage them to do so by recognizing and rewarding their brand loyalty.

To find top customers to invite to your ambassador program:

• Dig into retail analytics. Consult your POS data to find shoppers with the highest lifetime value, or filter those who’ve made multiple purchases. 
• Monitor mentions and branded hashtags. Satisfied customers already sharing their experiences might tag your page when they post on social media.
• Use social listening tools. Pick up on conversations shoppers have without tagging your brand with tools like Mention. People who already chat about you without an incentive make for ideal brand advocates. Incentives can supercharge those recommendations.

Once you’ve found VIP customers, reach out with a personalized email. Thank them for their loyalty, then gift them something special to share with a friend, like a plus-one to an exclusive in-store event. This gives them a low-pressure way to introduce new people to your retail store while also getting something for themselves.

4. Empower fans and experts

Empowerment makes customers feel confident in their choices, which can entice them to naturally recommend your retail business to their friends.

The simplest way to do this is by getting customers involved in the product development process. It shows you care about them and their stories and experiences, and that your brand values their feedback.

Three ways to empower fans:

• Collect feedback for new products by sending out post-purchase surveys with tools like Typeform and Shopify Messaging. 
• Livestream with subject matter experts and fans to give them a voice. 
• Host regular Q&A sessions on channels they prefer, such as Instagram Stories with the “poll” or “survey” stickers. 

Asking for feedback is just one part of the equation. Follow up with people who’ve shared their opinions to thank them for their feedback and explain what you’re doing with it. For example, if people say your opening hours are too short, weigh up whether it’s worth extending them. If it is, reach out to everyone who gave this response and invite them to come back with a friend.

5. Build an active social media following

Social networks are superb word-of-mouth marketing channels because they scale. One happy customer who heads to TikTok, for example, can influence thousands of others to buy the same item (depending on their audience size). 

One way to get more word-of-mouth referrals is through building your own social media community. Online communities create a feeling of fellowship around your target audience’s shared interests and goals. They also:

• Promote engagement
• Bring people closer to your brand
• Increase visibility
• Provide inspiration for customers
• Build trust and attract followers 

Take Lively, for instance. Founder Michelle Cordeiro Grant launched the lingerie business as an online store, but later branched into retail with pop-up shops as a way to build stronger relationships with customers.

“We felt it was our responsibility to bring people together physically to demonstrate what the word ‘community’ means … which is human interactions, support, networking, and unlocking that like-mindedness among a group of humans,” Michelle says.

The idea proved so successful that Lively later launched its own retail locations. These stores host community events like DIY classes, dance classes, and entrepreneurial panels for local shoppers.

6. Collect online reviews

Reviews help customers feel they can trust a business. According to Brightlocal’s recent report, 94% of US consumers are open to leaving a review, but just seven in 10 left one within the past 12 months. The majority of them did so because they were asked.

Recent reviews have an impact on whether or not a customer will buy from your business. The same report found 44% of customers care about reviews posted within the last month. This means that old reviews get less attention and have diminishing returns over time. 

What can you do to get customer reviews consistently? The simplest way is to ask. 

Here are some ideas for how you can ask for reviews: 

• Ask for customer reviews in person, over email, or via SMS.
• Add review links to order confirmation emails.
• Add QR codes to paper receipts that take people toward a review page. 
• Train sales teams to always ask for feedback after taking payment in-store.
• Offer incentives—such as entry to a competition or points for a loyalty program—in exchange for reviews on sites like Yelp.

7. Become a local thought leader

Brick-and-mortar retail stores have one big advantage over online-only businesses: They can build a local community presence. Small business owners have a better understanding of their community. They can actively get involved and bring value to the people around them. 

There are several ways to do this, such as:

• Hosting events related to your business (or for charity)
• Participating in, or sponsoring, existing events
• Having a volunteer program or incentive for employees
• Donating to local causes through one-offs or portions of your profits
• Joining community boards or organizations your business could help with (such as arts or music councils, health boards, etc.)

One retailer putting this into action is British activewear brand Tala. Founder Grace Beverley built the entire business on top of a mission to make fashion more sustainable. She posts content on her personal TikTok account to showcase the brand’s products and the stories behind their creation:

How to measure and protect word-of-mouth impact

What to measure 

Word-of-mouth marketing is tricky to measure. New shoppers might hear about you from a friend, see an Instagram post, and then walk in three weeks later. Last-touch attribution models don't show the role word of mouth played in the retail customer journey—so you may be undervaluing what's actually working.

To fix this, place a customer-facing display at the checkout desk or a link in a digital receipt asking, “What brought you in today?” If they tick word of mouth, ask them to name the customer who made the recommendation. You can go back and thank this person, which might encourage them to make more referrals.

Plus, because word of mouth only happens when customers have a positive experience with your business, the following metrics shed light on how likely shoppers are to refer a friend:

• Net Promoter Score (NPS)
• Customer satisfaction score (CSAT)
• Repeat purchase rate
• Customer lifetime value (CLV)
• Social media mentions, including brand sentiment
• Online review rating 

💡Tip: Shopify unifies data from every sales channel, including POS, ecommerce, marketplaces, and social media, to create one source of truth. Create custom dashboards to show the most important metrics to your retail business, or choose from more than 60 prebuilt reporting dashboards to track the impact of WOM marketing campaigns.

How to keep word of mouth credible

Referrals that feel staged don’t just deter new customers from trying your products, they also risk your brand reputation. According to 97% of customers surveyed by Brightlocal, businesses should face punishment for fake reviews. 

Maintain review integrity by:

• Never incentivizing customers to make a positive review 
• Responding to negative reviews instead of deleting them
• Showing a Verified Buyer badge next to the review using apps like Feefo Reviews

There’s also Federal Trade Commission (FTC) guidelines to consider when recruiting ambassadors. If you’re incentivizing people to post, the relationship between your brand and the customer should be clear enough for followers to spot the connection and form their own judgement. 

Here’s an example from Biolage’s collaboration with influencer Allison Kuch, which uses the hashtag #BiolagePartner:

Examples of word-of-mouth marketing campaigns

Casper

Casper is a direct-to-consumer (DTC) company praised for its incredible short-term growth. It sold $20 million in its first 10 months through word-of-mouth and a minimal advertising budget. 

The brand has a fun social media strategy that includes sleep-related articles, fast response times, and gifting events. Alongside high-quality products, those elements work together to create the perfect storm: the willingness for customers to share its products organically.

“Getting customers to engage with Casper was a crucial part of the startup’s strategy from the beginning, because it didn’t have the advertising budget to compete against the mattress giants,” explains Philip Krim, cofounder of Casper.

Sozy

Sozy is a clothing brand on a mission to empower women with soft and cozy clothing. It also aims to make a difference in the world, with 10% of profits supporting survivors of sexual violence. It’s safe to say they are a brand many women can get behind. 

Word of mouth is one of their most effective marketing channels. “It is the only thing that shows what you are building has true value,” says Sozy’s founder Lanai Moliterno. The brand encourages people to naturally spread the word through its ambassador program.

“We offer ambassadors a gift card to join. Once they do, they are usually our best marketers. Our clothing is so soft and flattering that it doesn’t take much convincing for them to talk about it with their audiences. It works so well, we built a dedicated process to grow our ambassador program.”

Sozy’s ambassadors also help provide feedback about new products. They share thoughts on designs, what items they share most, and how their audiences respond to posts. In turn, this helps Sozy create better products for their customers, which helps get the word out naturally and drives more sales. 

Threadless

Threadless is a t-shirt marketplace based out of Chicago and founded in 2003. It helps artists sell their designs for t-shirts and accessories online. 

In its first two years, more than 10,000 members joined the site and sold six figures’ worth of t-shirts—largely through word-of-mouth marketing.

Part of its strategy was competitions. Its founder, Jake Nickell, organically promoted a t-shirt design competition using blog comments and social media posts. Family and friends shared the competition off their own back. 

Thanks to its early commitment to positive word-of-mouth marketing, the company now brings in more than $68 million per year.

XO Marshmallow

XO Marshmallow is no stranger to building buzz and community around their products. Known as “Troop XO,” loyal fans share their love for the brand’s products on social media—even providing feedback on future flavors. 

To do this, the brand:

• Started a “daily moments of joy” series that invited customers to share what they’re grateful for
• Brings back bestselling flavors when customers ask for them
• Shares behind-the-scenes content of running the business—like this video of the sign on their cafée door going wrong

“Our followers are really excited about our product and that word-of-mouth is now word-of-mouth in the social media age,” says Lindzi Shanks, cofounder of XO Marshmallow, in a Shopify Masters interview. “I think that we've done a really good job of creating a community that wants to share our product.”