Technology
How can word of mouth be leveraged as a marketing strategy with an extremely low CAC?
20 Feb 2023
In the following sections, we will try to understand how word of mouth can be leveraged as a marketing strategy with an extremely low CAC. Further, we will also discuss the importance of word of mouth for your brand..





  • Increases referral rates: Brands that manage WoM have 3-4X higher referral rates vis-à-vis brands with weak emphasis on WoM marketing
  • Reduces pressure on customer service / care: When customers speak highly of a brand, customers are more understanding in case of issues
  • Improves outcomes in performance marketing initiatives: Surprisingly, brands with strong WoM presence have better outcomes in performance marketing budgets and higher efficiency of spend
  • Significantly reduces CAC: WoM is organic, free and creates a lasting brand presence
Overall, WoM is able to build a solid brand equity that also reflects in retail investor sentiment!

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